Growth expected for CHP in Europe’s district heating market

CHP used in Europe’s district heating earned revenues of €482.5 million in 2012 and will grow to a €1025.3 million market in 2019, according to new analysis.

Frost & Sullivan’s report, European Combined Heat and Power for District Heating Market, says the market will increase at a compound annual growth rate of 1.4% between 2012 and 2019.

Austria CHP
District heating currently meets 10% of Europe’s total heat demand and is expected to reach 232.5 GWth by 2019, F&S said, showing increases in the industrial, residential and commercial sectors. Orders for DH systems in combined-cycle form are expected to boost revenues in most European countries.

“Countries that possess reliable networks – such as Germany, France and the Netherlands – will become key growth markets for cogeneration in DH,” noted F&S energy and power industry analyst Pritil Gunjan. “Poland and Germany already have the largest total amount of district heat delivery. The highest growth rates for DH, going forward, are expected to be in Austria and Italy,” Gunjan said.

But, cautioned F&S, a lack of stronger policies and sufficient regulatory reforms must be addressed to further adoption.

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