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World Combined Heat & Power (CHP): Micro, Small and Large-Scale

Combined heat and power (CHP) systems were responsible for just under 10% of global electrical power generation capacity in 2011. CHP is a set of power generation technologies that provides both heat in the form of steam or hot water and electricity from a single system. These systems include a prime mover to convert fuel into electricity, a heat recovery steam generator (HRSG) to generate the process heat and perhaps a boiler if the system burns coal or wood waste to run a steam turbine.

The CHP market has been driven by China in the last five years, as that country’s fast paced electrical generation capacity increases have significantly bolstered the CHP market in the country. However, China’s power capacity growth is slowing, resulting in an essentially flat global CHP market between 2007 and 2011, posting a compound annual growth rate (CAGR) of just 0.4% for the period to reach a value of $19.3 billion. The CHP market has been much stronger in the U.S. and Germany, with both countries achieving near 20% CAGR between 2007 and 2011. The small-CHP market has experienced an incredible CAGR of 24.8% 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.

Spark spread and government incentives are the two main driving forces behind the CHP market, although each has a different effect for different market segments. The U.S. market has been up and down over the period, and has been lower than what was experienced in the first part of the decade, because of the lack of strong government support and dropping natural gas prices. Germany, on the other hand, 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 term. 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, but it is reciprocating engine-based CHP systems that are the most numerous. The most common type of fuel in use for CHP systems in most countries is natural gas. The major exception is China where coal is still the dominant fuel being used in many of the country’s district heating systems. Countries such as Sweden, Switzerland, Norway and Finland have over 30% of CHP electricity generation from renewable fuels such as wood waste and municipal waste.

The CHP market will continue to experience slow growth over the next five years. However, SBI Energy expects global electricity costs to rise faster than the cost of natural gas in the long term, leading to a much stronger CHP market through the end of the decade. By 2021, there will be 651 gigawatts (GW) of CHP capacity installed worldwide, and the global CHP market will be worth $43.1 billion. The small-CHP segment will continue to grow faster than the overall CHP market, achieving a CAGR of 12.2% between 2012 and 2021 and growing to be worth a little over 6% of the global CHP market.

The World Market for Combined Heat & Power by SBI Energy provides key insight into current and future markets for CHP product segments and regional markets worldwide. This report looks at key competitors and manufacturers for each of the components making up typical CHP systems, and includes definitions, current product offerings and market detail on the following segments:

 

  • The CHP market broken out by geographic segment, with the market in key countries such as Germany, the U.S. and China analyzed in detail

     

  • A breakdown of the market into the utility and large industrial CHP systems segment and the micro- and small CHP segments, with a discussion of the key countries for each market segment

     

  • An analysis of installed CHP capacity based on fuel used and type of prime mover

     

In addition to analyzing the market segments, the report also details system costs, electricity and fuel prices around the world, and covers the demographics of CHP end use in key markets. The report also analyzes the key industries and businesses that make use of CHP for thermal and electrical energy production. These include industrial manufacturers in the pulp and paper, chemical and refining industries, utilities and municipalities, and commercial markets such as hotels & hospitals.

Report Methodology

This report contains primary and secondary data obtained from government sources, trade associations and publications, business journals, scientific papers, company literature, investment reports, and interviews with industry professionals. Statistics on commodity prices comes from the International Monetary Fund; production cost indexes are from the U.S. Bureau of Labor Statistics; statistics on electricity generation and generation capacity come from national sources such as the U.S. Energy Information Administration and Germany’s Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway (Bundesnetzagentur), and extra-national sources such as Eurostat.

 

 

What You’ll Get in This Report

The World Market for Combined Heat & Power provides a concise, focused look on the residential, commercial, industrial and utility markets for CHP products as they exist today, and shows where these markets are moving between 2012 and 2021. The report highlights key players in the CHP industry and pinpoints ways that current and prospective competitors can capitalize on recent trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that The World Market for Combined Heat & Power offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

 

 

How You’ll Benefit from this Report

If your company is considering investing in energy generation, is involved in businesses that require energy generation for commercial or industrial process applications, or is looking to invest in companies that make the products used in CHP systems, you will find this report invaluable as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for combined heat and power energy products, as well as projected markets and trends for these technologies through 2021. The report also provides a concise view of the top application industries for commercial CHP products, outlining key drivers and barriers for these markets.

