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Focus on Energy Security Powers European Combined Heat and Power for District Heating Market Finds Frost & Sullivan - Revenues to double - Countries with favourable energy policies and reliable power distribution networks will see highest adoption rates - Energy.Frost.com
Focus on Energy Security Powers European Combined Heat and Power for District Heating Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2013/11/14 - Revenues to double - Countries with favourable energy policies and reliable power distribution networks will see highest adoption rates - Energy.Frost.com.

   
 
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Rising concerns over climate change and the environmental impact of fossil fuels have urged the European Commission to chalk out energy policies and energy efficiency directives. Mandates to switch to emission reduction technologies and alternate fuel supplies by applying district heating (DH) methods will ensure that combined heat and power for DH (CHP-DH) will be an important contributor to achieving both 2020 and long-term EU objectives. The capability for heat generation from renewable energy will also lend momentum to DH as a key alternative to fossil fuels.

New analysis from Frost & Sullivan (energy.frost.com), European Combined Heat and Power for District Heating Market, finds that the market earned revenues of €482.5 million in 2012 and estimates this to grow to €1,025.3 million in 2019 at a healthy compound annual growth rate of 11.4 percent. Orders for DH systems in combined cycle form will boost revenues in most European countries.

While Europe is making gradual, though small, developments in technology, skills and supply chain to meet its targets of attaining energy efficiency through CHP-DH, challenges such as the lack of stronger policies and sufficient regulatory reforms must be addressed to further adoption.

"Both the International Energy Agency and the latest Member States' studies under the Cogeneration Directive have identified DH as a growing area within the CHP segment," explained Frost & Sullivan Energy and Power Industry Analyst Pritil Gunjan. "However, CHP policy, tax, and electricity reforms as well as trading arrangements will be needed for the rapid development of CHP-DH in Europe."

Technological advancements to create a robust distribution network are also crucial to fuel the implementation of CHP-DH in Europe since interconnection with power grids can provide backup power to CHP-DH systems during maintenance or downtimes. However, the high investment costs of the technology and low payback periods of up to 5-7 years may discourage utilities from investing immediately in the creation of more efficient networks. This may slow down the setting up of CHP-DH plants in some countries.

"On the other hand, countries that possess reliable networks such as Germany, France and the Netherlands will become key growth markets for cogeneration in DH," noted Gunjan. "Poland and Germany already have the largest total amount of district heat delivery. The highest growth rates for DH, going forward, are expected to be in Austria and Italy."

If you are interested in more information on this research, please send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com, with your full contact details, company name and website, city, and country.

European Combined Heat and Power for District Heating Market is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services include: European Rack and Rack Options Market, Annual Renewable Energy Outlook 2013, Opportunities in the Biomass and Biogas Power Market in Europe, and Global Combined Heat and Power Markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
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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.

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European Combined Heat and Power for District Heating Market / M974-14

 
 
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Focus on Energy Security Powers European Combined Heat and Power for District Heating Market Finds Frost & Sullivan

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