Commercial CHP Will ‘More Than Double by 2022’
Annual installations of commercial combined heat and power systems will reach nearly 39 GW and $2.2 billion in revenue in 2012, according to a new Pike Research report, Combined Heat and Power for Commercial Buildings.
Global capacity will more than double by 2022, the study concludes, reaching 79.5 GW (see chart). This represents $11.2 billion in annual revenue, led by the US, Europe and Asia Pacific, which Pike expects to represent 92 percent of the 79.5 GW installed.
These three regions also accounted for 96 percent of CHP capacity in 2011, with hospitals, universities and other institutional buildings that have nearly 24/7 heat load requirements leading the growth.
These end users see CHP as a way to reduce operating expenses, improve power reliability and, in some cases, receive credits, rebates and other sustainability benefits, according to the report.
In the next decade, however, Pike Research forecasts small and large commercial buildings will gain a larger share of the market, driven by technical improvements, greater system standardization and cost-reductions for smaller-scale units.
The report says an expansion of building stock across Asia Pacific — particularly in countries with rapidly urbanizing populations like China — will drive continued expansion of commercial CHP in new markets, and this region will remain “the hottest market” over the forecast period.
Last month The Johns Hopkins University in Baltimore, Md., announced plans to install a 75 kW CHP system, which will be owned and operated by American DG Energy. The university will receive a discount on the energy produced by the CHP system and the CHP system will offset 67 metric tons of carbon annually.
An October report by the Northeast/Midwest Institute said CHP can deliver cost savings, a reliable energy supply and environmental benefits to older industrial cities. But roadblocks — including high initial capital costs — are widespread.
- Financing Environmental Resiliency and a Low-Carbon Future with Green Bonds
- Energy Manager Today Awards Top Products and Top Projects of the Year
- 2016 Environmental Leader Product & Project Awards
- The Missing Puzzle Piece: Automated Utility Data Aggregation
- 10 Tactics of Successful Energy Managers
- 2015 Insider Knowledge
- How the IoT is Reshaping Building Automation
- Improve Occupant Comfort & Reduce Energy Costs Through Humidity Control
- Let's Do The Math for DR
- Just the Facts: 8 Popular Misconceptions about LEDs & Controls