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The Combined Heat and Power Association has therefore identified the
following steps as means of improving the situation for the development of
CHP projects:-
• Introduction of a CHP obligation, similar in form to the Renewables
Obligation but with a lower buy-out price, to provide an underpinning
market mechanism
• A proactive planning and communication strategy
• Adequate resourcing within government
• Full implementation of existing support mechanisms for CHP
• Action to address existing and emerging barriers to CHP
• Delivery of effective support to emerging technologies
6.5 North American Market
The North American market at present is considered by some to be expanding
significantly, in contrast to the opinions expressed by some consultees (see
Section 6.3 above). In the year 2001 according to Power Magazine [61] an
installation record of 48.6 GWe in total was established for new gas turbine
based power plants. This figure surpasses the 1974 record of 43 GWe for new
installations. However, the 2001 record is envisaged as being short lived as a
result of the 66 GWe for 2002 and 69 GWe for 2003 announced or under
construction [61] . Whilst mid-sized aero-derivative gas turbines are part of the
sales surge, the vast majority of this increased capacity has been, and no doubt
will continue to be in large, utility scale machines.
When it is considered that just 27 GWe of new capacity came on line in the
year 2000, the extent of the rapid growth within the North American market is
clearly apparent.
Whilst the size of the North American market is clearly large, there are
obvious signs of the high level of competition existing in this potentially
lucrative business sector. Evidence of this rivalry can be found from the
undisputed fact that in recent years the market has attracted the attention of
several new competitors, all contending for their share of the profits.
Furthermore this additional competition has emerged from both international
manufacturers winning American based contracts and American based
companies with previously limited interests in the HRSG market suddenly
expanding their involvement.
From what was essentially a US supplier only market, there has been a recent
spate of key contracts awarded to non-US manufactures such as Toshiba
(Tokyo, Japan), CMI (Brussels, Belgium) and Hitachi (Tokyo, Japan). Foster
Wheeler is a prime example of an American company expanding its activities
in the HRSG market. Prior to 1997 its HRSG interests were considered not to
be a prime business within the company. However, the company claims that
having recognised the huge potential for rapid combined cycle power plant
expansion, it strategically expanded into this area from its traditional business
of solid-fuel boiler fabrication. The end result is that in just 5 years its HRSG
business has now grown from a minor business sector to its largest one.
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