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Simultaneous Energy and Cost Savings Make Cogeneration the Distributed Power Generation System of Choice in the Asia Pacific Finds Frost & Sullivan - CHP systems' ability to not only generate onsite power but also cost-and fuel-efficiently satisfy the heating & cooling requirements of a building makes it the most suitable technology for industries & commercial enterprises
Simultaneous Energy and Cost Savings Make Cogeneration the Distributed Power Generation System of Choice in the Asia Pacific Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Singapore, Singapore, 2010/11/24 - CHP systems' ability to not only generate onsite power but also cost-and fuel-efficiently satisfy the heating & cooling requirements of a building makes it the most suitable technology for industries & commercial enterprises.

   
 
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Furthermore, Asia Pacific's emergence as the manufacturing hub of consumer electronics, electronic devices, textiles, automobiles, and semiconductors has given a boost to CHP's prospects as the distributed power generation technology of choice among end users.

New analysis from Frost & Sullivan (energy.frost.com), Asia Pacific Industrial and Commercial Cogeneration Market, finds that the market had a total installed capacity of 21,523 MW in 2009 and estimates this to reach 26,691 MW in 2016.

Customers accrue savings on energy costs over the long term by implementing an advanced CHP system that enhances energy efficiency and reduces greenhouse (GH) gas emissions.

"Cogeneration, uniquely, serves the dual purpose of generating power and steam for industries with less input fuel and low emissions,” says Frost & Sullivan Program Manager Suchitra Sriram. "Hence, conventional thermal power plants in manufacturing industries and low-efficient biomass systems in agro-based industries are being replaced by CHP plants that have better fuel conversion efficiency."

Moreover, as most cogeneration systems are designed for multiple fuel options, end users can choose their fuel. This flexibility makes cogeneration more attractive than other distributed power generation options in the market.

These product benefits notwithstanding, the fluctuating natural gas prices, inability to connect to the utility grid, permitting issues, and lack of a policy framework to support project developers curb the high uptake of cogeneration systems. However, the volatility in oil and gas prices necessitates the use of indigenous resources such as biomass for generating power and steam.

"As some countries are highly dependent on oil imports, adopting this technology helps to put indigenous sources of fuel such as biomass and biogas to best use," observes Sriram. "This augurs well for the Australian market, as this country has abundant natural gas reserves and for Southeast Asia, which has a huge reserve of biomass sources such as bagasse, rice husk, wood waste, and palm oil waste."

Cogeneration has captured the imagination of end users in not only the Asia Pacific, but all over the world, as consumers are increasingly recognizing this technology's potential to curb emissions and simultaneously reduce energy costs. Favorable policies for CHP development, introduction of incentives, increasing awareness levels, and better approval norms will also attract investments from both industrial and commercial customers, as project developers will demand to see a positive business case.

"Industries and commercial enterprises that have adopted cogeneration have been able to witness the operational benefits that accrue with cogeneration implementation," notes Sriram. "The market is expected to expand once governments actively promote this technology."

If you are interested more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Asia Pacific Industrial and Commercial Cogeneration Market is part of the Energy & Power Growth Partnership Service program, which also includes research in the following markets: North American Cogeneration Market and Cogeneration in Europe – A Strategic Assessment. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Asia Pacific Industrial and Commercial Cogeneration Market / P461

 
 
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Simultaneous Energy and Cost Savings Make Cogeneration the Distributed Power Generation System of Choice in the Asia Pacific Finds Frost & Sullivan

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Frost & Sullivan |
Publisher Contact: Donna Jeremiah / Carrie Low 
+603 6204 5832 / +603 6204 5910 djeremiah[.]frost.com / carrie.low[.]frost.com
 
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