Power Sector Report Ed 1 2016 - StatPlan Energy Research · Capex is plotted globally from 2000 to...
Transcript of Power Sector Report Ed 1 2016 - StatPlan Energy Research · Capex is plotted globally from 2000 to...
Power Sector Report
Ed 1 2016
Capex and Markets $ Infrastructure and Utilities
A Complete Map of the Power Sector
Power Sector GTD Vol 5. Generation and T&D
Capex and Markets
Vol 5. GTD provides information and analysis of the Capex and Markets of the
Generation and T&D sectors, with historical data and forecasts.
Capex - analysed by energy source
Markets - sales of mechanical generating equipment, and electrical
generating and T&D equipment
Marketing commentary
Vendor and competitive analysis
Analysis of utilities
Special chapters with technical and market analysis
The Power Sector Reports encompass the entire spectrum of power generation,
transmission and distribution; utilities, merchant generators, industry, small captive
and domestic generators, and the growing segment of “hidden power” not included
in national statistics.
The Power Sector series consists of 9 volumes, providing modules of information,
so that you can access exactly what you want, no more no less.
PS5 POWER SECTOR REPORT GTD - CAPEX & MARKETS
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EXECUTIVE SUMMARY THE POWER SECTOR REPORT THE STRUCTURE OF THIS REPORT
How this volume fits into the Power Sector Report series. 1. INTRODUCTION TO THE POWER SECTOR
The scale of the power sector is outlined as an introduction, in capacity and $ with commentary on its composition by the constituent sectors - generation, transmission and distribution (GTD).
2. UTILITY SECTORS The 135,000 electricity, gas and water & waste utilities are shown regionally on a global map
and the 11,000 electrical utilties are analysed by region and major country, with a breakdown of public/private ownership. A table summrises the electrical utility sector in every country.
3. OTHER UTILITY SECTORS, AS GENERATORS AND CONSUMERS The other utilities are identified - oil, gas, water & waste, telecoms, railways – they are large generators and consumers of electricity, and some have dedicated transmission and distribution networks.
4. INDUSTRIAL AND CAPTIVE GENERATION Industry is a significant generator of power and an even larger consumer, drawing from the grid more than it supplies in most but not all countries. Industry is an important owner of transmission and distribution assets such as transformers. “Hidden power “, mostly private generators under 1 MW, is a segment attracting increasing attention and has been underestimated in the past.
5. CONSUMERS OF ELECTRICITY AS INVESTORS Use by end-sector, with further analysis by type of industrial use and purpose of use.
6. CAPITAL EXPENDITURE Capex is plotted globally from 2000 to 2015 and forecast to 2020, with analysis by segment; generation, transmission and distribution and summarised with analysis by energy source from 2000 to 2020; coal, gas, oil, nuclear, wind, utility solar PV, rooftop solar PV. The rapid growth of small solar PV is demonstrated. The composition of capex is analysed.
7. GENERATION CAPEX BY ENERGY SOURCE Generating capex is analysed by energy source (see previous chapter details) for the world, 7 regions and 11 major countries, at eight intervals in the PDF - 2000, 2010 and annually from 2015 to 2020 - and in the Excel database annually from 2000 to 2020. The current status and prospects for each energy source are discussed.
8. GENERATION TECHNOLOGIES The composition of plant for the various generating technologies is outlined and analysed by share of cost, for the following technologies; coal fired plants, gas turbine simple cycle (OCGT), gas turbine combined cycle (CCGT), oil-fired steam turbine plant, diesel engine-generator, wind turbine, solar photovoltaic, hydropower and nuclear power.
9. T&D CAPEX Transmission and distribution capex is plotted for the world, 7 regions and 11 major countries, at
eight intervals in the PDF for 2000, 2010 and annually from 2015 to 2020 - and in the Excel database
annually from 2000 to 2020.
10. DEFINITION OF THE POWER SECTOR EQUIPMENT MARKET The power sector is defined, with broad parameters to include electrical utilities, IPPS, industrial captive generation and small scale distributed generation. In the generating sector it is important to understand the overlap of mechanical equipment, which constitutes over ¾ of equipment expenditure in the power generation sector, between electrical uses and mechanical uses, such as
PS5 POWER SECTOR REPORT GTD - CAPEX & MARKETS
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heat and steam output in district heating and industrial process. Plants such as industrial boilers are a large component in fossil fuel power generation but they have even larger applications in other industries.
11. REGIONAL AND NATIONAL EQUIPMENT MARKETS FOR GENERATION, TRANSMISSION AND DISTRIBUTION EQUIPMENT BY GEOGRAPHY
Country markets are analysed by product, with sales of total generating, transmission and distribution equipment in nominal values in the PDF - for 2000, 2010 and annually from 2015 to 2020 - and in the Excel database annually from 2000 to 2020 for the world, 7 regions and 11 major countries. Generating products include: boilers, steam turbines, gas turbines, HRSG (heat recovery steam generators), diesel & HFO engines, wind turbines, hydro turbines, solar PV modules, solar PV inverters, FGD (flue gas desulphurisation), SCR/SNCR (selective catalytic reduction/selective non-catalytic reduction), PM (particulate matter removal; ESP, scrubbers, fabric filters/baghouses), CPP (coal preparation plant), fly ash handling plant, insulated cable, compressors, piping, instruments and control equipment, GSU generator transformers, GCB (generator circuit breakers), switchgear and power plant automation. Transmission and distribution products include transformers, switchgear, circuit breakers, circuit protectors, surge arresters, distribution panels, fusegear, switches, disconnectors, protection relays, lightning arresters, isolators, energy cable - insulated and uninsulated conductors, insulators and bushings, spacers and dampers, HVDC, AC filters for HVDC, steel towers, poles of wood, concrete, steel and composite, pole-top assemblies, meters and utility automation.
12. SALES OF MECHANICAL GENERATION PLANT BY REGION Individual product markets for mechanical generating equipment are analysed by country, in nominal values in the PDF - for 2000, 2010 and annually from 2015 to 2020 - and in the Excel database annually from 2000 to 2020 for the world, 7 regions and 11 major countries. Product markets include boilers, steam turbines, gas turbines, HRSG (heat recovery steam generators), diesel & HFO engines, wind turbines, hydro turbines, solar PV modules, solar PV inverters, FGD (flue gas desulphurisation), SCR/SNCR (selective catalytic reduction/selective non-catalytic reduction), PM (particulate matter removal, ESP, scrubbers, fabric filters/baghouses), CPP (coal preparation plant), fly ash handling plant, insulated cable, compressors, piping, instruments and control equipment, GSU generator transformers, GCB (generator circuit breakers), switchgear and power plant automation. Vendor shares or rankings are provided for the individual categories/products and sections have marketing and technical commentary. Where available these have been supplemented with extracts from dedicated StatPlan product marketing reports, with higher levels of detail.
