COGEN World Coalition (CWC) is proud to announce the publication of its 4th Global CHP Market Overview, a detailed analysis of the combined heat and power (CHP or cogeneration) sector worldwide. The 4th edition of CWC’s Global CHP Market Overview was produced for CWC by Challoch Energy. The report provides an in-depth assessment of regional markets, fuel mixes, market trends, and prospects, offering a comprehensive resource for industry professionals, policymakers, and stakeholders.
In 2023, CHP plants worldwide produced 4,492 TWh of electricity and 13,821 TWh of heat, representing a substantial increase compared to 2013. Over the decade, electricity output rose by 692 TWh, while heat output increased by 4,261 TWh. Despite these gains, CHP’s share of total electricity generation has slightly declined by just over 1%, reflecting the rapid growth of other power generation sources.
Coal continues to dominate the global CHP fuel mix at almost 63%, with natural gas and biofuels accounting for the majority of the remainder. Together, coal, natural gas, and biofuels/waste make up 98.6% of CHP fuel usage. Over the past few years, biofuel’s share has slightly declined. Looking ahead, the sector is expected to shift towards renewable energy sources, including biofuels, solar, and wind, as countries implement decarbonisation strategies and strive to reduce carbon emissions.
Regional Perspectives
- Europe: A mature and well-established market, Europe benefits from strong policy support, ambitious carbon reduction targets, and energy security measures. Natural gas is the primary CHP fuel, with Germany, Italy, Poland, the Netherlands, Ukraine, and the United Kingdom leading the region.
- Asia-Pacific: Rapid industrialisation, urbanisation, and economic growth are driving CHP market expansion. China, the world’s largest CHP market, and India are at the forefront of growth, transitioning from coal-based to gas-fired CHP, which presents significant opportunities for investment.
- North America: The United States and Canada maintain a stable and expanding CHP market, supported by established infrastructure, growing data centre demand, and government incentives. Natural gas dominates the region’s fuel mix, underpinned by abundant supply.
- South America: Brazil leads regional CHP development, with policies encouraging industrial cogeneration. However, regulatory barriers and economic instability in some areas remain challenges to wider adoption.
- Africa: Emerging potential exists across the continent due to industrial growth, urbanisation, and high electricity costs. Decentralised CHP solutions are increasingly attractive in regions with limited grid reliability.
- Australia & New Zealand: Steady growth is being driven by industrial CHP adoption and energy efficiency initiatives, reflecting a focus on sustainable energy solutions.
The report highlights that North America, Europe, and Asia-Pacific continue to be the most developed and fastest-growing CHP markets. At the same time, South America, Africa, and the Middle East present emerging opportunities, each with unique market dynamics and fuel mix compositions. Across all regions, the sector is expected to increasingly focus on cleaner fuels, enhanced efficiency, and alignment with global decarbonisation goals.
Quote from the President of COGEN World Coalition
“The 4th Global CHP Market Overview demonstrates the vital role CHP continues to play in delivering efficient, low-carbon energy solutions worldwide,” said Thomas Smith, President of the COGEN World Coalition. “As governments and industries pursue ambitious decarbonisation and energy security targets, CHP offers a proven, cost-effective, firm power solution. This report provides valuable insights for decision-makers to understand the global landscape and identify opportunities for growth.”
The full 4th Global CHP Market Overview offers detailed continent-by-continent analysis, including CHP market developments, fuel mixes, electricity and heat generation data, and future prospects. COGEN World encourages policymakers, industry professionals, and investors to explore the complete report to gain a thorough understanding of current trends and emerging opportunities in the global CHP market.
For more information, please contact:
Kyara De Barros, Communications & Policy Officer
COGEN World Coalition
The COGEN World Coalition was established in April 2021 to provide a global voice for companies and stakeholders involved in the development and utilization of cogeneration technologies. The Coalition currently has 20 members including 8 major companies who operate internationally (2G Energy, AB Energy, Addinol, Caterpillar, Clarke Energy, INNIO Group, Solar Turbines, Q8 Oil as well as 12 national associations (ACEJ (Japan), ACOGEN (Spain), B.KWK (Germany), CHP Alliance (USA), Cogen Brazil, Cogen Europe, Cogen India, Cogen Spain, Cogenera Mexico, Cogen Portugal, Italcogen (Italy), Kojen Türk (Turkey).
For more information see: www.cogenworld.org
Published: 26 February 2026
Recent Comments