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Demand for Inexpensive, On-site Power Generation Energises the CHP Market Finds Frost & Sullivan - Environmental concerns add heft to the case for CHP equipment -
Demand for Inexpensive, On-site Power Generation Energises the CHP Market Finds Frost & Sullivan


PRZOOM - /newswire/ - Singapore, Singapore, 2013/11/07 - Environmental concerns add heft to the case for CHP equipment -

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The escalating costs of the fuels used to generate electricity have spawned a need for technology that can improve the efficiency of fuel conversion. This has, in turn set the stage for combined heat and power (CHP) to emerge as the distributed power generation technology of choice. CHP not only generates on-site power, but also meets the heating and cooling requirements of industries and enterprises at reasonable costs.

New analysis from Frost & Sullivan (, Global Combined Heat and Power (CHP) Markets, finds that the market earned revenues of US$4.26 billion in 2012 and estimates this to generate US$4.91 billion in 2017. The study covers Europe, North America and the Asia-Pacific region across the application sectors of residential, commercial, industrial and institutional.

The efficiency of electricity derived from the grid is only around 30 percent due to heavy losses incurred during transportation. Owing to this, end users in Europe and Asia are increasingly turning to distributed generation. Another reason for their preference for distributed generation is the looming shortage of power generation capacity and the utilities' inability to meet the growing demand from various sectors.

"With the phasing out of nuclear power in countries such as Germany and Japan and the decision to move away from polluting coal plants, power shortage is a solidifying threat, unless more generation capacity is added," said Frost & Sullivan Energy & Environmental Research Analyst Subha Krishnan. "CHP has the potential to significantly lower the pressure on utilities with its ability to save energy and costs."

While the high energy costs are nudging end users towards CHP, some end users are deferring their investments in CHP equipment, such as gas turbines, until a time when the prices of natural gas are more stable. Not only are these rising costs of natural gas delaying proposed projects but are also causing existing projects to shut down.

Facility owners need to be made aware that CHP equipment can save several projects from premature closure by providing greater flexibility in allowing them to switch fuels, shift loads, and shave peaks, depending on the economic conditions.

"The easy availability of fuels will promote the adoption of cogeneration systems," noted Krishnan. "Most CHP systems are designed for multiple fuel options and therefore, when the prices of oil and natural gas increase, customers have the freedom to switch to biomass or diesel. These benefits can further shield the facility from price volatility and uncertainty, if it has access to a reliable renewable or waste energy source."

The CHP market will get added impetus from the rising environmental consciousness all over the world. The regulators of major countries in North America, Europe, and Asia-Pacific have implemented strict policies and a number of regulatory measures, such as carbon credits and renewable portfolio standards, to protect the environment. This will give a huge boost to the CHP market, as its efficient fuel conversion translates to lower greenhouse gas emissions.

If you are interested in more information on this research, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.], with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Global Combined Heat and Power (CHP) Markets is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services include: Morocco's Infrastructure Sectors, Top 25 Fastest Growing Power Producers in the Turkish Market, Sri Lanka Diesel Genset Market, and Investment Opportunities in the Turkish Energy Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Global Combined Heat and Power (CHP) Markets / P77A-14

Media Contact:
Melissa Tan, Corporate Communications - Asia Pacific
P: +65 6890 0926 / F: +65 6890 0999 - E: melissa.tan[.]

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Demand for Inexpensive, On-site Power Generation Energises the CHP Market Finds Frost & Sullivan

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