As many readers here will know, gas turbine electric generators (CCGT or combined-cycle power plants) are in short supply, due to the increase in demand for electricity worldwide.
Expected wait times for new equipment have been estimated up to 7 years for a facility ordered today.
Turbine makers, shell shocked from bust cycles that are still fresh in memory, have been loath to invest big to boost production.
Renewable energy sources like wind and solar power are needed to meet rapidly growing energy demand in the United States amid near-term obstacles to increasing natural gas capacity, NextEra <NEE.N> CEO John Ketchum said on Tuesday.
Competition and high costs to obtain gas turbines, a construction labor shortage, and the costs associated with tariffs mean that it will take at least seven years to get new gas-fired power plants online, Ketchum said at the Politico Energy Summit.
==
Manufacturers, having overbuilt and been burned twice in recent decades as demand for turbines waxed and crashed, have been cautious about ramping up production.
—
To the CEOs of all three companies, history would likely seem to justify this discipline. In 2017 and 2018, years of investment into capacity expansion coincided with a near-total collapse in global demand for gas turbines. This market crash was most likely the combined effect of low energy demand growth, energy efficiency improvements, continued use of coal power across Asia, the growing share of renewable energy on the grid, and investors’ realization that solar and wind energy could meaningfully undercut gas on price. All three companies laid off tens of thousands of employees, and the crash contributed to the complete breakup of General Electric and its partial spin-off into GE Vernova last year.
Continue reading “Gas Turbine Manufacturers Gun Shy about Increasing Production”


