The primary drivers behind this increase will be growing electricity demand and increasing environmental awareness according to a new report from research and consulting firm GlobalData.
GlobalData says that the value of the European steam turbine will increase from $1.72bn last year to $1.75bn by 2020, while the gas turbine market value will see higher growth, from $862m in 2013 to $1.47bn by 2020.
Sowmyavadhana Srinivasan, GlobalData’s senior power analyst, said: “With its strict emission and carbon savings targets, coupled with its focus on decentralized energy, Europe is comfortably the biggest market for CHP installations. Russia alone boasts a huge CHP installed capacity and depends on this technology to meet a large share of its heat requirements.”
The report states that as electricity prices continue to rise, an increasing number of industries are considering CHP as an alternative for power generation, due to the option of using both natural gas and biomass as fuel.
“The waste heat collected in CHP plants can also be used for district heating, which will lead to significant long-term cost savings. This is expected to fuel the ongoing growth of Europe’s CHP market in the coming years,” Srinivasan added.