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Power/Alternative Energy??

Fossil fuels lose market share over renewables, nuclear power

Posted: 16 Dec 2013 ?? ?Print Version ?Bookmark and Share

Keywords:IHS? nuclear industry? fossil fuel? generator? concentrated solar power?

According to the latest forecast from IHS, the fossil fuels sector led the medium and high power generator markets, accounting for about 76 percent of revenues in 2012. However, the share of new generator sales that use fossil fuels is predicted to fall as growth in the renewables and nuclear sectors increases, noted the market research firm.

Generators sold into the renewables (excluding wind and solar PV) and nuclear industry sectors are forecasted to experience significant growth through 2017. Power generated by renewable sources is considered carbon neutral, and government legislation in many countries has been enacted to reduce carbon emissions in an attempt to reverse the harmful effects of climate change. Because of this, generators sold into hydro and other renewables such as biomass and concentrated solar power (CSP) are seeing rapid growth.

Despite the backlash from the Fukushima nuclear disaster in 2011 and Germany deciding to close down all of its nuclear power plants by 2022, the nuclear industry is projected to see a resurgence through 2017 and beyond. Nuclear power, which is also carbon neutral, will see most of the growth from only a few countries, including China, India, Iran, Russia and South Korea.

Nuclear power is attractive in these countries because of the need for large increases to their base load capacity in order to keep pace with growing demand. Furthermore, these countries have historically relied on coal fired power plants for electricity generation, especially China and India. Adding nuclear power allows them to reduce carbon emissions while at the same time helps to clean up their image as high carbon emitters.

The world market for medium and high power generators

The discrepancy of natural gas prices and delays in project financing are other factors keeping generator sales prospects for the fossil fuels sector subdued. The U.S. saw a large impact as gas prices fell to historically low levels mainly due to the increase in production from shale gas fracking. However, this gas boom has not yet spread to Europe and Asia where natural gas prices are three to four times higher. Financing and investments for large power plants have also been more difficult to secure, which has led to delays in equipment purchases.





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