Market Trends of Brazil Combined Heat and Power Industry
This section covers the major market trends shaping the Brazil Combined Heat & Power Market according to our research experts:
Biomass Based CHP is Expected to Drive the Market
- Brazil is a major consumer and has one of the world's greatest biomass potentials. As an energy source, biomass is an alternative to fossil fuels since the use of biomass is the result of a combination of factors, including the availability of cheap biomass resources and cheap labor, rapid industrialization and urbanization, and historical experience with large scale industrial applications of biomass energy.
- Combined Heat and Power (CHP) or cogeneration, which is the generation of electricity or mechanical power provides a number of potential benefits for Brazil in terms of increased energy efficiency, lower greenhouse gas and other emissions, economic competitiveness, and energy resiliency.
- Statistics given by the International Energy Agency depicts that coal-fired power generating plants operate at only 36% efficiency, whereas, CHP plants run at almost 58% efficiency. The estimation clearly projects a favorable CHP market outlook in the coming time.
- Brazil's CHP industry is found in industrial applications, providing power and steam especially to industries such as wood, pulp, chemicals and paper. Biomass-fueled CHP is expected to provide 17% of the country's overall electricity requirement by 2030.
- CHP is a commercially available clean energy solution that directly supports increasing energy efficiency, reducing emissions, enhancing energy infrastructure, improving energy security and growing the economy.
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Growing Federal and State Policymaker Support to Drive the Market
- Policymakers at the federal and state level are increasingly recognizing the benefits that CHP offers in terms of energy efficiency, reduced emissions, and economic growth.
- Use of renewables as fuel type for combined heat and power system encourage to reduce the rate of emissions into the environment. The renewable generation in Brazil has reached 52.9 TWh in 2018.
- Some of the benefits of CHP that most resonate among the policymakers include:
- CHP's inherent higher efficiency and elimination of transmission and distribution losses from the central station generator results in reduced primary energy use and lower greenhouse gas (GHG) emissions.
- CHP provides not only operating savings for the user but may also represent a cost-effective supply of new power generation capacity for regions with declining reserve margins.
