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Combined Heat and Power Partnership

Ohio Alternative Energy Portfolio Standard

Date Last Updated8/15/2014
Policy TypePortfolio Standard
Policy Administrator/Contact OfficeOhio Public Utilities Commission (PUC)
Policy Initiation Date9/9/2012
Policy SummaryOhio's Alternative Energy Portfolio Standard (AEPS) contains "alternative energy resource" requirements for investor-owned utilities, and includes CHP. Any type of CHP, including fossil fuel-fired systems, qualify as an "advanced energy resource" which lists as part of its definition "any distributed generation system consisting of customer cogeneration of electricity and thermal output simultaneously, primarily to meet the energy needs of the customer's facilities."

Electric utilities must provide 25% of the total kWh's of electricity sold in 2026 from "alternative energy resources." In May 2014, SB 310 froze the AEPS requirements for 2 years, ultimately pushing back the deadline for the final target from 2024 to 2026. Both "advanced energy resources" and "renewable energy resources" qualify as "alternative energy resources." Of the total AEPS requirement of 25% in 2026, at least half must come from renewable energy resources and half from advanced energy resources.

Renewable resources are eligible for renewable energy credits (RECs); advanced energy resources are expected to be eligible for advanced energy credits (AECs) starting in 2026. Qualifying advanced energy resources are not eligible for credits similar to RECs, but are eligible to receive a one-time payment from utilities or are exempt from paying the service rider. Waste energy recovery systems that receive credit under Ohio's Energy Efficiency Portfolio Standard (EEPS) do not also qualify under the AEPS. SB 310 also completely removed restrictions on out-of-state resources to comply with the AEPS standards, allowing utilities to fully meet their requirements by using out-of-state resources.
CHP Eligibility RequirementsRenewably-fueled CHP systems, and waste heat-to-power systems qualify as renewable resources under the AEPS. All types of CHP including fossil-fueled CHP and waste heat-to-power qualify as an advanced energy resource under the alternative energy targets, however, there are no annual compliance targets prior to 2025. All types of CHP and waste heat-to-power also qualify under Ohio's EEPS; however, projects can only take credits under one standard. Projects must start on or after January 1, 1998.
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required/
Other Performance Requirements
S.B. 315 applies the following definition for CHP systems, they must be "designed to achieve thermal-efficiency levels of at least 60%, with at least 20% of the system's total useful energy in the form of thermal energy."
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