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REFERENCE CODE GDPE1068MAR | PUBLICATION DATE APRIL 2014

COMBINED HEAT AND POWER (CHP) IN NORTH AMERICA AND EUROPE – MARKET SIZE, TRENDS

AND KEY COUNTRY ANALYSIS TO 2020

Combined Heat and Power (CHP) in North America and Europe – Market Size, Trends and Key Country Analysis to 2020 2 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.

COMBINED HEAT AND POWER (CHP) IN NORTH AMERICA AND EUROPE – MARKET SIZE, TRENDS AND

KEY COUNTRY ANALYSIS TO 2020

Executive Summary

European Combined Heat and Power Plants Account for the Largest Installed Capacity Globally

Europe accounts for one of the largest installed

bases of cogeneration power plants – Combined

Heat and Power (CHP) plants – in the world, and

steam turbines account for the largest share of this

installed CHP capacity. In 2013, Europe’s installed

capacity was estimated at XX Gigawatts (GW),

having grown from XX GW in 2007. Europe’s

installed capacity is primarily driven by Russia’s

market, which has a robust CHP installation rate,

however, additions in the European Union (EU)

member countries are expected to drive the market

in the future.

Combined Heat and Power, Europe, Total Installed Capacity (GW), 2013 and 2020

2013 2020

Inst

alle

d ca

paci

ty (

GW

)

Source: GlobalData; EFA, 2013; Minenergo, 2013; EC, 2011; EC, 2014

Gas Turbines to Account for the Largest Share of the Combined Heat and Power Turbines Market in the Forecast Period

Steam turbines account for the majority of global

installed CHP capacity due to the prevalence of

coal-fired CHP plants and biomass plants.

However, Combined Cycle Gas Turbine (CCGT)

and gas-fired plants have been gaining

prominence as they are cleaner and more efficient

than coal. By using CCGT technologies they also

enable the construction of larger and more

economical CHP plants than would be possible

otherwise. The share of steam turbines in the

overall CHP market is expected to reduce and the

share of gas turbines to increase from XX% in

2013 to XX% by 2020.

Combined Heat and Power, Gas Turbine and Steam Turbine Share (%), 2013 and 2020

Steam turbine

Gas turbine

Steam turbine

Gas turbine

2013 2020

Source: GlobalData; EFA, 2013; Minenergo, 2013; EC, 2011; EC, 2014; EIA, 2012; Nyboer and Groves, 2012


Table of Contents



1 Table of Contents

1 Table of Contents ....................................................................................................................... 4

1.1 List of Tables ...................................................................................................................... 9

1.2 List of Figures ................................................................................................................... 11

2 Introduction ............................................................................................................................... 13

2.1 GlobalData Report Guidance ............................................................................................ 14

2.2 Report Coverage and Segmentation ................................................................................. 15

3 Combined Heat and Power Market, Overview........................................................................... 16

3.1 Combined Heat and Power Market, Technology Trends ................................................... 17

3.1.1 Trigeneration ................................................................................................................. 17

3.1.2 Shift from Conventional Generation to Powerformers .................................................... 18

3.1.3 New Combustion Technology ........................................................................................ 18

4 Europe ...................................................................................................................................... 20

4.1 Overview ........................................................................................................................... 20

4.2 Europe, Cogeneration Market, Drivers and Restraints, 2013–2020 ................................... 20

4.2.1 Europe, Cogeneration Market, Drivers, 2013–2020 ....................................................... 20

4.2.2 Europe, Cogeneration Market, Restraints, 2013–2020 .................................................. 21

4.3 Europe, Combined Heat and Power Market ...................................................................... 24

4.3.1 Europe, Total Combined Heat and Power Installed Capacity, 2007–2020 ..................... 24

4.3.2 Europe, Market Share by Type of Power Plant, 2013 .................................................... 25

4.3.3 Europe, Combined Heat and Power Steam Turbine Market, 2008–2020 ....................... 26

4.3.4 Europe, Combined Heat and Power Gas Turbine Market, 2008–2020 .......................... 28


Table of Contents



4.4 Russia ............................................................................................................................... 29

4.4.1 Overview ....................................................................................................................... 29

