Peaking Power Plant Market Forecasts to 2030 – Global Analysis By Type (Diesel, Natural Gas, Hydropower, Biogas and Other Types), Technology, Application, End User and By Geography

Peaking Power Plant Market Forecasts to 2030 – Global Analysis By Type (Diesel, Natural Gas, Hydropower, Biogas and Other Types), Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Peaking Power Plant Market is accounted for $117.2 billion in 2023 and is expected to reach $182.1 billion by 2030 growing at a CAGR of 6.5% during the forecast period. A peaking power plant, also known as a peaker plant, is a type of power generating facility designed to provide electricity during periods of high demand, or ""peak"" periods. These plants are typically used to meet short-term spikes in electricity consumption, which often occur during the hottest or coldest times of the day when air conditioning or heating systems are heavily used. They are typically used only when demand for electricity is at its highest and are often idle during periods of lower demand when baseload power plants, such as coal or nuclear plants, handle the majority of electricity generation.

Market Dynamics:

Driver:

Increasing demand for reliable power supply

The growing global population, urbanization, and industrialization have led to increased electricity demand, necessitating additional power supplies during peak usage times. Peaking power plants play a crucial role in providing dependable and adequate power supply during peak demand periods, ensuring a constant electricity supply to users. The emphasis on grid modernization and the requirement for a consistent and effective power supply. These factors collectively contribute to the increasing demand for a reliable power supply in the market.

Restraint:

Environmental concerns

The environmental concerns in the market revolve around the impact of natural gas peaker plants on air quality and public health. These concerns are highlighted by the presence of emissions-spewing facilities in low-income areas and communities of color, leading to environmental injustice. While natural gas is considered a relatively clean burning fossil fuel, emitting lower levels of greenhouse gases and air pollutants, environmental groups emphasize the need for more advanced solutions such as battery storage, demand-response programs, and renewable energy to address grid reliability issues posed by renewables.

Opportunity:

Investment in power infrastructure

Investment in power infrastructure in the peaking power plant market has seen significant growth, particularly in the region. This is attributed to the rise in population, increased private sector investment in the power sector, and the establishment of numerous peaking power plants in countries. Furthermore, the market is witnessing investments from key players in research and development activities aimed at creating environment-friendly power plant units, thus contributing to the reduction of carbon footprints.

Threat:

High operating costs

High operating costs in the peaking power plant market are influenced by various factors such as fuel costs, labor costs, maintenance costs, and specific plant characteristics. Natural gas combined cycle power plants have relatively lower operating costs compared to coal-fired plants and renewable energy sources, making them a more cost-effective option for peaking power generation. Factors like start-up and shutdown costs, ramp rate, and capacity significantly impact the variable costs, contributing to the overall operational expenses in the market.

Covid-19 Impact:

The COVID-19 pandemic has significantly impacted the peaking power plant market, causing disruptions in supply chains, delays in project executions, and decreased demand due to economic downturns and reduced industrial activities. Uncertainties in investment and financing have also hindered market growth. However, the pandemic has highlighted the importance of reliable electricity supply, potentially driving future investments in peaking power plants to ensure grid stability during emergencies. Adaptation to remote work and virtual communication may influence future plant designs.

The hydropower segment is expected to be the largest during the forecast period

The hydropower segment is expected to be the largest during the forecast period. Peaking power plants are designed to meet short-term spikes in electricity demand, making hydropower an ideal choice due to its rapid response capabilities. Hydropower plants can quickly ramp up or down their electricity output, providing grid stability during peak demand periods. Additionally, their renewable nature ensures sustainability and reduced environmental impact compared to fossil fuel-based peaking plants, making them a preferred choice in the energy landscape.

The renewable integration segment is expected to have the highest CAGR during the forecast period

The renewable integration segment is expected to have the highest CAGR during the forecast period. With increasing emphasis on sustainability, peaking plants are adapting to accommodate intermittent renewable energy sources such as solar and wind. This integration enhances grid stability by providing backup power during peak demand periods when renewables may not suffice. This synergy between renewables and peaking plants fosters a more resilient and eco-friendly energy infrastructure.

Region with largest share:

North America is projected to hold the largest market share during the forecast period driven by increasing electricity demand and the need for reliable power supply during peak hours. With the rise in renewable energy sources, such as solar and wind, peaking plants play a crucial role in balancing the grid. Additionally, advancements in technology have made peaking plants more efficient and environmentally friendly. This has attracted investments from government and private sectors, further propelling market expansion in the region.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period. With rapid industrialization, urbanization, and economic growth in countries the demand for electricity has been steadily rising. Peaking power plants play a crucial role in meeting this peak demand, especially during times of high energy consumption. Many countries are striving to incorporate more renewable energy sources into their power grids to reduce carbon emissions and combat climate change.

Key players in the market

Some of the key players in Peaking Power Plant market include MTU Onsite Energy GmbH,General Electric (GE),Mitsubishi Hitachi Power Systems, Ltd.,Caterpillar Inc.,Bharat Heavy Electricals Limited, Doosan Heavy Industries & Construction Co., Ltd, Ansaldo Energia S.p.A., Alstom SA, Siemens AG, Wartsila Corporation, Toshiba, TotalEnergies , Peak Power, Cummins Inc., Capstone Turbine Corporation, MAN Energy Solutions, Kawasaki Heavy Industries and Rolls-Royce Power Systems AG.

Key Developments:

In November 2023 , GE Vernova and Duke Energy are joining forces for the nation's inaugural peaker plant fueled entirely by green hydrogen, marking a significant collaboration in the advancement of sustainable energy solutions.

In June 2023, TotalEnergies and Belgian start-up Tree Energy Solutions (TES) have announced their joint initiative to construct a synthetic natural gas plant in the U.S. This facility will utilize 'green' hydrogen and carbon dioxide to generate a methane-like gas suitable for combustion as fuel, aiming to produce 100,000 to 200,000 metric tons of synthetic natural gas annually.

Types Covered:
• Diesel
• Natural Gas
• Hydropower
• Biogas
• Other Types

Technologies Covered:
• Battery Energy Storage Systems (BESS)
• Gas Turbine
• Reciprocating Engine
• Other Technologies

Applications Covered:
• Grid Support
• Backup Power
• Renewable Integration
• Other Applications

End Users Covered:
• Commercial
• Residential
• Utility
• Industrial
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements