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Boiler, Turbine, Generator (BTG) Equipment for Thermal Power Market size, Competitive Landscape and Forecasts to 2020 GDPE1052MAR / Published April 2013

Boiler, Turbine, Generator (BTG) Equipment for Thermal Power - Market size, Competitive Landscape and Forecasts to 2020

GDPE1052MAR / Published APR 2013

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Growth Expected of Global Boiler, Turbine and Generator Market

The average annual revenues of the global Boiler, Turbine and Generator (BTG) market between 2006 and 2012 amounted to $XX billion. This is expected to increase to $XX billion over the forecast period from 2013 to 2020. Rising global electricity demand and high dependency upon thermal power are the major drivers for the market. Apart from tough economic conditions, the major factors affecting the global BTG market are fuel diversification, a move towards cleaner sources of power generation, and fluctuations in fossil fuel prices.

China to Continue to Lead Global Boiler, Turbine and Generator Market

China is the biggest BTG market in the world. The country’s electricity options are skewed towards thermal power generation, making it a major market for BTG equipment. Robust economic growth over the last decade has led to a rise in electricity demand, especially from the industrial sector, benefiting the BTG market in the country. GlobalData estimates an annual growth rate of XX% for the BTG market between 2013 and 2020, driven by the targets of the 12th and 13th Five Year Plans (FYPs). Rising electricity demand and heavy reliance upon thermal power will continue to be major growth drivers over the forecast period.

The gas power equipment market, although small, when compared to the coal market, will register considerable growth over the forecast period, as China moves towards cleaner sources of power generation. Over the period from 2013 to 2020, the gas turbine and Heat Recovery Steam Generators (HRSG) markets are expected to grow at respective Compound Average Growth Rates (CAGRs) of XX% and XX% to reach $XX billion and $XXm up until 2020.

The market will be adversely affected by the diversification of energy sources, leading to a slowdown of coal power equipment orders. Rising fuel prices will also slow market growth. Moreover, as the Chinese economy matures, the government is focusing on reducing Gross Domestic Product (GDP) energy intensity in the 12th FYP, which has impeded new power capacity additions.

Boiler, Turbine and Generator Market, China, Average Annual Revenues ($m), 2006-2012 and 2013-2020

2006–2012 2013–2020

Ave

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ues

($m

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Power Boiler HRSG Gas Turbine Steam Turbine Turbogenerator

Source: GlobalData, Power eTrack, Equipment Markets Database [accessed on: October 18, 2012]


GDPE1052MAR / Published APR 2013 Page 4


1 Table of Contents 1 Table of Contents ............................................................................................................................ 4

1.1 List of Tables ............................................................................................................................. 7 1.2 List of Figures............................................................................................................................ 9

2 Introduction ................................................................................................................................... 10 2.1 Boilers, Turbines and Generators, Overview ............................................................................. 10

2.1.1 Power Boilers ................................................................................................................. 10 2.1.2 Turbines ......................................................................................................................... 10 2.1.3 Heat Recovery Steam Generator..................................................................................... 10 2.1.4 Turbogenerator/ Generator ............................................................................................. 10 2.1.5 Working of a Gas-Fired Power Plant ................................................................................ 11 2.1.6 Working of a Coal-Fired Power Plant ............................................................................... 12

2.2 GlobalData Report Guidance ................................................................................................... 13 3 Global Boiler, Turbine and Generator Market .................................................................................. 14

3.1 Overview ................................................................................................................................. 14 3.2 Global Boiler, Turbine and Generator Market, Drivers and Impact Analysis, 2013-2020 ............. 14

3.2.1 Rising Electricity Demand Spurring the Construction of Thermal Power Plants ................. 15 3.2.2 Developing Economies to Drive Growth of Boiler, Turbine and Generator Equipment

Markets .......................................................................................................................... 17 3.2.3 New Generation Technologies Revitalizing the Market ..................................................... 17 3.2.4 Replacement and Upgradation Business to Grow ............................................................ 17

3.3 Global Boiler, Turbine and Generator Market, Restraints and Impact Analysis, 2013-2020 ......... 19 3.3.1 Macro-Economic Conditions Creating Uncertainties ......................................................... 20 3.3.2 Fuel Supply and Price Fluctuations to Affect Market Prospects......................................... 20 3.3.3 Fuel Diversification to Adversely Affect the Market ........................................................... 21 3.3.4 Emission Regulations to Create Uncertainty .................................................................... 21 3.3.5 Rising Competition.......................................................................................................... 21

3.4 Global Boiler, Turbine and Generator Market, Revenues ($m), 2006-2020 ................................ 22 3.5 Global Boiler, Turbine and Generator Market, Volume, Units, 2006-2020 .................................. 23 3.6 Global Boiler, Turbine and Generator Market, Market Share by MW Sales (%), 2011................. 24

4 Global Boiler, Turbine and Generator Market, SWOT Analysis of Key Players ................................. 27 4.1 Mitsubishi Heavy Industries Limited ......................................................................................... 27

4.1.1 Business Overview ......................................................................................................... 27 4.1.2 SWOT Snapshot ............................................................................................................. 27 4.1.3 Strengths ........................................................................................................................ 28 4.1.4 Weakness ...................................................................................................................... 29 4.1.5 Opportunities .................................................................................................................. 29 4.1.6 Threats ........................................................................................................................... 30

4.2 Dongfang Electric Corporation ................................................................................................. 31 4.2.1 Business Overview ......................................................................................................... 31 4.2.2 SWOT Snapshot ............................................................................................................. 31 4.2.3 Strengths ........................................................................................................................ 32 4.2.4 Weakness ...................................................................................................................... 32 4.2.5 Opportunities .................................................................................................................. 33 4.2.6 Threats ........................................................................................................................... 33

