Buildings:

District Energy, Combined Heat and Power

The global 2011 market for CHP systems used in commercial buildings and campuses was $2.2 billion.

Combined heat and power (CHP) and combined cooling, heating, and power (CCHP) refer to production of multiple forms of useful energy (usually electrical and thermal) in a single, integrated system. CHP and CCHP systems are often used in district energy applications that serve multiple buildings in an urban area, industrial park, or institutional campus (typically hospital or university). Though this analysis does not capture the entire market for district energy, the global 2011 market for CHP and CCHP systems used in commercial buildings and campuses (as opposed to industrial uses, discussed elsewhere) was $2.2 billion. While this is a small portion (~2%) of the overall advanced energy Buildings segment, 2011 to 2012 revenue growth is estimated at 25%. This represents one of the highest growth areas within the segment, with a projected 10-year global compound annual growth rate (2012–2022) of over 17%.

The United States and Europe are currently the most developed markets for commercial CHP and CCHP systems, although with only $814 million in revenue in 2011, the United States has only begun to tap the market’s potential. The significant decline in natural gas prices is sparking increased CHP and CCHP interest, driving nearly 14% estimated growth from 2011 to 2012 in the United States.

Economic Impact

Advanced Energy Companies

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