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The rise in demand for heat and power across the globe in the various industry is pushing the companies to develop advanced technology that will help to produce sustainable energy. Micro CHP is based on combined heat and power technology in which heat and electricity are produced with a small set up mostly for single/multi-family or small commercial building. The system usually contains a small fuel cell or heat engine as a prime mover which is coupled to the generator to produce electricity, while simultaneously utilizing waste heat from prime mover for heating, ventilation, and air conditioning (HVAC). Policies geared towards ensuring a secure energy supply at reduced cost and minimum environmental consequences play a vital role in energy policies. Such measures include technological development, advance and efficient infrastructure to improve supply and demand of energy. One of the shortcomings of the conventional power producing system is its inability to transport heat over a long distance. Thus micro CHP is emerging as advanced technology to meet the rising demand for heat and power.
Classification of micro CHP can be done on the basis of a prime mover such as the Internal Combustion Engine, Stirling Engine and Fuel Cell which basically use natural gas, coal, oil and gas, renewable and others as their primary source of energy. Most consumer dependent on conventional power supply whereas micro CHP offers consumer to produce their energy requirement according to their need. Residential and commercial sectors are adopting an alternative to conventional power to mitigate their energy demand. According to the capacity, Micro CHP is most suitable for domestic purpose where power requirement is below 2kW whereas 10kW to 50kW micro CHP plants find its major application in commercial and Industrial sectors.
Key Market Driver -
Key Market Driver – Empower energy consumer
Key Market Restraint -
Key Market Restraint – Huge initial investment
Energy consumer is totally dependent on producers of heat and power. Micro CHP transforms consumer into ‘prosumers’, putting them at the core of the future energy system, and giving them great control over their bills. It supports national grid by reducing the amount of total primary energy needed. The micro CHP system is highly efficient and produces heat and electricity simultaneously thereby reducing carbon emission.
Micro CHP is only suitable only where there is a need for both heat and electricity and there should be a continuous demand for heating. The initial costs for a CHP are quite high without funding which can make it prohibitive for smaller scale installation. It can’t be considered as a sustainable solution when it is run on fossil fuel. However, it can help to reduce carbon emission.
The notable players include Marathon Engine Systems, Yanmar, Vaillant Group, Viessmann, Aisin Seiki, General Electric, Siemens, Atlas Copco, Samad Power Ltd., Entropea Labs, Atlantic Power Corporation, and Aegis Energy Services, LLC
The micro CHP market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The extreme weather and large snowfall in North America and European countries increase the demand for heat energy which strains the conventional power source. North America and Europe are adopting a technology which caters the rising demand for heat and power in an efficient way. The development and easy installation of micro CHP for a domestic purpose has increased the demand in a broader way. Asia Pacific is at the forefront due to the high potential of growth in different sectors which will drive the market for micro CHP.
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Highly efficient and economical technology that not only reduce carbon emission but also provide an alternative to use fossil fuel with maximum efficiency. The MEA is the largest producers of fossil fuel in the world and they are regulating energy policies for reliable energy supply. Thus micro CHP can play a key role in making customers independent on energy producers.
By Prime Mover