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Distributed Energy Resources (DER)

Combined Heat and Power (CHP) | DER Road Shows (for local code officials)
Power Parks | Articles | Energy Home


As part of debates on electricity reliability, Institute staff are examining policy options to help develop and deploy technological innovations such as DER. The average efficiency of the U.S. electricity-generation system has been stagnant over the past several decades, but the potential gains from currently-available technologies are substantial.  Therefore, innovation-based electricity reforms could remove the numerous legal, regulatory, and perceptual barriers that block the introduction of innovative energy technologies.

DER includes distributed power, heating, cooling and related technologies and electric and thermal storage and demand management.  It includes energy-efficient technologies and renewable energy applications.

The Institute identifies barriers to energy-efficient technologies and applications like combined heat and power (CHP) and other forms of clean distributed generation. The Institute also plays an integral role in the Department of Energy’s Industries of the Future (IOF) program, working with states and industries on integrated approaches to manufacturing modernization that focus on productivity as well as energy efficiency. DER is one facet.

Institute staff see the integration of energy-efficiency into the older manufacturing plants as well as new developments as a means for the region to keep up with, and potentially become, a leader in the global economy.  This is through the energy savings (cost and supply), productivity increases, and lowered emissions that can be realized through innovative clean energy technologies and applications.

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Combined Heat & Power (CHP)

Combined heat and power (CHP) technologies produce both electricity and steam from a single fuel at a facility located near the consumer. These efficient systems recover heat that normally would be wasted in an electricity generator, and save the fuel that would otherwise be used to produce heat or steam in a separate unit.

Noting that Northeastern and Midwestern states enjoy few energy resources, the Northeast-Midwest Institute and Coalitions have advanced technologies and practices that enable the region's residences and businesses to use energy efficiently.  In that regard, the Institute in late 1998 helped form the U.S. Combined Heat and Power Association.  Institute staff served as conference coordinator for USCHPA's 2005 Policy Summit. The Institute is also part of the CHP Team headed by the Department of Energy that meets regularly to address policy and technical issues facing CHP.

Background on the CHP Initiative

DOE and EPA have set forth a goal of doubling the amount of CHP capacity in the U.S. by 2010. The intent of the goal is to increase the efficiency of the nation's power generation system by insuring that at least 46 GW of electricity generation capacity added over the next 10 years comes from new CHP plants. Most energy forecasts call for CHP additions of 4 GW or less over the next ten years.

A CHP Initiative was created with the Department of Energy and the Environmental Protection Agency to raise awareness of the energy, economic and environmental benefits of CHP and to highlight barriers that limit its increased implementation. The Initiative supports a range of activities including regional workshops, industry dialogues and development of educational materials.

In 2001, as a follow-up to recommendations to promote the use of combined heat and power in President Bush's National Energy Policy Report, EPA joined with 17 Fortune 500 companies, city and state governments and nonprofits in Washington, D.C. to announce the EPA Combined Heat and Power Partnership (CHPP), a more efficient, clean and reliable alternative to conventional electricity generation.

CHP Fact Sheets

CHP Reports

An expansive list of CHP Reports is on the USCHPA website, under "Papers & Articles."

General CHP Presentations

For more detailed presentations from Capitol Hill briefings, go to the NEMW Congressional Coalition Energy Site

Additional CHP Presentations are available at the USCHPA web site, Presentations Page.

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Power Parks

Power Parks are an integrated "systems approach" to delivering power when and where it is needed. These systems are designed to be more energy efficient and environmentally sound by utilizing far less fuel to generate the same or better power than any previous central power generation or delivery system. Some compare this change to that experienced in the computer industry with the transition from solely relying on main frames to greater reliance on laptops, or with energy, from solely relying on central power plants to a greater reliance on DER technologies.

A distributed energy resource (DER) portfolio often found in the Power Park design concept includes both renewable and fossil energy generation, storage and energy efficiency technologies. Many of these innovative energy technologies alone and in hybrid configurations (typically pairing an intermittent renewable with conventional generation), are found in applications, such as combined heat and power (CHP), supplying power, both thermal and electrical, in grid and off-grid markets.

Developing old or abandoned industrial sites is a critical "smart growth" strategy for economic development in urban areas. Smarter use of resources in expanding suburban areas is also critical. In order to provide energy consumers valued-added solutions, attract new industry and create jobs, there is an essential need to provide reliable, energy efficient power while maintaining a sustainable environmental quality of life.

Power Parks could play an integral role in a restructured energy marketplace. Customers demand solutions based on power quality and reliability. DER technologies are cleaner, more efficient, more environmentally sound, and as deployed in Power Parks can improve our energy management opportunities in both the near and long term.

