W
hile residential-scale combined heat and power (micro-CHP) systems are gaining popularity in Western Europe and Japan, they are only scarcely deployed in the United States (U.S.). However, as technical advancements are achieved and the energy markets continue to evolve, these technologies have enormous growth potential. The U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) initiated the "CHP Challenge" in December 1998 to double the installed capacity of combined heat and power (CHP) systems in the U.S. by 2010. In 1998, the installed CHP capacity was 46 GW, and the goal set for 2010 is 92 GW. As of the end of December 2003, the installed capacity of CHP in the U.S. was approximately 71 GW. Though, only 0.04% of this installed capacity comes from systems with less than 100 kW of power output, and much less comes from systems with less than 10 kW of power output.
Local gas and electric distribution companies will continue to provide the majority of energy transmission and distribution services in the U.S. However, deregulation has caused instability in the energy market, including highly volatile natural gas prices. To some extent the micro-CHP offers opportunities for increased sales. In addition, operating the electric grid close to capacity has caused problems with electricity reliability.