March 2014, Vol. 241 No. 3

Projects

African Power Plant Installations Fuel Gas Turbine Market

Substantial growth in energy demand and policy changes to decrease gas flaring are driving new power plants installation in Africa and fueling the uptake of gas turbines.

While lack of infrastructure and financial constraints slowed down market growth in the past, the expansion rate of over 8% per annum should accelerate once the infrastructure backbone in major gas-producing countries develops.

Aalysis from Frost & Sullivan, The African Gas Turbine Market, finds that the market earned revenues of $662 million in 2012 and estimates this to reach $1,144 million in 2017. The growth in demand for turbine technology will be driven by the combination of infrastructure investment and access to natural resources – Africa has some of the globe’s most substantial gas reserves.

“The desire of more players in the private sector, especially industrial clients to achieve energy independence, is widening the scope of the African gas turbine market,” said Frost & Sullivan Business Unit Leader for Energy & Environment Cornelis van der Waal. “This will allow new suppliers to enter the market and existing competitors to have access to a larger pool of customers.”

Although the long-term outlook for gas turbine technology remains positive, there are some challenges facing the industry including a lack of urgency among end users to expand their gas infrastructure, limited gas pipeline availability, and poorly maintained transmission infrastructure.

“In this scenario, it is crucial for gas turbine suppliers to understand end-user needs and develop cost-efficient, flexible solutions that can also run on oil or kerosene in the absence of gas,” stated Van der Waal.

“Market leaders in particular should couple quality products with robust operation and maintenance services to consolidate their position and take advantage of numerous opportunities expected to open up in Africa over the next 10 years.”