June 18, 2024
Thermal Power Plant Market

Thermal Power Plant Market is Estimated to Witness High Growth Owing to Increased Efficiency of Coal-Fired and Gas-Fired Power Plants

A thermal power plant converts thermal energy from combustion of fossil fuels like coal, natural gas, fuel oil into electric energy. Thermal power plants generate electricity by capturing the heat generated from burning these fuels and using it to power steam turbines which spin an electric generator. The major components of a thermal power plant include a boiler, steam turbine, condenser, feed water system and electric generator. Thermal power plants provides baseload power generation across regions and help meet peak power demand. They have advantages of being low cost, availability of fuel supply and ability to ramp power output based on demand. However, they emit greenhouse gases and other pollutants.

The Global Thermal Power Plant Market Share is estimated to be valued at US$ 1,532.34 Bn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024 To 2031.

Key Takeaways
Key players operating in the Thermal Power Plant are EDF, American Electric Power Company, Inc., Siemens AG, General Electric Company, Chubu Electric Power Co. Inc., National Thermal Power Corporation Limited, ENGIE, Duke Energy Corporation, SSE, NTPC Limited, Adani Power Limited., Tata Group., Reliance Power Limited., Maharashtra State Power Generation Co. Ltd., Nuclear Power Corporation of India (NPCIL), India Power Corporation Ltd., Jindal Steel & Power Limited., and NS Energy Group.

The key opportunities in the thermal power plant market include opportunities for revamping and upgrading existing thermal power plants to increase efficiency and reduce emissions. Countries are also investing in developing ultra-supercritical and advanced ultra-supercritical thermal power plants with higher efficiency.

On the technology front, efforts are ongoing to develop efficient carbon capture, utilization and storage systems to reduce CO2 emissions from thermal power plants. Gas turbine and steam turbine technologies are also advancing to achieve higher plant efficiency.

Market drivers
The key driver for the thermal power plant market is the increased demand for energy worldwide. As populations and economies grow, the need for reliable baseload power also increases. While renewable sources of energy are expanding, thermal power will continue playing a major role in meeting energy demand especially in developing countries. Efforts by key players to improve plant efficiency through innovations is also driving the market as more efficient plants helps reduce fuel costs and emissions.

Current Challenges in Thermal Power Plant Market

The thermal power plant industry is facing many challenges in terms of growing environmental concerns, stringent regulations and rising renewable energy sector. Strict emission norms pertaining to CO2, NOx and SOx are restricting plant operations and requiring retrofitting of pollution control equipment. Transitioning to cleaner fuel sources and improving plant efficiency is also a major concern. Rising renewable energy installations are posing competitive threat with improved feasibility of solar and wind projects. ageing fleet of power plants in many countries also needs heavy investments for upgradation to latest technologies. High fuel costs, land acquisition issues and delay in project implementation due to lengthy clearances are some other key roadblocks for industry players.

SWOT Analysis
Strength: Thermal plants provide base load power generation capability and have lower per unit costs. Established supply chain and experience in operations provides competitive advantage.

Weakness: Thermal plants heavily rely on fossil fuels making power costs vulnerable to fuel price fluctuations. Strict emission norms require advanced pollution control technologies and emissions remain a concern.

Opportunity: Upgradation of ageing fleet provides an opportunity for advanced supercritical and ultra-supercritical technologies. Growing energy demand in developing nations boosts prospects. Co-firing with renewable fuels can help lower carbon footprint.

Threats: Rapid growth of renewable energy poses major disruption threat in long run. Stringent carbon reduction targets push increased shift towards renewables. Public opposition delays expansion plans.

Geographical Regions
Asia Pacific region accounts for over 60% of global thermal power generation, driven majorly by China, India and countries in South East Asia. Abundant coal reserves and rising electricity demand propels market growth in the region.

North America region is currently the second largest market led by United States. However, Europe saw fastest growth over last few years due to efforts by key nations to upgrade coal-fired capacity with cleaner technologies. Germany, UK, France are major European markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it