Demand for Inexpensive, On-site Power Generation Energises the CHP Market, Finds Frost & Sullivan

Demand for Inexpensive, On-site PowerDemand for Inexpensive, On-site Power Generation Energises the CHP Market, Finds Frost & Sullivan PR Newswire SINGAPORE, Nov. 7, 2013 -- Environmental concerns add heft to the case for CHP equipment The escalating costs of the fuels used to generate electricity have spawned a need for technology that can improve the efficiency of fuel conversion. This has, in turn set the stage for combined heat and power (CHP) to emerge as the distributed power generation technology of choice. CHP not only generates on-site power, but also meets the heating and cooling requirements of industries and enterprises at reasonable costs. New analysis from Frost & Sullivan (http://www.energy.frost.com), Global Combined Heat and Power (CHP) Markets, finds that the market earned revenues of US$4.26 billion in 2012 and estimates this to generate US$4.91 billion in 2017. The study covers Europe, North America and the Asia-Pacific region across the application sectors of residential, commercial, industrial and institutional. The efficiency of electricity derived from the grid is only around 30 percent due to heavy losses incurred during transportation. Owing to this, end users in Europe and Asia are increasingly turning to distributed generation. Another reason for their preference for distributed generation is the looming shortage of power generation capacity and the utilities' inability to meet the growing demand from various sectors.