4.4.2 Russia, Total Combined Heat and Power Installed Capacity, 2006–2020 ..................... 30

4.4.3 Russia, Market Share by Type of Power Plant, 2013..................................................... 32

4.4.4 Russia, Combined Heat and Power Steam Turbine Market, 2007–2020 ....................... 33

4.4.5 Russia, Combined Heat and Power Gas Turbine Market, 2007–2020 ........................... 35

4.4.6 Regulations ................................................................................................................... 37

4.5 European Union ................................................................................................................ 40

4.5.1 Overview ....................................................................................................................... 40

4.5.2 Combined Heat and Power Installed Capacity............................................................... 41

4.5.3 EU-27, Market Share by Type of Power Plant, 2013 ..................................................... 42

4.5.4 EU-27, Combined Heat and Power Steam Turbine Market, 2007–2020 ........................ 43

4.5.5 EU-27, Combined Heat and Power Gas Turbine Market, 2007–2020 ............................ 45

4.5.6 European Union Regulations ......................................................................................... 47

4.6 Germany ........................................................................................................................... 48

4.6.1 Overview ....................................................................................................................... 48

4.6.2 Germany, Total Combined Heat and Power Installed Capacity, 2006–2020 .................. 48

4.6.3 Germany, Market Share by Type of Power Plant, 2013 ................................................. 50

4.6.4 Germany, Market Share by Power Usage, 2013 ........................................................... 52

4.6.5 Germany, Combined Heat and Power Steam Turbine Market, 2007–2020 ................... 53

4.6.6 Germany, Combined Heat and Power Gas Turbine Market, 2007–2020 ....................... 54

4.6.7 Regulations ................................................................................................................... 56

4.6.8 Allocation Act, 2012....................................................................................................... 57


Table of Contents



4.7 UK..................................................................................................................................... 60

4.7.1 Overview ....................................................................................................................... 60

4.7.2 UK, Total Combined Heat and Power Installed Capacity, 2006–2020 ........................... 60

4.7.3 UK, Combined Heat and Power Market, Share by Fuel Type, 2013 .............................. 62

4.7.4 UK, Combined Heat and Power Steam Turbine Market, 2007–2020 ............................. 63

4.7.5 UK, Combined Heat and Power Gas Turbine Market, 2007–2020 ................................. 65

4.7.6 Regulations ................................................................................................................... 67

4.8 Netherlands ...................................................................................................................... 72

4.8.1 Overview ....................................................................................................................... 72

4.8.2 Netherlands, Total Combined Heat and Power Installed Capacity ................................. 72

4.8.3 Netherlands, Market Share by Type of Technology ....................................................... 74

4.8.4 Netherlands, Steam Turbine Market, 2007–2020 .......................................................... 75

4.8.5 Netherlands, Gas Turbine Market, 2007–2020 .............................................................. 77

4.8.6 Regulations ................................................................................................................... 79

4.8.7 Guarantees of Origin ..................................................................................................... 80

5 North America ........................................................................................................................... 87

5.1 Overview ........................................................................................................................... 87

5.2 North America, Combined Heat and Power, Drivers and Restraints .................................. 87

5.2.1 North America, Combined Heat and Power, Drivers ...................................................... 87

5.2.2 North America, Combined Heat and Power, Restraints ................................................. 89

5.3 North America, Combined Heat and Power Market ........................................................... 90

5.3.1 North America, Total Combined Heat and Power Installed Capacity, 2006–2020 .......... 90

5.3.2 North America, Combined Heat and Power Capacity Share by Type of Turbine, 2013 .. 92


Table of Contents



5.3.3 North America, Combined Heat and Power Steam Turbine Market, 2007–2020 ........... 93

5.3.4 North America, Combined Heat and Power Gas Turbine Market, 2007–2020 ............... 95

5.4 US..................................................................................................................................... 97

5.4.1 Overview ....................................................................................................................... 97

5.4.2 US, Combined Heat and Power, Total Installed Capacity, 2006–2020 .......................... 98

5.4.3 US, Combined Heat and Power Capacity Share by Type of Turbine, 2013 ................. 100

5.4.4 US, Combined Heat and Power Steam Turbine Market, 2007–2020 ........................... 101

5.4.5 US, Combined Heat and Power Gas Turbine Market, 2007–2020 ............................... 103

5.4.6 Regulations ................................................................................................................. 105

