February 11, 2015
Grid modernization efforts are contributing to the spread of commercial CHP, report finds
A new report from Navigant Research analyzes 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.
The market for commercial CHP systems has achieved limited penetration into global building infrastructure, but growth is accelerating. Two primary motivations are driving the increased adoption of CHP today: the potential to conserve energy and to guarantee power supply to mission-critical operations (e.g., research institutions, hospitals, and data centers). Click to tweet: According to a new report from Navigant Research, worldwide installations of commercial CHP systems are expected to total nearly 43,000 from 2015 through 2024.
“With energy markets undergoing significant change, commercial CHP is gaining increased traction as a flexible solution that can deliver a range of benefits to the grid, end users, and governments,” says Brett Feldman, senior research analyst with Navigant Research. “The effort to modernize the grid and make it more resilient is driving CHP adoption at the policy level, beyond individual site considerations.”
The technical potential of floor space that could be served by CHP is estimated at 441 billion square feet, according to the report. However, only a fraction of this total can be realistically served due to the high upfront capital cost associated with the installation of CHP systems. In addition, a range of factors, including high or volatile spark spreads, cooperative utilities, and relatively high thermal requirements, must be present for installed systems to be viable.
The report, “Combined Heat and Power for Commercial Buildings,” analyzes the global market potential for commercial CHP systems for a range of building applications – hospitals, universities, hotels, casinos, airports, etc. – using technologies including 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, extend 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 download on the Navigant Research website.
Contact: Richard Martin
* The information contained in this press release concerning the report, “Combined Heat and Power for Commercial Buildings,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.