Cogeneration in a High Gas Price Era
Article from: OGEL 5 (2004), in Electricity Law and Regulation
Introduction
The traditional indicator of the market viability of cogeneration plants is the price of electricity. Since electricity is the highest value product of a cogeneration system, a market that prices it highly will increase project returns. However, another part of the commercial equation is the cost of system inputs, the fuel. Natural gas is continuing to grow in importance as a fuel for cogeneration; indeed in many countries it is the fuel of choice. Yet gas price trajectories are upward, in some cases steeply upward. The purpose of this short analysis is to assess ...