Cogeneration Facilities

To distinguish new cogeneration facilities which will achieve meaningful energy conservation from those which would be "token" facilities producing trivial amounts of either useful heat or power, the FERC rules establish operating and efficiency standards for both topping-cycle and bottom-cycle NEW cogenera-tion facilities. No efficiency standards are required for EXISTING cogeneration facilities regardless of energy source or type of facility. The following fuel utilization effectiveness (FUE) values—based on the lower heating value (LHV) of the fuel—are required from QFs.

• For a new topping-cycle facility:

— No less than 5% of the total annual energy output of the facility must be useful thermal energy.

• For any new topping-cycle facility that uses any natural gas or oil:

— All the useful electric power and half the useful thermal energy must equal at least 42.5% of the total annual natural gas and oil energy input; and

— If the useful thermal output of a facility is less than 15% of the total energy output of the facility, the useful power output plus one-half the useful thermal energy output must be no less than 45% of the total energy input of natural gas and oil for the calendar.

For a new bottoming-cycle facility:

• If supplementary firing (heating of water or steam before entering the electricity generation cycle from the thermal energy cycle) is done with oil or gas, the useful power output of the bottoming cycle must, during any calendar year, be no less than 45% of the energy input of natural gas and oil for supplementary firing.

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