Combined heat and power (CHP) units are playing an increasingly important role in delivering onsite electricity generation and heat for a variety of residential, commercial, institutional, and industrial applications. Efficient cogeneration technologies have been an area of emphasis in Europe since the 1980s but up to this point, CHP has not been widely adopted elsewhere. Nevertheless, CHP applications provide an opportunity for end users to generate electricity and heat on a highly distributed and localized basis, reduce energy expenses, and ensure reliable power. Moreover, in some cases, CHP can be integrated into smart grids.
The potential for CHP market growth is strong, but several market conditions must coincide in order to make CHP units a reasonable alternative to the grid or even other self-generation technologies. These conditions include appropriate matching of thermal and electrical output to the customer’s needs, cooperation of utilities for interconnection and other implementation requirements, classification of CHP as “renewable energy” for inclusion in government programs (not necessary, but helpful), relatively high thermal requirements (compared to electrical requirements), and high or volatile spark spreads. Pike Research’s analysis indicates that the right factors are aligning in the market to create a significant growth opportunity for CHP over the next decade, and the firm forecasts strong growth in unit shipments and revenues between 2011 and 2021. During that period, residential and commercial markets are expected to experience the highest growth rates.
This Pike Research report analyzes the key market barriers and drivers for each application and technology utilized in the CHP market. The study assesses technology issues, policy and regulatory factors, and the regional market trends that will drive increased CHP adoption in residential, commercial, institutional, and industrial application groups. Key industry players are profiled in depth and market forecasts, segmented by world region and application group, extend through 2021.
Key Questions Addressed:
- What will be the key/new markets for CHP over the next 10 years?
- What are the key issues for CHP in each region?
- What types of technologies are used in CHP applications?
- What regions will experience the strongest growth in CHP sales?
- How large will the combined heat and power market be globally?
- Who are the key industry players in CHP?
- What are the key government policies to encourage CHP?
- What are the strongest technologies and markets for CHP?
Who needs this report?
- CHP manufacturers
- CHP component suppliers
- CHP engine, turbine, or fuel cell stack manufacturers
- Natural gas suppliers
- Government agencies
- Industry associations
- Investor community
Table of Contents
1. Executive Summary
1.1 Introduction
1.2 Industry Growth
2. Applications
2.1 Introduction: Application Groups
2.1.1 Residential Combined Heat and Power
2.1.2 Commercial Combined Heat and Power
2.1.3 Institutional Combined Heat and Power
2.1.4 Industrial Combined Heat and Power
2.1.4.1 Municipal and Agricultural Combined Heat and Power
2.1.4.2 Power Plants
3. Market Issues
3.1 Introduction to CHP
3.2 Market Drivers
3.2.1 Energy Security
3.2.2 Energy Supply Diversification
3.2.3 Volatility in the Spark Spread
3.2.4 Mitigating Operating Costs
3.2.5 Modularity
3.2.6 Emissions and Emissions Savings
3.2.7 Policies and Incentives
3.2.7.1 Incentives
3.2.7.2 Regulations for Utilities
3.2.7.3 Global Political Trends
3.2.7.4 Research and Development Subsidies
3.2.7.5 Adoption Subsidies
3.2.7.6 Feed-In Tariffs
3.2.8 Thermal vs. Electrical Output in Residential Combined Heat and Power
3.2.9 Commercialization Programs for Fuel Cell CHP
3.2.9.1 Denmark: Danish Fuel Cell Partnership
3.2.9.2 Germany: Callux
3.2.9.3 Japan: Enefarm Program
3.3 Market Barriers
3.3.1 Utilities
3.3.2 Cost
3.3.2.1 CAPEX
3.3.2.2 OPEX
3.3.2.3 Total Cost of Ownership
3.3.3 Feedstock
3.3.4 Durability
3.3.5 Flexibility (Start-up/Start-Stop Cycles)
3.4 Key Markets
3.4.1 California
3.4.2 The Northeast
3.4.3 Germany
3.4.4 United Kingdom
3.4.5 Korea
4. Technology Issues
4.1 Technology Issues
4.2 Mechanical Systems
4.3 Fuel Cells
4.3.1 How Fuel Cells Work
4.3.2 Differences Between Fuel Cells
4.3.3 Cost of Fuel Cell Systems
4.3.4 Fuel Cells for Combined Heat and Power
4.3.4.1 Polymer Electrolyte Membrane Fuel Cells
4.3.4.2 Solid Oxide Fuel Cells
4.3.4.3 Phosphoric Acid Fuel Cells and Molten Carbonate Fuel Cells
4.4 Feedstocks
4.4.1 Anaerobic Digestion
4.5 Efficiencies and Emissions Profiles
4.6 Complementary Technologies
4.6.1 Chillers
4.6.2 Thermoelectric Generators
5. Key Industry Players
5.1 2G – CENERGY Power Systems Technologies Inc.
