Distributed power generation gathers pace
A
Frost and Sullivan product story
Edited by the Engineeringtalk editorial team
May 12, 2006
Projected capacity shortages and increasing electricity prices in the residential market are boosting demand for distributed power generation in Europe.
Projected capacity shortages and increasing electricity prices in the residential market are boosting demand for distributed power generation in Europe.
In particular, demand for micro combined and heat power (CHP) is rising due to the high overall efficiency and the cost savings it presents to end users.
To maintain this momentum, partnerships between boiler manufacturers, installers and utilities will be critical.
Frost and Sullivan finds that the European Micro CHP Market earned revenues of $66.7 million in 2005 and estimates this to reach $817.8 million in 2012.
"Governments in Europe are beginning to take note of the benefits of micro CHP; the recent reduction of VAT from 17.5 to 5% in the United Kingdom is a favourable sign and will be more regulatory support for this technology in the future", according to Frost and Sullivan.
"Anticipated incentives for micro CHP due to its carbon saving potential will also give a thrust to the market".
Although market participants are confident about micro CHP's prospects, end users are excited at the possibility of having a small power station in their homes.
Utilities are interested in micro CHP to improve their share of eco-friendly electricity.
Micro CHP also offers opportunities for boiler manufacturers and installers that are already familiar with producing and selling boilers.
The market has shown consistent growth over the past five years.
With an increase in investment, more products and manufacturers are likely to enter the market.
Already, companies are tapping into new markets and developing novel applications for micro CHP units.
Despite this upbeat scenario, the industry still faces a number of challenges.
Currently, developers sell their units either directly to customers or through distribution partners.
This business model places the entire risk of investing in a new technology on end users.
Therefore, there is an immediate need for innovative business models to ease the adoption process.
"Reaching out to end users is a big challenge in the micro CHP market", according to Frost and Sullivan.
"Winning over utilities and boiler installers that are likely to form an important part of the distribution network will be a difficult task".
Low awareness levels among end users are also restraining the rapid adoption of micro CHP.
Boiler installers that often recommend replacement of boilers in households could assist in promoting this product.
Utilities, which supply electricity to households, can also reach out to end users.
Thus, partnerships with utilities and installation companies will be crucial for the product to take off in the market.
Not what you're looking for? Search the site.
Google Ads
Contact Frost and Sullivan
Related Stories
- Parker opens new store in Gillingham
- National Instruments - latest company news
- Our new lead generation service!
- Schaeffler - latest company news
- Leuze Electronic - latest company news
Articles by product category
- Consultancy and Services (903)
- Machine Building (4,517)
-
Engineering Design Software (6,179)
- Engineering Design Software (12)
- 2D CAD software (200)
- 3D CAD software (1,157)
- FEA and structural analysis software (369)
- Fluid, thermal, noise, vibration software (334)
- Simulation, modelling, validation software (914)
- Rendering, visualisation, styling software (196)
- Materials design and moulding design software (151)
- Process, instrumentation, automation software (258)
- Electrical design software (164)
- Publishing and documentation software (229)
- Maths, charting, statistics, QA software (317)
- Data, document management software (310)
- CAM, CNC, production management software (568)
- File conversion software, data capture (351)
- PLM and collaboration software (649)
-
Drives, Motors and Controls (3,361)
- Drives, Motors and Controls (1)
- Precision Motors and Gears (411)
- Industrial Drives/Controls (1,276)
- Linear Drives and Motors (114)
- Industrial Motors (497)
- Stepper and Servo Drives, Motors, Controls (1,060)
- Small Mechanical Components, Joining, Tools (1,975)
-
Control and Instrumentation (5,028)
- Plantwide control (1,324)
- Plant- and Machine-Wide Communications (1,174)
- Smaller-Sized PLCs (387)
- CNC and Motion Controllers (184)
- Mid-range and Large PLCs (201)
- Power Supplies, Uninterruptible Power (562)
- HMIs/Operator Interfaces (294)
- Logic Controllers, Timers and Relays (96)
- Cabling, Conduit, Signal Conditioning (806)
-
Monitoring, Measurement and Quality (5,459)
- Monitoring, Measurement and Quality (1)
- Data acquisition Software and Communications (494)
- Data Acquisition Hardware and PC I/O Boards (472)
- Electrical and Electronic Testing, PAT Equipment (630)
- Form/co-ordinate, optical, vision instruments (703)
- Gauges, Indicators and Instruments (440)
- Data loggers (422)
- Materials testing equipment (421)
- Telecomms/network test equipment, software etc (154)
- Testing and Calibration Services and Information (500)
- Testing, analysing and monitoring equipment (1,222)
-
Electrical and Electronic Equipment Design (4,160)
- Batteries, chargers and circuit protection (555)
- Connectors, Terminals, Busbars, Slip Rings (679)
- Enclosures and Equipment Cooling Fans (709)
- Knobs, Handles and Enclosure Hardware (420)
- PCs and Embedded Systems (798)
- Electrical and Electronic Subassemblies (369)
- Electrical and Electronic Components (630)
-
Materials and Processing (2,963)
- Materials and Processing (5)
- Materials and components (2,215)
- Rapid Prototyping (458)
- Materials processing and testing (285)
-
Engineering Industry News, Resources (6,093)
- Engineering Industry News, Resources (4)
- Engineering Business News, Views (388)
- Engineering Exhibitions, Events (562)
- Engineering Conferences (425)
- Engineering Seminars (400)
- Engineering Industry Developments, Awards (633)
- Engineering Guides, Newsletters (349)
- Engineering Recruitment, Employment (219)
- Engineering Training Courses (433)
- Engineering Education, Resources, Standards (838)
- Engineering Industry Reports, Surveys (597)
- Electronic Resources for Engineers (278)
- Health and Safety Legislation (402)
- Health and Safety Strategy, Risk Assessment (113)
- Health and Safety Consultancy, Software (175)
- Health and Safety Events, Training, News (277)
-
Powertrain Design (3,598)
- Powertrain Design (2)
- Bearings (939)
- Chains and belts (326)
- Gears, brakes, couplings and engines (1,441)
- Hydraulic Components (471)
- Lubricants (418)
-
Capital Equipment (3,387)
- Capital Equipment (1)
- Manufacturing Machinery and Plant Equipment (468)
- Production line blowers and fans (62)
- Compressors and Air Treatment (510)
- Electronics Manufacturing, Tools, Instruments (192)
- Electrical hardware (131)
- Machinery and Production Equipment (1,093)
- Robotics, Handling and Storage (930)
-
Sensors (7,080)
- Sensors (8)
- Accelerometers and Vibration Sensors (427)
- Loadcells, Force Sensors, Torque Sensors (699)
- Pressure sensors (621)
- Flowmeters and Flow Sensors (618)
- Level Sensors and Leak Detectors (527)
- Linear Position Sensors (399)
- Rotary Position, Tilt and Angular Sensors (546)
- Proximity Sensors (700)
- Gas, Chemical, Radiation, Magnetic Sensors (284)
- Humidity and Environmental Sensors (152)
- Temperature sensors (612)
- Vision and Colour Sensors (1,384)
- Barcode Sensors (103)
- Valves, Pumps, Process Hardware (3,623)
