Combined Heat and Power Market Ongoing Trends, Opportunities & Forecast To 2031

Combined Heat & Power Market is estimated to hit USD 48.4 billion by 2031

The Sustainable Development Goals (SDGs)

1. No Poverty
2. Zero Hunger
3. Good Health and Well-being
4. Quality Education
5. Gender Equality
6. Clean Water and Sanitation
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry, Innovation, and Infrastructure
10. Reduced Inequalities
11. Sustainable Cities and Communities
12. Responsible Consumption and Production
13. Climate Action
14. Life Below Water
15. Life on Land
16. Peace, Justice, and Strong Institutions
17. Partnerships for the Goals

Introduction

The global combined heat and power market size was valued at $24.6 billion in 2021, and is estimated to reach $48.4 billion by 2031, growing at a CAGR of 7.2% from 2022 to 2031.

Overview of Combined Heat and Power (CHP)

Combined Heat and Power (CHP), also known as cogeneration, is a system that simultaneously generates electricity and useful heat from a single fuel source. It is a highly efficient energy solution that can significantly reduce energy waste and greenhouse gas emissions compared to separate production of electricity and heat.

Key Findings

• The demand for combined heat power is anticipated to rise due to the expansion of commercial sectors that drives the economies’ inflation.
• The growing usage of natural gas for power production as well as the increasing need for energy efficiency in industries are the primary drivers of the worldwide combined heat power market growth.
• IT parks, colleges, hospitals, airports, shopping centers, and other commercial buildings have combined heat power units installed to cost-effectively produce electricity and power needed to be independent energy producers.
• By technology, the combined cycle segment emerged as the global leader in 2021 and it is projected to show the fastest growth in the upcoming years.
• By application, the industrial segment emerged as the global leader in 2021 and it is anticipated to show the fastest growth in the upcoming years.
• By capacity, the up to 10 MW segment emerged as the global leader in 2021 and it is expected to show the fastest growth in the upcoming years.
• By fuel type, the natural gas segment emerged as the global leader in 2021 and it is anticipated to be the fastest growing segment during the forecast period.

Key Players

• MAN Diesel & Turbo SE
• Caterpillar Inc.
• Mitsubishi heavy Industries ltd.
• General Electric
• Cummins
• Bosch Thermotechnology Ltd.
• ABB Limited
• ENER-G Rudox
• Veolia

Challenges and Opportunities

• The implementation of a combined heat power project requires significant financial investment that is unaffordable without government funding or help, which could restrict the development of the combined heat power market.
• Customers are hesitant to move away from their current alternatives as a result of the cost differences between different prime mover technologies.
• Prime mover technology that runs on several fuels such as diesel, natural gas, and hydrogen, may also restrain the market.
• The most frequently used fuel in combined heat power innovation is flammable gas. Its cost is expected to rise in comparison to other options due to its exceptional proficiency.
• Governments throughout the world are attempting to boost the percentage of cleaner energies in their electricity sector, which is expected to probably increase demand for petroleum gas.
• Strict administrative rules and fossil fuel targets are expected to embrace greener energies, such as petroleum gas, increasing the entire industry’s use of flammable gas as a fuel. This factor is anticipated to boost the combined heat power market opportunities during the upcoming year.

Impact of COVID-19 on the Global Combined Heat Power Industry

COVID-19 impacted every industry and the combined heat power producing companies ceased their operations owing to import-export restrictions, lockdown imposed across several countries, shortage of labor; and the fear of contracting the novel coronavirus, which led to sluggish demand in the market. 

The global industry has been significantly impacted, as several nations suffered due to a decline in the workforce across multiple business verticals. Several industry participants have indicated that various scale combined heat power projects have fallen behind schedule as a consequence of the COVID-19 crisis.

Social distancing norms, closed borders, and production constraints due to the pandemic across various countries such as China, India, and the U.S. have affected the global market. 

Conclusion

The combined heat and power market presents significant opportunities for sustainable development and achieving the Sustainable Development Goals (SDGs). However, challenges such as financial investment and customer reluctance need to be addressed to fully realize the potential of this market. The impact of COVID-19 has also highlighted the need for resilient and adaptable energy systems. Governments and industry players must work together to overcome these challenges and create a sustainable future.

SDGs, Targets, and Indicators

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix
   • Indicator: Percentage of renewable energy in the global energy mix

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
   • Indicator: Investment in infrastructure and innovation

3. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning
   • Indicator: Number of countries with integrated climate change measures

Analysis

The article discusses the global combined heat and power market, which is a system that simultaneously generates electricity and useful heat from a single fuel source. This system is highly efficient and can significantly reduce energy waste and greenhouse gas emissions. Based on the content of the article, the following analysis can be made:

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The issues highlighted in the article are connected to the following SDGs:

• SDG 7: Affordable and Clean Energy – The article discusses the use of combined heat and power systems as an efficient energy solution that can reduce energy waste and greenhouse gas emissions.
• SDG 9: Industry, Innovation, and Infrastructure – The article mentions the installation of combined heat and power units in various commercial buildings to produce electricity and power cost-effectively.
• SDG 13: Climate Action – The article emphasizes the reduction of greenhouse gas emissions through the use of combined heat and power systems.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following specific targets can be identified:

• Target 7.2: Increase substantially the share of renewable energy in the global energy mix – The use of combined heat and power systems contributes to increasing the share of renewable energy by utilizing a single fuel source to generate electricity and heat.
• Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable – The installation of combined heat and power units in commercial buildings contributes to upgrading infrastructure and making it more sustainable.
• Target 13.2: Integrate climate change measures into national policies, strategies, and planning – The adoption and implementation of combined heat and power systems as an energy-efficient solution contribute to integrating climate change measures into national policies and strategies.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not explicitly mention any indicators. However, the following indicators can be used to measure progress towards the identified targets:

• Percentage of renewable energy in the global energy mix – This indicator can measure progress towards Target 7.2 by tracking the increase in the share of renewable energy, including the use of combined heat and power systems.
• Investment in infrastructure and innovation – This indicator can measure progress towards Target 9.4 by tracking the investment in upgrading infrastructure and retrofitting industries, including the installation of combined heat and power units.
• Number of countries with integrated climate change measures – This indicator can measure progress towards Target 13.2 by tracking the adoption and implementation of climate change measures, such as the use of combined heat and power systems, in national policies and strategies.

Table: SDGs, Targets, and Indicators

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Source: einnews.com

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