The total CHP installed capacity increased from 437.4 Gigawatts (GW) in 2006 to 733.7 GW in 2015, at a Compound Annual Growth Rate (CAGR) of 5.9%. The market is being driven by the need for energy efficiency, growing environmental concern, and increasing government incentives and policies to promote cogeneration.
Governments around the world are supporting the growth in CHP by way of favorable policies and financial incentives. Strong commitment from these governments for the development of CHP has led to various R&D initiatives and CHP installations, which will drive the market in the upcoming period.
We believe that companies that are able to combine CHP with waste heat recovery technologies will be better-positioned to capitalize on the strong market fundamentals and expected growth. For instance, combining a typical cogeneration product with Thermal Energy International’s proprietary FLU-ACE heat recovery technology results in a marked improvement, pushing efficiency up to as high as 93%, compared to typical cogeneration systems that provide efficiency of around 65% to 75% on average.