Favourable Government Regulations Boost Demand for Combined Heat and Power Installation Systems


Published Date : May 19, 2016

Combined heat and power installation, better known as CHP, is different from conventional power generation as the large amount of heat generated during the process of generation of electricity is utilized, instead of being wasted. While traditional power plants discard their excess heat into the air or nearby water body, CHP utilizes the heat for productive purposes such as water heating, space heating, and others. Combined heat and power installation systems can significantly reduce energy-related carbon dioxide emissions. 

While rising awareness about energy-efficient technologies and low fuel pricing have augmented the demand for installations of CHP systems, supporting policies and feed-in-tariffs (FiTs) offered by government bodies have played a pivotal role in the growth of the global combined heat and power installation market. For example, this month, the New York State Energy Research and Development Authority (NYSERDA) has re-issued its incentive programme for installation of CHP systems at eligible host sites. The incentive scheme has a budget worth US$21 mn and under the revised regulations, Micro CHP projects are now eligible. 

Utilities Sector Recognizes Energy-Efficiency of CHP Systems

Among the applications of CHP systems across various sectors, the industrial sector holds the majority of the market. The commercial sector is realizing the energy efficiency of CHP systems. Nowadays, CHP systems are being recognized across the utilities sector. Duke Energy, the largest electric power holding company in the United States, is investing in CHP plants to provide cleaner and cheaper energy to consumers. The utilities company has proposed to develop a 21 MW CHP plant. Other utilities providers are also following the path. While Texas-based Austin Energy operates a 4.3 MW CHP system, Florida Public Utilities is building a 20 MW CHP system.