Fossil fuels sector loses steam in the medium- and high-power generator markets

The fossil fuels sector dominates the medium- and high-power generator markets, but the share of new generator sales that utilize fossil fuels may decline, according to research by IHS.

12/19/2013


The fossil fuels sector dominates the medium- and high-power generator markets, accounting for approximately 76 percent of revenues in 2012, according to recent findings by IHS. The share of new generator sales that utilize fossil fuels, however, is forecast to decline as growth in the renewables and nuclear sectors ramps up.

Generators sold into the renewables (excluding wind and solar PV) and nuclear sectors are forecast to experience significant growth through 2017. Power generated by renewable sources is considered carbon neutral, and government legislation in many countries has been enacted to reduce carbon emissions in an attempt to reverse the harmful effects of climate change. Because of this, generators sold into hydro and other renewables such as biomass and solar Concentrated Solar Power (CSP) are seeing rapid growth.

Despite the backlash from the Fukushima nuclear disaster in 2011, and Germany deciding to close down all of its nuclear power plants by 2022, the nuclear industry is projected to see a resurgence through 2017 and beyond. Nuclear power, which is also carbon neutral, will see most of the growth from only a few countries, including China, India, Iran, Russia and South Korea.

Nuclear power is attractive in these countries because of the need for large increases to their base load capacity in order to keep pace with growing demand. Furthermore, these countries have historically relied on coal-fired power plants for electricity generation, especially China and India. Adding nuclear power allows them to reduce carbon emissions, while at the same time, helps to clean up their image as high carbon emitters.

The discrepancy of natural gas prices and delays in project financing are other factors keeping generator sales prospects for the fossil fuels sector subdued. The United States saw a large impact as gas prices fell to historically low levels mainly due to the increase in production from shale gas fracking. This gas boom, however, has yet to spread to Europe and Asia where natural gas prices are three to four times higher. Financing and investments for large power plants have also been more difficult to secure, which has led to delays in equipment purchases.

Published in November 2013, “The World Market for Medium and High Power Generators” outlines how these markets are forecast to perform through 2017 and offers insight into which regions and product categories may experience growth in the future. In this challenging economic climate, it is important for generator suppliers to understand these driving forces.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2016 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
2017 Lubrication Guide; Software tools; Microgrids and energy strategies; Use robots effectively
Prescriptive maintenance; Hannover Messe 2017 recap; Reduce welding errors
Safety standards and electrical test instruments; Product of the Year winners; Easy and safe electrical design
Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Diagnostic functions for system safety; Specifying industrial enclosures; Effective decision support for a crisis
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Natural gas for tomorrow's fleets; Colleges and universities moving to CHP; Power and steam and frozen foods

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me