Gas Gensets: Europe's Clean Power Generation and Capacity Market Initiatives Stoke Growth Opportunities
Tightening environmental policies will energise the mature market, finds Frost & Sullivan's Energy & Environment team
LONDON, Dec. 5, 2016 /PRNewswire/ -- Europe's increasingly stringent emission laws are proving strong influencers for the gas genset market for combined heat and power (CHP) applications. As clean power generation and environmental regulations evolve to help the region meet the European Commission's ambitious environmental targets, utilities and industries will adopt cleaner power generation solutions, giving a boost to the mature gas genset market.
"In addition to favourable regulations, the market will benefit from the availability of lower for longer fuel price scenario in the region," said Frost & Sullivan Energy & Environment Industry Analyst Manoj Shankar. "New opportunities presented by expanding capacity markets and the need for flexible power generation of renewable energy are further stoking market growth."
European Gas Generator Set (Genset) Market is part of Frost & Sullivan's Power Generation Growth Partnership Subscription. Related studies include: small-scale embedded generation, data centre infrastructure solutions, diesel generator-based power rental, and independent power producers.
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While a change in environmental policies is giving the market a shot in the arm, alterations in feed-in tariffs (FITs) for bio-gas-based power is creating barriers to growth. Besides the need for transport and storage infrastructure, the slowing economy and complexity of maintaining gas gensets pose significant hurdles to manufacturers.
"Savvy market participants can convert these challenges into opportunities by leveraging the power back-up markets for renewables in various countries and positioning gas genset as a clean burning alternative," noted Shankar. "While Germany is the biggest market for gas gensets in terms of revenue, the UK is expected to grow the fastest by 2020."
Gas gensets are also finding wide application for their utility in severe weather conditions, especially in winter. As a reliable and environment-friendly source of power for intermediate loads and base loads if needed, gas gensets are finding traction in key European nations.
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