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The production of both electricity and heat from a single fuel source is combined heat and power (CHP). It reclaims part of the lost energy by using "waste" heat to heat the power plant facilities or buildings connected to it through a steam pipe network known as district energy.
CHP systems provide significant environmental advantages because they capture and use heat that would otherwise be lost during electricity generation and require less fuel to generate the same amount of energy. Because less fuel is burned, greenhouse gas emissions such as carbon dioxide (CO2) and other air pollutants such as sulphur dioxide decrease.
By using a CHP system, less electricity is purchased from the grid, which helps in having less exposure to cost surges. A CHP system may be built to run on several fuel sources, including natural gas, biogas, coal, and biomass; hence, a facility might include fuel switching capabilities to protect itself against rising fuel prices.
CHP systems are becoming increasingly popular for onsite power production systems in industrial as well as rural distributed generation systems. While delivering the electrical load, CHP systems can generate enough thermal energy to offset the industrial and commercial demand for air conditioning systems in buildings. In rural regions, the extracted heat can be used to deliver hot water to homes.
On the basis of technology, it can be classified into the following:
Governments worldwide are actively promoting CHP systems to regulate greenhouse gases, supporting sustainable energy and energy conservation efforts and meeting their emission reduction targets.
The energy efficiency directive require E.U. countries must ensure that a cost-benefit analysis is conducted of the potential of using cogeneration when they plan to build or substantially refurbish a heat or electrical installation with a total thermal input exceeding 20 M.W., an industrial installation generating waste heat with a total thermal input exceeding 20 M.W., and a district heating or cooling network exceeding a total thermal input of 20 M.W.
Germany has been actively promoting CHP, and it has taken legislative measures to enable CHP penetration in the country. Under the CHP Act, the operators of CHP installations will have to offer their electricity to the market and will receive support in the form of a fixed premium on top of the market price, except for very small installations, which will be eligible to receive feed-in tariffs.
In the United States, 10% Energy Investment Tax Credit is provided for investment in CHP systems. At the federal level, the house passed a 10-year extension of the investment tax credit for CHP as part of the Build Back Better Bill in 2021.
The U.S. Department of Energy has a CHP deployment program through which it provides key services such as engagement and technical services through CHP Technical Assistance Partnerships (CHP TAPs), local market analysis, and a Packaged CHP catalogue (e-Catalogue).
In India, the majority of CHP installations occur in the industries such as sugar, cement, paper and pulp, etc. The Ministry of New and Renewable Energy has been implementing a cogeneration programme since mid-nineties. The programme offers Central Financial Assistance (CFA) and fiscal incentives of about INR 500,000 per M.W. of installed capacity.
According to the Ministry of New and Renewable Energy, over 800 biomass power and bagasse/non-bagasse cogeneration projects aggregating to 10170 MW capacity have been installed in the country for feeding power to the grid.
The demand for energy efficiency and power generation coupled with inclination towards sustainable energy and energy conservation efforts, government regulations to control carbon dioxide (CO2) gases into the atmosphere, rapid investments towards renewable energy technologies to limit carbon emissions, and low operating costs are some of the other drivers of the combined heat and power (CHP) market.
The Asia-Pacific region is expected to dominate the CHP market due to the increasing demand for natural gas in the generation of electricity and other industrial purposes, which is expected to drive the CHP market. Since the recent coal crunch faced by major economies in the region like China and India are looking for cleaner alternatives to coal, such as natural gas. With the increasing use of natural gas, the demand for CHPs is expected to be robust.
Combined heat and power are already being used to enhance efficiency and reduce emissions from the U.S. electricity system. As of July 2021, over 200 microgrid sites in the U.S. use a CHP unit. The CHP is expected to be a key technology in future microgrid design, and there are significant opportunities to protect critical infrastructure facilities in terms of the number of sites.
In the European Union, cogeneration delivers 11% of its electricity and 16% of its heat, including more than 50% of its heat supplied to district heating. This reduces CO2 by 250 million tons, equivalent to 100 million internal combustion cars.
The E.U. also started project PACE, unlocking the large-scale deployment of the latest smart energy solutions for home fuel cell micro-cogeneration. The project aimed to deploy more than 2,800 of the next-generation fuel cell micro-cogeneration units in 10 European countries by 2022.
According to COGEN Europe, by 2030, cogeneration could generate 20% of electricity and 25% of heat. In a net-zero energy system by 2050, cogeneration will continue to play an important role, reducing energy systems costs by EUR 4-5 billion per year due to the energy savings, avoided grid loses and flexibility benefits.
The new report from Blackridge Research on Global CHP Market comprehensively analyses the CHP Market and provides deep insight into the current and future state of the industry.
The report covers detailed profiles of major countries across the world. Each country's CHP market analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.
In addition, market size, demand forecast, and market growth rates will be provided for all regions.
Following are the notable countries covered under each region.
North America - United States, Canada, Mexico, and Rest of North America
Europe - Germany, France, United Kingdom (U.K.), Russia, and Rest of Europe
Asia-Pacific - China, India, Japan, South Korea, Australia, Rest of APAC
Rest of the world - Saudi Arabia, Brazil, Nigeria, South Africa, and other countries
This report presents detailed profiles of Key companies in the CHP industry. In general, each company profile includes - an overview of the company, relevant products and services, a financial overview, and recent developments. Some of the leading players in the report are 2G Energy AG, Siemens Energy, Cummins Inc etc.
The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (J.V.s), partnerships, collaborations, and other business agreements.
The study also discusses the strategies adopted by leading players in the industry.
Covid pandemic hit industries and businesses globally, and the CHP industry is no exception. The manufacturers suffered a huge setback in dispatches and order bookings. The restrictions in international markets and stringent travel curtailments resulted in considerable loss of order bookings and aftersales services.
According to the IMF World Economic Outlook published in April 2021, global growth is projected at 4% in 2022. The projection for 2022 is much stronger than October 2020 World Economic Outlook. The growth indicates the additional financial support in a few large economies, anticipated vaccine-powered recovery, and continued adaptation of economic activity to somber mobility.
High uncertainty looms over this outlook due to the probable third wave and the evolution of financial conditions. The impact of the COVID-19 pandemic on the oil & gas industry has already been profound.
Depending upon the path of the pandemic, capital availability, and financial conditions, utilities might postpone some of their generation investments, in turn affecting the CHP market demand.
The report dissects the Global CHP Market into various segments (by fuel type and by Application). A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.
Further, market size and demand forecasts will be presented along with various drivers and barriers for individual market segments.
The study examines the drivers, restraints, and regional trends influencing Global CHP Market demand and growth. The critical elements of the CHP industry supply chain, its structure, and participants will also be provided in the report.
Using Porter's five forces framework, the report covers the assessment of the CHP industry's state of competition and profitability.
The report also addresses present and future market opportunities, market trends, developments, and the impact of Covid-19 on the CHP Market, important commercial developments, trends, regions, and segments poised for fastest growth, competitive landscape, and market share of key players in detail.
Further, the report will also provide CHP Market size, demand forecast, and growth rates.
1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
9. Conclusions and Recommendations
List of Tables & Figures
Abbreviations
Additional Notes
Disclaimer
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