13. MECHANICAL AND ELECTRIAL EQUIPMENT IN GENERATION, TRANSMISSION AND DISTRIBUTION BY REGION
Product markets for mechanical generating equipment are analysed by country, in nominal values in the PDF - for 2000, 2010 and annually from 2015 to 2020 - and in the Excel database annually from 2000 to 2020 for the world, 7 regions and 11 major countries. Products include transformer, circuit breakers, energy cable - insulated and uninsulated conductors, utility automation and power plant automation. Vendor shares or rankings are provided for the individual categories/products and sections have marketing and technical commentary. Where available these have been supplemented with extracts from dedicated StatPlan product marketing reports, with higher levels of detail.
14. SALES OF TRANSMISSION AND DISTRIBUTION EQUIPMENT MARKETS BY REGION Product markets for T&D equipment are analysed by country, in nominal values in the PDF - for 2000, 2010 and annually from 2015 to 2020 - and in the Excel database annually from 2000 to 2020 for the
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world, 7 regions and 11 major countries. Products include switchgear, circuit protectors, surge arresters, distribution panels, fusegear, switches, disconnectors, protection relays, lightning arresters, isolators, insulators and bushings, spacers and dampers, HVDC, AC filters for HVDC, steel towers, poles of wood, concrete, steel and composite, pole-top assemblies, meters. Vendor shares or rankings are provided for the individual categories/products and sections have marketing and technical commentary. Where available these have been supplemented with extracts from dedicated StatPlan product marketing reports, with higher levels of detail.
15. THE VALUE CHAIN – FROM MATERIALS TO CAPEX The cost of any product can be measured at various stages, from being a piece of unworked metal, to
its installation in working order and finally as a share of capital expenditure. Different price levels
apply through the supply chain, and the point of interest in the chain depends on the business to
which the value is being applied. The report analyses the value chain at 6 levels, from BOM (bill of
materials) to capex, with all market-ups included. In using the market information in this and other
reports it is essential to specify which point in the value chain is being used. Capex can be 2½ times
the factory gate price, over 3 times manufacturing cost and 5 times materials cost.
16. PRICE TRENDS AND FACTORS DRIVING PRICES In recent years the prices of electrotechnical products have been voltile due to variations in many factors which affect them. Price trends are reviewed with commentary on PPI - Producer Price Index, industry trends, production capacity, and the manufacturing input cost composition.
METHODOLOGY
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PS5 POWER SECTOR REPORT GTD - CAPEX & MARKETS
TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................................................................. 15
THE POWER SECTOR REPORT ...................................................................................................................... 27
THE STRUCTURE OF THIS REPORT ............................................................................................................... 28
1. INTRODUCTION TO THE POWER SECTOR ............................................................................................ 29
The scale of the power sector ............................................................................................................. 29
The participants in the Power Sector .................................................................................................. 30
2. UTILITY SECTORS ................................................................................................................................. 32
3. OTHER UTILITY SECTORS, AS GENERATORS AND CONSUMERS .......................................................... 42
4. INDUSTRIAL AND CAPTIVE GENERATION ............................................................................................ 43
5. CONSUMERS OF ELECTRICITY AS INVESTORS ...................................................................................... 46
6. CAPITAL EXPENDITURE ........................................................................................................................ 51
Generation, Transmission and Distribution ........................................................................................ 51
7. GENERATION CAPEX BY ENERGY SOURCE ........................................................................................... 57
8. GENERATION TECHNOLOGIES ............................................................................................................. 64
Coal fired plants ................................................................................................................................... 66
Gas turbine simple cycle (OCGT) ......................................................................................................... 67
Gas turbine combined cycle (CCGT) .................................................................................................... 67
Oil-fired steam turbine plant ............................................................................................................... 68
Diesel engine-generator ...................................................................................................................... 68
Wind turbine ....................................................................................................................................... 69
Solar photovoltaic ............................................................................................................................... 69
Hydropower ......................................................................................................................................... 69
Nuclear power ..................................................................................................................................... 70
9. T&D CAPEX ............................................................................................................................................. 72
10. DEFINITION OF THE POWER SECTOR EQUIPMENT MARKET ............................................................... 75
11. REGIONAL AND NATIONAL EQUIPMENT MARKETS FOR GENERATION, T&D EQUIPMENT ................ 79
World ................................................................................................................................................... 79
United States ....................................................................................................................................... 83
Europe ................................................................................................................................................. 86
France .................................................................................................................................................. 89
Germany .............................................................................................................................................. 92
Italy ...................................................................................................................................................... 95
Spain .................................................................................................................................................... 98
United Kingdom ................................................................................................................................. 101
CIS ...................................................................................................................................................... 104
Russia ................................................................................................................................................. 107
Asia Pacific ......................................................................................................................................... 110
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Japan .................................................................................................................................................. 113
China .................................................................................................................................................. 116
India ................................................................................................................................................... 119
Southeast Asia ................................................................................................................................... 122
Middle East ........................................................................................................................................ 125
Africa ................................................................................................................................................. 128
Latin America ..................................................................................................................................... 131
Brazil .................................................................................................................................................. 134
12. SALES OF MECHANICAL GENERATION PLANT BY REGION ................................................................ 137
The total generating equipment market ........................................................................................... 137
Vendors ............................................................................................................................................. 138
