CHP set for huge increase by 2016

CHP and other forms of distributed generation are expected to rise by at least 46 per cent by 2016, according to a recent report by Pike Research.

The report, entitled "Industrial Distributed Generation", examines industrial distributed generation in both the traditional vertically integrated regulatory framework and in in the grid-level open wholesale markets and foresees as much as an 85 per cent increase in industrial DG under optimal circumstances.

For instance, third party providers are spurring distributed generation by aggregating smaller units into industrial-sized blocks of power, selling energy, capacity, and ancillary services into wholesale markets or in bilateral contracts with utilities, or incorporating them into energy management systems that combine generation with load curtailment.

In addition Pike predict fewer regulatory barriers in the near term with the advent of new technologies, business models, and grid operations.

Capacity forecasts are provided through 2016 under three economic growth scenarios, and company profiles are provided for key industry players.

The report is accessible on Pike's website. The Executive Summary is available for free.

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