5.4.7 Power Plant Improvement Initiative ............................................................................. 106

5.4.8 Clean Energy Standard Act ......................................................................................... 106

5.5 Canada ........................................................................................................................... 110

5.5.1 Overview ..................................................................................................................... 110

5.5.2 Canada, Total Combined Heat and Power Installed Capacity, 2006–2020 .................. 111

5.5.3 Canada, Market Share by Type of Technology, 2013 .................................................. 112

5.5.4 Canada, Combined Heat and Power Steam Turbine Market, 2007–2020.................... 114

5.5.5 Canada, Combined Heat and Power Gas Turbine Market, 2007–2020 ....................... 115

5.5.6 Regulations ................................................................................................................. 117

6 Appendix................................................................................................................................. 122

6.1 Definitions ....................................................................................................................... 122

6.1.1 Power .......................................................................................................................... 122

6.1.2 Installed Capacity ........................................................................................................ 122

6.1.3 Electricity Generation .................................................................................................. 122


Table of Contents



6.1.4 Electricity Consumption ............................................................................................... 122

6.1.5 Coal-fired Power Plant ................................................................................................ 122

6.1.6 Solar Power ................................................................................................................ 122

6.1.7 Renewable Energy Resources .................................................................................... 122

6.2 Abbreviations .................................................................................................................. 123

6.3 Bibliography .................................................................................................................... 124

6.4 Research Methodology ................................................................................................... 127

6.4.1 Coverage .................................................................................................................... 127

6.4.2 Secondary Research ................................................................................................... 128

6.4.3 Primary Research ....................................................................................................... 128

6.4.4 Market Estimation ....................................................................................................... 129

6.5 Disclaimer ....................................................................................................................... 129


Table of Contents



1.1 List of Tables

Table 1: Combined Heat and Power, Europe, Total Installed Capacity (GW), 2007–2020 .......................... 25

Table 2: Combined Heat and Power, Europe, Market Share by Type of Power Plant (%), 2013 ................. 26

Table 3: Combined Heat and Power, Europe, Steam Turbine Market ($m), 2008–2020 ............................. 27

Table 4: Combined Heat and Power, Europe, Gas Turbine Market ($m), 2008–2020 ................................ 29

Table 5: Combined Heat and Power, Russia, Total Installed Capacity (GW), 2006–2020........................... 32

Table 6: Combined Heat and Power, Russia, Market Share by Type of Power Plant (%), 2013 ................. 33

Table 7: Combined Heat and Power, Russia, Steam Turbine Market ($m), 2007–2020 ............................. 35

Table 8: Combined Heat and Power, Russia, Gas Turbine Market ($m), 2007–2020 ................................. 37

Table 9: Combined Heat and Power, EU-27, Total Installed Capacity (GW), 2007–2020 ........................... 42

Table 10: Combined Heat and Power, EU-27, Market Share by Type of Power Plant (%), 2013 .................. 43

Table 11: Combined Heat and Power, EU-27, Steam Turbine Market ($m), 2007–2020 .............................. 45

Table 12: Combined Heat and Power, EU-27, Gas Turbine Market ($m), 2007–2020 .................................. 46

Table 13: Combined Heat and Power, Germany, Total Installed Capacity (GW), 2006–2020 ....................... 50

Table 14: Combined Heat and Power, Germany, Market Share by Type of Power Plant (%), 2013 .............. 51

Table 15: Combined Heat and Power, Germany, Market Share by Power Usage (%), 2013 ........................ 52

Table 16: Combined Heat and Power, Germany, Steam Turbine Market ($m), 2007–2020 .......................... 54

Table 17: Combined Heat and Power, Germany, Gas Turbine Market ($m), 2007–2020 ............................. 56

Table 18: Combined Heat and Power, UK, Total Installed Capacity (GW), 2006–2020 ................................ 62

Table 19: Combined Heat and Power, UK, Market Share by Fuel Type (%), 2013 ....................................... 63

Table 20: Combined Heat and Power, UK, Steam Turbine Market ($m), 2007–2020 ................................... 65

