Asia-Pacific re­gion pro­vides best op­por­tu­ni­ties in de­clin­ing global gas tur­bine mar­ket: Glob­alData

Power Watch India - - COVER STORY REPORT -

The global gas tur­bine mar­ket is set to fall from $8.49 bil­lion in 2016 to around $7.73 bil­lion by 2021, rep­re­sent­ing a neg­a­tive com­pound an­nual growth rate of 1.87%, ac­cord­ing to re­search and con­sult­ing firm Glob­alData.

The com­pany’s lat­est re­port states that global eco­nomic re­ces­sion and the de­crease in the price of gas tur­bines has heav­ily im­pacted mar­ket value, with a large num­ber of projects be­ing can­celled or post­poned, and wide­spread de­lays in main­te­nance projects. Gas tur­bine com­pa­nies are now con­cen­trat­ing on ex­pand­ing their op­er­a­tions in emerg­ing mar­kets, which of­fer the best op­por­tu­ni­ties for growth.

Subha Kr­ish­nan, Power An­a­lyst for Glob­alData, said, “In the emerg­ing economies of Asia-Pacific (APAC), ex­ten­sive power plant ca­pac­ity ad­di­tions, eco­nomic growth, and the need to im­prove ac­cess to elec­tric­ity are driv­ing the gas tur­bine mar­ket. Ris­ing coal and nat­u­ral gas pro­duc­tion are in­creas­ingly ear­marked for do­mes­tic mar­kets in or­der to sup­port the re­gion’s rapid eco­nomic growth and devel­op­ment, while oil out­put con­tin­ues to de­cline as the most pro­duc­tive fields are pro­gres­sively ex­ploited and only par­tially re­placed by new pro­duc­tion.”

The re­gion’s pri­mary en­ergy de­mand is pro­jected to grow at a rate of 2.1% per year be­tween 2010 and 2035, which is faster than the pro­jected world av­er­age growth rate of 1.5% per year dur­ing the same pe­riod. Due to an in­creased de­ploy­ment of gas-based power plants, nat­u­ral gas de­mand will in­crease at a faster rate dur­ing this pe­riod than coal and oil, mean­ing its share will rise from 11.4% in 2010 to 17.5% by 2035.

Kr­ish­nan said, “As most APAC economies, in­clud­ing China, In­dia, In­done­sia and Thai­land, are look­ing to build new gen­er­a­tion ca­pac­ity, the low price of gas is also pro­jected to boost its share in the over­all en­ergy gen­er­a­tion mix of many coun­tries. The use of gas and re­new­able en­ergy is in­creas­ingly pro­moted by gov­ern­ments in the re­gion to ad­dress the ris­ing en­ergy de­mand and need for re­duc­ing car­bon emis­sions. De­spite the ris­ing price of coal, the com­mer­cial­i­sa­tion of re­new­able en­ergy con­tin­ues to be an ex­pen­sive option for util­ity com­pa­nies. As a re­sult, rev­enue for coal-based gen­er­a­tion tech­nolo­gies is ex­pected to climb over the fore­cast pe­riod, and the gas power mar­ket in the APAC re­gion, though small when com­pared to the coal sec­tor, is ex­pected to ex­pand con­sid­er­ably in the near fu­ture.”

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