4.3 Siemens AG ............................................................................................................................ 35 4.3.1 Business Overview ......................................................................................................... 35 4.3.2 SWOT Snapshot ............................................................................................................. 35 4.3.3 Strengths ........................................................................................................................ 36 4.3.4 Weakness ...................................................................................................................... 38 4.3.5 Opportunities .................................................................................................................. 39 4.3.6 Threats ........................................................................................................................... 39

4.4 Harbin Electric Company Limited ............................................................................................. 40 4.4.1 Business Overview ......................................................................................................... 40 4.4.2 SWOT Snapshot ............................................................................................................. 40 4.4.3 Strengths ........................................................................................................................ 40 4.4.4 Weakness ...................................................................................................................... 41 4.4.5 Opportunities .................................................................................................................. 42 4.4.6 Threats ........................................................................................................................... 42

5 Global Gas Generator Market, Key Countries ................................................................................. 43




5.1 China, Boiler, Turbine and Generator Market Analysis .............................................................. 43 5.1.1 China, Boiler, Turbine and Generator Market, Overview ................................................... 43 5.1.2 China Boiler, Turbine and Generator Market, Drivers ....................................................... 43 5.1.3 China Boiler, Turbine and Generator Market, Restraints ................................................... 46 5.1.4 China Boiler, Turbine and Generator Market, Market Revenues ($m), 2006-2020 ............. 51 5.1.5 China Boiler, Turbine and Generator Market, Volume (Units), 2006-2020 ......................... 53 5.1.6 China Boiler, Turbine and Generator Market, Average Price ($/kW), 2006-2020 ............... 54 5.1.7 China Boiler, Turbine and Generator Market, Market Shares by MW Sales (%), 2011 ....... 56 5.1.8 China Boiler, Turbine and Generator Market, Regulations and Key Initiatives ................... 57

5.2 India, Boiler, Turbine and Generator Market Analysis................................................................ 59 5.2.1 India, Boiler, Turbine and Generator Market, Overview .................................................... 59 5.2.2 India Boiler, Turbine and Generator Market, Drivers ......................................................... 59 5.2.3 India Boiler, Turbine and Generator Market, Restraints .................................................... 62 5.2.4 India Boiler, Turbine and Generator Market, Challenges .................................................. 62 5.2.5 India Boiler, Turbine and Generator Market, Market Revenues ($m), 2006-2020 ............... 65 5.2.6 India Boiler, Turbine and Generator Market, Volume (Units), 2006-2020 ........................... 67 5.2.7 India Boiler, Turbine and Generator Market, Average Price ($/kW), 2006-2020 ................. 68 5.2.8 India Boiler, Turbine and Generator Market, Market Shares by MW Sales (%), 2011......... 69 5.2.9 India Boiler, Turbine and Generator Market, Regulations and Key Initiatives ..................... 70

5.3 Japan, Boiler, Turbine and Generator Market Analysis .............................................................. 71 5.3.1 Japan, Boiler, Turbine and Generator Market, Overview .................................................. 71 5.3.2 Japan Boiler, Turbine and Generator Market, Drivers ....................................................... 72 5.3.3 Japan Boiler, Turbine and Generator Market, Restraints .................................................. 73 5.3.4 Japan Boiler, Turbine and Generator Market, Market Revenues ($m), 2006-2020 ............. 75 5.3.5 Japan Boiler, Turbine and Generator Market, Volume (Units), 2006-2020 ......................... 77 5.3.6 Japan Boiler, Turbine and Generator Market, Average Price ($/kW), 2006-2020 ............... 78 5.3.7 Japan Boiler, Turbine and Generator Market, Market Shares by MW Sales (%), 2011 ....... 79 5.3.8 Japan Boiler, Turbine and Generator Market, Regulations and Key Initiatives ................... 80

5.4 The US, Boiler, Turbine and Generator Market Analysis ........................................................... 82 5.4.1 The US, Boiler, Turbine and Generator Market, Overview ................................................ 82 5.4.2 The US Boiler, Turbine and Generator Market, Drivers..................................................... 82 5.4.3 The US Boiler, Turbine and Generator Market, Restraints ................................................ 82 5.4.4 The US Boiler, Turbine and Generator Market, Market Revenues ($m), 2006-2020 .......... 84 5.4.5 The US Boiler, Turbine and Generator Market, Volume (Units), 2006-2020....................... 85 5.4.6 The US Boiler, Turbine and Generator Market, Average Price ($/kW), 2006-2020 ............. 86 5.4.7 The US Boiler, Turbine and Generator Market, Market Shares by MW Sales (%), 2011 .... 87 5.4.8 The US Boiler, Turbine and Generator Market, Regulations and Key Initiatives ................. 89

5.5 Russia, Boiler, Turbine and Turbogenerator Market Analysis .................................................... 91 5.5.1 Russia, Boiler, Turbine and Generator Market, Overview ................................................. 91 5.5.2 Russia Boiler, Turbine and Generator Market, Drivers ...................................................... 91 5.5.3 Russia Boiler, Turbine and Generator Market, Restraints ................................................. 93 5.5.4 Russia Boiler, Turbine and Generator Market, Market Revenues ($m), 2006-2020 ............ 97 5.5.5 Russia Boiler, Turbine and Generator Market, Volume (Units), 2006-2020 ........................ 98 5.5.6 Russia Boiler, Turbine and Generator Market, Average Price ($/kW), 2006-2020 ............ 100 5.5.7 Russia Boiler, Turbine and Generator Market, Market Shares by MW Sales (%), 2011.... 101 5.5.8 Russia Boiler, Turbine and Generator Market, Regulations and Key Initiatives ................ 102

