Will commercial cogeneration come out of the closet

Technological developments, market changes, and the financial incentives of the Public Utility Regulatory Policies Act (PURPA) offer utilities a chance to revolutionize power production by encouraging on-site cogeneration. Cogeneration not only improves efficiency and levels peak demand of utilities, but it can postpone and even avoid the costs of new capacity. Despite some skepticism left over from earlier total energy efforts, the economics is promising for some small-scale users because of the development of induction generator packages that require less engineering. The constraints for both commercial and industrial users include capital needs, the uncertainty of environmental regulations, and occasional resistance from utilities. A consistent thermal baseload is often the prime incentive rather than electrical power, but future gas and electric rates will be a significant factor. The future for on-site generation depends on how well utilities and users cooperate to make the economics mutually beneficial. 1 figure. (DCK)