In 2016, the biggest shift in the European electricity system was the significant change from coal generation to gas generation. This has considerably reduced coal generation by almost 12%, thus increasing the natural gas generation by around 20%. As a result, the CO2 emissions from the European power industry reduced by 4%, about 1,018 million metric ton of CO2. Owing to coal plant closures and an increase in carbon price support, over 50% of the shift happened was observed in the United Kingdom. Countries, such as Italy, the Netherlands, Germany, and Greece witnessed significant switch over from coal to gas. Such developments in gas-based power infrastructure are expected to drive the demand for gas turbines in Europe during the forecast period.
Shift from Coal-based Power to Gas-based Power Driving the market
In 2016, around 8 GW coal plants were closed in the European Union. These plants include: 4.9 GW in the United Kingdom, 1.6 GW in the Netherlands, 0.6 GW in Italy, 0.6 GW in Belgium, 0.6 GW in Germany, and 0.2 GW in Poland. In addition, Europe has announced the closure of additional 7 GWs of coal power plants during 2017-2020, which represents less than 5% of the total coal fleet in the region. These plants include: 2.5 GW of hard coal in Germany (by 2017), 2.4 GW of lignite in Germany (by October 2019) and 1 GW at Maasvlakte 1-2 in the Netherlands.
Owing to the increasing switch from coal to gas, coal generation reduced from 787 TWh in 2015 to 694 TWh in 2016. Thus, its share in the European electricity mix reduced from 24.6% in 2015, to 21.6% in 2016. Gas generation grew from 498.6 TWh in 2015 to 605.2 TWh in 2016, thereby increasing its share in the European electricity mix (from 15.5% in 2015 to 18.6% in 2016). This switch from coal to gas is one of the major factors that is expected to propel the European gas turbine market.
Germany among the Leading Gas Turbine Segments in Europe
Germany is an industrial and economic powerhouse of Europe. In 2011, Germany made a strategic decision to stop its dependence on nuclear power, by 2022. The German government supported the plan of replacing the loss in power generation capacity, with power generated from renewable sources. However, the unpredictable nature and lack of constant output from renewables are expected to force the development of natural gas power plants, as a less polluting alternative.
Gas-based power plants in Germany are mainly deployed for combined heat and power (CHP) projects, also termed as cogeneration. The significance of CHP plants for the German power generation market is evident, as two out of three newly-built large combined-cycle power plants are expected to be of combined heat and power configurations over the forecast period. With an efficiency higher than 61% and fuel utilization efficiency in cogeneration of up to 85%, a CHP plant is expected to have a lower footprint, higher efficiency, and lower emissions, as compared to a highly distributed generation setup. In addition, Germany's amended Combined Heat and Power Act of 2016 supports cogeneration plants, with outputs exceeding 2MW. As a result, the growth of cogeneration plants is expected to spur the demand for gas turbines in the country, during the forecast period.
Key Developments in the Market
- May 2017: Siemens launched a new product in the gas turbine portfolio – the SGT-A35 RB. This lightweight, aero-derivative gas turbine can generate up to 38 MW and is integrated into a compact, lightweight Dresser-Rand package, which is up to 30% smaller and lighter than its Industrial RB211 predecessors.
Major Players: General Electric, Siemens AG, Mitsubishi Heavy Industries Ltd, Harbin Electric International Company Limited, Bharat Heavy Electricals Limited, Kawasaki Heavy Industries Ltd, Man Diesel, and Turbo SE, among others.
Reasons to Purchase this Report
- Current and future gas turbine market market outlook in the European market.
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- The segment that is expected to dominate the market.
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- Identify the latest developments and strategies employed by the major market players.
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1. Executive Summary
2. Research Methodology
3. Market Overview
3.2 Market Size and Demand Forecast to 2023 (in GW)
3.3 Market Size and Demand Forecast to 2023 (in USD billion)
3.4 Government Policies and Regulations
3.5 Recent Trends and Developments
4. Market Dynamics
5. Value Chain Analysis
6. Porter’s Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitute Products and Services
6.5 Intensity of Competitive Rivalry
7. Market Segmentation and Analysis (Overview, Market Size, and Demand Forecast until 2023)
7.1 By Capacity
7.1.1 Between 1 and 40 MW
7.1.2 Between 41 and 120 MW
7.1.3 Between 121 and 300 MW
7.1.4 Above 300 MW
7.2 By Type
7.2.1 Combined Cycle
7.2.2 Open Cycle
7.3 By Application
7.3.2 Oil & Gas
8. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)
8.1 United Kingdom
8.5 Rest of Europe
9. Key Company Analysis* (Overview, Products & Services, Financials**, Recent Developments, and Analyst View)
9.1 General Electric
9.2 Siemens AG
9.3 Mitsubishi Heavy Industries Ltd
9.4 Harbin Electric International Company Limited
9.5 Bharat Heavy Electricals Limited
9.6 Kawasaki Heavy Industries Ltd
9.7 Man Diesel and Turbo SE
10. Competitive Landscape
10.1 Mergers & Acquisitions
10.2 Joint Ventures, Collaborations, and Agreements
10.3 Strategies Adopted by Leading Players
11.1 Contact Us
*List not Exhaustive
**Subject to availability on the public domain