In the wake of increasing energy prices, efficient power generation is emerging as a primary focus area in Central and Eastern European (CEE) countries, which are rapidly developing their economies and national infrastructure to match their western counterparts. Cogeneration stands out as a viable means to negate the cost impact of rising energy prices, while also helping achieve the environmental targets prescribed by the Kyoto Protocol.
New analysis from Frost & Sullivan (energy.frost.com), Central and Eastern Europe Cogeneration Equipment Market, finds that revenues in this market totalled 1.3 billion USD in 2006, and are likely to reach 2.3 billion USD in 2013.
"With the continuous support from the European Commission through the EU funding for cogeneration, manufacturers are increasingly finding ways to support potential cogeneration projects," notes Frost & Sullivan Research Analyst Hema Sarathy. "Innovative methods of financing projects, combined with favourable subsidies, will go a long way in seeing a growing number of cogeneration projects take off in both the private and public sectors."
Cogeneration geared towards principal energy savings plays an important role in achieving the environmental targets set by the Kyoto Protocol. Therefore, considering the initiatives adopted in Western Europe, it is imperative that the CEE region gears up to embrace and support the clean energy cause that is being globally championed by Europe at present. This necessitates the adoption of a well-balanced energy portfolio, including new and efficient technologies such as cogeneration, to withstand the pace of current development. This is also essential for the long-term sustainable development of the CEE region.
However, funding restraints remain a major impediment to the growth of cogeneration in the CEE region. "Volatile gas prices lead investors to be more cautions towards cogeneration, thereby impacting investments in the cogeneration equipment market in the CEE region. Furthermore, the relative stability in coal prices at present is tilting the balance more in favour of coal-based power generation," says Hema Sarathy. "Regulated electricity prices in the CEE region are a further hindrance for cogeneration plants, as low electricity prices challenge their viability in the CEE energy market."
Going forward, market participants will do well to highlight the carbon savings enabled by cogeneration plants. Simultaneously, governments across the region must adopt proper regulatory frameworks to recognize and encourage the benefits of cogeneration. Industry participants opine that incentives in terms of electricity tariffs, reduced interconnection charges and emission credits will catalyse investments and trigger renewed interest in employing combined heat and power-based systems.
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the latest analysis of the CEE Cogeneration Equipment Market, then send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com with your full name, company name, title, telephone number, fax number and email address. Upon receipt of the above information, an overview will be sent to you by email.
Central and Eastern Europe Cogeneration Equipment Market is part of the Energy Growth Partnership Service, which also includes research in the following markets: steam and gas turbines, boilers & HRSG, cogeneration, generating sets, fuel cells, power plant services, renewable energy, energy rental, air pollution control equipment, and others. Other relevant studies include Western European Cogeneration Equipment Markets, Southeast Asian Cogeneration Equipment Markets, North American Cogeneration Equipment Markets, European Trigeneration Report, European Micro Combined Heat and Power (CHP) Markets, European Distributed Generation Technology Markets, European Steam Turbines Market, and European Gas Turbines Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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