WASHINGTON — A recent report from Navigant Research analyzed the global market potential for commercial combined heat and power (CHP) systems for a range of building applications, including global market forecasts for system installations, installed capacity, average installation capacity size, and revenue through 2024.

Policymakers, utilities, and building owners in a growing number of countries are becoming more interested in commercial CHP systems due to concerns about grid reliability, demand for electricity, and greenhouse gas emissions. 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 the report, 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, the technical potential of global 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 U.S., northern Europe, South Korea, and Japan.

The report, “Combined Heat and Power for Commercial Buildings,” analyzes the global market potential for commercial CHP systems for a range of building applications, including hospitals, universities, hotels, casinos, airports, etc., using technologies such as turbines, reciprocating engines, and fuel cells. The report provides in-depth assessments of leading countries for the manufacture and adoption of commercial CHP systems and the technologies utilized in such systems. Global market forecasts for system installments, installed capacity, average installation capacity size, and revenue — segmented by region and application — are provided through 2024. The report also examines the key industry players engaged in the global commercial CHP market. An executive summary of the report is available for free at http://bit.ly/NavigantResearchCHP.

Publication date: 6/8/2015 

Want more HVAC industry news and information? Join The NEWS on Facebook, Twitter, and LinkedIn today!