Wood Mackenzie is concerned about the challenges of meeting the gas-powered energy demand in 15 years.
In a report published on Wednesday, Wood Mackenzie, an energy research company, said that the gas turbine market may have difficulty meeting strong demand over the next 15 to 20 years because of manufacturing constraints, increasing costs, and competition from renewables.
Wood Mackenzie predicts that new gas-fired power generation projects will add around 890 gigawatts (GW) of capacity globally between 2025-2040. The U.S.A. and China are expected to lead the way with 47% annual additions in the same period.
In Asia, high import gas prices can hinder growth. Decarbonization targets in Europe will push unabated natural gas to the fringes by 2040.
The U.S. Energy Information Administration reported earlier this month that power demand will likely rise to 4,205 kilowatt-hours (kWh) by 2025, and 4,252 kWh by 2026. This is a significant increase from the 4,097 kWh record set in 2024.
Mackenzie stated that the growth of gas power is impacted by the introduction of technologies such as carbon capture and storage, hydrogen blending and midstream infrastructure.
David Brown, Wood Mackenzie's director of energy research, said that these limits indicate a continued tightness in turbine deliveries until 2030. Conditions will then loosen between 2030 and 2040. (Reporting by Sarah Qureshi in Bengaluru; Editing by Richard Chang)
(source: Reuters)
