According to forecasts by research and consulting firm GlobalData, steam turbines dominated Europe’s CHP installed capacity with a share of 66% in 2013, while gas turbine power plants accounted for 10%.

The European steam turbine market value is set to increase further over the forecast period, from $US1.72 billion ($A1.85 billion) in 2013 to $1.75 billion by 2020, GlobalData says.

Meanwhile, the gas turbine market value will enjoy higher growth, from $862 million in 2013 to $1.47 billion by 2020.

“With its strict emission and carbon savings targets, coupled with its focus on decentralised energy, Europe is comfortably the biggest market for CHP installations,” GlobalData senior power analyst Sowmyavadhana Srinivasan said.

“Russia alone boasts a huge CHP installed capacity and depends on this technology to meet a large share of its heat requirements.”

With electricity prices on the up, GlobalData believes an increasing number of industries are looking into CHP as an alternative for power generation, due to the option of using both natural gas and biomass as fuel.