NEWS RELEASE July 2019
Sales Program based on the 500 Coal Plant Operators that buy 99 Percent of the Combust, Flow and Treat Products
Coal fired power is the ideal industry for which to adopt a sales approach based on predicting purchases for each prospect rather than reactively responding to sales leads.
Ninety-nine percent of all the combust, flow, and treat products and services are purchased by just 500 companies. Fifty percent are purchased by just 50 companies. With data analytics and centralized monitoring an increasing percentage of the purchases are made based on lowest total cost ownership. The decision making involves multiple individuals. Success requires major sales efforts long before a request for quotation is issued.
The Shenhua/Guodian merger resulted in an owner with 200,000 MW of coal fired capacity. However, there remain several entities from a decision making perspective. Seventy percent of the purchasing decisions for existing plants are made by 27 companies with more than 10,000 MW of capacity. However, 150 owners are making the decisions for 70 percent of the new plants.
|
Coal Fired Capacity for Individual Owners |
||
|
Above MW |
Planned Cumulative # |
Operating |
| 80,000 | 1 | |
| 60,000 | 2 | |
| 50,000 | 3 | |
| 40,000 | 3 | |
| 30,000 | 8 | |
| 20,000 | 2 | 10 |
| 10,000 | 8 | 27 |
| 5000 | 25 | 63 |
| 3000 | 50 | 110 |
| 2000 | 70 | 164 |
| 1500 | 90 | 196 |
| 1000 | 150 | 255 |
| 700 | 200 | 307 |
| 500 | 250 | 379 |
| 300 | 300 | 491 |
| 200 | 350 | 570 |
| 100 | 400 | 710 |
| ˂ 100 | 900 | |
There is a logical disparity between the ratio of new plants to existing plants by owner. For comparison we picked owners with 6000 – 9000 MW range of existing and planned capacity. J Power is the only company appearing on both lists.
| Planned Coal Fired | |
| Company | MW |
| Power Finance Corporation | 8,000 |
| Egyptian Electricity Holding Company | 7,920 |
| KEPCO | 7,698 |
| China Resources | 7,035 |
| NLC India | 6,700 |
| TANGEDCO | 6,640 |
| J-POWER | 6,356 |
| Eskom | 6,352 |
| UPRVUNL | 6,270 |
| Operating Coal Fired | |
| Company | MW |
| E.ON | 8,772 |
| J-POWER | 8,482 |
| Inter RAO | 8,372 |
| Vedanta Resources | 8,327 |
| Xcel Energy | 7,915 |
| Henan Investment Group | 7,840 |
| Beijing Energy Group | 7,772 |
| Engie | 7,387 |
| Damodar Valley Corporation | 7,240 |
| AES | 7,025 |
The big growth in coal is in South East Asia and Africa where existing capacity is small. The existing capacity is mostly in countries where new coal fired plants are being discouraged.
McIlvaine provides a comprehensive program to help suppliers pursue this market. The weekly Utility E-Alert has new project information as well as technical and regulatory developments. The tracking system database has information on each plant. The Utility Tracking System website also has a coal fired forecast by country through 2024. There are detailed profiles of the largest purchasers as well as identification of all 500 purchasers. With the search engine it is possible to extract the latest information on each purchaser. Details on the program are found at 42EI Utility Tracking System
This service can be combined with any of the market reports to obtain individual product forecasts http://home.mcilvainecompany.com/index.php/markets
Similar programs in each industry are available as explained in Most Profitable Market Program at www.mcilvainecompany.com
For more information on these services contact Bob McIlvaine 847 226 2391 This email address is being protected from spambots. You need JavaScript enabled to view it.
