NR1912

NEWS RELEASE                                                                                                    FEBRUARY 2013

$185 Billion Market for Gas Turbines in U.S. over Next 27 Years

The conventional wisdom, as reflected in U.S. government forecasts, is that the big increase in generating capacity in the U.S. will be for gas turbine and combined cycle plants. This capacity will grow by 185,000 MW requiring an annual investment of over $6.8 billion. These are the latest findings in Gas Turbine and Combined Cycle Supplier Program published by the McIlvaine Company.

Forecast of Fossil-Fired   Generating Capacity

Fuel

2013 GW

2025 GW

2040 GW

Coal

254

254

254

Gas Turbine and Diesel

351

390

536

Fossil Total

605

644

790

The U.S. Energy Information Administration believes that the U.S. coal-fired capacity will remain at 254 GW over the next 27 years, while the gas turbine and diesel capacity will increase from 351 GW to 536 GW by 2040. Most of this capacity will be combined cycle as opposed to simple cycle. Therefore, the investment will be close to $ 1 billion per GW.

Peaking plants traditionally operated a short time per year when demand was at its highest. Today, a gas turbine peaking plant may operate for a substantial portion of the year to offset fluctuations in solar and wind generation. Since the efficiency of combined cycle plants is much higher than simple cycle and the greenhouse gas emissions much lower, regulators are demanding that peaking plants not only incorporate the steam cycle, but that they also have efficient NOx reduction and CO oxidation systems.

For more information on Gas Turbine and Combined Cycle Supplier Program, click on: http://home.mcilvainecompany.com/index.php/markets/28-energy/610-59ei