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NEWS RELEASE                                                                                                    AUGUST 2015

Investment in Coal-Fired Power Plants Will Exceed Other Energy Sectors In 2016

Power plants continue to invest more money in coal-fired power over gas and nuclear.  The trends are shown in N043 Fossil and Nuclear Power Generation: World Analysis and Forecastpublished by the McIlvaine Company.

World Fossil and   Nuclear Capacity  (1000 MW)   2016
Fuel   Type 2016    Capacity in operation New   capacity in 2016
Coal 2,145 86
Nuclear    405 16
Gas   Turbine 1,485 71

Most of the 86,000 MW of new coal-fired power plants starting operation in 2016 will be in Asia.  The U.S. will be the largest market for gas turbines.   When one considers orders placed with Russian companies as opposed to nuclear construction in Russia, then this country is a nuclear leader.

The Russian nuclear reactor business under state-owned Rosatom is moving aggressively ahead in multiple countries and world regions with 29 nuclear reactors in planning or construction at this time.  In contrast, another world player, French government-owned Areva, has not sold a reactor since 2007 and is struggling financially. The U.S. Westinghouse business is similarly in the doldrums.  Other active players include the Japanese, Chinese and the South Koreans, each with one or more reactor designs of their own, but not actively exporting the technology as effectively as is Russia.

There are essentially four reasons for the Russian success:

  • Russia is underwriting favorable financing for the international deals
  • Rosatom offers build, own, operate (BOO) contracts highly favored by many customers/state clients
  • Rosatom enjoys limited oversight (interference) from the Russian government and is free/encouraged to sell around the world
  • Some deals are accompanied by “sweeteners” which include rights to purchase other military equipment such as submarines and other equipment on favorable terms
  • The U.S. is not free to build reactors in certain countries

 

Following is a list of in-negotiation or signed deals around the world:

  • Jordan: 2 reactors
  • Hungary: 2 reactors
  • Egypt: 1 reactor
  • Iran: 2 reactors currently, with 4 additional to follow
  • India: 3 reactors currently, with up to 10 additional to follow
  • Finland: 1 reactor
  • Turkey: 1 reactor
  • Argentina: 1 reactor
  • Vietnam: 1 reactor
  • Bangladesh: 1 reactor
  • Algeria, plus others

For more information on N043 Fossil and Nuclear Power Generation: World Analysis and Forecast, click on: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/113-n043