Nezih Atuk, Head of Marketing and Business Development – Americas at AKSA Power Generation, writes on the changing dynamics of the power generation industry resulting from the pandemic and global warming
All the global companies seem to be in evolution despite the difficulties related to post-pandemic dynamics. Internal processes of many companies are more problematic than ever as they suffer from keeping stocks, providing acceptable lead times, and offering competitive prices.
The power generation industry has been plagued with supply problems during the pandemic times and in the post-pandemic era, resulting in increased costs and lead times. The pandemic has influenced many companies to change their regular way of working and in taking up extraordinary processes.
Standby generators have become more important than ever while critical power management facilities are increasing day by day. Increasing internet usage, cryptocurrency mining, storage of big data and cloud created a huge demand for generators in data centres.
Construction projects, which were stopped by contractors and project owners during the early stages of the Covid-19 pandemic, are resuming. This is expected to create a huge demand, especially for the diesel generator market.
Most companies seem to be spending a significant effort to reach their carbon-zero targets. To support this, power generation companies are developing new products with innovative technologies and diverse types of fuel.
Using hydrogen as a fuel for generators has become one of the state-of-the-art technology product trends right now.
Another important trend is the use of energy storage systems (ESS). Currently, some major ESS projects are being implemented, which consist of batteries with high capabilities.
The International Energy Association (IEA) claims that for keeping global warming below 2ºC, there must be 266GW of energy storage available in the world by 2030. Bloomberg New Energy Finance stated that the global energy storage market will hit that target and grow quickly to a cumulative 942GW by 2040. This represents $620bn in investment over the next two decades.
Natural gas-fired generators have also been key products for a while, especially cogeneration and trigeneration systems. Nowadays, engine manufacturers are pushing the limits for producing carbon-zero engines or alternative solutions such as fuel-cell.
In addition to these trends, renewable energy sources like wind, solar, wave, and others continue to maintain their popularity. Besides, solar systems are being encouraged with financial support from governments around the world.
If today’s most important power generation methods are brought to the table, then it will not be wrong to say that hybrid technologies are right now seen as a mainstream trend in global markets.
Currently, in the US, the combination of natural gas, diesel, solar, ESS modules, solar panels, and various power sources is frequently being used in giant complex projects.
We are experiencing a game-changer big bang disruption in the power generation market, and we can observe that everyone on Earth has started to give due importance to global warming. This can be understood by the increase in the transition from fossil fuels to sustainable energy resources.