Demand for Micro CHP rising

Projected capacity shortages and increasing electricity prices in the residential market are boosting demand for distributed power generation in Europe. In particular, demand for micro combined and heat power (CHP) is rising due to the high overall efficiency and the cost savings it presents to end users. To maintain this momentum, partnerships between boiler manufacturers, installers and utilities will be critical.

Frost & Sullivan (http://www.energy.frost.com) finds that the European Micro CHP Market earned revenues of $66.7 million in 2005 and estimates this to reach $817.8 million in 2012.

“Governments in Europe are beginning to take note of the benefits of micro CHP; the recent reduction of VAT from 17.5 per cent to 5 per cent in the United Kingdom is a favourable sign and will be more regulatory support for this technology in the future,” according to Frost & Sullivan. “Anticipated incentives for micro CHP due to its carbon saving potential will also give a thrust to the market.”

The market has shown consistent growth over the past five years. With an increase in investment, more products and manufacturers are likely to enter the market. Already, companies are tapping into new markets and developing novel applications for micro CHP units.