5.6 The UK, Boiler, Turbine and Generator Market Analysis ......................................................... 104 5.6.1 The UK, Boiler, Turbine and Generator Market, Overview .............................................. 104 5.6.2 The UK Boiler, Turbine and Generator Market, Drivers................................................... 104 5.6.3 The UK Boiler, Turbine and Generator Market, Restraints .............................................. 105 5.6.4 The UK Boiler, Turbine and Generator Market, Market Revenues ($m), 2006-2020 ........ 107 5.6.5 The UK Boiler, Turbine and Generator Market, Volume (Units), 2006-2020..................... 109 5.6.6 The UK Boiler, Turbine and Generator Market, Average Price ($/kW), 2006-2020 ........... 110 5.6.7 The UK Boiler, Turbine and Generator Market, Market Shares by MW Sales (%), 2011 .. 111 5.6.8 The UK Boiler, Turbine and Generator Market, Regulations and Key Initiatives ............... 111

5.7 Germany, Boiler, Turbine and Generator Market Analysis ....................................................... 113 5.7.1 Germany, Boiler, Turbine and Generator Market, Overview ............................................ 113 5.7.2 Germany Boiler, Turbine and Generator Market, Drivers ................................................ 113 5.7.3 Germany Boiler, Turbine and Generator Market, Restraints............................................ 115 5.7.4 Germany Boiler, Turbine and Generator Market, Market Revenues ($m), 2006-2020 ..... 118 5.7.5 Germany Boiler, Turbine and Generator Market, Volume (Units), 2006-2020 .................. 120 5.7.6 Germany Boiler, Turbine and Generator Market, Average Price ($/kW), 2006-2020 ........ 122 5.7.7 Germany Boiler, Turbine and Generator Market, Market Shares by MW Sales (%), 2011 123 5.7.8 Germany Boiler, Turbine and Generator Market, Regulations and Key Initiatives ............ 124




6 Appendix ..................................................................................................................................... 126 6.1 Definitions ............................................................................................................................. 126

6.1.1 Power........................................................................................................................... 126 6.1.2 Installed Capacity ......................................................................................................... 126 6.1.3 Electricity Generation .................................................................................................... 126 6.1.4 Electricity Consumption................................................................................................. 126 6.1.5 Thermal Power Plant .................................................................................................... 126 6.1.6 Hydropower Plant ......................................................................................................... 126 6.1.7 Nuclear Power .............................................................................................................. 126 6.1.8 Renewable Energy Resources ...................................................................................... 126 6.1.9 Repowering .................................................................................................................. 126

6.2 Abbreviations ........................................................................................................................ 126 6.3 Bibliography .......................................................................................................................... 128 6.4 Methodology ......................................................................................................................... 130

6.4.1 Secondary Research .................................................................................................... 131 6.4.2 Primary Research ......................................................................................................... 131

6.5 Contact Us ............................................................................................................................ 132 6.6 Disclaimer ............................................................................................................................. 132




1.1 List of Tables Table 1: Boiler, Turbine and Generator Market, Global, Power Consumption, TWh, 2000-2020 .......... 16 Table 2: Boiler, Turbine and Generator Market, Global, Revenue ($bn), 2006-2020 ........................... 22 Table 3: Boiler, Turbine and Generator Market, Global, Volume (Units), 2006-2020 ........................... 23 Table 4: Power Boiler Market, Global, Market Shares (%), 2011 ........................................................ 24 Table 5: Power Heat Recovery Steam Generator Market, Global, Market Shares (%), 2011 ............... 24 Table 6: Gas Turbine Market, Global, Market Shares (%), 2011 ......................................................... 25 Table 7: Steam Turbine Market, Global, Market Shares (%), 2011 ..................................................... 25 Table 8: Turbogenerator Market, Global, Market Shares (%), 2011 .................................................... 26 Table 9: Mitsubishi Heavy Industries Limited, SWOT Analysis ........................................................... 27 Table 10: Boiler, Turbine and Generator Market, Global, Gas Turbine Market Share (%), 2006-2008 ... 28 Table 11: Dongfang Electric Corporation Limited, SWOT Analysis ....................................................... 31 Table 12: Siemens AG, SWOT Analysis ............................................................................................. 35 Table 13: Gas Turbine Market, Global, Siemens Market Share (%), 2006-2011 ................................... 36 Table 14: Heat Recovery Steam Generator Market, Global, Market Share (%), 2006-2011 ................... 37 Table 15: Harbin Electric Company, SWOT Analysis ........................................................................... 40 Table 16: Boiler, Turbine and Generator Market, China, Gas-Fired Installed Capacity (MW),

2006-2020 .......................................................................................................................... 45 Table 17: Boiler, Turbine and Generator Market, China, Coal Power Capacity Additions (MW), 2000-2020

.......................................................................................................................................... 47 Table 18: Boiler, Turbine and Generator Market, China, Installed Capacity (GW), 2006-2020 ............... 49 Table 19: Boiler, Turbine and Generator Market, China, Market Revenues ($m), 2006-2020 ................ 52 Table 20: Boiler, Turbine and Generator Market, China, Volume (Units), 2006-2020 ............................ 53 Table 21: Boiler, Turbine and Generator Market, China, Average Price ($/kW), 2006-2020................... 55 Table 22: Boiler, Turbine and Generator Market, China, Power Boiler Market Share (%), 2011 ............. 56 Table 23: Boiler, Turbine and Generator Market, China, Heat Recovery Steam Generator Market Share

