November 2014

ORNL Report

Using Cost-Effectiveness Tests to Design CHP Incentive Programs

By:
Tidball, Rick
Publication Date:
November 2014
View DOI Listing:
https://doi.org/10.2172/1185678

Abstract

This paper examines the structure of cost-effectiveness tests to illustrate how they can accurately reflect the costs and benefits of CHP systems. This paper begins with a general background discussion on cost-effectiveness analysis of DER and then describes how cost-effectiveness tests can be applied to CHP. Cost-effectiveness results are then calculated and analyzed for CHP projects in five states: Arkansas, Colorado, Iowa, Maryland, and North Carolina. Based on the results obtained for these five states, this paper offers four considerations to inform regulators in the application of cost-effectiveness tests in developing CHP programs.