1. Market Research
  2. > Energy & Environment
  3. > Energy Technology Market Trends

European Combined Heat and Power for District Heating Market

  • October 2013
  • Frost & Sullivan
Report ID: 1863206


Table of Contents

Building a Future towards Energy Self-sufficiency

Both the International Energy Agency (IEA) and the EU Member States have identified district heating as a growth area. However, implementation of combined heating and power (CHP) policies is slow and growth has been sluggish. However, the market is set to grow steadily between 2012 and 2019. The key challenge facing the market is defining policy and regulatory reforms that will encourage district heating’s accelerated adoption. Despite the high investment cost of technology and low payback periods, Europe is well-placed to increase adoption of district heating systems by 2020. The region is making developments across technology, skills, and the supply chain to meet its targets of attaining energy efficiency through district heating.

Key Findings

- Frost & Sullivan forecasts that the overall European combined heat and power (CHP) for district heating market will increase at a compound annual growth rate (CAGR) of X% between 2012 and 2019.
- The European Commission and the Energy Climate Foundation (ECF) have developed the Roadmap 2050 to identify opportunities to reduce greenhouse gas emissions byX%, increase the share of renewable energies to X%, and save X% energy by 2020.
- The Energy Roadmap 2050 contains a slow but steady growth plan for both CHP plants and district heating (DH) in the future. The International Energy Agency (IEA) also predicts a modest growth rate for the district heating market.
- The application of district heating in the industrial sector is expected to increase. The heat distributed to the residential and commercial sectors will also continue to increase in the next X to X years.
- It is mainly the Northern, Central, and Eastern European countries that have a high penetration of district heating. While Poland and Germany have the largest total amount of district heat delivery, the highest growth rates for district heating are expected to be in Austria and Italy.
- Supportive government legislation for combined heat and power will eventually drive the district heating market in Europe.
- CHP currently contributes to almost X% of the total district heat generated, while the rest comes from renewables and fossil fuels.
- The European district heating market comprises more than X units, thereby meeting X% of total European heat demand. The market is expected to reach a size ofXgigawatt thermal (GWth) by 2019 and generate a revenue of € billion.
- Both the International Energy Agency and the latest European Union (EU) Member States’ studies under the Cogeneration Directive have identified district heating as a growing area within the scope of combined heat and power. However, successful implementation of combined heat and power (CHP) policies has yet to occur; this has a direct impact on the district heating market which witnessed a sluggish growth rate ofX% in 2012.

CEO’s Perspective

1. Conducive policies and regulatory reforms are necessary to favour the development of district heating.
2. The best opportunity for district heating is represented by emerging economies outside of Europe, such as India and China.
3. Ambitious European targets to increase energy efficiency in future power and heat distribution are the key drivers for CHP-DH.
4. Material, process, and equipment innovation will lead to higher efficiency and cost effectiveness in CHP for district heating.
5. Bio fuels, geothermal, solar power, and waste resources are likely to increasingly replace fossil fuels in CHP for district heating.

Market Definitions

Geographic Coverage: Europe
Study Period: 2009–2019
Base Year: 2012
Forecast Period: 2013–2019
Monetary Unit: Euro
Conversion Rate: € = $X

- The scope of this study includes the European market for CHP for district heating.
- The terms CHP for district heating and CHP-DH have been used interchangeably.
- The study includes an in-depth analysis of the CHP-DH market with a specific focus on prime equipment, plant types, applications, regions, and fuel types.