(%), 2011 ........................................................................................................................... 56 Table 24: Boiler, Turbine and Generator Market, China, Gas Turbine Market Share (%), 2011 ............. 56 Table 25: Boiler, Turbine and Generator Market, China, Steam Turbine Market Share (%), 2011 .......... 56 Table 26: Boiler, Turbine and Generator Market, China, Turbogenerator Market Share (%), 2011......... 57 Table 27: Boiler, Turbine and Generator Market, China, Emission Standards (mg/m3), 2012 ................ 58 Table 28: Boiler, Turbine and Generator Market, India, Power Consumption (GWh), 2006-2020 ........... 60 Table 29: Boiler, Turbine and Generator Market, India, Market Share of SEC (%), 2010 ....................... 63 Table 30: Boiler, Turbine and Generator Market, India, Market Size ($m), 2006-2020 .......................... 66 Table 31: Boiler, Turbine and Generator Market, India, Volume (Units), 2006-2020 .............................. 67 Table 32: Boiler, Turbine and Generator Market, India, Average Price ($/kW), 2006-2020 .................... 68 Table 33: Boilers Market, India, Market Share (%), 2011 ..................................................................... 69 Table 34: Heat Recovery Steam Generator Market, India, Market Share (%), 2011 .............................. 69 Table 35: Gas Turbine Market, India, Market Share (%), 2011 ............................................................. 69 Table 36: Steam Turbine Market, India, Market Share (%), 2011 ......................................................... 70 Table 37: Turbogenerator Market, India, Market Share (%), 2011 ........................................................ 70 Table 38: Boiler, Turbine and Generator Market, Japan, Leading Upcoming Thermal Power Plants ...... 72 Table 39: Boiler, Turbine and Generator Market, Japan, Market Revenues ($m), 2006-2020 ................ 76 Table 40: Boiler, Turbine and Generator Market, Japan, Market Volume (Units), 2006-2020 ................. 77 Table 41: Boiler, Turbine and Generator Market, Japan, Average Price ($/kW), 2006-2020 .................. 78 Table 42: Power Boiler Market, Russia, Market Share (%), 2008 ......................................................... 79 Table 43: Heat Recovery Steam Generator Market, Russia, Market Share (%), 2010 ........................... 79 Table 44: Gas Turbine Market, Japan, Market Share (%), 2011 ........................................................... 79 Table 45: Steam Turbine Market, Japan, Market Share (%), 2009 ....................................................... 79 Table 46: Turbogenerator Market, Japan, Market Share (%), 2010 ...................................................... 80 Table 47: Boiler, Turbine and Generator Market, the US, Market Revenues ($m), 2006-2020 ............... 84 Table 48: Boiler, Turbine and Generator Market, the US, Market Volume (Units), 2006-2020 ............... 85 Table 49: Boiler, Turbine and Generator Market, the US, Average Price ($/kW), 2006-2020 ................. 86 Table 50: Power Boiler Market, the US, Market Share (%), 2010 ......................................................... 87 Table 51: Heat Recovery Steam Generator Market, the US, Market Share (%), 2011 ........................... 87 Table 52: Gas Turbine, the US, Market Share (%), 2011 ..................................................................... 87 Table 53: Steam Turbine, the US, Market Share (%), 2011.................................................................. 88 Table 54: Turbogenerator Market, the US, Market Share (%), 2011 ..................................................... 88 Table 55: Boiler, Turbine and Generator Market, the US, National Ambient Air Quality Standards, 2012 ...

.......................................................................................................................................... 89 Table 56: Boiler, Turbine and Generator Market, Russia, Capacity Additions (MW), 2006-2020 ............ 94 Table 57: Boiler, Turbine and Generator Market, Russia, Power Consumption (GWh), 2006-2020 ....... 95 Table 58: Boiler, Turbine and Generator Market, Russia, Revenues ($m), 2006-2020 .......................... 97




Table 59: Boiler, Turbine and Generator Market, Russia, Volume (Units), 2006-2020 ........................... 99 Table 60: Boiler, Turbine and Generator Market, Russia, Average Price ($/kW), 2006-2020 ............... 100 Table 61: Boilers Market, Russia, Market Share (%), 2011 ................................................................ 101 Table 62: Heat Recovery Steam Generator Market, Russia, Market Share (%), 2011 ......................... 101 Table 63: Gas Turbine Market, Russia, Market Share (%), 2011 ........................................................ 101 Table 64: Steam Turbine Market, Russia, Market Share (%), 2011 .................................................... 101 Table 65: Turbogenerator Market, Russia, Market Share (%), 2011 ................................................... 102 Table 66: Thermal Power Market, UK, CCGT Power Plant Cost ($/kW), 2010 .................................... 106 Table 67: Boiler, Turbine and Generator Market, the UK, Revenues ($m), 2006-2020 ........................ 108 Table 68: Boiler, Turbine and Generator Market, the UK, Volume (Units), 2006-2020 ......................... 109 Table 69: Boiler, Turbine and Generator Market, the UK, Average Price ($/kW), 2006-2020 ............... 110 Table 70: Turbogenerator Market, the UK, Market Share (%), 2009 ................................................... 111 Table 71: Boiler, Turbine and Generator Market, Germany, Upcoming Power Plants .......................... 114 Table 72: Boiler, Turbine and Generator Market, Germany, Electricity Consumption (GWh), 2000-2020

........................................................................................................................................ 117 Table 73: Boiler, Turbine and Generator Market, Germany, Revenues ($m), 2006-2020 .................... 119 Table 74: Boiler, Turbine and Generator Market, Germany, Volume (Units), 2006-2020 ..................... 121 Table 75: Boiler, Turbine and Generator Market, Germany, Average Price ($/kW), 2006-2020 ........... 122 Table 76: Gas Turbine Market, Germany, Market Share (%), 2011 .................................................... 123 Table 77: Steam Market, Germany, Market Share (%), 2011 ............................................................. 123 Table 78: Turbogenerator Market, Germany, Market Share (%), 2011 ............................................... 123 Table 79: Heat Recovery Steam Generator Market, Germany, Market Share (%), 2010 ..................... 123




1.2 List of Figures Figure 1: Combined Cycle Single Shaft Gas Turbine Power Plant ....................................................... 11 Figure 2: Thermal Power Plant .......................................................................................................... 12 Figure 3: Boiler, Turbine and Generator Market, Global, Drivers, 2013-2020 ....................................... 14 Figure 4: Boiler, Turbine and Generator Market, Global, Power Consumption (TWh), 2000-2020 ......... 15 Figure 5: Boiler, Turbine and Generator Market, the US, Age Distribution of the US Coal-Fired Plants,