Boilers ................................................................................................................................................ 140
Steam turbines .................................................................................................................................. 142
Gas turbines ....................................................................................................................................... 144
HRSG, Heat recovery steam generators ............................................................................................ 146
Diesel & HFO engines ........................................................................................................................ 148
Wind turbines .................................................................................................................................... 150
Hydro turbines ................................................................................................................................... 152
Solar PV modules ............................................................................................................................... 154
Solar PV inverters .............................................................................................................................. 156
FGD Flue gas desulphurisation .......................................................................................................... 158
SCR, Selective catalytic reduction/SCNR Selective non-catalytic reduction ...................................... 160
PM, Particulate removal; ESP, scrubbers, fabric filters/baghouses .................................................. 162
CPP, Coal preparation plant .............................................................................................................. 164
Fly ash handling plant ........................................................................................................................ 165
Compressors ...................................................................................................................................... 167
Piping ................................................................................................................................................. 168
Instruments and control equipment ................................................................................................. 169
13. MECHANICAL AND ELECTRIAL EQUIPMENT IN GENERATION, T&D BY REGION ............................... 170
Transformer categories ..................................................................................................................... 170
Circuit breakers ................................................................................................................................. 175
Energy cable - insulated and uninsulated conductors ...................................................................... 179
Utility automation ............................................................................................................................. 186
Power plant automation ................................................................................................................... 186
Utility automation – transmission and distribution .......................................................................... 186
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14. SALES OF TRANSMISSION AND DISTRIBUTION EQUIPMENT MARKETS BY REGION ........................ 189
Vendors ............................................................................................................................................. 190
Switchgear ......................................................................................................................................... 193
Circuit protectors ............................................................................................................................... 194
Surge arresters .................................................................................................................................. 195
Distribution panels ............................................................................................................................ 196
Fusegear ............................................................................................................................................ 198
Switches ............................................................................................................................................. 199
Disconnectors .................................................................................................................................... 200
Protection relays ............................................................................................................................... 201
Lightning arresters ............................................................................................................................. 202
Isolators ............................................................................................................................................. 203
Insulators and bushings, spacers and dampers ................................................................................. 205
Spacers and dampers ........................................................................................................................ 207
HVDC .................................................................................................................................................. 209
AC filters for HVDC ............................................................................................................................ 210
Steel towers ....................................................................................................................................... 212
Poles of wood, concrete, steel and composite ................................................................................. 215
Pole-top assemblies........................................................................................................................... 216
Meters ............................................................................................................................................... 218
15. THE VALUE CHAIN – FROM MATERIALS TO CAPEX ........................................................................... 224
The value chain at 6 levels ................................................................................................................. 224
16. PRICE TRENDS AND FACTORS DRIVING PRICES ................................................................................ 229
Price Trends ....................................................................................................................................... 229
PPI - Producer Price Index ................................................................................................................. 229
Industry.............................................................................................................................................. 230
Production capacity ........................................................................................................................... 230
Manufacturing input cost composition ............................................................................................. 231
METHODOLOGY ......................................................................................................................................... 235
Market sizing and bottom up forecasting ......................................................................................... 239
The Sanity Check and Validation ....................................................................................................... 239
FIGURES
Figure 1: The global utility landscape ........................................................................................................................... 32
Figure 2: Industry uses of different energy sources in the US ..................................................................................... 47
Figure 3: Energy use by type of industry in the US (All types of energy) ..................................................................... 47
Figure 4: % of total machine drive electricity used in manufacturing in the US .......................................................... 48
Figure 5: Machine drive electricity use as a percentage of total delivered energy use by each industry in the US .... 49
Figure 6: Total global capital expenditure on Generation, T&D, nominal $ billion 2000 to 2020 ............................... 51
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Figure 7: Comparison of expenditure on GTD in real ($2015) and nominal values, 2000-20 ...................................... 52
Figure 8: Global capital expenditure broken by GTD, nominal $ billion, 2000 to 2020 ............................................... 52
Figure 9: Total capex in Generation, T&D 2000-2010 compared with 2010-20. ......................................................... 53
Figure 10: Investment surges 1900 to2015 .................................................................................................................. 53
Figure 11: Total Capital Expenditure on Generation, Transmission and Distribution by region in 2016 ..................... 54
Figure 12: Capital expenditure on generation by energy source, nominal $ billion2000 to 2020, .............................. 55
Figure 13: Total Capital Expenditure on Generation, T&D by Region and Year, nominal $ billion, 2000, 2010, 2020 55
