Frost & Sullivan’s recent analysis, Flexible CHP Systems will play a significant role in grid stabilization and resilience. The study discovers that government initiatives to generate energy from clean sources and the move toward carbon neutrality are key factors boosting the global combined heat and power (CHP) market. As a grid-complementary technology, the CHP market estimated to garner $20.85 billion by 2030 from $13.10 billion in 2020, an uptick at a moderate compound annual growth rate of 4.8%. Annual capacities are anticipated to reach 19.55 GW over the forecast period from 12.37 GW in 2020.
Neha Tatikota, Energy & Environment Research Analyst at Frost & Sullivan, said: “The combined impact of decentralization, decarbonization, and digitalization will drive new business models in the CHP market as flexibility will be the key in terms of adjustable electricity generation, guaranteed performance, and energy cost-savings. Models that encompass guaranteed performance, including power plant-as-a-service, power purchase agreements, energy-as-a-service, and combined supply and demand-side contracts, will provide opportunities for energy, technology, and service providers to generate new revenue streams.”
Tatikota added: “As packaged CHP solutions gain traction and an increasing number of commercial and institutional (C&I) facilities familiarize themselves with the technology and its benefits (energy efficiency), demand from Europe and North America will continue to gain momentum. Further, Asia-Pacific will record the highest growth for steam and gas industrial turbines, driven by businesses looking to reduce carbon emissions and the growing adoption of CHP and combined cooling and heating power.”