1940-2009 .......................................................................................................................... 18 Figure 6: Boiler, Turbine and Generator Market, Global, Restraints, 2013-2020 ................................... 19 Figure 7: Boiler, Turbine and Generator Market, Global, Revenues ($bn), 2006-2020 .......................... 22 Figure 8: Boiler, Turbine and Generator Market, Global, Volume (Units), 2006-2020 ........................... 23 Figure 9: Boiler, Turbine and Generator Market, Global, Yen Vs USD, Jan 2010-Jan 2012 .................. 30 Figure 10: Boiler, Turbine and Generator Market, China, DEC’s Power Generation Equipment Installed

Capacity and Production, 2007-2011 ................................................................................... 34 Figure 11: Boiler, Turbine and Generator Market, Global, Siemens Energy Segment Revenue Split (%),

2012 ................................................................................................................................... 38 Figure 12: Boiler, Turbine and Generator Market, China, Gas-Fired Installed Capacity (MW),

2006-2020 .......................................................................................................................... 44 Figure 13: Boiler, Turbine and Generator Market, China, Capacity Additions (MW), 2001-2020 ............. 46 Figure 14: Boiler, Turbine and Generator Market, China, Coal Power Capacity Additions (MW), 2001-2020

.......................................................................................................................................... 47 Figure 15: Boiler, Turbine and Generator Market, China, Installed Capacity (GW), 2006-2020 ............... 48 Figure 16: Boiler, Turbine and Generator Market, China, Market Revenues ($m), 2006-2020 ................ 51 Figure 17: Boiler, Turbine and Generator Market, China, Volume (Units), 2006-2020 ............................ 53 Figure 18: Boiler, Turbine and Generator Market, China, Average Price ($/kW), 2006-2020................... 54 Figure 19: Boiler, Turbine and Generator Market, India, Power Consumption (GWh), 2006-2020 ........... 59 Figure 20: Boiler, Turbine and Generator Market, India, Supercritical Power Plant Capacity (GW),

2000-2015 .......................................................................................................................... 61 Figure 21: Boiler, Turbine and Generator Market, India, Market Size ($m), 2006-2020 .......................... 65 Figure 22: Boiler, Turbine and Generator Market, India, Volume (Units), 2006-2020 .............................. 67 Figure 23: Boiler, Turbine and Generator Market, India, Average Price ($/kW), 2006-2020 .................... 68 Figure 24: Boiler, Turbine and Generator Market, Japan, Natural Gas Price Comparison ($/MBtu),

2008-2012 .......................................................................................................................... 74 Figure 25: Boiler, Turbine and Generator Market, Japan, Market Revenues ($m), 2006-2020 ................ 75 Figure 26: Boiler, Turbine and Generator Market, Japan, Market Volume (Units), 2006-2020 ................. 77 Figure 27: Boiler, Turbine and Generator Market, Japan, Average Price ($/kW), 2006-2020 .................. 78 Figure 28: Boiler, Turbine and Generator Market, the US, Market Revenues ($m), 2006-2020 ............... 84 Figure 29: Boiler, Turbine and Generator Market, the US, Market Volume (Units), 2006-2020 ............... 85 Figure 30: Boiler, Turbine and Generator Market, the US, Average Price ($/kW), 2006-2020 ................. 86 Figure 31: Boiler, Turbine and Generator Market, Russia, Capacity Additions from Various Sources (MW),

2006-2020 .......................................................................................................................... 94 Figure 32: Boiler, Turbine and Generator Market, Russia, Power Consumption (GWh), 2000-2020 ....... 95 Figure 33: Boiler, Turbine and Generator Market, Russia, Revenues ($m), 2006-2020 .......................... 97 Figure 34: Boiler, Turbine and Generator Market, Russia, Volume (Units), 2006-2020 ........................... 98 Figure 35: Boiler, Turbine and Generator Market, Russia, Average Price ($/kW), 2006-2020 ............... 100 Figure 36: Boiler, Turbine and Generator Market, the UK, Clean Dark and Spark Spread (£/MWh),

2010-2013 ........................................................................................................................ 105 Figure 37: Boiler, Turbine and Generator Market, the UK, Installed Capacity (%), 2011-2020 .............. 106 Figure 38: Boiler, Turbine and Generator Market, the UK, Revenues ($m), 2006-2020 ........................ 107 Figure 39: Boiler, Turbine and Generator Market, the UK, Volume (Units), 2006-2020 ......................... 109 Figure 40: Boiler, Turbine and Generator Market, the UK, Average Price ($/kW), 2006-2020 ............... 110 Figure 41: Boiler, Turbine and Generator Market, Germany, Electricity Consumption (GWh), 2000-2020

........................................................................................................................................ 116 Figure 42: Boiler, Turbine and Generator Market, Germany, Revenues ($m), 2006-2020 .................... 118 Figure 43: Boiler, Turbine and Generator Market, Germany, Volume (Units), 2006-2020 ..................... 120 Figure 44: Boiler, Turbine and Generator Market, Germany, Average Price ($/kW), 2006-2020 ........... 122




2 Introduction 2.1 Boilers, Turbines and Generators, Overview Boilers, Turbines and Generators (BTG) are the main components of a power plant. The report covers the BTG equipment used in thermal power plants.

2.1.1 Power Boilers Power boilers are used only in coal and oil power plants. Power boilers are used to heat water and convert it to steam. A boiler consists of: a steam pressure vessel; a circulation system consisting of boiler tubes, through which the water travels before converting into steam; a combustion system where fuel is burned; a ventilation unit for supply of combustion air and discharging hot gases; an air preheater; and other auxiliary units.

The pulverized coal-fired boilers continue to play a major role in power generation, but they have issues such as fuel inflexibility, environmental concerns and high maintenance costs. The new generation power boilers use Circulating Fluidized Bed (CFB) technology and a number of efficient enhancement measures, which allow the flexibility of fuels, reduced emissions, and lower life cycle costs.

