PCCA Journal|4
th
Quarter 2012
41
1-888-633-1243
G
as-fired power generation is
expected to grow across all
regions of the world as coun-
tries increasingly opt for its relatively
clean-burning characteristics and flexible
operating capabilities. While the market
will be restrained in the short term, the
medium- and long-term prospects for
gas-fired power are sound. North Amer-
ica and Europe will maintain their lead
as the regions with the largest installed
gas-fired capacity.
New analysis from Frost & Sullivan,
Global Prospects for Gas-Fired Power
Generation, finds that global gas-fired
power plant orders will total 537 GW
through 2020. A key market driver is
the unpopularity of coal in developed
regions. Coupled with the extremely low
natural gas prices in North America, this
is leading to the phasing out of old coal-
fired plants, which are being replaced by
gas-based plants.
Gas-fired power generation is also
fueled by the massive availability of
natural gas because of new pipeline
schemes such as Nabucco, the expan-
sion of global LNG production led by
leading producer Qatar, and the boom in
shale gas production spearheaded by the
United States and gradually spreading
to other regions. The high availability of
gas, combined with the economic down-
turn, has brought about a prolonged pe-
riod of relatively low gas prices, boosting
gas-based generation.
“It is probable that in the short term,
gas-based plants will also have de-
lays associated with the availability of
finance, exacerbated by the Eurozone
sovereign debt crisis, which erodes
market confidence, and liquidity of the
banking sector,” said Frost & Sullivan
Industry Director Harald Thaler. “More-
over, electricity consumption in many
countries of the developed world has
still not recovered to pre-crisis levels.”
However, considering the problems
associated with coal and nuclear pow-
er—where developments have slowed
down in the aftermath of the Fukushima
accident—gas-fired power generation will
benefit. Further, the greater operating
flexibility offered by gas turbines—fast
start-up capabilities and higher part-load
efficiencies—will be a key differentiator.
Global Gas-Fired Power Generation Set for Strong Growth
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