유럽의 열병합발전(CHP) : 시장 점유율 분석, 업계 동향 및 통계, 성장 예측(2026-2031년)

According to Mordor Intelligence, the Europe combined heat and power market size is estimated at USD 14.09 billion in 2026, and is expected to reach USD 18.35 billion by 2031, at a CAGR of 5.43% during the forecast period (2026-2031).

This report is Segmented by Fuel (Natural Gas, Coal, Biomass/Biogas, Diesel, Nuclear, and Emerging Fuels), Prime Mover (Combined Cycle, Gas Turbine, Steam Turbine, Fuel Cells, and More), Capacity (Up To 10 MW, 10-150 MW, 150-300 MW, and Above 300 MW), End-User (Utilities, Commercial, Industrial, and Residential), and Geography (Germany, United Kingdom, France, NORDIC Countries, and More).

Europe Combined Heat And Power (CHP) Market Trends and Insights

EU Green Deal-Linked Energy-Efficiency & CHP Subsidies

The REPowerEU package channels EUR 300 billion through 2027, with roughly 15% reserved for high-efficiency cogeneration and district-heating upgrades, translating into a multi-GW near-term tender pipeline. Germany's BEG program reimburses up to 40% of eligible costs for biogas or hydrogen-ready units, lifting sub-5 MW reciprocating-engine orders by 22% year-on-year in 2025. The Netherlands' SDE++ scheme guarantees a 15-year tariff of EUR 95 per MWh for biomethane-fueled CHP, stimulating new dairy-sector capacity RVO.NL. Belgium's Flanders raised its cogeneration certificate floor to EUR 28, boosting micro-CHP viability in pharmaceutical campuses. Article 14 of the Energy Efficiency Directive mandates waste-heat cost-benefit studies, sending municipal budgets toward CHP retrofits in chemicals, pulp and paper, and food processing.

Renewable-Gas Incentives Fueling CHP Conversions

Multiple member states deploy generous feed-in tariffs, investment grants, and carbon-intensity bonuses that directly subsidize biogas, biomethane, and hydrogen-ready cogeneration units. Germany's BEG program reimburses up to 40% of capital outlays for engines firing renewable gases, while the Netherlands' SDE++ scheme locks in a 15-year premium of EUR 95 per MWh for biomethane-based CHP. These incentives shorten payback to fewer than five years for sub-5 MW plants and underpin a double-digit order surge among reciprocating-engine manufacturers. Utilities also pivot legacy gas turbines toward hydrogen blends to retain capacity-market revenues and avoid rising ETS costs. The policy certainty encourages long-term offtake contracts between anaerobic-digestion developers and industrial heat users, anchoring fuel supply and de-risking financing. As a result, renewable gases are positioned to claim a growing share of incremental CHP additions through 2031.

Fossil-Gas Phase-Down & Carbon-Pricing Squeeze

EU ETS prices averaged EUR 82 per tCO2 in 2025, adding EUR 35 per MWh to variable costs for gas-fired CHP and tightening spark spreads. Germany finalized its coal exit without parallel support for gas assets, leaving operators exposed to stranded-asset risk. The UK stacked its Carbon Price Support atop ETS levies, driving combined charges above GBP 40 per tCO2 and eroding merchant economics. France's national low-carbon strategy aims to cut industrial gas use by 40% by 2030, pushing glass and steel producers toward electrified heat. Spain's draft climate plan phases out CHP capacity payments by 2027, redirecting funds to green hydrogen.

Other drivers and restraints analyzed in the detailed report include:

1. District-Heating Decarbonization Mandates in Nordics and CEE
2. Industrial Resilience and Energy-Price Volatility Hedge
3. Capital-Cost Competitiveness of High-Temperature Heat Pumps

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Natural gas retained 58.8% of the European combined heat and power market share in 2025, anchored in legacy turbine fleets and district-heating loops. Biomass and biogas together supplied 18% of output, thanks to abundant forestry residues in Scandinavia and agricultural waste in Central Europe. Coal's 9% footprint is shrinking under EU Taxonomy retirement deadlines, and diesel plus niche liquids remained below 4% without material growth levers. Emerging fuels, hydrogen blends, biomethane, and advanced biofuels expanded at a brisk 13.5% CAGR and are set to erode natural-gas dominance through 2031. These dynamics indicate a diversifying feedstock mix that will recalibrate capital allocation across the European combined heat and power market.

Policy incentives underpin the pivot. Germany's EUR 9 billion National Hydrogen Strategy, Italy's biomethane mandates, and the Netherlands' 15-year SDE++ tariff directly subsidize fuel switching. Operators retrofit existing engines for up to 30% hydrogen by volume, while new reciprocating packages arrive factory-certified for 100% renewable gas. As a result, the Europe combined heat and power market size attached to emerging fuels is projected to outpace every other category to 2031, widening technology choice for municipal utilities and industrial hosts.

Combined-cycle units delivered 30.3% of installed capacity in 2025, safeguarding heat supply for large district-heating operators and petrochemical complexes. Reciprocating engines followed at 26%, dominating the sub-10 MW class that addresses hospitals, data centers, and mid-sized manufacturers. Fuel cells, while still small in absolute numbers, posted a 14.8% CAGR on the back of residential micro-CHP subsidies and utility-scale orders that value near-zero criteria emissions.

OEM roadmaps now emphasize hydrogen-ready certificates, load-following capability, and hybridization with batteries, positioning prime movers for capacity-market and ancillary-service revenue. Subsidy programs such as Germany's KfW 433 grant up to EUR 11,200 per fuel-cell installation, while the UK's capacity market recognizes solid-oxide stacks as a reliable reserve. These mechanisms channel a rising share of the European combined heat and power market toward fuel-cell and advanced engine solutions, even as combined-cycle plants preserve scale advantages in cities with high heat demand.

