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Cogeneration and coal: How soon, how much, how big

Journal Article · · Coal Min. Process.; (United States)
OSTI ID:7014345

Cogeneration refers to the simultaneous production of steam and electricity: steam for industrial use and electricity for the sequential use of that steam. The cogeneration business exists for five basic reasons. Many of the central coal-fired utility plants have efficiencies of 35-40%. Cogeneration facilities on the other hand, have often times achieved efficiencies in excess of 50%. Secondly, there is less financial risk. We all know some of the capital risks associated with building a major power plant. Cogeneration offers utilities electrical power without them having to put their own capital at risk. Third, it offers the industrial customer lower and more predictable costs. This is particularly important as retail rates around the country continue to increase. Fourth, environmental reasons. Because of the increased efficiency of cogeneration, it allows more useful output for a smaller amount of pollutants. So environmentalist's attacks will encourage more cogeneration over time. And finally, the business exists for reasons of artificial incentives, several of which were promulgated in the 1978 Public Utility Act (PURPA). These include special tax credits (most of which destined to expire with tax reform) and several other provisions which make it quite favorable for cogeneration facilities to be built.

Research Organization:
NERCO Pacific Generation Services
OSTI ID:
7014345
Journal Information:
Coal Min. Process.; (United States), Journal Name: Coal Min. Process.; (United States) Vol. 23:11; ISSN CMPRB
Country of Publication:
United States
Language:
English