PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1284166
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1284166
According to Stratistics MRC, the Global Combined Heat & Power System Market is accounted for $16.23 billion in 2022 and is expected to reach $26.34 billion by 2028 growing at a CAGR of 8.4% during the forecast period. Combined Heat and Power (CHP) is a productive and clean way to deal with creating electric power and thermal power from a single fuel source. CHP creates energy at or close to the end user's location so that the heat emitted during energy creation can be used to satisfy the user's requirement for heat while the energy created satisfies all or some of the location's energy needs. Applications with steady demands for electrical and thermal energy make excellent financial targets for CHP adoption.
According to IEA, China is the only major economy where coal demand increased in 2020. Strong economic growth underpins electricity demand in 2021, while post-COVID stimuli measures support production of steel, cement and other coal-intensive industrial products.
Power creation at or near the point of usage is known as distributed generation. Previously, electricity was distributed using low-voltage DC systems at small power plants. Electrical power and mechanical work can both be accomplished with distributed generation. Distributed generation is distinct from centralized power generation, where plants are always fixed and significantly higher-capacity generation occurs far from the point of use. A key component of the present arsenal of distributed power production technologies is the gas turbine. Gas turbines outperform other distributed generation systems in terms of efficiency and dependability for onsite generation requirements and backup power capacity. As a result, the market for CHP is presented with a significant opportunity due to the growth of distributed power generation, which will accelerate market growth over the course of the forecast period.
Installation requires a significant upfront capital investment. A key barrier to the growth of the CHP business is the cost of a typical CHP plant, which can be about 240% higher than the cost of a power production plant with equivalent capacity and a prime mover. Due to the complicated construction of the system, which comprises many components like a prime mover, a heat recovery system, and heat and steam pipes, CHP systems also have substantial maintenance expenses. To maintain the CHP's high efficiency, all of its components must undergo routine maintenance, which drives up overall maintenance expenses, which are projected to impede the fog computing market's growth.
Government initiatives and incentives are anticipated to fuel the expansion of the CHP sector, especially in OECD nations like the US, UK, Germany, Japan, and others. A new strategy for the development of CHP for energy efficiency was adopted by the US in 2012, and the then-US President also signed an executive order to encourage energy efficiency in businesses. For CHP installations, the US federal government and a number of state governments have offered incentives and tax breaks. The directive instructs the Environmental Protection Agency (EPA), the US Departments of Energy, Commerce, and Agriculture, and other federal agencies to coordinate their efforts to provide commercial and technical assistance to states in order to encourage investments in industrial energy efficiency.
One of the major challenges facing CHP plants is understanding the significance of gas pre-treatment and developing a strategy for it. Biogas-fuelled CHP systems have prime movers, such as a gas turbine, a micro gas turbine, a reciprocating engine, or a Stirling engine, and operate by oxidizing methane in a combustion chamber. This generates thermal energy and drives a piston or turbine, and the resulting shaft work is converted to electricity in a generator. Methane is oxidized electrochemically by fuel cells when they operate, and in most cases, methane is the primary fuel in each prime mover. Trace impurities such as hydrogen sulfide (H2S), carbon monoxide (CO), and ammonia (NH3) have more adverse effects on the prime mover. Even though the prime mover can handle a small amount of these impurities, a higher concentration of impurities reduces the life of the CHP to just a few years.
Due to lockdown measures and extreme travel restrictions to stop its spread, the COVID-19 pandemic has not only had a large negative impact on human life but has also had a significant negative impact on the world economy. Many individuals across many industries have lost their jobs, and many nations have seen a considerable reduction in the total workforce across many industries. Since a result, the global market has also been significantly impacted, since numerous countries have experienced a major reduction in the labor force across many different business sectors. Several industry participants have stated that delays brought on by the COVID-19 crisis have resulted in various scale combined heat and power projects falling behind schedule.
