Essential Role of Micro-CHPs in Smart Energy Strategies Drives Global Demand for Cogeneration Equipment
Increasing adoption of microCHP systems, spiraling electricity prices,
manufacturer focus on technically advanced equipment, favorable policy
scenario, and growing need for flexibility are poised to drive the global market for
Cogeneration Equipment in terms of revenues from annual equipment installations
to exceed US$37 billion by 2024. Combined heat and power
(CHP) systems, which are termed cogeneration equipment, are used to generate
heat energy and electricity simultaneously from a single energy source such as
oil, coal, natural gas, wood, biomass, or waste heat. CHP systems are capable of
operating at higher efficiency levels of 77% to 81% compared to the 46%
efficiency levels of conventional systems, while also enabling up to 29%
reduction in carbon emissions as compared to traditional systems. Cogeneration
systems have combustion turbines, steam turbines integrated with boilers, micro
turbines, reciprocating engines and fuel cells as prime movers. In addition to
these prime movers and components, the system consists of waste heat exchangers
which recover waste heat from the exhaust gas. Superior attributes and myriad
benefits of cogeneration that are driving steady market adoption include effective utilization of fuel source to generate
electricity as well as heat while ensuring minimal wastage; and facilitating
the shift towards decentralized forms of electricity generation that offer
increased efficiency, minimizes transmission losses, enhance flexibility in
system usage and result in efficient handling of grid-related
power outages and system failures. The global
phenomenon of climate change due to the greenhouse effect is expected to
discourage fossil fuel combustion, which is a major contributor providing a
bigger platform for growth for CHP as a clean approach with reduced emissions of greenhouse gases,
specifically CO2.
Healthy growth is projected for the market in the coming years driven
by the critical role of microCHP in realizing smart energy strategies amidst
the growing need for eco-friendly, economic, and energy-efficient power
generation technologies to meet the ever-increasing demand for electricity
worldwide. Offering critical advantages of grid independence to end-users,
microCHP is expected to impart great services in the area of grid stability and
efficiency improvement which forms the basis for smart energy. Key factors
driving increasing adoption of microCHP systems include reduction in consumers’
electricity bills, and efficient harvesting of heat produced during the power
generation process for space and water heating purposes. Other important growth
drivers include significant reduction in the prices of natural gas due to its
abundant supply; expanding applications; steady evolution of the next
generation technologies such as Trigeneration and Quattrogeneration; and favorable regulatory environment. Technology
advancements and increased cooperation from utilities, financiers, businesses
and industries are also expected to provide the required impetus to continuous
growth of cogeneration projects in the coming years.
As stated by the new market research report on Cogeneration Equipment, Asia-Pacific
represents the largest and the fastest growing market worldwide with a CAGR of 9.7%
over the analysis period. Important growth drivers in the region include rising
need for higher efficiency in power generation and reductions in emissions;
robust infrastructure development projects that involve expansion of existing
units, replacement of older obsolete steam generation systems, and the
development of new industrial zones; and the presence of a large number of
component manufactures, equipment designers, assemblers, installers and
providers of maintenance solutions in China and India.
Key players in the market include 2G Energy Inc., AB Holding SpA, ABB
Limited, Aegis Energy Services, Inc., Ameresco, Inc., ANDRITZ Energy &
Environment GmbH, BDR Thermea Group BV, Baxi Group Limited, Bosch
Industriekessel GmbH, Burmeister & Wain Scandinavian Contractor A/S, Capstone
Turbine Corporation, Clarke Energy, Centrica Business Solutions, GE Power, Kawasaki
Heavy Industries, Ltd., LOINTEK, Mitsubishi Heavy Industries Engine & Turbocharger,
Ltd. (MHIET), Rolls Royce Plc., Siemens AG, Sumitomo SHI FW, Tecogen Inc., The
Viessmann Group, Veolia Environnement S.A., and YANMAR Co., Ltd., among others.
The research report titled “Cogeneration Equipment: A
Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a
comprehensive review of market trends, issues, drivers, mergers, acquisitions
and other strategic industry activities of global companies. The report
provides market estimates and projections for all major geographic markets
including the United States, Canada, Japan, Europe (France, Germany, Italy, UK,
Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, and Rest of
Asia-Pacific), Latin America (Brazil, and Rest of Latin America), and Rest of
World. Fuel types analyzed in the report include Natural Gas; Other Fossil
Fuels; and Non-Fossil Fuels.
For enquiries e-mail us at rsd@strategyr.com or info411@strategyr.com.
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