Keeping existing fossil capacity in the market will "prove to be difficult" and many European utilities "will abstain from investing" in new plants without capacity mechanisms as long as the current market situation with low electricity demand, low CO2 prices and relatively high gas prices persists, forecasts Jørgen Kildahl, member of the Board of Management at E.ON SE.
Sales of gas turbine inlet filters is forecast to rise to over $400 million this year, amid a surge in new-builds and coal-to-gas power plant conversions in U.S., spurred by record low gas prices. The gas segment will account for 6% of the $7 billion air filter market, McIlvaine analysts estimate.
Inlet air filters protect the high speed elements within the gas turbine from excessive wear. "As turbine performance has increased, so has the need to remove smaller and smaller particles," analysts stated in the Air Filtration and Purification World Markets report.
Germany needs a "reformed market design" whereby secure power generation capacity should be rewarded and renewable energy must take responsibility for its impact, says Trianel CEO Sven Becker. Operations of fossil power plants are loss-making as wholesale power prices are at rock-bottom lows, he told a press briefing at the E-World energy conference in Essen today.