The Middle East & Africa combined heat and power market size is projected to expand at a significant CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the increasing demand for captive power generation, rising awareness regarding the use of sustainable energy, and growing investments toward renewable technologies to curb carbon emissions.
Combined heat and power, also known as cogeneration broadly comprises the use of a heat engine or power station to generate electricity and useful heat at the same time. The combined heat and power system makes more efficient use of fuel or heat. The otherwise-wasted heat from electricity generation is put to some productive use through the cogeneration. The combined heat and power plant efficiently recovers the otherwise wasted thermal energy for heating. The process is also referred to as combined heat and power district heating.
The supply of high-temperature heat drives a gas turbine-powered generator. The resulting low-temperature heat is then used for water or space heating. The large combined heat and power systems provide heating water and power for an industrial site. The common combined heat and power plant types are gas turbine CHP plant, gas engine CHP plant, combined cycle power plant, biofuel engine CHP plant, molten-carbonate fuel cells & solid oxide fuel cells, and steam turbine CHP plant.
Many process industries, such as oil refineries, chemical plants, and pulp & paper mills require large amounts of process heat for multiple industrial operations including chemical reactors, distillation columns, and steam driers. The heat that is usually used in the form of steam can be generated at the typically low pressures used in heating. It can also be generated at much higher pressure and passed through a turbine to generate electricity. In the turbine the temperature and steam pressure is lowered as the internal energy of the steam.
Therefore, the excessive heat is effectively converted to work. In comparison with the electric power generation that generates energy & power by the means of fossil fuel-based thermoelectric plants, the energy generation using combined heat and power system has environmental advantages due to the reduction of CO2 emissions. Additionally, the cogeneration using sugarcane bagasse presents advantages in terms of efficiency comparing to thermoelectric generation.
The COVID-19 pandemic had a dramatic impact on the dynamics of various industries. The nationwide lockdowns and stringent regulations resulted into the halting of industrial manufacturing and production. The outbreak of coronavirus caused disruption in supply-chain and transportation activities at global level. The pandemic situation resulted into the decline in oil prices and delays in oil & gas upstream projects. Therefore, the suspension of end-user activities restricted the growth of the combined heat and power market.
Market Trends, Drivers, Restraints and Opportunities
- Rising demand for commercial applications and growing electricity consumption are the major factor propelling the market expansion during the projected period.
- Growing refurbishment of existing energy generation plants and increasing investments for research and development activities are expected to spur the market expansion in the coming years.
- Government programs and incentives to promote the installation of CHP systems is expected to support the growth of this market during the forecast period.
- High costs associated with installation & maintenance of combined heat and power systems is expected to hamper the market growth during the projected timeline.
- Increasing trend of distributed power generation and growing demand for gas turbine-based CHP systems are expected to create numerous opportunities for the market growth in the long run.
Scope of the Report
The report on the Middle East & Africa combined heat and power market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Combined Heat and Power Market - Middle East & Africa Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Fuel Types (Biomass, Coal, Natural Gas, Oil, and Others)
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Geographical Scope
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South Africa, Iran, Saudi Arabia, United Arab Emirates, Egypt, and Rest of the Middle-East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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ABB Ltd; General Electric Company; Engie S.A; and Siemens AG
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Middle East & Africa Combined Heat and Power Market Segment Insights
Biomass segment is estimated to dominate the market
On the basis of fuel types, the market is segregated into biomass, coal, natural gas, oil, and others. The biomass segment is estimated to dominate the market owing to the increasing demand for biomass combined heat and power systems for the generation of heat and electricity. Moreover, the growing demand from off the mains grid platforms and easy availability of biomass fuel is anticipated to fuel the growth of the market segment in the coming years. On the other hand, the natural gas segment is expected to grow at a significant rate during the projected period due to the high demand from gas engines for electricity generation.
Saudi Arabia market is anticipated to constitute a key market share
In terms of geography, the market is classified as South Africa, Iran, Saudi Arabia, United Arab Emirates, Egypt, and Rest of the Middle-East & Africa. The market in Saudi Arabia is anticipated to constitute a key share of the market during the projected period owing to the availability of highly efficient systems, competitive gas prices, and decentralized energy generation. Moreover, the increasing energy consumption and rising concerns towards green house gas emissions in line with enhanced safety, reliability, & efficiency across cogeneration systems are some of the factors to encourage the growth of the market in the country.
Furthermore, the increasing replacement of conventional energy generation systems with highly efficient cogeneration plants is expected to boost the growth of the market during the projected timeline. However, the market in United Arab Emirates is anticipated to exhibit a robust CAGR during the forecast period due to the growing technological advancements and growing inclination toward adoption of biomass fueled systems.
Segments
The Middle East & Africa combined heat and power market has been segmented on the basis of
Fuel Types
- Biomass
- Coal
- Natural Gas
- Oil
- Others
Geography
- South Africa
- Iran
- Saudi Arabia
- United Arab Emirates
- Egypt
- Rest of the Middle-East & Africa
Key Players
Competitive Landscape
Key players competing in the Middle East & Africa combined heat and power market are ABB Ltd; General Electric Company; Engie S.A; and Siemens AG. The companies are focusing on business strategies, acquisitions, and collaborations with other industry players for undertaking new projects in emerging economies to improve their competitive position in the market.
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