
Asia and South America are the fastest growing markets for cogeneration – according to latest CWC Report
The COGEN World Coalition (CWC), which represents major players in cogeneration (also known as combined heat and power or CHP), is today publishing its third annual report on the Global Cogeneration Market. The report shows that the total capacity of CHP plants and installations worldwide, in terms of their combined heat output, has increased by more than 37% since 2011.
The third edition of CWC’s Global Cogeneration Market Overview was produced for CWC by Challoch Energy. It describes the state of the cogeneration market around the world using data published by the International Energy Agency (IEA), complemented by data published by Eurostat (the statistical office of the European Union) and other sources.
The data presented in the market overview show that global CHP capacity grew by around 20.8% (in terms of electricity generated) or 37.5% (in terms of heat output) over the 10-year period from 2011 until 2021. According to the latest data (from 2021), the annual output of CHP systems globally amounts to 12,642 TWh of heat and 4,398 TWh of electricity, which represents just over 15% of total electricity generation. CHP systems are primarily being driven by fossil fuels, especially coal and coal products (61%) and natural gas (31%).
Asia-Pacific, Europe and North America are the regions with the most developed markets for cogeneration technologies. CHP systems are widely used in energy-intensive industries such as chemicals, pulp and paper, as well as food and drink, and they are increasingly being deployed to provide electricity and heat for facilities such as hospitals and universities, as well as district heating and cooling networks.
Biofuels and waste contribute a significant share of the fuel mix for cogeneration. Although these sources only represent 6.5% of energy input to CHP systems globally, there is wide variation between different regions and countries. Biofuels and waste account for 46.4% of the fuel mix in Africa, 64.5% in Brazil and 100% in India.
As well as describing the existing situation, the Global Cogeneration Market Overview also presents a forecast of future trends:
- Demand for cogeneration technologies is expected to continue growing in Asia (especially in China and India) as well as in South America.
- The CWC expects to see a growing market for smaller CHP installations (up to 10 MW capacity) providing electricity and heat to residential and commercial end-users.
- There is significant potential for cogeneration to provide reliable supplies of power and heat for utilities at local level (city or district).
- Cogeneration technologies are expected to play a significant role in meeting the growing demand for electricity and cooling from data centers.
- Fuel cells running on hydrogen should increasingly be used in the future, as this is a proven technology with no harmful emissions.
“Our latest Global Market Report shows that CHP* continues to play an important role in meeting the energy needs of various industries, facilities and communities around the world,” says Thomas Smith, President of the COGEN World Coalition. “In 2021, CHP installations globally produced 10.4% more heat and 6.8% more electricity than in the previous year, and we expect to see further growth during the coming years, especially in Asia and in the Americas.”
“Energy users are choosing CHP for its benefits in terms of efficiency and resilience, reducing costs and cutting emissions whilst also enabling the switch to renewable energy sources. Going forward, we also see a huge potential market for cogeneration technologies in meeting the energy needs of data centers – both in terms of electrical power and also in terms of cooling through the use of absorption chillers.”
* CHP (Combined Heat and Power) is another name for cogeneration
Read the CWC Report: Global Cogeneration Market Overview (3rd Edition – December 2024)
The main findings of the CWC’s 3rd Global Cogeneration Market Report were presented during a live webinar on 17 December 2024. You can watch the webinar recording on the CWC’s YouTube channel.
Published: 18 December 2024