Greentech Lead Asia: Combined heat and power (CHP)
systems contributed less than 10 percent of global electrical power generation
capacity in 2011.
The CHP market will experience slow growth over the next
five years. By 2021, there will be 651 GW of CHP capacity installed worldwide,
and the global CHP market will be worth $43.1 billion.
MarketResearch.com forecasts that the small-CHP segment
will grow faster than the overall CHP market, achieving a CAGR of 12.2 percent
between 2012 and 2021 and growing to be worth a little over 6 percent of the
global CHP market.
China dominated the CHP market in the last five years, as
that country’s electrical generation capacity increases have bolstered the CHP
market in the country. China’s power capacity growth is slowing, resulting in
an essentially flat global CHP market between 2007 and 2011, posting a CAGR of
0.4 percent for the period to reach $19.3 billion.
U.S. and Germany have achieved near 20 percent CAGR
between 2007 and 2011. The U.S. market has been up and down over the period,
and has been lower than in the first part of the decade, because of the lack of
strong government support and dropping natural gas prices.
Germany has a strong feed in tariff policy that is continuing
to drive the CHP market in the country and will continue to do so in the long
The small-CHP market has experienced a CAGR of 24.8
percent in the same period on the strength of micro-CHP (under 5 kW) sales in
Japan and small-CHP (up to 1 MW) sales in Germany.
In Japan, exceptionally large subsidies for micro-CHP
systems continue to accelerate that segment of the CHP market in the country.
Natural gas turbines continue to provide most CHP
electricity generation in the U.S. and Europe. The common type of fuel in use
for CHP systems in most countries is natural gas. Coal is still the dominant
fuel being used in many of the China’s district heating systems. Countries such
as Sweden, Switzerland, Norway and Finland have over 30 percent of CHP electricity
generation from renewable fuels such as wood waste and municipal waste.