Cogeneration or Combined heat and power (CHP) system is refer to simultaneously generate electrical and thermal energy from a single fuel source. These fuel sources can be natural gas, biomass, wood, coal, waste heat and oil. Cogeneration equipment contains steam and gas turbines, heat recovery systems and electric generators that provide power to equipment and machines like fans, pumps, refrigerators, steamers and dehumidifiers. This equipment workings more efficiently and has a smaller carbon emissions by up to XX% than other conventional systems.
The increasing electricity demand combined with growing application in renewable energy is expected to impel the cogeneration equipment market growth during the forecast period. Growing renewable energy plants in emerging regions of Asia Pacific and Latin America is estimated to drive demand in the near future. Natural gas is one of the most extensively used fuel in combined heat and power (CHP) systems. It is available in abundant quantity, mostly in Russia, the U.S., Canada, Qatar and Iran. Reducing price and abundant availability of natural gas, helpful government policies along with aging infrastructure are expected to drive CHP equipment demand over the upcoming period.