Restructured Electricity Markets Offer Increased Complexities… and Opportunities… For COGENERATION

Abstract

ABSTRACT Electric industry restructuring has complicated the decisions associated with investing in and operating cogeneration facilities. On the other hand, it is starting to provide the opportunity to genuinely add value by allowing market signals to help optimize both the power system and the cogeneration facility. It is important to look beyond existing tariffs to the underlying physical requirements. If the cogeneration facility can be designed and operated in a way that benefits both itself and the power system, tariffs can likely be changed to compensate it for its actions.