The Natural gas segment is projected to witness the largest share as compared to other segments over the forecast period. Based on the type of fuel used, the market is divided into natural gas, coal, biomass, and other categories. During the forecast period, the natural gas segment will hold the top spot in terms of value. Key elements that encourage the use of the technology include initiatives aimed at lowering total installation and operational costs as well as ongoing support from public and private sources for the construction of natural gas power plant projects, thereby boosting market growth.
The market is essentially divided into combined cycle, steam turbine, gas turbine, reciprocating engine, and others based on technology. In 2021, combined-cycle CHP systems are anticipated to dominate the market. As they use leftover heat stored in exhaust gases to generate additional electricity, combined cycle systems in power plants reduce energy losses. The overall efficiency of the plant rises to nearly 50% with these systems, compared to about 40% for conventional steam turbine plants and 35% for gas turbine plants, which is a crucial factor fostering the expansion of the global market.
The European combined heat and power system market dominated the global market in terms of revenue share, and it is anticipated that this dominance will continue over the course of the forecasted period. The key factors supporting the regional perspective of the CHP market are the rising need for district energy (heating and cooling) systems under changing climatic circumstances as well as ongoing mechanical improvements derived from fuel adaptability. In addition, affordable funding programs and rebates, encouraging R&D initiatives, thorough CHP installation instructions, and outlines of strategies for cost-effective reduction are some of the key aspects supporting the global market.
During the forecast period, Asia-Pacific is anticipated to have the fastest growth rate. New combined heat and power systems have been created in emerging economies as a result of the region's rapid industrialization, urbanization, and rising market demand for clean fuel energy. For instance, the Bert Mobil Gas demo plan, which was inaugurated in Sri City, Andhra Pradesh, India, was made public by Bert Energy GmbH. Additionally, it is anticipated that environmental restrictions for industrial boilers and power plants, improved energy efficiency, and a favourable natural gas supply and price outlook will encourage the installation of cogeneration systems throughout the region.
Some of the key players in Combined Heat & Power System Market include 2G Energy Inc., ABB Limited, Aegis Energy Services LLC, Bosch Thermotechnology Ltd., Capstone Turbine Corporation, Caterpillar Inc., CENTRAX Gas Turbines, Centrica PLC, Clarke Energy Inc., Cummins Inc., Doosan Fuel Cell America, Inc., Elite Energy Systems, LLC, ENER-G Rudox and Veolia, FuelCell Energy Inc., Generac Holdings Inc., General Electric Company, Integral Power, Kawasaki Heavy Industries Ltd, MAN Diesel & Turbo SE, Mitsubishi heavy Industries ltd., Primary Energy Recycling Corporation, Seimens Energy AG, Tecogen Inc., Veolia, Viessmann Werke Group GmbH & Co. KG and Wartsila Oyj Abp
In July 2021, Capstone Green Energy signed a 10-year service contract for 1.2 MWs of micro-turbines in New York City. The skyscraper's 1.2 MW energy efficiency plant consists of two Capstone C600S micro turbines with Capstone's Integrated Heat Recovery Modules.
In March 2021, The European Marine Energy Centre (EMEC) and Highlands and Islands Airports Limited (HIAL) partnered to decarbonise combined heat and power at Kirkwall Airport through green hydrogen technology.
In August 2020, TEDOM and BOSCH Thermotechnik signed a contract to supply combined heat and power units. The arrangement between the two organizations incorporates the stock of little and medium-sized CHP units burning normal gasoline with an electrical output of 30-530 kW. Buderus can extend its portfolio and offer CHP units with lower and higher results with this new collaboration. The whole arrangement of Buderus Loganova units, under which BOSCH Thermotechnik has up to this point offered its cogeneration items, will be supplanted by TEDOM CHP units.
In October 2020, Siemens Energy conveyed two SGT-700 gas turbines for a food fixing handling plant that Tate and Lyle possessed in Lafayette, Indiana, U.S. The two turbines will be the foundation of another consolidated CHP activity supplanting its coal-terminated boilers. By producing power nearby and recuperating heat that would typically be squandered, the new CHP activity will expand energy productivity and significantly diminish energy expenses and fossil fuel by-products.