Table 21: Combined Heat and Power, UK, Gas Turbine Market ($m), 2007–2020 ....................................... 67

Table 22: Combined Heat and Power, UK, Carbon Support Price Rates, 2013–2018 .................................. 71

Table 23: Combined Heat and Power, Netherlands, Total Installed Capacity (GW), 2006–2020 .................. 74


Table of Contents



Table 24: Combined Heat and Power, Netherlands, Market Share by Type of Technology (%), 2013 .......... 75

Table 25: Combined Heat and Power, Netherlands, Steam Turbine Market ($m), 2007–2020 ..................... 77

Table 26: Combined Heat and Power, Netherlands, Gas Turbine Market ($m), 2007–2020 ......................... 79

Table 27: Combined Heat and Power, Netherlands, Renewable Energy Policy, Guarantees of Origin,

Participants, 2013........................................................................................................................ 80

Table 28: Combined Heat and Power, Netherlands, Renewable Energy Policy, SDE+ 2013, FiTs (€/kWh),

2013............................................................................................................................................ 83

Table 29: Combined Heat and Power, North America, Total Installed Capacity (GW), 2006–2020 ............... 92

Table 30: Combined Heat and Power, North America, Capacity Share by Type of Turbine (%), 2013 .......... 93

Table 31: Combined Heat and Power, North America, Steam Turbine Market ($m), 2007–2020 .................. 95

Table 32: Combined Heat and Power, North America, Gas Turbine Market ($m), 2007–2020 ..................... 97

Table 33: Combined Heat and Power, US, Total Installed Capacity (GW), 2006–2020 .............................. 100

Table 34: Combined Heat and Power, US, Capacity Share by Type of Turbine (%), 2013 ......................... 101

Table 35: Combined Heat and Power, US, Steam Turbine Market ($m), 2007–2020 ................................. 103

Table 36: Combined Heat and Power, US, Gas Turbine Market ($m), 2007–2020 ..................................... 105

Table 37: Combined Heat and Power, US, Policy, CESA .......................................................................... 107

Table 38: Combined Heat and Power, Canada, Total Installed Capacity (GW), 2006–2020 ....................... 112

Table 39: Combined Heat and Power, Canada, Market Share by Type of Technology (%), 2013 ............... 113

Table 40: Combined Heat and Power, Canada, Steam Turbine Market ($m), 2007–2020 .......................... 115

Table 41: Combined Heat and Power, Canada, Gas Turbine Market ($m), 2007–2020.............................. 117

Table 42: Abbreviations ............................................................................................................................ 123


Table of Contents



1.2 List of Figures

Figure 1: Combined Heat and Power vs. Traditional Power Generation ...................................................... 13

Figure 2: Combined Heat and Power, Europe, Drivers and Restraints Impact Analysis, 2013–2020 ............ 23

Figure 3: Combined Heat and Power, Europe, Total Installed Capacity (GW), 2007–2020 .......................... 24

Figure 4: Combined Heat and Power, Europe, Market Share by Type of Power Plant (%), 2013 ................. 26

Figure 5: Combined Heat and Power, Europe, Steam Turbine Market ($m), 2008–2020 ............................. 27

Figure 6: Combined Heat and Power, Europe, Gas Turbine Market ($m), 2008–2020 ................................ 28

Figure 7: Combined Heat and Power, Russia, Total Installed Capacity (GW), 2006–2020........................... 31

Figure 8: Combined Heat and Power, Russia, Market Share by Type of Power Plant (%), 2013 ................. 33

Figure 9: Combined Heat and Power, Russia, Steam Turbine Market ($m), 2007–2020 ............................. 34

Figure 10: Combined Heat and Power, Russia, Gas Turbine Market ($m), 2007–2020 ................................. 36

Figure 11: Combined Heat and Power, EU-27, Total Installed Capacity (GW), 2007–2020 ........................... 41

Figure 12: Combined Heat and Power, EU-27, Market Share by Type of Power Plant (%), 2013 .................. 43

Figure 13: Combined Heat and Power, EU-27, Steam Turbine Market ($m), 2007–2020 .............................. 44

Figure 14: Combined Heat and Power, EU-27, Gas Turbine Market ($m), 2007–2020 .................................. 46