Complete Report Scope:

• By Fuel
  • Natural Gas
  • Coal
  • Biomass/Biogas
  • Diesel and Other Liquid Fuels
  • Nuclear
  • Emerging fuels
• By Prime Mover
  • Combined Cycle
  • Gas Turbine
  • Steam Turbine
  • Reciprocating Engine
  • Fuel Cells
  • Microturbines and Others
• By Capacity
  • Up to 10 MW
  • 10 to 150 MW
  • 150 to 300 MW
  • Above 300 MW
• By End-User Sector
  • Utilities
  • Commercial
  • Industrial
  • Residential
• By Geography
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • NORDIC Countries
  • Russia
  • Rest of Europe

List of Companies Covered in this Report:

1. Engie SA
2. General Electric Company
3. Siemens AG
4. Mitsubishi Power Europe
5. UPM
6. 2G Energy AG
7. Wartsila Corp.
8. Fleetsolve
9. Vattenfall AB
10. E.ON SE
11. Veolia Environnement
12. Capstone Green Energy
13. Bosch Thermotechnology
14. Caterpillar Energy Solutions
15. MAN Energy Solutions
16. Rolls-Royce (MTU)
17. INNIO (Jenbacher)
18. Clarke Energy
19. Viessmann Group
20. FuelCell Energy
21. Ballard Power Systems
22. Bloom Energy
23. Dantherm Power

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

TABLE OF CONTENTS

1 Introduction

• 1.1 Study Assumptions & Market Definition
• 1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

• 4.1 Market Overview
• 4.2 Market Drivers
  • 4.2.1 EU Green Deal-linked energy-efficiency & CHP subsidies
  • 4.2.2 Rapid district-heating network expansions in CEE & Nordics
  • 4.2.3 Price-volatility hedging via on-site generation/resilience
  • 4.2.4 Biogas/biomethane scale-up unlocking renewable-gas CHP
  • 4.2.5 Hybrid CHP + high-temp heat-pump retrofits in energy-intensive industry
  • 4.2.6 Hydrogen-ready peaking CHP for grid-balancing & "dark doldrums"
• 4.3 Market Restraints
  • 4.3.1 Fossil-gas phase-down & carbon-pricing squeeze
  • 4.3.2 High CAPEX vs heat-pumps & electrification alternatives
  • 4.3.3 Large-scale heat-pump substitution of low-/mid-temp heat
  • 4.3.4 Shrinking run-hours from negative-price events & must-run limits
• 4.4 Supply-Chain Analysis
• 4.5 Regulatory Landscape
• 4.6 Technological Outlook
• 4.7 Porter's Five Forces
  • 4.7.1 Bargaining Power of Suppliers
  • 4.7.2 Bargaining Power of Consumers
  • 4.7.3 Threat of New Entrants
  • 4.7.4 Threat of Substitute Products & Services
  • 4.7.5 Degree of Competition

5 Market Size & Growth Forecasts

• 5.1 By Fuel
  • 5.1.1 Natural Gas
  • 5.1.2 Coal
  • 5.1.3 Biomass/Biogas
  • 5.1.4 Diesel and Other Liquid Fuels
  • 5.1.5 Nuclear
  • 5.1.6 Emerging fuels
• 5.2 By Prime Mover
  • 5.2.1 Combined Cycle
  • 5.2.2 Gas Turbine
  • 5.2.3 Steam Turbine
  • 5.2.4 Reciprocating Engine
  • 5.2.5 Fuel Cells
  • 5.2.6 Microturbines and Others
• 5.3 By Capacity
  • 5.3.1 Up to 10 MW
  • 5.3.2 10 to 150 MW
  • 5.3.3 150 to 300 MW
  • 5.3.4 Above 300 MW
• 5.4 By End-User Sector
  • 5.4.1 Utilities
  • 5.4.2 Commercial
  • 5.4.3 Industrial
  • 5.4.4 Residential
• 5.5 By Geography
  • 5.5.1 Germany
  • 5.5.2 United Kingdom
  • 5.5.3 France
  • 5.5.4 Italy
  • 5.5.5 Spain
  • 5.5.6 NORDIC Countries
  • 5.5.7 Russia
  • 5.5.8 Rest of Europe

6 Competitive Landscape

• 6.1 Market Concentration
• 6.2 Strategic Moves (M&A, Partnerships, PPAs)
• 6.3 Market Share Analysis (Market Rank/Share for key companies)
• 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
  • 6.4.1 Engie SA
  • 6.4.2 General Electric Company
  • 6.4.3 Siemens AG
  • 6.4.4 Mitsubishi Power Europe
  • 6.4.5 UPM
  • 6.4.6 2G Energy AG
  • 6.4.7 Wartsila Corp.
  • 6.4.8 Fleetsolve
  • 6.4.9 Vattenfall AB
  • 6.4.10 E.ON SE
  • 6.4.11 Veolia Environnement
  • 6.4.12 Capstone Green Energy
  • 6.4.13 Bosch Thermotechnology
  • 6.4.14 Caterpillar Energy Solutions
  • 6.4.15 MAN Energy Solutions
  • 6.4.16 Rolls-Royce (MTU)
  • 6.4.17 INNIO (Jenbacher)
  • 6.4.18 Clarke Energy
  • 6.4.19 Viessmann Group
  • 6.4.20 FuelCell Energy
  • 6.4.21 Ballard Power Systems
  • 6.4.22 Bloom Energy
  • 6.4.23 Dantherm Power

7 Market Opportunities & Future Outlook

• 7.1 White-space & Unmet-Need Assessment