Asia-Pacific's distributed CHP capacity to expand with $56bn investment
The Asia-Pacific (APAC) region's distributed combined heat and power (CHP) installed capacity will grow from around 37.7GW in 2013 to approximately 64GW by 2019, according to an analyst with research and consulting firm GlobalData.
Ankit Mathur, GlobalData's project manager for alternative energy, states that the region will spend almost $56 billion (€42 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 37.7GW last year. The country will continue to account for more than 50% of the region's market share, with a forecast net capacity addition of over 14.5GW 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.