Figure 15: Combined Heat and Power, Germany, Total Installed Capacity (GW), 2006–2020 ....................... 49

Figure 16: Combined Heat and Power, Germany, Market Share by Type of Power Plant (%), 2013 .............. 51

Figure 17: Combined Heat and Power, Germany, Market Share by Power Usage (%), 2013 ........................ 52

Figure 18: Combined Heat and Power, Germany, Steam Turbine Market ($m), 2007–2020 .......................... 53

Figure 19: Combined Heat and Power, Germany, Gas Turbine Market ($m), 2007–2020 ............................. 55

Figure 20: Combined Heat and Power, UK, Total Installed Capacity (GW), 2006–2020 ................................ 61

Figure 21: Combined Heat and Power, UK, Market Share by Fuel Type (%), 2013 ....................................... 63

Figure 22: Combined Heat and Power, UK, Steam Turbine Market ($m), 2007–2020 ................................... 64

Figure 23: Combined Heat and Power, UK, Gas Turbine Market ($m), 2007–2020 ....................................... 66


Table of Contents



Figure 24: Combined Heat and Power, Netherlands, Total Installed Capacity (GW), 2006–2020 .................. 73

Figure 25: Combined Heat and Power, Netherlands, Market Share by Type of Technology (%), 2013, ......... 75

Figure 26: Combined Heat and Power, Netherlands, Steam Turbine Market ($m), 2007–2020 ..................... 76

Figure 27: Combined Heat and Power, Netherlands, Gas Turbine Market ($m), 2007–2020 ......................... 78

Figure 28: Combined Heat and Power, North America, Drivers and Restraints Impact Analysis, 2013–2020 . 90

Figure 29: Combined Heat and Power, North America, Total Installed Capacity (GW), 2006–2020 ............... 91

Figure 30: Combined Heat and Power, North America, Capacity Share by Type of Turbine (%), 2013 .......... 93

Figure 31: Combined Heat and Power, North America, Steam Turbine Market ($m), 2007–2020 .................. 94

Figure 32: Combined Heat and Power, North America, Gas Turbine Market ($m), 2007–2020 ..................... 96

Figure 33: Combined Heat and Power, US, Total Installed Capacity (GW), 2006–2020 ................................ 99

Figure 34: Combined Heat and Power, US, Capacity Share by Type of Turbine (%), 2013 ......................... 101

Figure 35: Combined Heat and Power, US, Steam Turbine Market ($m), 2007–2020 ................................. 102

Figure 36: Combined Heat and Power, US, Gas Turbine Market ($m), 2007–2020 ..................................... 104

Figure 37: Combined Heat and Power, Canada, Total Installed Capacity (GW), 2006–2020 ....................... 111

Figure 38: Combined Heat and Power, Canada, Market Share by Type of Technology (%), 2013 ............... 113

Figure 39: Combined Heat and Power, Canada, Steam Turbine Market ($m), 2007–2020 .......................... 114

Figure 40: Combined Heat and Power, Canada, Gas Turbine Market ($m), 2007–2020.............................. 116




Introduction

2 Introduction

Cogeneration, or Combined Heat and Power (CHP), is a process through which a fuel is used to

produce both electrical and thermal energy, leading to a much more efficient use of fuel than in

conventional power. Usually, conventional electrical generating units are only about XX% efficient,

whereas, with CHP plants, XX–XX% efficiency is achievable. Coal, fuel oil, gas, biomass and

biogas are the traditional fuels used for CHP plants. Other renewable technologies such as fuel

cells are also used in CHP plants. The contrast between traditional electricity generation and CHP

generation can be seen in the following figure.

Figure 1: Combined Heat and Power vs. Traditional Power Generation

CHPelectricity

heat

Power Plant

Boiler

fuel

fuel

heat waste

electricity

heat

heat loss

fuel

Source: GlobalData; MWM, 2013

CHP technology has existed for nearly a century, but the technology has not been sufficiently

widely employed for many countries to benefit from its advantages. Awareness of its potential and

benefits is constantly discussed and yet CHP has not figured prominently in the energy agenda.

