Growing Investments In Upgrading Aging Power Plants Is Driving The...

Growing Investments In Upgrading Aging Power Plants Is Driving The Growth Of Combined Heat And Power (CHP) Market

نشر بتاريخ 2023-12-04 13:29:21

2كيلو بايت

The global Combined Heat And Power (CHP) Market is estimated to be valued at US$ 26.98 Bn in 2023 and is expected to exhibit a CAGR of 8.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Combined heat and power (CHP) offers simultaneous heat and power from a single fuel source. CHP systems capture the heat produced during power generation and utilize it for heating, hot water, steam or other thermal applications. This leads to higher fuel efficiency compared to separate generation of heat and power. The operational cost also gets reduced significantly with CHP.

Market key trends:
CHP adoption is growing rapidly owing to various policy initiatives aimed at improving energy efficiency and reducing carbon emissions. For instance, in Europe and the US, governments are offering financial incentives such as tax credits and rebates to promote CHP installation. Additionally, growing investments in upgrading aging power plants with modern CHP systems is also boosting the market growth. CHP plants provide a stable and continuous supply of electricity and heat which makes it an attractive alternative for industrial and commercial buildings to replace their existing boilers and generators. This has accelerated the replacement of old systems with new highly efficient CHP systems.
SWOT Analysis
Strength: CHP systems provide both heat and power, improving overall efficiency compared to separate systems. They reduce operating costs and carbon footprint through lower fuel consumption.
Weakness: High initial installation costs of CHP systems. Requires proximity to sources of usable waste heat and substantial heating and electrical loads to maximize benefits.
Opportunity: Stringent regulations to reduce carbon emissions are driving the adoption of clean and efficient CHP technologies. Growing demand for reliable and uninterrupted power supply especially in commercial and industrial sectors.
Threats: Intermittent nature of renewable resources poses challenges for grid stability. Dependency on single fuel sources increases vulnerability to fuel price volatility.

Key Takeaways
The Global Combined Heat And Power (CHP) Market is expected to witness high growth, exhibiting CAGR of 8.8% over the forecast period, due to increasing demand for clean and reliable power from industrial & commercial establishments. Strong support through regulatory policies and incentives in many countries will also boost adoption.

North America dominates the global CHP market, owing to rising focus on reducing carbon footprint and dependence on fossil fuels. Supportive government policies and availability of natural gas have encouraged widespread installation of CHP systems across industries and buildings in the US and Canada. Europe is another major region, led by Germany, UK and Italy on account of stringent emission norms and focus on distributed power generation.

Asia Pacific is poised to be the fastest growing regional market, driven by growing energy needs of the industrial sector and infrastructure development across countries like China, Japan and India. Furthermore, government initiatives to expand electricity access through decentralized renewable-based systems will further augment regional growth.

Key players operating in the CHP market are Wartsila, Siemens, GE, 2G Energy, Aegis Energy Services, Bosch Thermotechnology, Kawasaki Heavy Industries, Viessmann Werke, FuelCell Energy, Veolia, Clarke Energy, CAPSTONE TURBINE, Caterpillar, Yanmar, ABB, Edina, Wolf GmbH, Atlas Copco, Tecogen Inc. Major players are focusing on developing innovative clean CHP technologies and establishing partnerships to tap growth opportunities in emerging markets.