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Cogeneration Markets: An Industry in Transition
Abstract
The year 1986 saw three fundamental changes in the character of development of cogeneration on the U.S. Gulf Coast. First, numerous large projects were cancelled, delayed, or drastically down-sized during 1986. Most capacity reduction or delay was accountable to very large, multiple gas turbine combined cycle systems, including much more electric generating capability than was matched with or needed to serve a useful process steam demand. Second, previously initiated projects designed wholly or largely to supply legitimate thermal demands generally sent forward. Third, there was a threefold increase in wheeling of cogenerated electricity out of HL&P’s service area to the service areas of other utilities. All of these effects are traceable to rapidly declining rates at which HL&P purchases electricity and to increased demand for electricity by some other utilities. These trends imply a future for cogeneration in the HL&P service area characterized by construction of small projects intended to serve plant internal thermal and electrical loads only and/or development of a few relatively large projects for sale to other electric utilities.
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Citation
Breuer, C. T. (1987). Cogeneration Markets: An Industry in Transition. Energy Systems Laboratory (http://esl.eslwin.tamu.edu). Available electronically from https : / /hdl .handle .net /1969 .1 /92846.