By TECHNOLOGY TIMES Reporter
Lagos. June 27, 2013: A new forecast says that Nigeria and several other countries suffering electricity power problems are expected to continue to drive diesel generator sets sales projected to be a $41.2 billion revenue earner by 2018.
According to a recent report from Navigant Research, worldwide revenue from diesel gensets will reach $41.2 billion by 2018 driven largely by Nigeria, India, Chile, South Africa, and other economies where diesel genset sales continue to boom.
As a source of continuous or prime power, diesel generator sets (gensets) have historically been the leading baseload distributed generation (DG) technology, particularly during power blackouts, says the report.
Navigant cites that one of the least expensive, most reliable DG technologies available today, diesel gensets have expanding opportunities among homeowners and commercial facilities like hospitals and data centers that require mission-critical power in the event of a grid outage.
According to the report, “although providers of diesel gensets can expect to see continued growth over the next several years, they face rising competition from natural gas gensets.”
Dexter Gauntlett, research analyst with Navigant Research says that, “although providers of diesel gensets can expect to see continued growth over the next several years, they face rising competition from natural gas gensets.”
According to him, “over the next decade, the increase in unconventional gas resources and tightening emissions regulations for stationary generators will favor clean-burning natural gas systems over their diesel counterparts in North America.”
These developments, however, will take time to fully materialize, according to the report. In the short term, countries with strong economic and/or population growth rates that are increasingly burdened by blackouts, such as Nigeria, India, Chile, South Africa, and others, continue to drive diesel genset sales.
Industries in India, for example, have become highly dependent on diesel due to power outages spanning as much as 16 hours per day, making them more vulnerable to price volatility.
The report, “Diesel Generator Sets”, analyses the global market potential for diesel gensets, from less than 15 kilowatts to 6 megawatts, for residential, commercial, and industrial applications.
The study includes in-depth assessments of global regions for capacity installations, an analysis of global gas resource development, and profiles of the key industry players engaged in this market. Worldwide market forecasts are provided through 2018 for annual installations and revenue, segmented by region and by power class.