2.1.2 Turbines 2.1.2.1 Steam Turbines

A steam turbine is a device used to convert the thermal energy of steam into mechanical energy, by turning the blades of a rotor. Turbines of this kind usually consist of various stages, with each stage consisting of a fixed blade (or nozzle), and a rotating blade. Steam coming out of the fixed blade or nozzle, expands (or has its direction altered to a high speed jet) against the rotating blades, which spins the shaft.

2.1.2.2 Gas Turbines

In gas power generation, energy is added to fuel (natural gas) in a combustor, where the fuel is mixed with air and is ignited. The high temperature gas is directed into a gas turbine, through a nozzle over the turbine blades, spinning the turbine.

2.1.3 Heat Recovery Steam Generator Heat Recovery Steam Generators (HRSGs) and gas turbines are used exclusively in gas-fired plants. The hot exhaust gases from gas turbines expand through HRSG turbines, which generate steam to typically around XX degrees Celsius at a high pressure (XX-XX bars). This steam is expanded through one or several steam turbines. Based on the flow of gases, HRSG can be categorized into vertical and horizontal types. In horizontal type HRSG, hot exhaust natural gas flows in a horizontal direction over vertical tubes, whereas in vertical type HRSG, exhaust gas flow in vertical direction over horizontal tubes. HRSG turbines can also be classified based on pressure levels as single pressure HRSGs and multi pressure HRSGs.

2.1.4 Turbogenerator/ Generator A turbogenerator converts the mechanical energy of a turbine into an electrical output. Turbogenerators are used in all thermal (coal, gas and oil) power plants. A generator, mounted at one end of the turbine shaft, consists of wounded wire coils. Electricity is generated when these coils rotate in strong magnetic field.




2.2 GlobalData Report Guidance The report opens with an executive summary, covering the key points of the market.

Chapter two comprises an introduction to the BTG equipment markets covered in the report.

Chapter three covers the global BTG market. Global drivers and restraints are explained, along with global revenues, volume sales, and market shares.

Chapter four covers the BTG market for key countries. The countries covered in this chapter are China, India, the US, Russia, the UK, Germany, and Japan. Analysis of market revenues, prices, volume, regulations and market shares are covered for all key countries.

Note: the report covers the market for BTG equipment used for thermal power generation with capacity of more than XX Megawatts (MW).




3.2.1 Rising Electricity Demand Spurring the Construction of Thermal Power Plants Increasing global electricity demand is boosting the construction of new power plants. The figure below shows that global power consumption is expected to grow at a Compound Annual Growth Rate (CAGR) of XX% between 2013 and 2020 period, to reach XX Terawatt hours (TWh) in 2020. Electricity demand in Asian countries is expected to increase drastically over this period. The majority of demand growth is expected to be generated by developing economies, led by India and China. The factors expected to lead to a future increase in electricity demand include the following:

Industrialization of emerging economies

Development of living standards of people in developing countries

Increasing population

Thermal power accounts for the majority of global electricity generation. The growth of electricity demand is an important driver for the BTG market in the long term future. Increasing electricity demand worldwide is promoting the construction of thermal power plants, thereby supporting the growth of the global BTG market. The effect of this driver is expected to remain high over the forecast period.

Figure 4: Boiler, Turbine and Generator Market, Global, Power Consumption (TWh), 2000-2020

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Pow

er c

onsu

mpt

ion

(TW

h)

Source: GlobalData, Power eTrack, Power Consumption Database [accessed on: November 6, 2012]




Table 1: Boiler, Turbine and Generator Market, Global, Power Consumption, TWh, 2000-2020 Year Power consumption (TWh)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: GlobalData, Power eTrack, Power Consumption Database [accessed on: November 6, 2012]




4.3.4 Weakness 4.3.4.1 High Reliance on Mature Markets

Siemens’ BTG products revenue relies considerably on the European and North American markets. The company is a major player in the markets for gas turbines, turbogenerators and steam turbines in Europe and the US. As illustrated in the figure below, Siemens’ energy segment generates XX% of its revenue from the US and XX% from Germany, compared to around XX% from China (Cheng, 2010) and XX% from India (Siemens, 2012b). GlobalData estimates that at least XX% of Siemens’ energy segment revenue is generated by developed countries. The sovereign debt crisis in Europe and slow growth in the US could lead to reduced infrastructure spending in these regions, thereby impacting the sale of Siemens BTG equipment in future.

Figure 11: Boiler, Turbine and Generator Market, Global, Siemens Energy Segment Revenue Split (%), 2012

Europe (except Germany),

CIS, Africa, Middle East

Germany

US

Asia, Australia

Americas (except the US)

Source: Siemens, 2012a *CIS: Commonwealth of Independent States




6 Appendix 6.1 Definitions 6.1.1 Power Power refers to the rate of production, transfer, or energy use, usually related to electricity. Measured in watts and often expressed in kW or MW, it is also known as "real" or "active" power.

6.1.2 Installed Capacity Installed capacity refers to the generator’s nameplate capacity as stated by the manufacturer or the maximum rated output of a generator under given conditions. It is given in MW on a nameplate affixed to the generator.

6.1.3 Electricity Generation Electricity generation refers to producing electric energy by transforming other forms of energy. It also refers to the amount of electric energy produced, expressed in GWh.

6.1.4 Electricity Consumption Electricity consumption is the sum of electricity generated, plus imports, minus exports, minus transmission and distribution losses and measured in GWh.

6.1.5 Thermal Power Plant A thermal power plant is one in which turbine generators are driven by burning fossil fuels.

6.1.6 Hydropower Plant A hydropower plant is one in which turbine generators are driven by falling water.

6.1.7 Nuclear Power Nuclear power refers to the electricity generated by the use of the thermal energy released from the fission of nuclear fuel in a reactor.

