Continental Focus, International Reach

China’s Gas Power Gen to Exceed 85 GW

Wednesday, October 15, 2014

With an increasing focus on renewable installed capacity and gas, China’s gas power generation capacity will rise from 43.8 GW in 2013 to 85.5 GW by 2020, subsequently boosting gas turbine installations in the country, according to findings from research and consulting firm GlobalData.

China’s gas power generation market value stood at $652 million in 2013 and is forecast to jump to almost $1.7 billion by 2017. Increased infrastructure investments, expansion in the country’s distributed power generation market, and favorable policies supporting gas power generation will also allow the gas turbine market to grow in this period. Turbines of over 200 MW will account for $621 million of the overall market revenue by 2017.

Sowmyavadhana Srinivasan, GlobalData’s Senior Analyst covering Power, said: “Rising electricity demand will also drive the market, with over 35 GW of capacity coming online between 2014 and 2020, making China a major global player. Gas turbines of over 200 MW will account for approximately 49% of capacity additions during this period, followed by 30 MW to 120-MW turbines with a share of 35%.”

However, GlobalData believes that a potential rise in China’s natural gas prices could pose a challenge to further growth in the country’s gas power generation capacity and consequently its turbine market for thermal power. Srinivasan explained: “The future of natural gas prices for China’s power sector is uncertain. Such an increase could adversely affect utilities’ profit margins, as electricity prices are also regulated by the government, meaning that fuel cost rises cannot be passed directly to customers.”


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