Figure 14: Composition of global capital expenditure Generation, Transmission and Distribution, 2015 .................. 56
Figure 15: Where circuit breakers are used in electricity systems ............................................................................ 175
Figure 16: Commodity price Index 1996 to 2016 ....................................................................................................... 231
Figure 17: Industrial metals prices 2007 to 2016 ....................................................................................................... 232
Figure 18: Labour compensation cost, including direct pay, social insurance expenditures, and labour taxes. ....... 233
Figure 19: Labour costs including wages and salaries, social insurance and labour-related taxes ............................ 233
Figure 20: Minimum wages in China in yuan per month 1995 to 2012 ..................................................................... 234
Figure 21:The composition of annual demand for capacity, new plus replacement ................................................. 236
TABLES
Table 1: Ownership of assets in the power sector by owner type ............................................................................... 31
Table 2: The world’s electrical utility landscape .......................................................................................................... 37
Table 3: Infrastructure of utilities ................................................................................................................................ 42
Table 4: Indian utilities’ generating capacity 1947 -2015 by fuel ................................................................................. 43
Table 5: Indian captive power plant generating capacity 1947 -2015 by fuel ............................................................. 44
Table 6: Sale of diesel gensets in India by international manufacturers > 1 MW from 1990 to 2004 ......................... 44
Table 7: World - Generation capex by technology, nominal $ million, 2000 to 2020 .................................................. 57
Table 8: USA - Generation capex by technology, nominal $ million, 2000 to 2020 ..................................................... 58
Table 9: Europe - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................ 58
Table 10: France - Generation capex by technology, nominal $ million, 2000 to 2020 ............................................... 59
Table 11: Germany - Generation capex by technology, nominal $ million, 2000 to 2020 ........................................... 59
Table 12: Italy - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................... 59
Table 13: Spain - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................. 59
Table 14: United Kingdom - Generation capex by technology, nominal $ million, 2000 to 2020 ................................ 60
Table 15: CIS - Generation capex by technology, nominal $ million, 2000 to 2020 ..................................................... 60
Table 16: Russia- Generation capex by technology, nominal $ million, 2000 to 2020 ................................................ 60
Table 17: Asia Pacific - Generation capex by technology, nominal $ million, 2000 to 2020 ........................................ 60
Table 18: Japan - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................ 61
Table 19: China - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................. 61
Table 20: India - Generation capex by technology, nominal $ million, 2000 to 2020 .................................................. 61
Table 21: Korea, Australasia - Generation capex by technology, nominal $ million, 2000 to 2020 ............................. 61
Table 22: South East Asia - Generation capex by technology, nominal $ million, 2000 to 2020 ................................. 62
Table 23: Middle East - Generation capex by technology, nominal $ million, 2000 to 2020 ....................................... 62
Table 24: Africa - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................ 62
Table 25: LAC - Generation capex by technology, nominal $ million, 2000 to 2020.................................................... 62
Table 26: Brazil - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................. 63
Table 27: Composition of generation capex over all technologies, 2000 and 2015 .................................................... 64
Table 28: Some principal cost components of generating capex ................................................................................. 65
Table 29: Cost breakdown of capex in construction of a coal fired plant at installed cost .......................................... 67
Table 30: Cost breakdown of capex in construction of gas-fired OCGT or CCGT plant at installed cost ..................... 68
Table 31: Cost breakdown of capex in construction of an oil-fired steam turbine plant at installed cost .................. 68
Table 32: Cost breakdown of capex in construction of a diesel or FO reciprocating engine plant at installed cost .... 68
Table 33: Cost breakdown of capex in construction of a wind turbine at installed cost ............................................. 69
Table 34: Cost breakdown of capex in construction of a solar PV plant at installed cost ............................................ 69
Table 35: Cost breakdown of capex in construction of a hydropower plant at installed cost ..................................... 70
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Table 36: Cost breakdown of capex in construction of a nuclear power plant (equipment costs at installed cost) ... 71
Table 37: World – T&D capex by technology, nominal $ million, 2000 to 2020 .......................................................... 72
Table 38: USA - T&D capex, nominal $ million, 2000 to 2020 ...................................................................................... 72
Table 39: Europe - T&D capex, nominal $ million, 2000 to 2020 ................................................................................. 72
Table 40: France - T&D capex, nominal $ million, 2000 to 2020 .................................................................................. 72
Table 41: Germany - T&D capex, nominal $ million, 2000 to 2020 .............................................................................. 72
Table 42: Italy - T&D capex, nominal $ million, 2000 to 2020 ..................................................................................... 72
Table 43: Spain - T&D capex, nominal $ million, 2000 to 2020 .................................................................................... 72
Table 44: United Kingdom - T&D capex, nominal $ million, 2000 to 2020 .................................................................. 73
Table 45: CIS - T&D capex, nominal $ million, 2000 to 2020 ....................................................................................... 73
Table 46: Russia- T&D capex, nominal $ million, 2000 to 2020 ................................................................................... 73
Table 47: Asia Pacific - T&D capex, nominal $ million, 2000 to 2020 .......................................................................... 73
Table 48: Japan - T&D capex, nominal $ million, 2000 to 2020 ................................................................................... 73
Table 49: China - T&D capex, nominal $ million, 2000 to 2020 ................................................................................... 73
Table 50: India - T&D capex, nominal $ million, 2000 to 2020 .................................................................................... 73
Table 51: Southeast Asia - T&D capex, nominal $ million, 2000 to 2020 ..................................................................... 73
Table 52: Middle East - T&D capex, nominal $ million, 2000 to 2020 ......................................................................... 74
Table 53: Africa - T&D capex, nominal $ million, 2000 to 2020 ................................................................................... 74
Table 54: LAC - T&D capex, nominal $ million, 2000 to 2020 ...................................................................................... 74
Table 55: Brazil - T&D capex, nominal $ million, 2000 to 2020.................................................................................... 74
Table 56: Generation equipment cost in nominal $ million, at purchase price, at installed cost and ......................... 79
Table 57: Transmission equipment cost, at purchase price, at installed cost and % of capex, World, 2000-20 ......... 79
Table 58: Distribution equipment cost , at purchase price, at installed cost and % of capex, World, 2000-20........... 79
Table 59: Ratio of sales of mechanical and electrical equipment in generation and T&D, 2000 to 2020 ................... 80
Table 60: Generation equipment cost at purchase price in nominal $ million, World, 2000 to 2020 ......................... 80
Table 61: Transmission equipment cost at purchase price in nominal $ million, World, 2000-20 .............................. 81
Table 62: Distribution equipment cost at purchase price in nominal $ million, World, 2000-20 ................................ 82
Table 63: Generation equipment cost , at purchase price, at installed cost and ......................................................... 83
Table 64: Transmission equipment cost , at purchase price, at installed cost and % of capex, USA, 2000-20 ............ 83
Table 65: Distribution equipment cost , at purchase price, at installed cost and % of capex, USA, 2000-20 .............. 83
Table 66: Generation equipment cost at purchase price in nominal $ million, United States, 2000 to 2020 ............. 83
