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Earning contract capacity payments for cogeneration plants

Journal Article · · IEEE Trans. Ind. Appl.; (United States)
Cogeneration of electricity by plants providing process heat can provide utilities with additional capacity during periods of high system load. Utilities are employing incentive payments to encourage high availability of cogenerated power during these periods. However, the details of the incentive are important. An example from an actual negotiation shows how a poorly designed incentive can cause serious financial losses to the cogenerator and at the same time bring no benefit to the utility, and how it can be changed to make it mutually beneficial.
Research Organization:
Bechtel Western Power Corp., P.O. Box 3965, San Francisco, CA 94119 (US)
OSTI ID:
5157210
Journal Information:
IEEE Trans. Ind. Appl.; (United States), Journal Name: IEEE Trans. Ind. Appl.; (United States) Vol. 1A-23:4; ISSN ITIAC
Country of Publication:
United States
Language:
English