 

 

This report will help:

 

  • Marketing managers identify market opportunities and develop targeted promotion plans for businesses looking to develop new markets for the turbines, heat exchangers and other products used for CHP energy production.

     

  • Research and development professionals stay on top of competitor initiatives and explore demand for CHP in key regional markets as well as the downstream markets most likely to be pursuing a CHP energy production strategy.

     

  • Advertising agencies working with clients in a host of market sectors such as prime move manufacturers, electrical utilities and development companies to create messages and images that compel businesses, industries and communities to adopt CHP solutions for their electrical and thermal energy needs.

     

  • Business development executives understand the dynamics of the market and identify possible partnerships with raw material providers, key organizations and CHP manufacturers with unique products or processes. The report also provides crucial information on job creation that is spurred by CHP technologies.

     

  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.


  • Executive Summary
    • Scope
    • The CHP Market
      • Table The Global CHP Market by Country, 2007-2011 (in million $)
      • China
      • The German CHP Market
      • United States
      • The Small- & Micro-CHP Segment
        • Table The Global Small-CHP Market by Country, 2007-2011 (in million $)
    • CHP Market Forecast
      • Table New CHP Capacity Forecast by Country, 2012-2021 (in MW)
      • Table New Small-CHP Capacity Forecast by CHP Type, 2012-2021 (in MW)
    • Trends in Combined Heat & Power
      • CHP Heat Production & Consumption
        • Table CHP Heat Production by Country, 2006-2010 (in trillion Btu)
      • Small CHP Use
      • Drivers & Barriers for CHP
      • Regulations, Incentives and FITs
      • Low Spark Spreads Affecting CHP Adoption
      • CHP Manufacturing Costs
        • Table Average Metal Prices, 2002-2011 (price in $/lb)
      • Employment Trends in CHP
        • Table CHP Jobs by Country, 2007-2021 (in number of jobs)
      • District Heating & Cooling (DHC) Trends
      • Trends in CHP for Industrial Applications
        • Table CHP Use in the Pulp & Paper Industry for Key Countries (in MW)
      • CHP & Renewables
    • CHP Demographics
      • CHP Demographics in China
      • European CHP Demographics
    • CHP Demographics in the U.S.
      • CHP Demographics in Japan
  • Introduction
    • Scope
    • Methodology
    • Definitions
    • Introduction to CHP
      • Advantages and Disadvantages of CHP Systems
        • Table Advantages & Disadvantages of CHP Systems
    • Typical CHP Prime Movers
      • Table Advantages & Disadvantages of Different CHP Prime Movers
      • Gas Turbines
      • Steam Turbines
      • Microturbines
      • Reciprocating Engines
      • Other Prime Movers
    • Fuels Used in CHP
    • Heat Exchange Systems
      • Heat Recovery System Generators
      • Absorption Chillers
    • Primary CHP Applications
      • Industrial Applications
      • Commercial Applications
      • District Heating
  • The World CHP Market
    • The CHP Market by Region
      • Table The Global CHP Market by Country, 2007-2011 (in million $)
      • Germany
      • United States
      • China
      • Other Key Countries
    • The Small- & Micro-CHP Segment
    • CHP Market Forecast
      • Market Forecast for Key CHP Countries
        • Table New CHP Capacity Forecast by Country, 2012-2021 (in MW)
      • Germany Forecast
      • U.S. CHP Market Forecast
        • Table U.S. Planned CHP Capacity Additions, 2012-2016 (in MW)
      • China Forecast
      • Small- & Micro-CHP Segment Forecast
        • Table New Small-CHP Capacity Forecast by CHP Type, 2012-2021 (in MW)
  • Trends
    • World Energy Production & Consumption
      • Electricity Consumption & Production
      • CHP Heat Production & Consumption
