The Asia-Pacific (Apac) region is expected to remain the largest combined heat and power (Chp) market in the world due to increased capacity installations led by countries such as China, India and Japan, according to data/analytics company GlobalData.
GlobalData’s report reveals the global Chp capacity is estimated to grow significantly, from 864,200 megawatts in 2018, to 1.05 million MW in 2025, due to significant capacity additions by China and India.
Apac is the largest region in terms of both net capacity additions and cumulative Chp capacity in 2018, Kallanish Energy understands.
“Europe was the region with the highest installed Chp capacity until 2009, primarily due to early development of technology, carbon savings target and large capacity installations in major countries such as Russia, Netherlands, Germany and the UK,” said Anchal Agarwal, GlobalData’s Power analyst.
“In 2010, the Apac region overtook Europe as it added capacities while Europe stagnated at its already high level. The governments in Apac are strongly committed towards having a cleaner energy mix and are supporting the evolution of such technologies through various policies and R&D initiatives.”
Chp capacity in China increased at a compound annual growth rate Cagr) of 13%, from 79,800 megawatts in 2006, to 347,600 MW in 2018.
More than 90% of the total installed capacity is coal-fired. During 2019-2025, the cumulative capacity of China is expected to increase from 363,300 MW, to 434,400 MW, at a Cagr of 3.0%.
A rule calling for companies to replace coal-fired boilers prompted a number of companies to replace coal plants with gas-fired Chp systems. China also plans to add over 12,000 MW of biomass cogeneration capacity by 2020, and roughly 25,000 MW biomass Chp capacity by 2035.
Auction-based competitive bidding has become a popular mechanism in recent years to drive Chp in most of the key markets. Countries including the UK, Germany and France have auction mechanism for various technologies, including Chp.
“The regulatory framework and policy structure supporting Chp in various regions and countries have led to significant development in the global Chp industry and have driven the leading Chp nations in growth trajectories,” Agarwal said.
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