However, countries are realizing the value of the technology and incorporating it in their capacity

base due to growing reliance on energy imports from a small number of sources and the increasing

focus of governments on emission reduction. The European Union (EU) has actively incorporated




Introduction

cogeneration into its energy policy through measures such as its CHP Directive in 2006. Currently,

the EU generates about XX% of its electricity through cogeneration. Similarly, the US and Canada

in North America also actively use CHP systems. Canada mostly generates electricity through

clean energy sources. However, this is not the case with the US, which accounts for one of the

highest per-capita energy consumption figures in the world, and meets its energy requirements

primarily through thermal fossil fuels. Despite this, the focus on CHP has been increasing under the

Obama administration. Europe and North America account for the highest shares of CHP installed

capacity, and are expected to continue to do so in the future.

Although the governments of various European countries have been pushing for the greater use of

cogeneration, CHP still contributes to only a small percentage of the total power generation market.

However, countries such as Germany and the Netherlands have altered this trend and now derive

a higher proportion of their electricity generation from CHP systems.

Cogeneration geared towards principal energy savings plays an important role in the packaging of

measures planned to achieve the environmental targets outlined in the Kyoto Protocol. Higher

efficiencies will dominate the market in the future, with increasing demand for energy, combined

with challenges in terms of material supply, resulting in a strong focus on resource consideration.

2.1 GlobalData Report Guidance

The report primarily focuses on the European and North American CHP markets, and covers the

market size and installed capacity for these geographies over the 2007–2020 period.

Chapter three consists of an overview of the cogeneration market and the technological trends

seen in recent years.

Chapter four focuses on Europe’s CHP drivers and restraints, total CHP installed capacity and

the annual steam turbine and gas turbine market for the 2008–2020 period. This is followed by

details of the Russian CHP market, along with key regulations. This chapter also covers the

EU-27 market, as well as specifically focusing on the national markets of the UK, Germany and

the Netherlands. For each of these markets, the total CHP installed capacity, market share of

different technologies and the annual steam and gas turbine market during the 2007–2020

period have been examined. In Germany, the market’s composition in terms of usage of CHP

has also been covered for 2013. Key regulations are covered at a national level.




Introduction

Chapter five covers the North American market with details of the US and Canadian CHP

market. The drivers and restraints of the North American CHP market are also covered. For

each of these markets, the total CHP installed capacity, market division by technology and the

annual steam and gas turbine market for the 2007–2020 period have been examined. Key

regulations are covered at a national level.

Chapter six covers the appendix of the report.

2.2 Report Coverage and Segmentation

In the report, the EU-27 countries and Russia have been collectively considered as the

European region. There are also very small countries that form a very small share of the CHP

market in the region; however, precise information on these countries was not available so they

have been excluded from the analysis.

North America has been defined as consisting of the US and Canada in the report, while

Mexico has not been included in the analysis.

In terms of CHP installed capacity, all fuels have been considered. However, for this study,

gas, coal, biomass and biogas have been given the most importance and been the primary

types used for calculations. The others have been ignored wherever they have been found to

be insignificant or where tracking them has not proved possible.

In the US, Internal Combustion (IC) engine capacity has not been recorded as it forms a small

share of the installed capacity and is widely distributed across the country.




Europe

4.6.4 Germany, Market Share by Power Usage, 2013

The power sector accounts for XX% of the installed CHP capacity in Germany, while the industrial

sector accounts for XX% of installed capacity. The small microturbine sector accounts for the

remaining XX% of installed capacity. Microturbines are used only for residential and other smaller

purposes.

Figure 17: Combined Heat and Power, Germany, Market Share by Power Usage (%), 2013

Power sector

Industrial

Small microturbine

Source: GlobalData; Destatis, 2013

Table 15: Combined Heat and Power, Germany, Market Share by Power Usage (%), 2013

End-user Share

Power sector

Industrial

Small microturbine

Source: GlobalData; Destatis, 2013


North America



5.5.4 Canada, Combined Heat and Power Steam Turbine Market, 2007–2020

The steam turbine market has accounted for a slow market growth due to slow investments in the

total CHP market. However there have been an increasing investment and this is the reason for a

huge increase in installed steam turbine during 2011–2012. In 2013, the steam turbine market

generated annual revenue of $XXm. The market is expected to increase from $XXm in 2014 to

$XXm by 2020, at a CAGR of XX%. The growth can be attributed to growing investments in CCGT

power plants, the prevalence of biomass technology and also the expected retrofit projects.

