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U.S. Department of Energy
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Stable buyback rates spur retail displacement cogeneration

Journal Article · · Energy User News; (United States)
OSTI ID:6152146

There is a growing disparity between the retail cost of electricity and the buyback rate from cogenerators because of an increasing number of new nuclear plants entering utility rate bases and declining natural gas costs. The economics of future cogeneration projects in many areas of the country will need to be recalculated and more users will size cogeneration projects to accommodate on-site electrical needs rather than building plants designed to sell power to a local utility. Buyback rates are also affected by new plants because they increase a utility's capacity portion of its avoided cost, and cogenerators may encounter increased opposition from utilities with excess generating capacity.

OSTI ID:
6152146
Journal Information:
Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 11:2; ISSN EUSND
Country of Publication:
United States
Language:
English