EU Renewable Energy Subsidies Make Natural Gas Plants Uneconomic

A combined-cycle gas turbine (CCGT) in Slovakia owned by E.ON, the worlds largest investor-owned electric utility service provider, will close in the fall of 2013. E.ON says that the reasons for closure are the low electricity and carbon prices. Whats more, according to the company, the unmanaged, heavily subsidized growth of renewables and the resulting collapse of the EU emissions trading scheme are rendering in particular gas-fired power plants in Europewhich have already been hit by the recession-driven decline in power demandlargely uneconomic to operate.

The Renewable Energy Road Map sets the target of producing 20% of total EU energy consumption from renewable energy sources by 2020, as well as measures for promoting renewable energy sources in the electricity, biofuels and heating and cooling sectors. While during the first three months of 2013 green energy investment in the EU declined by 22 percent, some $40.6 billion was invested in the industry during this period.

http://dailyfusion.net/2013/07/eu-renewable-energy-subsidies-make-natural-gas-plants-uneconomic14583/

Power generation in the BRIC countries is supported by the huge amount of natural resources present in these countries. Russia has the largest gas reserves in the world. The availability of natural reserves and resources and rising electricity demand in all the BRIC countries will drive their gas turbine markets in the future. The BRIC (Brazil, Russia, India, China) gas turbine market is expected to experience a considerable growth over the forecast period, growing from $1,432 in 2005 to $2,623 in 2015. The major contributing factor for the growth will be the growing environmental concerns. At present, BRIC nations are heavily dependent on coal for fulfilling their power needs. But gradually BRICs focus is shifting towards gasbased power generation due to its clean nature. The major part of gas turbine revenue comes from China and Russia .So any fluctuation in these markets directly affects the entire BRIC scenario.

http://www.prlog.org/11778794-gas-turbines-in-bric-brazil-russia-india-and-china-market-size-averagepricing.html

The rising electricity demand in both emerging and developed economies and strict environmental regulations act as the major drivers for the global gas turbine market. Short construction times and low upfront costs which are required for Combined Cycle Gas Turbine (CCGT) power plants benefit the gas turbine market. Over the forecast period, Asia Pacific and the Middle East regions are anticipated to become prospective markets for gas turbine companies. Utilities across Europe and North America are being forced to decommission old coal and nuclear power plants in order to comply with stringent environmental regulations, and this is driving the growth of gas turbines. CCGT power plants are increasingly being used to balance the intermittent load from renewable energy sources in these regions. The average annual global gas turbine revenues stood at $11.7 billion during the period 2000-2011 and are expected to grow to $17.1 billion for the period 2012-2020. Gas Turbine Market, Global, Average Annual Revenues ($m), 2000-2020

Iran Expected to Witness Substantial Growth in Future Over the recent years, the share of CCGT power plants in Iran has significantly increased. Rising electricity demand in the country and increasing privatization in the power generation sector will be the main driver for the gas turbine market over the forecast period. The annual average revenue is expected to increase from an average of $708m over the period 2000-2011 to reach an average of $1,234m during the forecast period 2012-2020. China Expected to Grow in the Forecast Period The Chinese gas turbine market is expected to see considerable growth over the forecast period 2012-2020. Rising electricity demand is the biggest driver for the gas turbine market. An increase in natural gas demand led to a restricted gas supply which had adversely affected the market, but this is expected to ease during the forecast period. The domestic production of natural gas is set to increase, and international companies are increasing their penetration in Chinas upstream sectors. Gas pipeline interconnections with neighboring countries will also improve the supply of gas in China over the forecast period. The 12th Five Year Plan (FYP) focuses on promoting cleaner energy sources and decreasing energy intensity, and is expected to boost the construction of gas-fired power plants. In China, the average annual gas turbine revenues stood at $1,125m during the period 2000-2011 and are expected to grow to $1,357m for the period 2012-2020.

https://www.asdreports.com/news.asp?pr_id=229

http://www.aurecongroup.com/en/thinking/current%20articles/lowering-carbon-emissions-with-gasturbine-power-generation.aspx

Given the worlds current focus on sustainable or renewable energy, how do natural gas -fired gas turbines fit in? In some instances, renewable energy such as solar or wind just wouldnt be practical without assistance from gas turbines. For instance, NorthWe stern Energy is currently constructing a natural gas-fired generating station that will use gas turbines to provide fast start (and stop) "regulation service" to compensate for wind powers unpredictability. In the companys own words, "Because wind is difficult to accurately scheduleit is more problematic to integrate into the transmission grid." Wind has ramped up from zero to 13 1 MW in 10 minutes and has ramped down from 121 MW to zero MW in a similar time period.

As power production moves tentatively into a low-carbon future, or as people look for more fuel-efficient ways to cross continents, its a sure bet that gas turbines will be there.

https://www.asme.org/engineering-topics/articles/turbines/gas-turbines-jet-through-recession