The Dynamics of Cogeneration or "The PURPA Ameoba"

Abstract

PURPA legislatively removed obstacles that had previously served as disincentives to the development of cogeneration. As a result, projects that met certain fuel efficiency standards and other criteria could now theoretically move forward. Because of a number of institutional and technical reasons, the nature of the cogeneration industry has undergone significant changes during its brief life span.

Since the passage of PURPA, the entire cogeneration situation on all fronts (the Utility commissions, utilities, and cogenerators) can be characterized as very dynamic. State Utility Commissions are struggling to implement rational policies to deal with the very complex matrix of issues and concerns. Utilities attitudes have changed as they recognize the inevitability of cogeneration and attempt to integrate lit into their system. Cogenerators approach to projects have undergone changes in response to economic realities and the developing policies of the Commissions and the utilities.

Past and present trends in the dynamic development of cogeneration are identified in this paper land the reasons for their existence are examined. An understanding of the basic reasons for these trends helps provide insight into where the industry may be headed in the future.