6.1.8 Renewable Energy Resources Renewable energy resources are those that are naturally replenishing but limited in the amount of energy that is available per unit of time. Biomass, geothermal, solar and wind are all renewable resources.

6.1.9 Repowering Increase the efficiency or capacity of aging steam power plants by installation of new equipments. Repowering can be done in many ways. In this report, repowering refers to adding gas turbine and HRSG to the existing steam power plant to improve its efficiency.




6.2 Abbreviations BTG Boiler, Turbine and Generator

BRIC Brazil, Russia, India and China

CAGR Compound Average Growth Rate

CATR Clean Air Transport Rule

CCA Climate Change Act

CCC Central Advisory Committee on Climate Change

CCR Coal Combustion Residual Rule

CCS Capture and Storage

CERs Certified Emission Reductions

CFB Circulating Fluidized Bed

CIS Commonwealth of Independent States

CO carbon monoxide

CO2 carbon dioxide

CSAPR Cross State Air Pollution Rule

DC Circuit United States Court of Appeals for the District of Columbia Circuit

DVC Damodar Valley Corporation

DEC Dongfang Electric Corporation

EC European Commission

EEG Renewable Energy Sources Act

ELV Emissions Limit Values

EPA Environmental Protection Agency

EPC Equipment Procurement and Construction

EPS Emissions Performance Standard

EU-ETS European Union Emission Trading Scheme

FDI Foreign Direct Investment

FFPG Fossil Fuel Power Generation

FGC Federal Grid Company

GDP Gross Domestic Product

GE General Electric

GHG Green House Gases

GWh Gigawatt hours

Hz Hertz

HRSG Heat Recovery Steam Generator

HEC Harbin Electric Machinery Company Limited

IDGCs Interregional Distribution Grid Companies

IED Industrial Emissions Directive

IGCC Integrated Gasification Combined Cycle

IPPCD Industrial Pollution Prevention and Control Directive

IPPs Independent Power Producers

kWh kilowatt hour

METI Ministry of Economy, Trade and Industry

MHI Mitsubishi Heavy Industries




NAAQS National Ambient Air Quality Standards

NOx nitrogen oxide

NTPC National Thermal Power Corporation

NERC National Electricity Regulatory Commission

OEMs Original Equipment Manufacturers

OCGT Open Cycle Gas Turbine

PM particulate matter

PPA Power Purchase Agreement

ppb parts per billion

ppm parts per million

R&D Research and Development

RBI Reserve Bank of India

ROI Return On Investment

SC Supercritical

SEBs State Electricity Boards

SEGC Shanghai Electric Group Company

SED Solvent Emissions Directive

SEZs Special Economic Zones

SO2 sulfur dioxide

SPD Social Democratic Party

TGCs Territorial Generation Companies

TNP Transitional National Plan

TWh terawatt-hours

TEPCO Tokyo Electric Power Generation

USC ultra-supercritical

UES RAO Unified Energy System

WGCs Wholesale Generation Companies

WID Waste Incineration Directive

µg/m3 micrograms per cubic meter of air




6.3 Bibliography Al-Juaied M and Whitmore A (2009). UK Electricity Generation Costs Update. Mott MacDonald.

Available from http://www.decc.gov.uk/assets/decc/statistics/projections/71-uk-electricity-generation-costs-update-.pdf

Bolton, P (2012). Nuclear Energy Statistics. House of Commons, Social and General Statistics. Available from: www.parliament.uk/briefing-papers/SN03631.pdf

BP (2012). BP Statistical Review of World Energy June 2012. British Petroleum. Available from: http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2011/STAGING/local_assets/spreadsheets/statistical_review_of_world_energy_full_report_2012.xlsx [Accessed on August 22, 2012]

Casten, S (2009). Natural gas as a near-term CO2 mitigation strategy. Grist. Available from: http://grist.org/article/natural-gas-as-a-near-term-co2-mitigation-strategy/ [Accessed on December 12, 2012]

CAW (2012). America’s Aging Power Plants Big Profits for Big Polluters. Clean Air Watch. Available from: http://www.cleanairwatch.org/Documents%20&%20Reports/Americas_Aging_Power_Plants.pdf

Centrica (2012). Interim Results For the period ended 30 June 2012. Centrica. Available from: http://www.centrica.com/files/results/interim12/2012_interim_slides.pdf

Cheng, M (2010). Siemens in China - Accelerating our success. Siemens. Available from: http://www.siemens.com/investor/pool/en/investor_relations/financial_publications/speeches_and_presentations/cmd_emerging_markets_2011/part-2-cmd-emerging-markets-china-mei-wei-cheng.pdf

CIL (2012). Company. Coal India Limited. Available from: http://www.coalindia.in/company.aspx?tab=0&AspxAutoDetectCookieSupport=1 [Accessed on: October 31, 2012]

DEC (2011). Dongfang Electric Corporation. Dongfang Electric Corporation Limited. Available from: http://www.dec-ltd.cn/yj/2011/2011eng.pdf

dena (2012). Integration der erneuerbaren Energien in den deutsch-europäischen Strommarkt. Deutsche Energie-Abentur. Available from: http://www.dena.de/fileadmin/user_upload/Presse/Meldungen/2012/Endbericht_Integration_EE.pdf

EIA (2011). Annual Energy Outlook 2011 with Projections to 2035. Energy Information Administration. Available from: http://www.columbia.edu/cu/alliance/documents/EDF/Wednesday/Heal_material.pdf

EPA (2012). National Ambient Air Quality Standards (NAAQS). Environmental Protection Agency. Available from: http://www.epa.gov/air/criteria.html [Accessed on: December 10, 2012]

Gupta, R et al. (2010). Development, Energy Security and Climate Security. Observer Research Foundation. Available from: http://www.observerindia.com/cms/sites/orfonline/html/paper/pdf/rajan.pdf

Herberg, M (2012). Japan’s Energy Security Outlook and Implications. National Bureau of Asian Research, Energy Security Program. Available From: http://www.nbr.org/downloads/pdfs/ETA/ES_Japan_roundtable.pdf

