End of cogeneration

Journal Article · Mon Sep 01 04:00:00 EDT 1986 · Cogener. Small Power Mon.; (United States)

OSTI ID:7140910

Spiewak, S

Changes in the tax treatment of cogeneration and alternative energy producers under the Tax Reform Act will not likely help utilities develop new capacity, but will probably end cogeneration's dominance of new power plant construction. Financial incentives to develop cogeneration to improve energy efficiency have become almost irrelevant as oil prices fell. The driving force for new cogeneration facilities today is the need for more capacity rather than economic benefits. Economics still do not favor investment by utilities in large plants, a situation which is moving utilities away from the avoided cost concept toward competitive bidding by cogeneration suppliers. The new concept of a level playing field in which non-qualifying and qualifying facilities must compete may be the end of cogeneration, but the beginning of a more rewarding unregulated power generation market.

• OSTI ID: 7140910
• Journal Information: Cogener. Small Power Mon.; (United States), Journal Name: Cogener. Small Power Mon.; (United States); ISSN CSPME
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000 -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603* -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
COGENERATION
COMPETITION
DEUS
ELECTRIC POWER
ENERGY SYSTEMS
FINANCIAL INCENTIVES
LAWS
MARKET
POWER
POWER GENERATION
POWER PLANTS
STEAM GENERATION
TAX LAWS
TAXES