Modeling the Impact of Flexible CHP on California’s Future Electric Grid – January 2018

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This report examines the potential future impact of flexible combined heat and power (CHP) systems on the electric grid. Unlike current CHP systems, which primarily provide on-site electric power, flexible CHP systems will serve site loads and also provide a range of services to the grid, including energy, capacity, and ancillary services. Revenue from these grid services could improve the value proposition for CHP, increasing CHP deployment on tomorrow’s electric grid. The analysis in the report focuses on the electric grid in California, where flexible resources are becoming increasingly important as more renewables are added to the state’s generation mix.