Growing demand for energy security, grid stability and decentralised power generation is creating new opportunities for combined heat and power (CHP) systems, according to VDMA Power Systems, ahead of EnergyDecentral 2026 in Hanover this November.
One of the strongest growth drivers is the rapid expansion of data centres. Germany's National Data Centre Strategy aims to significantly increase computing capacity in the coming years, but many new facilities face grid connection delays of several years, making on-site generation an increasingly practical solution.
Gerd Krieger, deputy managing director of VDMA Power Systems, said discussions around CHP are no longer focused solely on efficiency, with energy security, island-mode operation and data centre energy supply becoming increasingly important considerations.
Germany already has nearly 50,000 decentralised CHP installations with electrical capacity exceeding 10GW. Modern systems are increasingly capable of operating independently from the public grid during disruptions, a capability becoming critical for hospitals, industrial sites and data centres alongside agricultural operations. Electrical efficiencies above 45% are becoming more common, while selective catalytic reduction technologies are helping operators meet tightening emissions regulations.
Policy developments are also expected to shape the market, with a new legislative proposal on the German Combined Heat and Power Act (KWKG) anticipated after the summer recess. Krieger said long-term planning certainty will be crucial for operators and investors across the sector.
EnergyDecentral 2026 takes place 10-13 November in Hanover alongside EuroTier. Further information at energy-decentral.com.
Data centre demand and grid resilience drive new opportunities for CHP systems
