Combined Heat and Power (CHP) Installation Market to Rise, Thanks to Environmental Regulations on Lowering Carbon Footprint
Combined heat and power (CHP) is a type of technology that uses energy efficiently by the generation and utilization of power and heat respectively. As compared to other traditional systems, CHP systems, owing to their process of energy utilization, are capable of saving 40% of additional energy. CHP systems also generate energy locally and thus eradicate energy distribution and transmission through local distribution networks, further curtailing losses in efficiency.
CHP systems, besides reducing the cost of energy, also lower greenhouse gas emissions. CHP systems are utilized in commercial, residential, and industrial segments. Of these, the utilization of CHP systems is the highest in the industrial segment and this segment constituted a share of approximately 65.89% in 2014.
Supportive FiTs By Government Institutions Globally To Propel CHP Installation Market
The combined heat and power installation market is fuelled by environmental regulations on lowering greenhouse gas emissions and carbon footprints globally. In addition, the growing awareness about the advantages of energy-efficient technologies is resulting in the increasing installation of CHP technology worldwide. Furthermore, supportive feed-in-tariffs (FiTs) and policies presented by government institutions on the installation of CHP systems will also impact the market positively. The low prices of fuel will also augment the development of the CHP installation market globally.
Combined Cycle-based CHP Systems Accounted for Largest Share of 64.3% in 2014
On the basis of CHP type, the market is segmented into large-scale CHP, and micro and small-scale CHP. By technology, the CHP installation market is segmented into combined cycle, steam turbines, combustion or gas turbines, reciprocation engines, and others including micro turbine, waste heat recovery, and fuel cells. Of these, combined cycle-based CHP systems represented the largest share of 64.3% in the market in 2014 and were trailed by the segments of gas turbines and reciprocation engines.
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By fuel, the market is categorized into coal, biomass, natural gas, and others such as waste heat, wood, and oil. Amongst these, coal and natural gas are the two most commonly available fuels utilized within CHP systems owing to their low costs. However, the demand for coal in CHP systems is poised to decrease owing to the soaring costs of handling and hazardous environmental impacts.
Europe CHP Installation Market Led in 2014
Geographically, the CHP installation market is segmented into Europe, Asia Pacific, North America, and Rest of the World (RoW). Amongst these, the Europe CHP installation market accounted for the largest share in 2014. Russia, Germany, and Poland are predicted to emerge as the most lucrative markets for CHP installation in Europe between the forecast period 2016 and 2024. However, in the forecast horizon, the development of CHP installation market is predicted to shift to Asia Pacific from Europe owing to the swiftly developing economies within the Asia Pacific region. In addition, the availability of coal in Asia Pacific will also augment the growth of the market here. Asia Pacific will be trailed by the Middle East and Africa, and North America.
2G Energy AG, ABB Ltd., BDR Thermea Group B.V., Caterpillar Energy Solutions GmbH, Veolia Environnement S.A., Yanmar Co., Ltd., Helen Ltd., and FuelCell Energy, Inc., among others are the chief players operating in the global CHP installation market.