Focus on Coal
African steam turbine market set to grow amidst rising electricity demand
D
riven by a period of significant economic growth, the demand for electricity within sub-Saharan Africa is rapidly approaching supply capacity and in many countries exceeding it. The resultant demand for new generation capacity is boosting growth in the steam turbine market for the region. “The sub-Saharan African steam turbine
market is expected to grow considerably due to the cost efficiencies in power production attained from coal-fired power plants in coal-rich countries,” notes Frost & Sullivan Research Analyst Ross Bruton. “The emergence of combined cycle technologies and development of the geothermal power industry in East Africa are also likely to open up new market opportunities.” New analysis from Frost & Sullivan, The
Sub-Sahara African Steam Turbine Market, finds that the market earned revenues of $147.4 million in 2008 and estimates this to reach $261.4 million by
2014.The markets covered in this research service by region are South Africa, Botswana, Zimbabwe, Kenya,
Mauritius and Namibia. In countries with an abundance of natural coal reserves, the development of coal-fired power plants is the most cost- effective means of power production. However, these cost efficiencies may fall away in the long-term due to the depletion of natural resources and potential carbon taxes or cap-and-trade mechanisms placed on industries with high carbon emissions. “Due to the high carbon emissions
of coal fired power plants, and their subsequent contribution to global warming, carbon taxes or cap-and-trade mechanisms are often applied to power industries in countries, like South Africa, in order to decrease the national carbon footprint,” explains Bruton. “The application of these mechanisms will decrease the cost efficiencies attained through coal-fired power production and subsequently restrain growth of the market.” Nevertheless, due to the small carbon
footprint of most countries in sub-Saharan Africa, and the current high demand for
electricity in the region, this is anticipated to only have a significant effect on the rest of the region in the long term. Competitors in the market should
focus on the R&D of clean coal as well as combined cycle technologies. Furthermore, after the successful growth of the geothermal and bagasse cogeneration power industry in Kenya and Mauritius, competitors should diversify their target market to incorporate renewable energy production.
“Cheaper Chinese manufacturers have
begun to enter the sub-Sahara African steam turbine market previously dominated by European manufacturers,” explains Bruton. “Therefore, the current competitors in the market should either concentrate on the R&D of high quality, reliable products that are able to attain market leading efficiencies in power production or implement cost price reduction strategies in order to remain competitive. l
For more information, visit
www.frost.com
Your Partner in Nuclear Power Engineering
Power, process & control engineering Commissioning, testing & tuning Safety analyses, demonstration & licensing
Solvina International AB Göteborg, Sweden Phone: +46 31 7096300
www.solvina.se
Circle 47 or ✔ at
www.engineerlive.com/ipe
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52