Combined Heat and Power (CHP) Market in Europe to witness robust expansion by 2026

Europe combined heat and power (CHP) market size is experiencing robust expansion on account of increasing demand for decentralized power generation. There are many benefits associated with using a decentralized system to generate electricity like lesser load on the electric grid to produce more power for its surrounding area. It makes the overall electricity system more resilient and robust to support the power needs of the regional population.

Another important factor is that countries across Europe are becoming increasingly aware about the potential disadvantages of using non-renewable energy sources to produce electricity. This has automatically increased the demand for sustainable alternatives to generate electricity so that companies and people alike can reduce their carbon footprint to a great extent. All of the above-mentioned factors will drive the regional combined heat and power (CHP) market forecast.

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CHP systems provide safety, efficiency and reliability in their performance, thereby reducing the overall greenhouse gas (GHG) emissions. On the other hand, governments across Europe are increasing their investments towards the discovery of green technologies that will help the regional companies reduce their carbon footprint. This is another aspect that will raise the demand for combined heat and power (CHP) market in the region.

Residential and commercial sectors across Europe extensively use CHP systems to fulfill their electricity needs. The market share from commercial segment will grow at a substantial rate because of the rise in demand for district heating systems. The authorities across Europe have placed some stringent guidelines for commercial complexes with regards to the permissible emission rates.

They have even introduced special incentives for companies that adopt eco-friendly technologies in their daily operations. Targets have been specified across countries with the aim to reduce the overall carbon emissions. For example, the European Union (EU), introduced strategies to achieve more than 30% energy efficiency by 2030; this is a part of the EU’s Clean Energy for All Europeans package.

Coal, biomass and natural gas are some of the most commonly used fuels in combined heat and power (CHP) market. Among these, natural gas will gain momentum in demand among end-users in Europe because of the growing need to refurbish and retrofit old power plants. Some of the advantages of using natural gas in CHP systems are minimum consumption of fuel, higher efficiency and simple & easy to operate.

The commercial and industrial sectors across the region are increasing their efforts to reduce their carbon emissions. This is being achieved by adopting eco-friendly fuels like natural gas in their electricity generation plants.

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Germany combined heat and power (CHP) market will showcase promising developments in the coming years because of rise in need for district heating and cooling infrastructure. There are many benefits of using CHP systems like advanced in-built technologies, highly affordable gas rates and lower cost incurred in operating the overall infrastructure. There are wide range of capacities and designs available for all end-users, which will further increase their installation in the country.

Some of the well-known companies that are involved in the production of combined heat and power (CHP) market in Europe are MAN Energy Solutions, Mitsubishi, Wartsila, Yanmar, ABB, 2G Energy, Aegis Energy and many others. Combined heat and power systems are undergoing technological transformations to enhance their overall performance. The adoption of high-end technologies is estimated to increase the overall efficiency of these systems by 30-45%. These technologies will help in improving the system’s reliability and will create better fuel efficiency. It will even result in decreased maintenance activities and lower emissions.

Table of Contents (ToC) of the report:

Chapter 1. Methodology & Scope

  • Market scope & definitions
  • Assumptions
  • Research methodology

Chapter 2. Executive Summary

Chapter 3. Combined Heat and Power (CHP) Market Insights

  • Industry segmentation
  • Industry ecosystem analysis
  • Industry impact forces
    • Growth drivers
    • Growth restraints
  • Regulatory overview
  • Porter’s analysis
  • PESTEL analysis
  • Competitive landscape, 2020

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