Asia-Pacific’s (APAC) distributed Combined Heat and Power (CHP) installed capacity to grow from around 37.7 Gigawatts (GW) in 2013 to approximately 64 GW by 2019
Stockholm ConBio, 29 July 2014 – The Asia-Pacific (APAC) region’s distributed Combined Heat and Power (CHP) installed capacity will grow from around 37.7 Gigawatts (GW) in 2013 to approximately 64 GW by 2019, at a Compound Annual Growth Rate (CAGR) of 9%, according to London based research and consulting firm GlobalData.
Ankit Mathur, GlobalData’s Project Manager for Alternative Energy, states that the region will spend almost $56 billion on bolstering its distributed CHP installed capacity between 2014 and 2019. This is the second largest investment globally behind Europe, which will boast distributed CHP capital expenditure of around $144 billion between 2014 and the end of the forecast period.
The analyst believes that China’s significant contribution has been the major driving force behind the expansion of APAC’s distributed CHP installed capacity reaching 37.7 GW by 2013. The country will continue to account for more than 50% of the region’s market share, with a forecast net capacity addition of over 14.5 GW between 2014 and 2019.
Mathur says: “Most of China’s current CHP projects are coal-based, presenting a fertile opportunity for market growth, as CHP power plants can employ the existing set-up of coal-fired plants. By moving to technologies that burn fuels with lower emissions, such as gas or biomass, the country can gradually reduce its coal consumption.
“Consequently, China will be able to further drive its efforts towards reducing carbon emissions generated from coal-fired power plants.”
Mathur adds that considerable efforts taken by China and other APAC countries will allow the region to retain the leading global distributed CHP market share by 2019.
GlobalData is a leading global research and consulting firm offering advanced analytics to help clients make better, more informed decisions every day. Our research and analysis is based on the expert knowledge of over 700 qualified business analysts and 25,000 interviews conducted with industry insiders every year, enabling us to offer the most relevant, reliable and actionable strategic business intelligence available for a wide range of industries.