        • Table CHP Heat Production by Country, 2006-2010 (in trillion Btu)
    • Use of CHP Around the World
      • Germany
      • United States
      • China
      • Rest of Europe
        • Table CHP Electricity Generation by Country, 2005-2009 (in GWh)
    • Small CHP Use
      • Japan
      • Germany
      • UK
        • Table UK small-CHP installations, 2006-2010 (in number and MW)
    • Drivers & Barriers for CHP
      • Low Spark Spreads Affecting CHP Adoption
        • Table Electricity Prices, Gas Prices & Spark Spreads for Key CHP Countries, 2000-2011 (in c/kWh)
      • Regulations, Incentives and FITs
        • Table CHP Regulations for Key CHP Market Countries, 2012
      • CHP Manufacturing Costs
        • Table Breakdown of Power Plant Construction Costs, 2010 (in percent)
    • Employment Trends in CHP
      • Table CHP Jobs by Employment Sector, 2007-2021 (in number of jobs)
      • Table CHP Jobs by Country, 2007-2021 (in number of jobs)
    • District Heating & Cooling Trends
      • DHC in Europe: Russia & Germany Lead
      • DHC in China
      • DHC in the U.S.
        • Table U.S. CHP District Heat Capacities by State, 2010* (in MW)
      • DHC in South Korea
        • Table KDHC Heat Supply by End User, 2006-2011 (in Trillion Btu)
    • Trends in CHP for Industrial Applications
      • Pulp & Paper Industry
        • Table CHP Use in the Pulp & Paper Industry for Key Countries (in MW)
      • Chemical Industry
      • CHP in the Brazilian & Indian Sugar Industries is Growing
    • CHP & Renewables
      • Table Use of Renewable Fuels with CHP by Country, 2009 (in percent)
      • Biofuels and Wood
        • Table Countries with CHP Electricity Production over 1 GWh from Wood waste, 2009 (in GWh)
      • Municipal & Industrial Waste
        • Table Countries with CHP Electricity Production over 1 GWh from Municipal & Industrial Waste, 2009 (in GWh)
      • Carbon Abatement with CHP
    • Research Trends
  • Demographics
    • CHP in China
      • Fuel Use
    • CHP Use in Europe
      • Fuel Use in the EU
      • Use of Thermal Energy in the EU
        • Table Top EU Countries for CHP Thermal Energy Use, 2004-2008 (in Billion Btu)
    • CHP in Key European Countries: Germany & the Netherlands
      • User Demographics
    • CHP Use in the U.S.
      • Fuel Use
      • User Demographics
        • Table U.S. CHP Capacity by Sector, 2010* (in MW)
      • Heat Use
    • CHP in Japan
      • User Demographics
        • Table Japanese CHP Capacity by End User, March 2011 (in MW installed & number of units)
  • Competitors
    • Component Manufacturers
      • Gas Turbine & Microturbine Manufacturers
        • Table Select Gas Turbine and Microturbine Manufacturers, 2012
      • GE Energy
      • Siemens
      • Capstone Turbine Corporation
    • Steam Turbine Manufacturers
      • Table Select Steam Turbine Manufacturers, 2012
      • Alstom
    • Reciprocating Engine Manufacturers
      • Table Select Reciprocating Engine Manufacturers, 2012
      • Caterpillar
    • Boiler/Waste Heat Boiler Manufacturers
      • Table Select Boiler/Waste Heat Boiler Manufacturers, 2012
      • Mitsubishi Heavy Industries
    • Heat Recovery Steam Generator (HRSG) Manufacturers
      • Table Select HRSG Manufacturers, 2012
      • Nooter/Eriksen
    • CHP Package Manufacturers & Integrators
      • Table Select Small-CHP Manufacturers, 2012
      • Table Select Mid-sized CHP Manufacturers, 2012
      • 2G Energy
        • Table 2G's CHP Product Line, 2012
      • Dresser-Rand
        • Table Dresser-Rand's CHP Product Line, 2012
      • ENER-G
        • Table ENER-G's CHP Product Line, 2012
      • Tognum (MTU Onsite Energy)
        • Table MTU Onsite Energy's CHP Product Line, 2012
    • Micro-CHP Manufacturers
      • Table Select Micro-CHP Manufacturers by Prime Mover Technology, 2012
      • Honda
      • Panasonic (Ene-Farm)
      • BDR Thermea
        • Table BDR Thermea's Product Line, 2012
  • Company Contact Information

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