PolitickerNJ Wire Feed
CHIVUKULA MEASURE TO INCENTIVIZE COMBINED HEAT & POWER ADVANCED BY ASSEMBLY PANEL
Legislation Would Set Up Alternative Energy Portfolio Standard & Certificate Program
(TRENTON) Legislation sponsored by Assembly Utilities Chairman Upendra J. Chivukula to incentivize the development of combined heat & power (CHP) by setting up an alternative energy portfolio standard and certificate program, was advanced today by an Assembly panel.
The Assembly Utilities panel voted in favor of the measure (A-1384) intended to power up the state's development of cleaner and more efficient power plants.
Chivukula's measure would require that power suppliers purchase a certain amount of the electricity they supply to customers each year from CHP plants. Under the bill, a minimum of five percent of New Jersey’s electricity would have to come from CHP facilities by the twelfth year of the program.
Combined Heat & Power plants produce electricity and heat simultaneously, a technology that can deliver big savings on utility bills for facilities that use a lot of thermal energy.
"Combined heat and power plants that can fuel efficiency up to 80 percent by capturing and recycling heat manufactured in the generation of electricity, need to be incentivized to power up our state's source of cleaner and more efficient energy," Chivukula (D-Somerset\Middlesex) said.
"Unlike solar or wind which are intermittent, CHP provides 24x7 power to the grid and in the case of hurricanes like Sandy, can operate like a micro grid and continue to provide power during emergencies. As we upscale to renewable, it is necessary to have generation reserves to keep the PJM grid balanced," Chivukula added.
New Jersey is part of the PJM (Pennsylvania, Jersey and Maryland) Interconnection, the world's largest competitive wholesale market headquartered in Valley Forge, Pennsylvania, which coordinates the movement of electricity in all or parts of 13 states and in the District of Columbia. Seven hundred companies are members of the Regional Transmission Organization (RTO) which serves 54 million customers across 56,350 miles of transmission lines and has 167,000 megawatts of generating capacity.
The state's Energy Master Plan calls for 1,500 megawatts of CHP by 2020, a target not likely to be met without financial incentives. Under Chivukula's measure, CHP plants would be granted financial credits for the power they produce, which would have to be purchased by power suppliers. If enough credits are not available, the suppliers would be required to make a compliance payment to the State.
The measure would direct the Board of Public Utilities (BPU) to establish regulations directing each electric power supplier and each basic generation service provider to obtain a certain percentage of the kilowatt hours sold in this State from qualified alternative energy generating facilities. The legislation would also set up an alternative energy portfolio standard and certificate program that would reward developers of combined heat and power facilities with incentives similar to the ones currently in place for New Jersey's solar industry.
The measure has the support of CHP advocates, who say it is necessary to provide developers with incentives to build new plants.
The growth of new CHP power plants in New Jersey has been stunted by the diversion of funds set aside by lawmakers to promote their development. The Christie administration appropriated $164 million of these funds to help plug a hole in the state budget.
(973) 224-4851 cellular
In 2009, the late John Sheridan, CEO of Cooper University Hospital in Camden, testified at a hearing regarding how to strengthen employer-based health care.Read More >
Bergen County Freeholder forum mostly convivial, but at times confrontational TEANECK - The Bergen County freeholder forum on Tuesday night was a relatively collegial affair until the final two minutes on the 90-minute event. Republican freeholder candidate Robert Avery, flanked by fellow GOP freeholder candidate Bernadette Coghlan-Walsh, referred to...
By JEFF BRINDLE It is critical that the Legislature soon enact a pending bill that would ensure the state’s Gubernatorial Public Financing Program is available in the event of a special election for governor. Not only is there no current legal... Read More >
"I see Loretta Weinberg in the back of the room. Loretta, you have my eternal admiration for what you did to rid the Democratic Party of a certain political boss. However, not everyone shares that distinction." - Bergen County Republican Freeholder candidate Robert Avery- PolitickerNJ
Press releases are submitted by PolitickerNJ users, not by staff. They do not represent the viewpoint of PolitickerNJ.com.