On-Grid Combined Heat and Power Market size is estimated to be USD 18.5 Billion in 2024 and is expected to reach USD 30.2 Billion by 2033 at a CAGR of 5.4% from 2026 to 2033.
The European on-grid Combined Heat and Power (CHP) market is witnessing a significant transformation, driven by industries' quest for energy efficiency and sustainability. CHP, also known as cogeneration, simultaneously produces electricity and useful heat from a single energy source, optimizing energy use and reducing waste. This approach not only enhances operational efficiency but also aligns with the European Union's ambitious carbon reduction goals.
Industries across Europe are increasingly integrating CHP systems to meet their energy demands efficiently. For instance, the Grain Power Station in the UK operates a 1,275MW Combined Cycle Gas Turbine (CCGT) plant that supplies electricity to approximately one million homes. Notably, it also functions in a CHP mode, transferring up to 340MW of recovered heat energy to a nearby liquefied natural gas terminal, thereby reducing carbon emissions by up to 350,000 tonnes annually. citeturn0search24
The European Union has been proactive in promoting cogeneration through legislative measures like the CHP Directive (Directive 2004/8/EC). This directive aims to create a framework for the promotion and development of high-efficiency cogeneration, thereby increasing energy efficiency and improving energy supply security. As a result, the EU currently generates about 11% of its electricity using cogeneration, with countries like Denmark, the Netherlands, and Finland leading the way. citeturn0search22
The industrial sector's requirements for CHP systems are multifaceted. Firstly, there is a need for scalable solutions that can be tailored to specific energy demands. Flex Power Solutions, a Limerick-based start-up, addresses this by converting excess renewable electricity into usable heat with electrode boilers, aiming to reduce carbon emissions by 30% while offering cost savings to clients. citeturn0news27
Secondly, the integration of CHP systems with existing infrastructure is crucial. Data centers, often criticized for high energy consumption, present an opportunity in this regard. By harnessing the excess heat generated, cities like Frankfurt could potentially meet all their heating needs from data centers by 2030, transforming a challenge into a sustainable solution. citeturn0news28
Furthermore, the push towards renewable energy sources is influencing CHP applications. The EU's interest in geothermal energy, which could meet up to 75% of its heating and cooling needs by 2040, opens new avenues for CHP systems to utilize sustainable heat sources. citeturn0news29
In my experience working with industrial clients, the adoption of CHP systems has led to notable improvements in energy efficiency and cost reductions. One client, for example, integrated a CHP system with their manufacturing process, resulting in a 25% decrease in energy costs and a significant reduction in carbon footprint. Such outcomes underscore the value of CHP in modern industrial applications.
In conclusion, the European on-grid CHP market is evolving rapidly, driven by industries' need for efficient, sustainable, and cost-effective energy solutions. With supportive policies, technological advancements, and a focus on integrating renewable sources, CHP stands as a cornerstone in Europe's energy landscape, aligning with broader goals of sustainability and energy security.
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BDR Thermea Group
Dantherm Power
Microgen Engine Corporation Holding B.V.
Qnergy
Senertec Kraft-Warme-Energiesysteme Gmbh (Senertec)
Viessmann Group
Whisper Tech Limited
Cogen Microsystems
Ceres Power Holdings PLC
Yanmar Co. Ltd.
Zeppelin Power Systems
By the year 2030, the scale for growth in the market research industry is reported to be above 120 billion which further indicates its projected compound annual growth rate (CAGR), of more than 5.8% from 2023 to 2030. There have also been disruptions in the industry due to advancements in machine learning, artificial intelligence and data analytics There is predictive analysis and real time information about consumers which such technologies provide to the companies enabling them to make better and precise decisions. The Europe region is expected to be a key driver of growth, accounting for more than 35% of total revenue growth. In addition, new innovative techniques such as mobile surveys, social listening, and online panels, which emphasize speed, precision, and customization, are also transforming this particular sector.
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Growing demand for below applications around the world has had a direct impact on the growth of the Europe On-Grid Combined Heat and Power Market
Microturbines
Gas Engines
Steam Turbines
Fuel Cells
Reciprocating Engines
Natural Gas
Biodiesel
Biomass
Propane
Diesel
Healthcare
Manufacturing
Food and Beverage
Hospitality
Education
Small Scale (up to 100 kW)
Medium Scale (100 kW to 1 MW)
Large Scale (1 MW and above)
Commercial Scale
Cogeneration for Industrial Process Heat
Residential Heating and Power Supply
District Heating Systems
Backup Power Systems
Europe (Germany, UK, France, Italy, Russia, Turkey, etc.)
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1. Introduction of the Europe On-Grid Combined Heat and Power Market
Overview of the Market
Scope of Report
Assumptions
2. Executive Summary
3. Research Methodology of Market Size And Trends
Data Mining
Validation
Primary Interviews
List of Data Sources
4. Europe On-Grid Combined Heat and Power Market Outlook
Overview
Market Dynamics
Drivers
Restraints
Opportunities
Porters Five Force Model
Value Chain Analysis
5. Europe On-Grid Combined Heat and Power Market, By Type
6. Europe On-Grid Combined Heat and Power Market, By Application
7. Europe On-Grid Combined Heat and Power Market, By Geography
Europe
8. Europe On-Grid Combined Heat and Power Market Competitive Landscape
Overview
Company Market Ranking
Key Development Strategies
9. Company Profiles
10. Appendix
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