Figure 39: Combined Heat and Power, Canada, Steam Turbine Market ($m), 2007–2020

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Mar

ket s

ize

($m

)

Source: GlobalData, Power eTrack, Equipment Market Database [Accessed on February 11, 2014]; Nyboer and Groves, 2012; Primary interview with Canadian CHP industry expert


Appendix



6 Appendix

6.1 Definitions

6.1.1 Power

Power refers to the rate of production, transfer or energy use, usually related to electricity. It is

measured in Watts (W) and often expressed in kilowatts or MW. It is also known as real power or

active power.

6.1.2 Installed Capacity

Installed capacity refers to the generator’s nameplate capacity as stated by the manufacturer, or

the maximum rated output of a generator under given conditions. It is given in MW on a nameplate

affixed to the generator.

6.1.3 Electricity Generation

Electricity generation refers to the process of generating electricity from other forms of energy. It

also refers to the amount of electricity produced, expressed in GWh.

6.1.4 Electricity Consumption

Electricity consumption is the sum of electricity generated, plus imports, minus exports and

transmission and distribution losses. It is measured in GWh.

6.1.5 Coal-fired Power Plant

A coal-fired power plant produces electricity from the combustion of coal.

6.1.6 Solar Power

Solar power is the conversion of sunlight into electricity using photovoltaics or other forms of solar

technology.

6.1.7 Renewable Energy Resources

Renewable energy resources are those that provide energy that is naturally replenished but limited

in the amount of energy available per unit of time. Biomass, geothermal, solar, small hydro and

wind are examples of renewable resources.


Appendix



6.2 Abbreviations

Table 42: Abbreviations Abbreviation Full form

ARRA American Reinvestment and Energy Act

CAGR Compound Annual Growth Rate

CAIR Clean Air Interstate Rule

CCA Capital Cost Allowance

CCGT Combined Cycle Gas Turbine

CCL Climate Change Levy

CCPI Clean Coal Power Initiative

CCS Carbon Capture and Sequestration

CESA Clean Energy Standard Act

CHP Combined Heat and Power

CHPQA Combined Heat and Power Quality Assurance

CO Carbon Monoxide

CPF Carbon Price Floor

DECC Department of Energy and Climate Change

DoE Department of Energy

EC European Commission

ECA Enhanced Capital Allowance

EI Energie-investeringsaftrek

EPA Environmental Protection Agency

EU European Union

EU ETS Directive European Emissions Trading Directive 2003/87/EC

FAS Federal Antimonopoly Service

FGC Federal Grid Company

FiT Feed-in Tariff

FTS Federal Tariff Service

GHG Greenhouse Gas

GJ Gigajoule

GoO Guarantee of Origin

GW Gigawatt

HRSG Heat Recovery Steam Generator

IC internal combustion engine

KfW Bankengruppe

kV kilovolt

kW kilowatt

kWh kilowatt-hour


Appendix



L Liter

LPG Liquefied Petroleum Gas

MW Megawatt

MWh Megawatt hour

NAP National Allocation Plan

NEEAP National Energy Efficiency Action Plan

NOx Oxides of Nitrogen

NRCan Natural Resources Canada

NREAP National Renewable Energy Action Plan

PPII Power Plant Improvement Initiative

PV Photovoltaic

ROC/MWh Renewable Obligation Certificate per Megawatt-hour

RPS Renewable Portfolio Standards

SDE Stimulering Duurzame Energie

SPP Small Power Producers

tcf Trillion Cubic Feet

TEHG Treibhausgas-Emissionshandelsgesetz, Greenhouse Gas Emissions Trading Act

TSO Transmission System Operator

TWh Terawatt-hours

W Watts

XLPE High-voltage cross-linked Polyethylene

Source: GlobalData

6.3 Bibliography

Abu-Ebid M (2008). UK CHP National Potential and Fiscal Benefits. Department for the

Environment, Food and Rural Affairs. Available from:

http://chp.decc.gov.uk/cms/assets/pdf/chp_focus/UK-CHP-potential-and-fiscal-incentives.pdf

Bureau of Labor Statistics (2013). The effects of shale gas production on natural gas prices.