Total CHP for District Heating Market: A Typical District Heating Network, Europe, 2012
- Procurement
Heat Sources
2.Heat Boilers
3.Industrial Waste
- Transport and Distribution
District Heating Transfer Station
- Delivery and Service
Customer Substation
1.Space Heating
2.Hot Water

- District heating is a system of centralised heat production and distribution, typically common in urban areas. The heat generation sources are equipped to produce both heat and electricity, or heat-only.
- The district heating systems that produce both heat and electricity are essentially cogeneration units.
- A district heating network comprises the following:
oA heat generation source, heat transportation and distribution network, return pipes, and a customer interface comprising a delivery and service substation.
- Industrial processes and municipal waste incineration can also provide waste heat for district heating systems. Typically, buildings need space heating and hot water, while industrial companies need steam and hot water.
- Combined heat and power for district heating (CHP-DH) systems provide space heating and hot tap water to residential, commercial, and industrial customers. Industrial processes such as drying and evaporation require heat and hot water which can be supplied by district heating systems.
- A single unit or multiple buildings or dwellings are heated from a central source.
- District heating also involves a network of double pipes that transport the hot water generated from these systems to be used for both process needs as well as spatial heating applications. The water generated can also be used for further hot water needs in residential as well as commercial end-user sites.
- These networks are complex and large, ensuring that multiple sites are connected to the same heat and power source. In some cases, multiple combined heat and power plants form a single unit.
- Also, a number of heat-only producing plants, covering peak load and stand-by heat, may be connected to the main plant. District heating provides better integration across CHP and renewable energy sources.
- Several distributed power generating technologies such as gas power plants, solar thermal, solar photovoltaic, wind power, and small hydropower are now being deployed along with cogeneration to generate district heat, not only across industries and commercial enterprises, but also for large utilities.
- District heating plants are significantly less polluting than individual heat supply plants because of the ability to use low-emission heat sources. A DH unit also has the opportunity for emissions mitigation.
- An IEA-affiliated study of district heating and cogeneration found that, “District heating and cogeneration reduce total existing carbon dioxide emissions from fuel combustion by X– % globally compared to a world without district heating. District heating alone is responsible for avoiding at least X million tonnes of CO2 emissions per year. This corresponds to % of total European CO2 emissions.”
- District heating can greatly contribute to achieving the targets of reduction in greenhouse gas emissions and reduce Europe’s reliance on imports. According to the Cross Border Bioenergy Consortium, “Doubling sales of DH by 2020 will reduce Europe’s primary energy supply by % or Mtoe/year, diminish its import dependency by X Mtoe/year, and lower its CO2 emissions byX% or XMtoe/year.”

Key Questions This Study Will Answer

Is the market growing, how long will it continue to grow, and at what rate?
Are the existing competitors structured correctly to meet customer needs?
Will these companies/products/applications continue to exist?
What are the key drivers and restraints affecting this market?
Are the technologies meeting customer needs or is there additional development needed?
What will be the preferred fuel of the future for district heating?

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Ahmad helps you find the right report:


The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Heating Equipment Market in the US By Product, Energy Source, Market and Region

  • $ 4900
  • Industry report
  • April 2017
  • by Freedonia

Through 2021, heating equipment sales are projected to rise 4.5% per year. Due to the significant stock of heating equipment in use, ongoing replacement activity will continue to drive overall market ...

Global Thermal Energy Storage (TES) Market Analysis & Trends - Industry Forecast to 2025

  • $ 4200
  • Industry report
  • July 2017
  • by Accuray Research LLP

The Global Thermal Energy Storage (TES) Market is poised to grow at a CAGR of around 7.2% over the next decade to reach approximately $7.33 billion by 2025. Some of the prominent trends in the market include, ...

Global Heat Pump Water Heater Market 2017-2021

  • $ 3500
  • Industry report
  • June 2017
  • by Infiniti Research Limited

About Heat Pump Water Heater Heat pump water heaters generally use electricity to move heat from one place to another instead of generating heat directly, which helps in reducing energy consumption by ...

Download Unlimited Documents from Trusted Public Sources

HVAC Trade in the US

  • July 2017
    4 pages
  • Heating Equipme...  

    Water Heater  

    Air Conditionin...  

  • United States  

    North America  

View report >

Ventilation System Industry in the US

  • July 2017
    104 pages
  • Ventilation Sys...  

    Heating Equipme...  

    Cooling System  

  • United States  

View report >

Heating Equipment Statistics in the US

  • July 2017
    154 pages
  • Energy Efficien...  

    Heating Equipme...  


  • United States  

    North America  

View report >

Related Market Segments :

Heating Equipment


Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.