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African Steam Turbine Market Set to Grow Amidst Rising Electricity Demand Notes Frost & Sullivan - Driven by a period of significant economic growth, the demand for electricity within sub-Saharan Africa is rapidly approaching supply capacity and in many countries exceeding it
African Steam Turbine Market Set to Grow Amidst Rising Electricity Demand Notes Frost & Sullivan

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2010/08/16 - Driven by a period of significant economic growth, the demand for electricity within sub-Saharan Africa is rapidly approaching supply capacity and in many countries exceeding it.

   
 
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The resultant demand for new generation capacity is boosting growth in the steam turbine market for the region.

"The sub-Saharan African steam turbine market is expected to grow considerably due to the cost efficiencies in power production attained from coal-fired power plants in coal-rich countries," notes Frost & Sullivan Research Analyst Ross Bruton. "The emergence of combined cycle technologies and development of the geothermal power industry in East Africa are also likely to open up new market opportunities."

New analysis from Frost & Sullivan (energy.frost.com), The Sub-Sahara African Steam Turbine Market, finds that the market earned revenues of $147.4 million in 2008 and estimates this to reach $261.4 million by 2014. The markets covered in this research service by region are South Africa, Botswana, Zimbabwe, Kenya, Mauritius and Namibia.

If you are interested in more information on this study, please send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

In countries with an abundance of natural coal reserves, the development of coal-fired power plants is the most cost-effective means of power production. However, these cost efficiencies may fall away in the long-term due to the depletion of natural resources and potential carbon taxes or cap-and-trade mechanisms placed on industries with high carbon emissions.

"Due to the high carbon emissions of coal fired power plants, and their subsequent contribution to global warming, carbon taxes or cap-and-trade mechanisms are often applied to power industries in countries, like South Africa, in order to decrease the national carbon footprint," explains Bruton. "The application of these mechanisms will decrease the cost efficiencies attained through coal-fired power production and subsequently restrain growth of the market."

Nevertheless, due to the small carbon footprint of most countries in sub-Saharan Africa, and the current high demand for electricity in the region, this is anticipated to only have a significant effect on the rest of the region in the long term.

Competitors in the market should focus on the R&D of clean coal as well as combined cycle technologies. Furthermore, after the successful growth of the geothermal and bagasse cogeneration power industry in Kenya and Mauritius, competitors should diversify their target market to incorporate renewable energy production.

"Cheaper Chinese manufacturers have begun to enter the sub-Sahara African steam turbine market previously dominated by European manufacturers," explains Bruton. "Therefore, the current competitors in the market should either concentrate on the R&D of high quality, reliable products that are able to attain market leading efficiencies in power production or implement cost price reduction strategies in order to remain competitive."

The Sub-Sahara African Steam Turbine Market is part of the Energy & Power Growth Partnership Services programme, which also includes research in the following markets: The East African Genset Market, The West Africa Transformer Market and the South African Boiler Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

The Sub-Sahara African Steam Turbine Market / M516

 
 
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African Steam Turbine Market Set to Grow Amidst Rising Electricity Demand Notes Frost & Sullivan

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