United States Department of Labor. Available from http://www.bls.gov/opub/btn/volume-2/the-

effects-of-shale-gas-production-on-natural-gas-prices.htm [Accessed on September 25, 2013]

CBS (2014). Electricity balance sheet. Statistics Netherlands. Available from:

http://statline.cbs.nl/StatWeb/publication/?DM=SLEN&PA=00377ENG&D1=0,3,5-12&D2=386-

387,389-391,l&LA=EN&HDR=G1&STB=T&VW=T


Appendix



RES-legal (2013). Premium Tariff (SDE+). RES Legal. Available from: http://www.res-

legal.eu/en/search-by-country/netherlands/single/s/res-e/t/promotion/aid/premium-tariff-

sde/lastp/171/ [Accessed on December 12, 2013]

6.4 Research Methodology

GlobalData’s dedicated research and analysis teams consist of experienced professionals with

advanced statistical expertise and marketing, market research and consulting backgrounds in the

energy industry.

GlobalData adheres to the codes of practice of the Market Research Society (www.mrs.org.uk) and

Strategic and Competitive Intelligence Professionals (www.scip.org).

All of GlobalData’s databases are continuously updated and revised. The following methodology

has been followed for the collection and analysis of data presented in this report.

6.4.1 Coverage

The report focuses on the CHP markets for Europe and North America and the market size and

installed capacity in the 2007–2020 period. It covers CHP installed capacity, annual steam and gas

turbine for the CHP market, and share by type of plant or technology for all markets.

The report covers North America as a regional market with specific drivers and restraints, as

well as examining the individual national markets of the US and Canada. Mexico has not been

included in the analysis for this region.

The European regional market is also covered, with drivers and restraints examined along with

specific market details. The EU-27, Russia, Germany, the UK and Netherlands have all been

covered in detail under this region. There are a number of very small countries that form a very

small share of the European CHP market, but no precise information is available on these

countries and so they have been excluded from study.

In terms of CHP installed capacity, all fuels have been considered. However, for this study,

gas, coal, biomass and biogas have been given the most importance and used for calculations.

The others have been ignored wherever they have appeared insignificant or have proven

difficult to track.


Appendix



6.4.2 Secondary Research

The research process begins with extensive secondary research using GlobalData's proprietary

databases and external sources.

Investment estimates and market growth rates are determined by taking the following into

consideration:

Statistics and historic trends provided by government bodies, industry associations and

equipment vendors

Utility expansion plans

Government and private sector investment

Government regulations and policies

GlobalData’s proprietary databases, such as the Capacity and Generation Database and the

Equipment Markets Database

Other insights obtained through secondary research and analysis of company websites, annual

reports, investor presentations, industry and trade journals and association data

EU statistics and government energy statistics and plans have been extensively analyzed to

determine the CHP total installed capacity

6.4.3 Primary Research

GlobalData conducts extensive primary interviews with industry participants and commentators in

order to validate its data and analysis.

A typical research interview fulfills the following functions:

Obtains the interviewee’s perspective on the market size, growth trends, competitive landscape

and future outlook

Validates secondary research findings

Further develop the analysis team’s expertise and market understanding


Appendix



6.4.4 Market Estimation

Each country’s CHP installed capacity has been determined and divided by the technology share of

installation for all countries. The figures have been forecast according to government plans,

historical trends, growth incentives and other factors. Biomass technology is expected to use steam

turbines and biogas is expected to use gas turbines. Of the CCGT capacity, 35% is assumed to

use steam turbines and 65% is assumed to use gas turbines, on average.

The retrofit market has been estimated by determining the condition and age of existing plants

through secondary research and primary interviews. Using this, the retrofit market for each turbine

type in the country has been calculated. The new installation market and retrofit market were

analyzed and compared to calculate annual installations. This has been multiplied by the average

cost of a steam turbine ($/MW) and average cost of a gas turbine ($/MW) to calculate the markets

for steam and gas turbines.

6.5 Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

permission of the publisher, GlobalData.

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