Alliance for Industrial Efficiency | 2101 Wilson Blvd., Suite 550 | Arlington, VA 22201 | 202.365.2194 | alliance4industrialefficiency.com1

Virginia, the Clean Power Plan, and Combined Heat and Power

Virginia’s 2030 goal requires a 32-percent reduction in the Commonwealth’s carbon emissions rate, with a goal of 934 pounds of carbon dioxide per megawatt-hour, which EPA describes as the middle of the range for states.

Figure 1. Virginia's Clean Power Plan Targets

Source: E&E News Net, Power Plan Hub http://www.eenews.net/interactive/clean_power_plan.

Alliance for Industrial Efficiency | 2101 Wilson Blvd., Suite 550 | Arlington, VA 22201 | 202.365.2194 | alliance4industrialefficiency.com2

Figure 2 models how Virginia can surpass its emissions reduction goal under the CPP using only a simple suite of energy-efficiency policies.

Figure 2. Energy Efficiency Helps Virginia Achieve CPP Targets

Emis

sion

Redu

ctio

n

Behavior Programs

ESCOPrograms

CHP(500 MW)

Building Energy Codes(High)

Annual 1.5%EnergySavings Target

0%

10%

20%

30%

40%

50%

60%

Energy Efficiency Measure Model Assumption

Behavior programs Reflect a residential feedback program savings of 2%, assuming 50% participation rate in the state.

ESCO programs Energy service company (ESCO) programs reflect energy service contracts with municipal buildings, universities, schools, and hospitals. The size of the programs in each state are based on historic ESCO market growth trends of 8.3% annually.

Combined heat and power (high)

High combined heat and power scenario corresponds to an additional 500 MW of CHP

Building energy codes (high) Stringent building reflects adoption of the equivalent of 2015 IECC for homes and ASHRAE Standard 90,1- 2014 for commercial buildings by 2017, the 2018 IECC and ASHRAE Standard 90.1-2015 in 2020, and improved codes every three years through 2030.

Annual 1.5% energy savings target

A state-wide annual energy savings goal of 1.5% through 2030.

Source: ACEEE’s SUPR-2 calculator

Alliance for Industrial Efficiency | 2101 Wilson Blvd., Suite 550 | Arlington, VA 22201 | 202.365.2194 | alliance4industrialefficiency.com3

According to the Department of Energy’s latest technical potential survey, Virginia has the eleventh highest CHP technical potential in the nation (4,308 MW). This represents more than twice the current capacity (1,729 MW). Figures 3 and 4 indicate the wide range of deployment opportunities in both the industrial and commercial sectors.

Figure 3. Virginia’s CHP Potential

Source: “CHP Technical Potential in the United States,” DOE-ICF, March 2016

Figure 4. CHP Technical Potential in Virginia by Sector

Chemicals, 629MW

Paper, 312MW

Textiles, 174MW

Food, 163MW

Lumber & Wood ,138 MW

Other, 228MW

Top Industrial Types with On-SiteCHPTechnical Potential

Military, 698MW

CommercialOffice

Buildings,397 MWCollege/Univ.,

338 MW

GovernmentBuildings,194 MW

Hospitals ,163 MW

Other, 750MW

Top Commercial Business Types withOn-SiteCHP Technical Potential

Source: DOE, ”CHP Technical Potential in the United States”, March 2016 http://1.usa.gov/1qF0pce

Alliance for Industrial Efficiency | 2101 Wilson Blvd., Suite 550 | Arlington, VA 22201 | 202.365.2194 | alliance4industrialefficiency.com4

Combined heat and power can help Virginia meet its emissions reduction goals under either a rate- or mass-based plan (see Figure 5 below for a rate-based example). The blue bar depicts how much Virginia must reduce its emissions to meet its CPP target. The green bars illustrate what percentage of that goal can be meet by deploying relatively modest amounts of CHP, compared to the state’s overall technical potential of 4,308 MW.

Figure 5. CHP & the Clean Power Plan in Virginia under a Rate-Based Plan

Source: ACEEE’s SUPR-2 calculator