Does Combined Heat and Power Play the Role of a Bridge in Energy Transition? Evidence from a Cross-Country Analysis

Abstract

In an era of energy transition involving an increase in renewable energy and a reduction in coal-fired power generation and nuclear power generation, the role of combined heat and power (CHP) as a bridging energy is highly emphasized. This article attempts to look empirically into the impact of increasing the share of renewable energy in total electricity generation on CHP share in total electricity generation in a cross-country context. Data from 35 countries during the period 2009–2015 were used, and the least absolute deviations estimator was applied to obtain a more robust parameter estimate. The results showed that a 1%p increase in the share of renewable energy significantly increased the CHP share by 0.87%p. Therefore, the hypothesis that CHP serves as bridge energy in the process of energy transition was established.