According to the International Energy Agency (IEA), global power production from combined-heat-and-power (CHP) technologies has stagnated since 2000, lagging far behind growth in conventional power technologies and commercial heat generation. Despite having an average efficiency of 59%, CHP’s share of global generation in 2013 stood at just 9% (Figure 1), the bulk of it at industrial sites in the chemicals, metal, oil refining, pulp and paper, and food processing sectors (see this issue’s cover stories).

1. Co-generation trends. Source: International Energy Agency (2016), Tracking Clean Energy Progress 2016, OECD/IEA, Paris

That may be poised to change, however: Along with the Paris agreement and a renewed drive for increased energy efficiency, a number of countries have of late implemented policy initiatives that could spur growth for CHP.

U.S. In the U.S., where CHP has a long history in the industrial sector, several market drivers are emerging, the Department of Energy noted in an April 2016 report. These include lower energy operating costs, environmental regulations, resiliency initiatives, utility support, and project replicability (for more, see “CHP Update: Policies, Partnerships, and Challenges” in POWER’s February 2016 issue).…

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