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Gas-generator-sets market to grow by 2019

29th August 2014

  

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In the last three years, gas generator-sets have risen in prominence in Europe and the US, owing to stricter emission laws and lower gas prices.

The shale gas boom in the US and increasing adoption of biogas in Europe have kept the gas-generator-sets market in the two regions buoyant, while liberalisation has given a boost to the market in emerging countries. In fact, China and India have become the largest production hubs for generator-sets with many large manufacturers building their capabilities organically or through tie-ups and alliances.

New analysis from growth partnership com-pany Frost & Sullivan, titled Global Gas Gen-Sets Market, finds that the market earned revenues of $4.14-billion in 2013 and estimates this to reach $8.59-billion in 2019. The study covers the end-user segments of residential, commercial and industrial.

Gas generator-sets easily comply with environ-mental regulations by producing greater amounts of electricity through highly-efficient decentralised natural-gas-combined heat and power systems. Gas’s property as a clean-burning fuel, coupled with generator-set advantages, such as lower noise, quicker permit obtention and reduced capital costs, makes gas generator-sets the ideal choice for end-users across segments.

“The surge in natural gas availability and improved infrastructure for delivery has low-ered the price of gas, greatly assisting the sales of gas gen-sets in developed regions. \ “Though technological improvements, such as the automatic control system, are making gas generator-sets 50% more expensive than their diesel counterparts, their reliability and lower life-cycle costs will keep demand high,” says Frost & Sullivan energy industry analyst Pritil Gunjan.

This is particularly evident in emerging coun- tries, which do not have access to adequate reserves of gas and lack the necessary infrastruc-ture to pipe gas from other regions. The widening demand and supply power gap will mean gas generator-sets will increasingly come to be a source of prime and continuous power. In this scenario, highly flexible generating units, with fast response times, can provide utilities with a flexible power generation infrastructure, allowing them to make the most of high elec-tricity prices during hours of peak demand.

“Gas-fired generator sets, with their low-risk technology, favourable capital costs and higher efficiency, have become the technology of choice for intermediate load and, increasingly, for baseload power generation.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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