Power Parks and Brownfields

The National Energy Policy Development Group Report recommends that the President direct the Administrator of the Environmental Protection Agency (EPA) to work with local and state governments to promote the use of well-designed combined heat and power (CHP) and other clean power generation at brownfield sites, consistent with the local communities' interests. The EPA will also work to clarify liability issues if they are raised at a particular site.

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Productivity and Innovation

Institute staff have advanced an integrated approach to manufacturing modernization that focuses on productivity as well as energy efficiency.  For instance, they work closely with manufacturers, state officials, and utilities in several states.  With Ohio's Department of Development and Environmental Protection Agency, for instance, they published a guidebook for Ohio-based manufacturers.  With the New Hampshire Governor's Office of Energy and Community Services, they are helping to train high school students to provide energy efficiency audits to small businesses.    

The Institute -- in partnership with the Metal Casting Center, ComEd, and North Business and Industry Council -- developed an industrial efficiency pilot program targeting metal casters in the Chicago area.  It is working with the New Hampshire Governor's Office and the Business and Industry Association on an initiative designed to measure and promote energy efficiency and waste reduction among New Hampshire manufacturers.  Moreover, they are cooperating with the California Energy Commission, Pacific Gas & Electric, the Electric Power Research Institute, and the California Manufacturing Association to hold workshops on manufacturing technologies and financial options.

In addition to numerous articles, Institute staff have written Utilities and Manufacturers: Pioneering Partnerships and Their Lessons for the 21st Century (99 pages), describing the wide-ranging benefits that can be gained from utilities and manufacturers working together, Financing Manufacturing Efficiency and Growth: A Manufacturer's Guide to State and Federal Resources (334 pages), as well as Implementing Industrial Energy Efficiency (34 pages).

The Northeast-Midwest Institute works with the U.S. Department of Energy in its Inventions and Innovations Program to help inventors and innovators commercialize efficient and productive technologies.  The Institute also works closely with State Industries of the Future (IOF) Programs to develop strong state-industry partnerships in energy efficiency.  The Institute has organized conferences in Albany, New York, and Cleveland, Ohio, New Hampshire, Massachusetts and more.

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Articles

  • The Electricity Journal, November 2005. "From Edison to Enron." Kenneth Lay's secret partnerships and deceitful accounting certainly hurt Enron's investors, customers, and employees and tarnished his reputation, even if he's not found guilty of any crime when he goes to trial in January. Yet like Samuel Insull a century before him, Lay's trial probably won't stop the revolution he advanced within the power industry.
  • Issues in Science and Technology (the quarterly journal of the National Academies of Science), Winter 2006. "Yes, in My Backyard: Distributed Electric Power." Clean, efficient, and reliable small-scale generators are ready for action if we can clear away the regulatory barriers.
  • Northeast-Midwest Economic Review, Fall 2005. "Let Energy Innovation Thrive." Describes how modern technologies -- if not blocked by outdated policies -- can bring innovation and efficiency to the electricity industry.
  • Cogeneration and On-Site Power Production, January-February 2006. "The Need for Electricity Innovation." Outlines how America's electricity generation and distribution system is outdated, overloaded, and wasteful. A policy revolution is needed to encourage innovation and establish fair market rules.
  • Federal Reserve Bank of Chicago, February 2006. "Innovation in Electric Power?" Description/blog of Richard Munson's talk at the Federal Reserve Bank of Chicago.
  • Dialogue, March 2006, Journal of the U.S. Association of Energy Economics. "Let Electricity Innovation Thrive."
  • On Point. E&E TV, May 2006. After a massive blackout hit the Northeast in August 2003, lawmakers and energy experts called for sweeping changes to U.S. energy policy. But did last summer's energy bill adequately address the problem? And what actions should the Federal Energy Regulatory Commission take to prevent future power outages? During today's OnPoint, Richard Munson, author of the book "From Edison to Enron: The Business of Power and What It Means for the Future of Electricity," answers these questions and looks at innovations happening at the state level.
  • The Abell Report, May 2006. "Maryland's Electricity Opportunity." Modern technologies could increase electricity reliability, enhance consumer choices, and reduce pollution.  Click here to read the longer report, "Maryland's Electricity Opportunity:  How to Fix the Power Breakdown and Pave the Way to Innovation, Efficiency, and Competitive Rates."
  • Baltimore Sun, June 4, 2006.  "Maryland Needs an Energy Overhaul."
  • Northeast-Midwest Economic Review, Spring 2006.  "Electricity After Insull."  Market rules need to enable an array of innovative electricity technologies to compete fairly.
  • Smart Grid Newsletter, July 2006.  "Why a Modern Grid is Essential to Modern America."
  • Management Quarterly, a journal of the National Rural Electric Cooperative Association.  Summer 2006.  "Electricity After Insull."
  • Spark, the on-line gateway for readers of Public Utilities Fortnightly magazine.  August 2006. "Environmentalists Stymie Electricity Efficiency and Innovation."

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