South Korea has risen high on the agenda of Siemens, Germany's engineering giant, who is targeting the country as a key growth market for gas turbine sales.
Sales prospects and revenue generated in Asia and the Middle East currently more than offsets reduced earnings in ailing European markets, says Lothar Balling, Head of Gas Turbine Power Plant Solutions in the Fossil Power Generation Division at Siemens Energy.
Investment in combined-cycle gas turbine (CCGTs) power plants in Germany are "highly problematic" as decreasing, even negative clean spark spreads resulting from reduced runtime hours have cut profit margins to zero". Unless capacity remuneration mechanisms are introduced, PricewaterhouseCoopers sees no market signals that could convince operators to build new plants.
During the first half of 2012, new gas-fired and renewable capacity has dominated power plant additions in the United States. As total of 165 new electric power plants were added in the 33 federal states, with combined new capacity of 8,098 megawatts (MW), according to the US Energy Information Administration (EIA).
Germany's second-largest utility RWE on Tuesday announced it will cut more than 2,400 jobs as first-half year profit came in 'unchanged', while electricity sales fell 8 percent and gas sales dropped 11 percent. "The present framework conditions are anything but favourable", Peter Terium, RWE chief executive said when presenting the H1 results in Essen today.