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History of Cogeneration

Introduction

At the beginning of the twentieth century, steam was the main source of mechanical power. However, as electricity became more controllable, many small “powerhouses” that produced steam realized they could also produce and use electricity, and they adapted their systems to cogenerate both steam and electricity. Then from 1940–1970, the concept developed of a centralized electric utility that delivered power to the surrounding area. Large utility companies quickly became reliable, relatively inexpensive sources of electricity, so the small powerhouses stopped cogenerating and bought their electricity from the utilities.

During the late 1960s and early 1970s, interest in cogeneration began to revive, and by the late 1970s, the need to conserve energy resources became clear. In the United States, legislation was passed to encourage the development of cogeneration facilities. Specifically, the Public Utilities Regulatory Policies Act (PURPA) of 1978 encouraged this technology by allowing cogenerators to connect with the utility network to purchase and sell electricity. PURPA allowed cogenerators to buy electricity from utility companies at fair prices, in times of shortfall, while also allowing them to sell their electricity based on the cost the utility would have paid to produce that power, the so-called “avoided the cost.” These conditions have encouraged a rapid increase in cogeneration capacity in the United States.


Introduction to Cogeneration Operation