On-Grid Combined Heat and Power Market Size

On-Grid Combined Heat & Power Market Analysis

The global on-grid combined heat and power market is expected to grow at a CAGR of more than 6% over the period of 2020-2025. Factors such as the positive outlook for natural gas supply and price, increased energy efficiency, and environmental regulatory pressures on power plants and industrial boilers, amongst others, are expected to drive the number of installations of combined heat and power plants across the world. Moreover, on-grid combined heat and power systems provide both thermal energy and electricity for the host site, generate electricity and provide other grid services to the electric power system when needed, and interact with the grid in a fully automated manner. Although many efforts have been made over the years to remove technical and regulatory barriers and to promote wider adoption of on-grid combined heat and power plants, factors such as grid interconnection, significant initial capital investment, amongst various others, has remained as a significant challenge for the on-grid combined heat and power market.

• Biomass based combined heat and power is expected to witness the fastest growth during the forecast period.
• Small-to-medium size industrial facilities could benefit from flexible and cost-effective combined heat and power systems. Such systems have the benefits of conventional combined heat and power but could also provide support to the electricity grid in the form of electricity supply, frequency regulation, and reserve capacity. This, in turn, is expected to create significant opportunities for the combined heat and power system providers and plant developers in the near future.
• North America has dominated the on-grid combined heat and power market, with the majority of the demand coming from the United States and Canada.