The Government of Ontario has released a statement, through the 2017 Long Term Energy Plan (LTEP), that it will no longer provide funding for Combined Heat and Power (CHP) projects that burn fossil fuels.  The funding was coming from the Conservation First Framework (CFF) and the Industrial Accelerator Program (IAP).  Originally, CHP systems were touted as a way to reduce grid demand by generating electricity on-site.  CHP systems typically burn oil or natural gas, and due to the Government’s push to reduce Greenhouse Gas Emissions even further, they have decided to pull funding for CHP systems that burn fossil fuels, effective July 1^st, 2018. 

The Government did remind businesses that funding is still available for other projects, such as waste energy recovery, renewable energy, and energy storage systems.  The opportunity is still out there to reduce demand and reliance on the grid, however the Government is pushing for those opportunities to move away from the burning of fossil fuels. 

Currently there are opportunities still available for CHP systems that burn non-fossil fuel gasses, such as biogas from waste.  Economically, CHPs may still be viable for your business without any Government funding, due to their lower cost electricity production and the potential reduced Global Adjustment charges if you are a Class A hydro customer.  If you are looking into CHPs, on-site generation, or storage, there is a wide variety of options and technology available.  As we progress battery storage systems will become more economical, provide grid reliability, and on-site electricity, and it seems the Governments next push will be in that direction. 

Our team at CESi has been navigating many of our customers through the analysis and feasibility of CHP or peak shifting projects and have the expertise to help all our clients save on their energy spend. Call or email (sales@ces-energy.com) for further information. 

Links: LTEP