May 21, 2015: CHP Market Expected to Be Worth More than $14 Billion Annually by 2024
Most Installations Are in the United States, Northern Europe, South Korea, and Japan
BOULDER, Colo. — In light of concerns about grid reliability, demand for electricity, and greenhouse gas emissions, policymakers, utilities, and building owners in a growing number of countries are becoming more interested in commercial combined heat and power (CHP) systems, notes Navigant Research. In fact, governments around the world are increasingly focused on boosting subsidies and other incentives for the adoption of these systems and related building efficiency technologies. According to a report from the research firm, the commercial CHP market is expected to be worth more than $14 billion annually by 2024.
“While the market as a whole is experiencing steady growth, CHP’s penetration into global building infrastructure has been minimal,” said Brett Feldman, senior research analyst with Navigant Research. “In 2015, globally, the technical potential of floor space that could be served by commercial CHP is estimated at 441 billion square feet — but only a fraction of this total can be realistically served due to the high upfront capital cost associated with these types of systems.”
In addition to the high upfront expense, additional conditions, including high spark spreads, thermal requirements, and utility cooperation, must be present for installed systems to be viable, according to the report. As such, the majority of today’s installations are confined to developed areas such as the United States, Northern Europe, South Korea, and Japan.
Publication date: 5/18/2015