Market Trends of Steam Turbine For Power Generation Industry
The Gas Segment to Witness Significant Growth
- A gas combined-cycle power plant (CCP) uses gas. A steam turbine in this type of plant is expected to produce up to 50% more electricity from the same fuel than a traditional simple-cycle plant. The waste heat from the gas turbine is routed to the nearby steam turbine, which generates extra power.
- Compared to coal-fired power plants, natural gas combined cycle plants produce significantly lower emissions of greenhouse gases, such as carbon dioxide (CO2) and other pollutants like sulfur dioxide (SO2) and nitrogen oxides (NOx). This makes them a cleaner option for electricity generation, contributing to improved air quality and reduced environmental impact.
- The rising global demand for renewable energy has increased the popularity of natural gas power plants. The demand for gas is increasing, especially in Asia-Pacific, due to the shift from coal to natural gas. For instance, according to the Energy Institute Statistical Review of World Energy statistics, in 2022, the total natural gas consumption recorded about 3941.3 billion cubic meters around the globe. This is expected to create significant demand for natural gas as a power generation source.
- Natural gas combined cycle plants offer operational flexibility, allowing them to respond quickly to changes in electricity demand. They can ramp up or down their power output relatively quickly, making them well-suited for balancing the intermittent nature of renewable energy sources like solar and wind.
- With growing urbanization, rising demand for energy, and government efforts to boost industrialization and infrastructure development activities, the need for a global gas-combined power cycle is increasing. Many countries invest in these generation facilities to meet the increasing demand for electricity.
- Many natural gas combined cycle plants can be built or retrofitted at existing sites, leveraging the infrastructure for natural gas supply and electricity transmission. This can expedite the deployment of new power generation capacity.
- For instance, in March 2023, the Asian Development Bank announced that it would set up a 120 MW gas-fired combined cycle power plant in Tripura, India. Similarly, in the same month, the Government of Montenegro signed an MoU with companies like Enerflex Energy Systems and Wethington Energy Innovation from the United States on the construction of a liquefied natural gas (LNG) terminal and a gas-fired power plant. The CCGP plant will likely have a capacity between 240 MW and 440 MW.
- Therefore, natural gas combined cycle power plants offer a balance between efficiency, lower emissions, flexibility, reliability, and cost-effectiveness, making them a popular choice for electricity generation, thus increasing the demand for steam turbines around the globe.
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Asia-Pacific Expected to Dominate the Market
- Asia-Pacific is already the largest market for steam turbines and is expected to create significant demand for steam turbines over the coming years. Thermal power generation in the Asia-Pacific contributes to more than 50% of electricity generation.
- China is one of the leading countries in Asia-Pacific, with the highest electricity generation capacity. With its large geographical area and to cater to a large population, the country needs to have increased electricity generation plants with continuous fuel supply for continuous power generation within the nation.
- As of January 2023, the country had the highest number of operating coal thermal power plants worldwide. Till January 2023, China had around 3,092 units of operating coal thermal power plants, 499 under-construction coal power plants, and 112 announced coal power plants. Hence, such a trend will propel the steam turbine market in the coming years.
- As per the Central Electricity Authority (CEA), the power-generating industry has grown. In FY2022-23 and FY 2023-24, thermal power plants rose by 2.77%, while renewable energy grew by around 11.11%. Thus, this signifies the increasing growth of renewable energy technologies to reduce reliance on fossil fuels for power generation.
- As per the Central Electricity Authority, nearly 31,040 MW of under-construction thermal power plants in India will be online in the next five years. Among all the under-construction, about 15,120 MW is likely to be operated by the central ministry, while 14,320 MW is expected to be operated by the state ministry. Hence, such upcoming thermal power plants will increase demand for steam turbines in the power generation market in the coming years.
- According to the Institute for Sustainable Energy Policies (ISEP), in 2022, fossil fuels constituted 72.4% of the overall electricity generation in Japan, marking a slight increase from the previous year's figure of 71.7%. The proportion of electricity generated from liquefied natural gas (LNG) decreased to 29.9%, down from 31.7% recorded in the previous year, partly influenced by price escalations.
- However, Japan's coal-based electricity generation saw an increase, rising to 27.8% compared to the previous year's 26.5%. Conversely, nuclear power contributed 4.8% to electricity generation, declining from the previous year's 5.9%.
- Thus, with the above developments and upcoming thermal power plants, Asia-Pacific is expected to dominate the market during the forecast period.
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