Peaking Power Plant: Introduction
Transparency Market Research delivers key insights on the global peaking power plant. In terms of revenue, the global peaking power plant is estimated to expand at a CAGR of ~2% during the forecast period, owing to numerous factors regarding which TMR offers thorough insights and forecasts in its report on the global peaking power plant.
The global peaking power plant market is broadly affected by several factors, including rise in incidence of peak hours and ongoing investment in peaking power plants. Furthermore, rise in deployment of renewable technologies due to the introduction of stringent regulations to minimize carbon emissions and decline in their component cost are some of the factors anticipated to propel the global peaking power plant market.
Peaking Power Plant Market: Dynamics
Industrialization and urbanization has been increasing significantly across the globe since the past few years. This has boosted the global demand for electricity. Global electricity consumption rose by 24.3% in 2019 since 2010. China accounted for 28% of the global electricity consumption in 2019.
The demand for electricity has increased in China, owing to steady economic growth and rise in industrial demand for electricity. In 2019, China consumed 6,510 TWh of electricity, a 4% rise from that in the previous year. The need for electricity has also increased in other countries of Asia Pacific such as India, South Korea, Japan, and Indonesia.
The demand for electricity is expected to continue to rise across the globe during the forecast period. The world is focusing on renewable energy to cater to the high demand for electricity. Renewable energy (solar and wind) is a prominent source of electricity generation. However, renewable energy is an intermittent source of energy; hence, it is difficult to provide stable, reliable base power. Peaking solutions provide dispatchable power and are designed to balance out any volatility.
In terms of type, the natural gas segment dominated the global peaking power plant market in 2020. The segment is expected to expand at a CAGR of 2.24% between 2021 and 2031. Natural gas has unique properties that makes it an ideal fuel for peaking power plants. Natural gas offers a number of significant advantages relative to other fuels. For instance, it emits less emission and is cost efficient. It is also abundantly available. These properties of natural gas make it a preferable option in the peaking power plant market.
Based on capacity, the 101MW - 500 MW segment constituted key share of the global peaking power plant market in 2020. Ongoing investment in development of natural gas peaking power plants with capacity between 101MW and 500 MW is expected to propel the segment during the forecast period.
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Peaking Power Plant Market: Prominent Regions
The peaking power plant market in Europe is projected to expand significantly during the forecast period, owing to a surge in investment in the development of renewable technology-based power generation facilities in order to cater to the significant rise in the demand for electricity in the region. For instance, more than 40MW of renewable capacity is scheduled to come to auction in Europe by the end of 2021.
The peaking power plant market in Asia Pacific is projected to expand considerably during the forecast period. China dominated the peaking power plant market in Asia Pacific in 2020. Shift in focus of governments from production of conventional energy to production of renewable energy, and rise in the number of peak hour incidence are the key factors driving the peaking power plant market in Asia Pacific.
Peaking Power Plant Market: Key Players
Major players operating in the global peaking power plant market are Wartsila, General Electric, MAN Energy Solutions, Edina, Gama Investment a.s., Clarke Energy, WSP, APR Energy, and ENGIE.