Table 67: Transmission equipment cost at purchase price in nominal $ million, USA, 2000-20 ................................. 84
Table 68: Distribution equipment cost at purchase price in nominal $ million, USA, 2000-20 ................................... 85
Table 69: Generation equipment cost, at purchase price, at installed cost and % of capex, Europe, 2000-20 ........... 86
Table 70: Transmission equipment cost, at purchase price, at installed cost and % of capex, Europe, 2000-20 ........ 86
Table 71: Distribution equipment cost, at purchase price, at installed cost and % of capex, Europe, 2000-20 .......... 86
Table 72: Generation equipment cost at purchase price in nominal $ million, Europe, 2000 to 2020 ....................... 86
Table 73: Transmission equipment cost at purchase price in nominal $ million, Europe, 2000-20 ............................ 87
Table 74: Distribution equipment cost at purchase price in nominal $ million, Europe, 2000-20 .............................. 88
Table 75: Generation equipment cost, at purchase price, at installed cost and.......................................................... 89
Table 76: Transmission equipment cost, at purchase price, at installed cost and % of capex, France, 2000-20 ........ 89
Table 77: Distribution equipment cost, at purchase price, at installed cost and % of capex, France, 2000-20 ........... 89
Table 78: Generation equipment cost at purchase price in nominal $ million, France, 2000 to 2020 ........................ 89
Table 79: Transmission equipment cost at purchase price in nominal $ million, France, 2000-20 ............................. 90
Table 80: Distribution equipment cost at purchase price in nominal $ million, France, 2000-20 ............................... 91
Table 81: Generation equipment cost, at purchase price, at installed cost and % of capex, Germany, 2000-20 ....... 92
Table 82: Transmission equipment cost, at purchase price, at installed cost and % of capex, Germany, 2000-20..... 92
Table 83: Distribution equipment cost, at purchase price, at installed cost and % of capex, Germany, 2000-20 ....... 92
Table 84: Generation equipment cost at purchase price in nominal $ million, Germany, 2000 to 2020 .................... 92
Table 85: Transmission equipment cost at purchase price in nominal $ million, Germany, 2000-20 ......................... 93
Table 86: Distribution equipment cost at purchase price in nominal $ million, Germany, 2000-20 ........................... 94
Table 87: Generation equipment cost , at purchase price, at installed cost and % of capex, Italy, 2000-20 .............. 95
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Table 88: Transmission equipment cost, at purchase price, at installed cost and % of capex, Italy, 2000-20 ............. 95
Table 89: Distribution equipment cost, at purchase price, at installed cost and % of capex, Italy, 2000-20 ............... 95
Table 90: Generation equipment cost at purchase price in nominal $ million, Italy, 2000 to 2020 ............................ 95
Table 91: Transmission equipment cost at purchase price in nominal $ million, Italy, 2000-20 ................................. 96
Table 92: Distribution equipment cost at purchase price in nominal $ million, Italy, 2000-20 ................................... 97
Table 93: Generation equipment cost , at purchase price, at installed cost and % of capex, Spain, 2000-20 ............. 98
Table 94: Transmission equipment cost , at purchase price, at installed cost and % of capex, Spain, 2000-20 .......... 98
Table 95: Distribution equipment cost , at purchase price, at installed cost and % sof capex, Spain, 2000-20 .......... 98
Table 96: Generation equipment cost at purchase price in nominal $ million, Spain, 2000 to 2020 .......................... 98
Table 97: Transmission equipment cost at purchase price in nominal $ million, Spain, 2000-20 ............................... 99
Table 98: Distribution equipment cost at purchase price in nominal $ million, Spain, 2000-20 ............................... 100
Table 99: Generation equipment cost , at purchase price, at installed cost and % of capex, UK, 2000-20 ............... 101
Table 100: Transmission equipment cost , at purchase price, at installed cost and % of capex, UK, 2000-20 .......... 101
Table 101: Distribution equipment cost, at purchase price, at installed cost and % of capex, UK, 2000-20 ............ 101
Table 102: Generation equipment cost at purchase price in nominal $ million, United Kingdom, 2000 to 2020 ..... 101
Table 103: Transmission equipment cost at purchase price in nominal $ million, UK, 2000-20 ................................ 102
Table 104: Distribution equipment cost at purchase price in nominal $ million, UK, 2000-20 .................................. 103
Table 105: Generation equipment cost, at purchase price, at installed cost and % of capex, CIS, 2000 to 2020...... 104
Table 106: Transmission equipment cost, at purchase price, at installed cost and % of capex, CIS, 2000-20 ........... 104
Table 107: Distribution equipment cost , at purchase price, at installed cost and % of capex, CIS, 2000-20 ............ 104
Table 108: Generation equipment cost at purchase price in nominal $ million, CIS, 2000 to 2020 .......................... 104
Table 109: Transmission equipment cost at purchase price in nominal $ million, CIS, 2000-20 ............................... 105
Table 110: Distribution equipment cost at purchase price in nominal $ million, CIS, 2000-20 ................................. 106
Table 111: Generation equipment cost, at purchase price, at installed cost and % of capex, Russia, 2000 to 2020 107
Table 112: Transmission equipment cost, at purchase price, at installed cost and % capex, Russia, 2000-20 .......... 107
Table 113: Distribution equipment cost, at purchase price, at installed cost and % of capex, Russia, 2000-20 ....... 107
Table 114: Generation equipment cost at purchase price in nominal $ million, Russia, 2000 to 2020 ..................... 107
Table 115: Transmission equipment cost at purchase price in nominal $ million, Russia, 2000-20 .......................... 108
Table 116: Distribution equipment cost at purchase price in nominal $ million, Russia, 2000-20 ............................ 109
Table 117: Generation equipment cost , purchase price, at installed cost and % of capex, Asia Pacific, 2000-20 .... 110
Table 118: Transmission equipment cost , purchase price, at installed cost and % of capex, Asia Pacific, 2000-20 . 110
Table 119: Distribution equipment cost , purchase price, at installed cost and % capex, Asia Pacific, 2000-20 ....... 110
Table 120: Generation equipment cost, purchase price , Asia Pacific, 2000 to 2020 ................................................ 110
Table 121: Transmission equipment cost, purchase price , Asia Pacific, 2000-20 ..................................................... 111
Table 122: Distribution equipment cost, purchase price, Asia Pacific, 2000-20 ........................................................ 112
Table 123: Generation equipment cost, purchase price, at installed cost and % of capex, Japan, 2000-20 ............. 113
Table 124: Transmission equipment cost, purchase price, at installed cost and % of capex, Japan, 2000-20........... 113
Table 125: Distribution equipment cost, purchase price, at installed cost and % of capex, Japan, 2000-20 ............ 113
Table 126: Generation equipment cost, purchase price , Japan, 2000 to 2020 ......................................................... 113
Table 127: Transmission equipment cost, purchase price , Japan, 2000-20 .............................................................. 114
Table 128: Distribution equipment cost, purchase price in nominal $ million, Japan, 2000-20 ................................ 115
Table 129: Generation equipment cost, purchase price, at installed cost and % of capex, China, 2000-20 ............. 116
Table 130: Transmission equipment cost, purchase price, at installed cost and % of capex, China, 2000-20 ........... 116
Table 131: Distribution equipment cost, purchase price, at installed cost and % of capex, China, 2000-20 ............. 116
Table 132: Generation equipment cost, purchase price, China, 2000 to 2020 .......................................................... 116
Table 133: Transmission equipment cost, purchase price, China, 2000-20 ............................................................... 117
Table 134: Distribution equipment cost, purchase price, China, 2000-20 ................................................................. 118
Table 135: Generation equipment cost, purchase price, at installed cost and % of capex, India, 2000-20 .............. 119
Table 136: Transmission equipment cost, purchase price, at installed cost and % of capex, India, 2000-20 ............ 119
Table 137: Distribution equipment cost, purchase price, at installed cost and % of capex, India, 2000-20 .............. 119
Table 138: Generation equipment cost, purchase price, India, 2000 to 2020 ........................................................... 119
Table 139: Transmission equipment cost, purchase price, India, 2000-20 ................................................................ 120
10
Table 140: Distribution equipment cost, purchase price , India, 2000-20 ................................................................ 121
Table 141: Generation equipment cost, purchase price, installed cost and % of capex, Southeast Asia, 2000-20 .. 122
Table 142: Transmission equipment cost, purchase price, at installed cost and % of capex, SE Asia, 2000-20 ........ 122
Table 143: Distribution equipment cost, purchase price, at installed cost and % of capex, SE Asia, 2000-20 .......... 122
Table 144: Generation equipment cost, purchase price, Southeast Asia, 2000 to 2020 ........................................... 122