IBEF (2011). Electricity Machinery. India Brand Equity Foundation. Available from: http://www.ibef.org/download/Electrical_Machinery50112.pdf

IMF (2012). World Economic Outlook [database]. The International Monetary Fund. Available from: http://www.imf.org/external/pubs/ft/weo/2012/01/weodata/download.aspx [Accessed on August 20, 2012]

Kaplan, S (2010). Displacing Coal with Generation from Existing Natural Gas-Fired Power Plants. Congressional Research Service. Available from: http://assets.opencrs.com/rpts/R41027_20100119.pdf

Maestri, F (2012). An Outlook of Energy Market. Ansaldo Energia. Available from: http://www.casiraghi.org/cnc/wp-content/uploads/2012/11/Maestri.pdf




Merkel, A (2011). Merkel Says Germany Needs 20GW of Fossil-Fuel Power Plants Over Next 10 Years. Accessed via treehugger.com. Available from: http://www.treehugger.com/energy-policy/merkel-says-germany-needs-20gw-of-fossil-fuel-power-plants-over-next-10-years.html [Accessed on: November 29, 2012]

NEI (2012). Costs: Fuel, Operation and Waste Disposal. Nuclear Energy Institute. Available from: http://www.nei.org/resourcesandstats/nuclear_statistics/costs/ [Accessed on: November 16, 2012]

Oanda (2012). Range: Custom; Jan 1, 2010; Dec 31, 2011. Available from: http://www.oanda.com/currency/historical-rates/ [Accessed on: December 24, 2012]

power-technology (2012). Simplified CCGT Schematic Diagram. Power-technology.com. Available from: http://www.power-technology.com/projects/staythorpe-plant/staythorpe-plant2.html [Accessed on: December 5, 2012]

SEI (2011). Coal Power in the CDM: Issues and Options. Stockholm Environment Institute. Available from: http://cdm.unfccc.int/stakeholder/submissions/2011/1104_cdmwatch_req2.pdf

Siemens (2011). Emerging Market strength as a competitive edge. Siemens. Available from: http://www.siemens.com/investor/pool/en/investor_relations/financial_publications/speeches_and_presentations/cmd_emerging_markets_2011/part-1-cmd-emerging-markets-em-siemens-roland-busch.pdf

Siemens (2012a). Annual Report 2012. Siemens AG. Available from: http://www.siemens.com/investor/pool/en/investor_relations/siemens_ar_2012.pdf

Siemens (2012b). Siemens India Annual Report 2012. Siemens Ltd. Available from: http://www.siemens.co.in/pool/investor_relations/annual_report/siemens-ar-2012.pdf

Ramzy, A (2007). China’s Fastest Growing Companies Harbin Power Equipment. Time. Available from: http://www.time.com/time/specials/2007/article/0,28804,1657601_1657599_1657595,00.html [Acessed on: December 16, 2012]

TUC (2011). Roadmap for Coal. Trade Union Congress. Available from: http://www.tuc.org.uk/tucfiles/106/CoalRoadmap.doc [Accessed on: December 16, 2012]

TVA (2012). Coal-Fired Power Plant. Tennessee Valley Authority. Available From: http://www.tva.com/power/coalart.htm [Accessed on: October 22, 2012]

Ulm, W (2003). Siemens via OMMI. The Situation in Steam Turbine Construction and Current Development Trends. Operation Maintenance and Materials Issues. European Technology Development Ltd. Available from: http://www.ommi.co.uk/pdf/articles/77.pdf

Wiesmann, G (2011). Siemens drops Rosatom nuclear plant ambitions. Financial Times. Available from: http://www.ft.com/intl/cms/s/0/2e711fde-e1e9-11e0-9915-00144feabdc0.html [Accessed on: January 16, 2013]

WNA (2012). Nuclear Power in Russia. World Nuclear Association. Available from: http://www.world-nuclear.org/info/inf45.html [Accessed on: November 15, 2012].

WRI (2012). China Adopts World-Class Pollutant Emissions Standards for Coal Power Plants. World Resources Institute. Available from: http://www.chinafaqs.org/files/chinainfo/China%20FAQs%20Emission%20Standards%20v1.4_0.pdf




6.4 Methodology GlobalData’s dedicated research and analysis teams consist of experienced professionals with a pedigree in marketing and market research, consulting backgrounds in the energy industry, and advanced levels of statistical expertise.

GlobalData adheres to the Codes of Practice of the Market Research Society (www.mrs.org.uk) and the Strategic and Competitive Intelligence Professionals (www.scip.org) .

All GlobalData’s databases are continuously updated and revised. The following methodology has been followed for the collection and analysis of data presented in this report.

6.4.1 Secondary Research The research process begins with exhaustive secondary research within GlobalData's own databases and external sources.

Power generation, installed capacity, production, imports and export data is arrived at by taking the following into consideration:

Statistics and historic trends provided by government bodies, industry associations and equipment vendors

Government and private sector investments

Government regulations and policies

Utility expansion plans

GlobalData’s proprietary databases like Capacity and Generation Database and Power Plant Database. For different countries, these databases were analyzed for the historic and forecast trends in power generation capacity additions and power plant additions, respectively.

Other insights built through secondary research and analysis of national power market regulator’s website, company websites, annual reports, investor presentations, industry and trade journals, association data.

6.4.2 Primary Research A number of primary interviews are conducted with personnel across the value chain to verify and fine-tune the market numbers obtained from secondary research and get first hand information on industry trends.

Participants are then drawn from a diverse set of backgrounds including equipment manufacturers, industry associations, government bodies, utilities, distributors and academia. Participants include, but are not limited to, business development and sales managers, C- level executives, industry consultants, academic experts and purchasing managers.




6.6 Disclaimer All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, GlobalData.

This report is a licensed product and should not to be reproduced without prior permission.