5.2 Baxi
5.3 Capstone Turbines
5.4 Caterpillar
5.5 Ceramic Fuel Cell
5.6 Ceres Power
5.7 ClearEdge Power
5.8 Doosan Heavy Industries and Construction
5.9 FuelCell Energy
5.10 Fuji Electric
5.11 GE Power
5.12 Intelligent Energy
5.13 Marathon Engine Systems Inc.
5.14 Panasonic
5.15 Tecogen
5.16 Topsoe Fuel Cell
5.17 Toshiba
5.18 Trenergi
5.19 UTC Power (PAFC: CHP/Grid Strengthening: United States)
5.20 Vaillant Group
5.21 WhisperTech
6. Market Forecasts
6.1 Methodology
6.2 Flex Points in the Model
6.2.1 Utilities
6.2.2 Technology
6.2.3 Market Conditions
6.3 Regional Breakdown
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.3 Asia Pacific
6.3.4 Other Regions
6.4 Market Forecasts by Region
6.4.1 CHP Market Value by Region, World Markets
6.4.1.1 Residential
6.4.1.2 Commercial
6.4.1.3 Institutional
6.4.1.4 Industrial
6.4.2 CHP Shipments by Region, World Markets
6.4.2.1 Residential
6.4.2.2 Commercial
6.4.2.3 Institutional
6.4.2.4 Industrial
6.5 Market Forecasts by Application Group
6.5.1 Wastewater Treatment
6.5.2 Balancing High CAPEX in Large-Scale Fuel Cell CHP Installations
6.5.3 CHP Sales by Application Group, World Markets
6.5.3.1 Breakout Market: Residential
6.5.3.2 Breakout Market: Commercial
6.5.3.3 Steady Market: Institutional
6.5.3.4 Steady Market: Industrial
6.5.4 CHP Shipments by Application Group, World Markets
6.5.4.1 Residential Will Dominate Shipment Numbers
6.5.4.2 Commercial, Institutional, and Industrial Shipment Numbers Will Be Steady
6.5.5 CHP kW Installed by Application Group, World Markets
6.5.5.1 Commercial Will Dominate kW Installed
6.5.5.2 Residential Will Remain Strong
6.5.5.3 Industrial and Institutional Will be Relatively Strong
6. Company Directory
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
- Annual CHP Growth Rates by Application Group, World Markets: 2011-2021
- Total Primary Energy Demand, World Markets: 1990-2030
- CO2 Emissions with Electricity and Heat Allocated to Consuming Sectors: 2008
- Installed CHP Capacity, World Markets: 2005
- Growth in Total Energy Consumption per Capita by Region, World Markets: 1990-2005
- Annual Growth of CHP Installations by Region, World Markets: 2011-2021
- Residential CHP Revenues by Region, World Markets: 2011-2021
- Commercial CHP Revenues by Region, World Markets: 2011-2021
- Institutional CHP Revenues by Region, World Markets: 2011-2021
- Industrial CHP Revenues by Region, World Markets: 2011-2021
- Residential CHP Unit Shipments by Region, World Markets:
2011-2021 - Commercial CHP Unit Shipments by Region, World Markets:
2011-2021 - Institutional CHP Unit Shipments by Region, World Markets:
2011-2021 - Industrial CHP Unit Shipments by Region, World Markets:
2011-2021 - CHP Revenues by Application Group, World Markets: 2011-2021
- CHP Unit Shipments by Application Group, World Markets:
2011-2021 - CHP Capacity (kW) by Application Group, World Markets:
2011-2021 - Current Renewable Portfolio Stands, United States: February 2010
- Danish Micro CHP Demonstration Project
- Residential CHP Development Map of the German National Development Plan
- Total Energy Consumption, Canada: 2006
List of Tables
- Annual CHP Growth Rates by Application Group, World Markets: 2011-2021
- CHP Applications, with Typical Power Ratings
- Summary of Applications and Cost-Based Market Drivers
- Renewable Energy Policies and Incentives, World Markets
- Residential CHP, with Output, Where Available
- RD&D Resources for Large Fuel Cell CHP at National Level, Germany: 2007-2015
- RD&D Resources for Residential Fuel Cell CHP at National Level, Germany: 2007-2015
- CHP Installed Cost, Operating and Maintenance Cost, and Availability
- Banding System for CHP and Non-CHP Equivalents
- New and Renewable Energy (NRE) Feed-in Tariff Scheme, Korea
- Total Primary Energy Demand, World Markets: 1990-2030
- CO2 Emissions with Electricity and Heat Allocated, Consumer Sector: 2008
- Summary of CHP Technologies
- Summary of Fuel Cell Types and Operating Characteristics
- Summary of CHP Fuels, by Technology
- Summary of Efficiencies and Emissions Profiles, by Technology
- Installed CHP Capacity by Region, World Markets: 2005
- Growth in Total Energy Consumption per Capita by Region, World Markets: 1990-2005
- Annual Growth Rates of CHP Installations, World Markets: 2011-2021
- Residential CHP Revenues by Region, World Markets: 2011-2021
- Commercial CHP Revenues by Region, World Markets: 2011-2021
- Institutional CHP Revenues by Region, World Markets: 2011-2021
- Industrial CHP Revenues by Region, World Markets: 2011-2021
- Residential CHP Unit Shipments by Region, World Markets:
2011-2021 - Commercial CHP Unit Shipments by Region, World Markets:
2011-2021 - Institutional CHP Unit Shipments by Region, World Markets:
2011-2021 - Industrial CHP Unit Shipments by Region, World Markets:
2011-2021 - CHP Revenues by Application Group, World Markets: 2011-2021
- CHP Unit Shipments by Application Group, World Markets:
2011-2021 - CHP Capacity (kW) by Application Group, World Markets:
2011-2021