Table 145: Transmission equipment cost, purchase price, SE Asia, 2000-20 ............................................................. 123
Table 146: Distribution equipment cost, purchase price, SE Asia, 2000-20 ............................................................... 124
Table 147: Generation equipment cost, purchase price, at installed cost and % of capex, Middle East, 2000-20 ... 125
Table 148: Transmission equipment cost, purchase price, at installed cost and % of capex, Middle East, 2000-20 . 125
Table 149: Distribution equipment cost, purchase price, at installed cost and % of capex, Middle East, 2000-20 ... 125
Table 150: Generation equipment cost, purchase price, Middle East, 2000 to 2020 ................................................ 125
Table 151: Transmission equipment cost, purchase price, ME, 2000-20 ................................................................... 126
Table 152: Distribution equipment cost, purchase price, Middle East, 2000-20 ....................................................... 127
Table 153: Generation equipment cost, purchase price, at installed cost and % of capex, Africa, 2000-20 ............. 128
Table 154: Transmission equipment cost, purchase price, at installed cost and % of capex, Africa, 2000-20 .......... 128
Table 155: Distribution equipment cost, purchase price, at installed cost and % of capex, Africa, 2000-20 ............ 128
Table 156: Generation equipment cost, purchase price, Africa, 2000 to 2020 ......................................................... 128
Table 157: Transmission equipment cost, purchase price, Africa, 2000-20 ............................................................... 129
Table 158: Distribution equipment cost, purchase price, Africa, 2000-20 ................................................................. 130
Table 159: Generation equipment cost, at purchase price, at installed cost and % of capex, LAC, 2000-20 ............ 131
Table 160: Transmission equipment cost, at purchase price, at installed cost and % of capex, LAC, 2000-20 ......... 131
Table 161: Distribution equipment cost, at purchase price, at installed cost and % of capex, LAC, 2000-20 ........... 131
Table 162: Generation equipment cost, purchase price , Latin America, 2000 to 2020 ............................................ 131
Table 163: Transmission equipment cost, purchase price , LAC, 2000-20 ................................................................. 132
Table 164: Distribution equipment cost, purchase price , LAC, 2000-20 ................................................................... 133
Table 165: Generation equipment cost, purchase price, at installed cost and % share of capex, Brazil, 2000-20 .... 134
Table 166: Transmission equipment cost, purchase price, at installed cost and % share of capex, Brazil, 2000-20 . 134
Table 167: Distribution equipment cost, purchase price, at installed cost and % share of capex, Brazil, 2000-20 ... 134
Table 168: Generation equipment cost, purchase price , Brazil, 2000 to 2020 ......................................................... 134
Table 169: Transmission equipment cost,purchase price , Brazil, 2000-20 ............................................................... 135
Table 170: Distribution equipment cost, purchase price , Brazil, 2000-20 ................................................................ 136
Table 171: Sales of generation equipment, purchase price by region and country , 2000-20 .................................. 137
Table 172: Market shares of generating equipment vendors, 2015 .......................................................................... 139
Table 173: Sales of boilers at purchase price by region and country, 2000 to 2020 ................................................. 140
Table 174: Leaders in industrial boiler production .................................................................................................... 141
Table 175: Sales of steam turbines, generators & condensers at purchase price by region and country, 2000-20 .. 143
Table 176: Market shares of steam turbine vendors, 2015 ....................................................................................... 143
Table 177: Sales of gas turbines & generators at purchase price by region and country, 2000 to 2020 ................... 144
Table 178: Market shares of gas turbine vendors, 2015 ............................................................................................ 145
Table 179: Sales of HRSG heat recovery steam generators at purchase price by region and country, 2000-20 ....... 146
Table 180: Leaders in HRSG production ..................................................................................................................... 147
Table 181: Sales of HFO/diesel reciprocating engines at purchase price by region and country in .......................... 148
Table 182: Diesel engine vendors.............................................................................................................................. 149
Table 183: Sales of wind turbine at purchase price by region and country in nominal $ million, 2000-20 ............... 150
Table 184: Global market shares of wind turbine manufacturers, 2015 ................................................................... 151
Table 185: Global market shares of off-shore wind turbine manufacturers, 2015 .................................................... 151
Table 186: Types of hydro turbine with applications ................................................................................................. 152
Table 187: Sales of hydro turbine, generator and regulators at purchase price by region and country, 2000-20 .... 152
Table 188: Global market shares of off-shore wind turbine manufacturers, 2015 .................................................... 153
Table 189: Sales of solar PV modules at purchase price by region and country in nominal $ million, 2000-20 ........ 154
Table 190: Global market ranking of top 10 solar PV manufacturers, ranked by MW shipped, 2014 ....................... 155
Table 191: Sales of solar PV inverters at purchase price by region and country in nominal $ million, 2000-20 ....... 156
11
Table 192: Global market ranking of top 7 solar inverter manufacturers, ranked by value, 2015 ............................ 157
Table 193: Sales of FGD flue gas desulphurization at purchase price by region and country, 2000-20 .................... 158
Table 194: Top FGD vendors ...................................................................................................................................... 159
Table 195: Sales of SCR selective catalytic reduction at purchase price by region and country, 2000-20 ................ 160
Table 196: Top SCR vendors ....................................................................................................................................... 161
Table 197: Sales of particulate removal at purchase price by region and country, 2000-20 ..................................... 162
Table 198: Top PM removal vendors ......................................................................................................................... 163
Table 199: Sales of CPP coal preparation plant at purchase price by region and country , 2000-20 ........................ 164
Table 200: Sales of fly ash handling plant at purchase price by region and country lion, 2000-20 ........................... 165
Table 201: Top coal handling vendors ....................................................................................................................... 166
Table 202: Sales of compressors at purchase price by region and country , 2000-20 ............................................... 167
Table 203: Compressor manufacturers ...................................................................................................................... 167
Table 204: Sales of piping at purchase price by region and country , 2000-20 ......................................................... 168
Table 205: Piping companies/installers market share in China ................................................................................. 168
Table 206: Sales of instruments and control equipment at purchase price by region and country , 2000-20 .......... 169
Table 207: Sales of GSU generator transformers at purchase price by region and country, 2000-20 ....................... 171
Table 208: Sales of power transformers at purchase price by region and country, 2000-20 .................................... 171
Table 209: Sales of distribution transformers at purchase price by region and country, 2000-20 ............................ 172
Table 210: Transformer manufacturers market shares ............................................................................................. 174
Table 211: Sales of GCB generator circuit breakers at purchase price by region and country, 2000-20 ................... 176
Table 212: Sales of HV circuit breakers at purchase price by region and country, 2000-20 ...................................... 177
Table 213: Sales of MV circuit breakers at purchase price by region and country, 2000-20 ..................................... 177
Table 214: GCB circuit breakers and switchgear market shares ................................................................................ 178
Table 215: cable types ................................................................................................................................................ 179
Table 216: Sales of insulated cable in the generation sector, purchase price by region and country , 2000-20 ....... 180
Table 217: Sales of HV cable in transmission including subsea, purchase price by region and country, 2000-20 .... 180
Table 218: Sales of MV and LV cable including MV subsea, purchase price by region and country, 2000-20 .......... 181
