Small-scale cogeneration: has it finally come of age

The market for co-generation systems in the 500-kW to 10-MW range is receiving new interest, although government support has emphasized large installations using coal and nuclear fuels. Critical fuels are still used in the present small-scale technologies. Utilities, viewing small co-generation operations as customer erosion rather than peak-load relief, have resisted the growing trend. Equipment manufacturers report signs that a mass market is developing in spite of some operational problems that developed in shopping centers and other installations with high thermal loads and unsophisticated maintenance. Some potential customers have hesitated because of fuel uncertainties in spite of economic advantages, while others have accepted a marginal payback in order to gain in-house control. Owners of co-generation equipment expect exemption from bans on oil and gas in the National Energy Plan. The DOE and state energy offices are expected to emphasize co-generation projects and to help utilities integrate it with their operations. A list of major co-generation system suppliers includes manufacturers of both internal combustion and external combustion equipment.