Micro CHP

While working on one my recent reports, I came across 'Micro CHP', an interesting and promising new technology sub-sector.....

Micro CHP
Micro CHP or Micro Combined Heat and Power systems are aimed at replacing the conventional boilers used for home heating with devices which in addition to generating heat will also generate electricity. Wicked isn't it!!

The system uses the concept of re-using the 'waste heat', or surplus heat of lower temperature, produced during heating.

Micro CHP provides a number of benefits. It reduces the consumer's electricity bill, microgeneration results in lower transmission and distribution wastage and increased energy efficiency (about 90%) and reduced carbon emissions.
The technology is finding wide-spread support from government's across the world in the form of feed-in tariff, VAT reduction and tax credits among other things. Micro CHP devices employ a variety of technologies such as External combustion engine (Sterling engine and Organic Rankine Cycle), Internal combustion engine and Fuel cells.

The largest deployment of micro CHP systems as of now has been in Japan where over 50,000 are in use. The annual market for micro CHP systems in Europe itself is about GBP8 bn. With a number of companies including Whispergen, Energetix, Ceres power, Ceramic Fuel cells set to mass commercialize the product in 2H 2010 to early 2011, I expect the micro-CHP market to heat up in near future. The players are strengthening their distribution networks through tie-ups with boiler manufacturers and utility companies. It will be interesting to see how the future shapes up for this new technology.