Table 219: Sales of HV bare conductors at purchase price by region and country, 2000-20 .................................... 181
Table 220: Sales of MV and LV bare conductors at purchase price by region and country, 2000-20 ........................ 182
Table 221: The top global cable manufacturers by industry ...................................................................................... 183
Table 222: Cable manufacturers global market shares by country............................................................................ 183
Table 223: Sales of generator utility automation at purchase price by region and country, 2000-20 ...................... 186
Table 224: Sales of automation technology for transmission, purchase price by region and country, 2000-20 ....... 188
Table 225: Sales of distribution automation including SCADA, purchase price by region and country, 2000-20 ..... 188
Table 226: Sales of transmission equipment at purchase price by region and country, 2000 to 2020 ..................... 189
Table 227: Sales of distribution equipment at purchase price by region and country, 2000 to 2020 ....................... 190
Table 228: Overall T&D market leaders ..................................................................................................................... 191
Table 229: Voltage levels in switchgear categories.................................................................................................... 193
Table 230: Sales of transmission circuit protectors at purchase price by region and country, 2000-20 ................... 194
Table 231: Sales of distribution circuit protectors at purchase price by region and country, 2000-20 ..................... 194
Table 232: Sales of at transmission surge arresters purchase price by region and country, 2000-20 ....................... 195
Table 233: Sales of at distribution surge arresters purchase price by region and country, 2000-20 ........................ 195
Table 234: Sales of distribution panels at purchase price by region and country, 2000-20 ...................................... 196
Table 235: Sales of air core reactors for transmission at purchase price by region and country, 2000-20 ............... 197
Table 236: Sales of air core reactors for distribution at purchase price by region and country, 2000-20 ................. 197
Table 237: Sales of transmission fusegear at purchase price by region and country, 2000-20 ................................. 198
Table 238: Sales of distribution fusegear at purchase price by region and country, 2000-20 ................................... 198
Table 239: Sales of transmission switches at purchase price by region and country, 2000-20 ................................. 199
Table 240: Sales of distribution switches at purchase price by region and country, 2000-20 ................................... 199
Table 241: Sales of disconnectors for transmission at purchase price by region and country, 2000-20 ................... 200
Table 242: Sales of disconnectors for distribution at purchase price by region and country, 2000-20 ..................... 200
Table 243: Sales of protection relays for transmission at purchase price by region and country, 2000-20 .............. 201
12
Table 244: Sales of protection relays for distribution at purchase price by region and country, 2000-20 ............... 201
Table 245: Sales of lightning arresters for transmission at purchase price by region and country, 2000-20 ........... 202
Table 246: Sales of lightning arresters for distribution at purchase price by region and country, 2000-20 ............. 202
Table 247: Sales of isolators for transmission at purchase price by region and country, 2000-20 ........................... 203
Table 248: Sales of isolators for distribution at purchase price by region and country, 2000-20 ............................. 203
Table 249: Switchgear market shares, 2015 .............................................................................................................. 204
Table 250: Sales of HV insulators and bushings at purchase price by region and country, 2000-20 ........................ 205
Table 251: Sales of MV and LV insulators and bushings at purchase price by region and country, 2000-20............ 206
Table 252: Sales of HV spacers and dampers at purchase price by region and country, 2000-20 ............................ 207
Table 253: Sales of MV spacers and dampers at purchase price by region and country, 2000-20 ........................... 208
Table 254: Number of HVDC installations ................................................................................................................. 209
Table 255: Sales of HVDC capacitors at purchase price by region and country, 2000-20 ......................................... 210
Table 256: Sales of AC filters at purchase price by region and country, 2000-20 ..................................................... 210
Table 257: HVDC vendors share by MW capacity ..................................................................................................... 211
Table 258: Sales of steel transmission towers, purchase price by region and country, 2000-20 .............................. 213
Table 259: Sales of steel primary distribution towers, purchase price by region and country, 2000-20 .................. 213
Table 260: Sales of sub-transmission poles, purchase price by region and country, 2000-20 .................................. 215
Table 261: Sales of distribution poles, purchase price by region and country in nominal $ million, 2000 to 2020 .. 216
Table 262: Sales of pole-top assemblies for transmission poles, purchase price by region and country, 2000-20 .. 216
Table 263: Sales of pole-top assemblies for distribution poles,purchase price by region and country, 2000 -20 .... 217
Table 264: Sales of grid, commercial and indusrial meters, purchase price by region and country , 2000-20 ......... 218
Table 265: Sales of residential meters, purchase price by region and country , 2000-20 ......................................... 219
Table 266: Sales of HV smart grid technology for transmission at purchase price by region and country ,2000-20 220
Table 267: Sales of MV smart grid technology for distribution at purchase price by region and country , 2000-20 220
Table 268: Global meter market shares 2015 ........................................................................................................... 222
Table 269: Costs and mark-up from Bill of Materials to Capex ................................................................................. 225
Table 270: Products and technologies used in generating plants ............................................................................. 237
Table 271: Products and technologies used in transmission ..................................................................................... 238
Table 272: Products and technologies used in distribution ...................................................................................... 238
13
PS 5 - SAMPLE PAGES
By 2016 Chinese investment had grown so fast that this year it will be almost double the amount invested
either in the United States, $XXX billion versus $XXX billion, and $XXX billion in Europe. Combined, the
United States, China and Europe will account for XX% global investment in the power sector in 2016. India
is the third largest investing country, with $XX billion.
Generation capex by technology, nominal $ million, 2000 to 2020 (Table 36)
2000 2010 2015 2016 2017 2018 2019 2020
Coal
Gas
Oil
Nuclear
Hydro
Wind
Solar PV utility scale
Solar PV small rooftop
Bioenergy
Generation
Tables 37 to 55 contain analysis of transmission and distribution capex for the major regions and countries.
Table 1: World – T&D capex by technology, nominal $ million, 2000 to 2020
2000 2010 2015 2016 2017 2018 2019 2020
Transmission
Distribution
T&D
The expenditure in the generation sector is made up of several components. In 2015 XX% was composed
of civil works, owner’s cost and indirect costs, XX% on installation and XX% on the purchase of equipment.
In the generation segment mechanical plant far outweighs electrical, with XX% versus X%. Solar PV
modules rose to XX% in 2015 after a meteoric rise in the previous few years.
Composition of generation capex over all technologies, 2015 (Table 56)
Share of capex
Mechanical equipment
Electrical equipment
Solar PV modules
Installation cost
Civil, indirect cost and owner's cost
Capex
Equipment Markets
The analysis of the equipment markets is concerned with the XX% of capex devoted to purchases of plant
and equipment at buyer’s prices. The definition of buyer’s price varies with the type of equipment because
different equipment is sold through different marketing channels which incur different mark-ups at various
stages. An HV power transformer is a bespoke item which is purchased direct from the manufacturer to a
14
unique specification. The buyer’s price is therefore the manufacturer’s selling price. An MV or LV
transformer is a commodity item held in stock and purchased from a distributor, who adds a mark-up to
the manufacturer’s selling price. See Chapter 16 The Value Chain – From Materials to Capex.
There are just over XXX electricity, gas and water & waste utilities in the world; XXX electricity, XXX gas
and XXX water & waste. With numbers like these the range in size is huge, especially for water. The XXX
electrical utilities are the core of the power sector, the XXX gas and water & waste utilities consume a lot
of energy and except for smallest water distributors they mostly generate it themselves. The XXX electrical
utilities are the primary constituents of the power sector, the XXX gas and water & waste utilities are
secondary. The utilities have developed in diverse ways in the regions of the world.
15
Table 2: Generation equipment cost in nominal $ million, at purchase price, at installed cost and
% share of capex, World, 2000 to 2020
$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020
Equipment price
Installed cost
Capex
Equipment price
Installed cost
Capex
Generation equipment cost at purchase price in nominal $ million, World, 2000 to 2020
(Table 76)
$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020
Boilers
Steam turbines, generators and condensers
Gas turbines and generators
HRSG heat recovery steam generators
HFO/diesel reciprocating engines
Wind turbines
Hydro turbines, generator and regulators
Solar PV modules
Solar PV inverters
FGD flue gas desulphurisation
SCR selective catalytic reduction
Particulate removal (ESB, scrubbers, baghouse)
CPP coal preparation plant
Fly ash handling plant
Insulated cable
Compressors
Piping
Instruments and control
BOP/general facilities
Generator transformers
GCB generator circuit breakers
Other switchgear
Other electrical
Utility automation
Total equipment purchase price
Vendors
Different sets of competitors compete in the different world regions, but that the leading European and
American players. Three companies are leaders in almost every sector of the generating industry and
operate globally; GE, Siemens and Alstom. In 2015 GE acquired Alstom Power and Grid. It is the largest
investment GE has ever made. Close to 25% of the world’s power production capacity depends on Alstom
technology and services. ABB ranks equal to the three leaders in prestige but is dominant in transmission
and distribution…………………………
16
Circuit protectors
Table 3: Sales of transmission circuit protectors at purchase price by region and country in nominal
$ million, 2000 to 2020
$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020
World
USA
France
Germany
Italy
Spain
United Kingdom
Europe
Russia
CIS
Japan
China
India
Southeast Asia
Asia Pacific
Middle East
Africa
Brazil
Latin America
Table 4: Sales of distribution circuit protectors at purchase price by region and country in nominal
$ million, 2000 to 2020
$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020
World
USA
France
Germany
Italy
Spain
United Kingdom
Europe
Russia
CIS
Japan
China
India
Southeast Asia
Asia Pacific
Middle East
Africa
Brazil
Latin America
17
Sales of generation equipment at purchase price by region and country in nominal $ million, 2000 to
2020 (Table 113)
$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020
World
USA
France
Germany
Italy
Spain
United Kingdom
Europe
Russia
CIS
Japan
China
India
South East Asia
Asia Pacific
Middle East
Africa
Brazil
Latin America
18
Hydro turbines
Hydropower is providing approximately 17% of the world's electricity and more than 50% of clean,
renewable electricity output annually, worldwide. It has been estimated that only a third of the total world
hydro power capacity has been developed. However, this market has some drawbacks, such ecological
concern related to dams, relocation and rehabilitation of affected stakeholders, environmental Issues such
as methane from decaying vegetation, long gestation period and the high installation cost of dams.
There are a number of different hydropower turbine types available that are suited to different heads and
flows. The table below summarises the main hydropower turbines that are available.
Table 5: Types of hydro turbine with applications
Hydropower Turbine Type Typical Site Characteristics
Archimedean Screw Low heads (1.5 – 5 metres) Medium to high flows (1 to 20 m3/s).For higher flows multiple screws are used.
Crossflow turbine Low to medium heads (2 – 40 metres) Low to medium flows (0.1 – 5 m3/s)
Kaplan turbine Low to medium heads (1.5 – 20 metres) Medium to high flows (3 m3/s – 30 m3/s) For higher flows multiple turbines can be used.
Pelton/Turgo turbine High heads (greater than 25 metres) Lower flows (0.01 m3/s – 0.5 m3/s)
Waterwheels Low heads (1 – 5 metres) Medium flows (0.3 – 1.5 m3/s)
Francis turbines No longer commonly used except in very large storage hydropower systems. For older turbines : Low to medium heads (1.5 – 20 metres) Medium flows (0.5 – 4 m3/s)
Table 6: Sales of hydro turbine, generator and regulators at purchase price by region and country
in nominal $ million, 2000 to 2020
$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020
World
USA
France
Germany
Italy
Spain
United Kingdom
Europe
Russia
CIS
Japan
China
India
South East Asia
Asia Pacific
Middle East
Africa
Brazil
Latin America
19
1. THE VALUE CHAIN – FROM MATERIALS TO CAPEX
The cost of any product such as cable, transformers or circuit breakers can be measured in a number of
ways, from being a piece of unworked metal, to its final installation in working order and finally as a
constituent of capital expenditure. Different price levels are important in this supply chain, and the point
of interest in the chain depends on the business to which the value is being applied. The value chain starts
with the input of raw materials, such as cold rolled steel, GOES, copper, aluminium etc. These inputs
typically constitute from 60-80% of the manufacturing cost of a finished product.
The value chain at 6 levels
1. BOM, bill of materials - Metal producers and refiners are concerned about the prices they can get for
their output in its basic form, ingots, rods, plates etc. For the equipment manufacturers this price
translates into the BOM (bill of materials) as a cost of production.
2. Manufactured cost - Adding the cost of fabricating the materials into finished products produces the
manufactured cost.
3. Factory gate price (MSP) - The addition of non-manufacturing costs such as sales and finance costs
brings it up to the factory gate price or manufacturer’s selling price. This does not include any transport
cost. (Note: factory gate price is sometimes quoted with manufacturer’s profit and sometimes not.)
4. Buyer’s price (equivalent to RSP) - Products such as electrical equipment is almost always sold with a
multi-channel strategy. Power and distribution transformers are a good example; there are usually
two sales channels. Power and large distribution transformers are bespoke items, each one
manufactured to a unique design for a unique purpose. They are ordered direct from manufacturers
and the buyer’s price is the factory gate price. Smaller distribution transformers are commodity items
and are stocked by distributors, who purchase them from the manufacturers, so the end-user’s
purchase price includes the distributor’s mark-up and profit, typically 30-35% of MSP. This stage may
also include an electrical contractor’s mark-up. Some utilities and industries keep these costs in-house
but the aging of skilled work forces is increasing leading to outsourcing as much as possible.
5. Installed equipment cost - The final stage in the value chain of the product takes in the cost of
transport and installation, currently around 25%-30%. It is the cost to the end-user of having an item
of equipment installed in working order.
6. Capex – However, the end-user has further costs which are not directly related to the equipment being
installed although the equipment cannot function without these activities;
Civil and structural costs – site preparation, drainage, construction of buildings on the site etc;
Project indirect costs – engineering, distribution labour and materials, scaffolding, costruction
management etc;
Owner’s cost - these included planning, feasibility and engineering studies, legal feees, permits,
insurance costs, property taxes etc:
The BOM affects each stage in the value chain, because everything starts with it but there are additions in
the value chain which are not dependent on the cost of materials. The manufacturing process is
independent of the cost of the materials, but the next sage in the value chain, the manufactured cost is
highly dependent on the cost of materials. In Stage 3, the manufacturer’s selling price, the non-
manufacturing costs such as sales and administration costs are not dependent on the cost of materials. In
stage 4, where a distributor adds a mark-up it is customarily as a % of the manufacturer’s selling price,
although not all of the costs of distribution will escalate with the price of the product. Finance,
warehousing and insurance costs will rise as the cost of the product increases but other distributor’s
costs………