Thermal Power Plant Market To Boom at USD 30.2 Bn by 2033

Introduction

New York, NY – February 17, 2025 – The Global Thermal Power Plant Market is seeing a steady increase in demand, projected to grow from USD 22.7 billion in 2023 to around USD 30.2 billion by 2033, with a CAGR of 2.9% over the next decade.

This growth is fueled by an ongoing need for reliable and consistent power supply in both developing and industrialized regions. Despite the shift towards renewable energy, thermal power remains popular due to its ability to meet large-scale energy demands and provide stability to the power grid. Opportunities in the market are expanding, especially in regions where access to other forms of energy is limited or unreliable.

Additionally, advancements in technology are making thermal power plants more efficient and environmentally friendly, which could further drive market expansion by attracting investments in upgrading existing facilities and constructing new ones. This blend of demand, technological progress, and strategic investments paints a promising picture for the future of the thermal power plant market.

Key Takeaways

• The Global Thermal Power Plant Market is expected to be worth around USD 30.2 Billion by 2033, up from USD 22.7 Billion in 2023, and grow at a CAGR of 2.9% from 2024 to 2033.
• Coal accounts for 57.1% of the thermal power plant market fuel type distribution.
• Power plants with a capacity between 500-1,000 MW represent 39.1% of the market share.
• Combined cycle turbines are preferred in 73.1% of thermal power plants, dominating the turbine type.
• Conventional technology leads in thermal power generation, comprising 54.2% of the technology segment.
• Industrial applications utilize 57.1% of thermal power, indicating a strong sector reliance.
• Baseload power generation, essential for steady electricity supply, constitutes 65.2% of the end use.
• Asia-Pacific Dominates Thermal Power Plant Market with 46.1%, Valued at USD 10.5 Billion.

Report Scope

Emerging Trends

• Natural Gas Growth: Natural gas combined cycle plants are becoming increasingly popular due to their efficiency and lower construction costs compared to other fossil fuel plants. This trend is particularly strong in the United States and is expected to continue globally as these plants can generate more energy from the same amount of fuel.
• Dominance in Asia-Pacific: The Asia-Pacific region is seeing significant growth in thermal power due to high energy demands from rapid industrialization. Countries like China and India are leading with the construction of new thermal power plants, including ultra-supercritical coal plants, to meet these demands.
• Technological Advancements: Advances in technology are making thermal power plants more efficient and environmentally friendly. This includes improvements in turbine efficiency and emission reduction technologies, which help maintain the relevance of thermal power in a more eco-conscious global market.
• Integration with Renewables: As the global energy mix evolves, there is a trend towards integrating thermal power with renewable energy sources. Thermal power plants are increasingly used to provide backup power to compensate for the intermittency of renewable sources like wind and solar, ensuring a stable energy supply.
• Shift to Cleaner Alternatives: Even within the realm of thermal power, there’s a shift towards cleaner alternatives such as natural gas over coal, driven by environmental concerns and policy changes. This is expected to grow, especially in regions with stringent emissions regulations​

Use Cases

• Boiler Digital Twins: Digital twin technology can optimize boiler operations in thermal power plants. By leveraging IoT and AI, digital twins can adjust operations in real time to enhance efficiency, reduce emissions, and lower operating costs. This is particularly useful for improving heat rates and reducing NOx emissions from boilers.
• Combined Cycle Gas Turbine Optimization: For combined cycle gas turbine (CCGT) power plants, digital twins can model process dynamics and suggest optimal settings. This helps in maintaining high thermal efficiency and preventing failures, thus enhancing the operational reliability and cost-efficiency of the power plants.
• Flue Gas Desulfurization Optimization: In coal-fired power plants, digital twins can optimize flue gas desulfurization units to minimize energy and material costs. By adjusting operations, such units can effectively manage SOx removal while conserving limestone and reducing overall operational expenses.
• Sea Water Surface Temperature Monitoring: Thermal power plants located near coastal areas can use wireless technologies to monitor seawater temperatures at intake and outflow points. This helps in assessing the environmental impact and optimizing cooling processes without the need for extensive cabling, which can be prone to damage and require frequent maintenance.
• Thermal Energy Storage Integration: Thermal power plants can integrate thermal energy storage (TES) systems to enhance their flexibility and efficiency. These systems allow plants to store excess heat during low-demand periods and use it during peak demand, thereby stabilizing the grid and increasing the plant’s operational efficiency.

Major Challenges

• Environmental Impact: Thermal power plants are major contributors to air pollution, emitting greenhouse gases like CO2, sulfur dioxide, and nitrogen oxides, which contribute to climate change and acid rain. They also release particulate matter that can cause respiratory issues and other health problems.
• Water Usage and Thermal Pollution: These plants require significant amounts of water for cooling, which can strain local water resources. The heat discharged in the cooling process can also cause thermal pollution, affecting aquatic life and potentially leading to biodiversity loss.
• Waste Management: The combustion process in thermal power plants produces large amounts of ash that contain heavy metals like lead, zinc, and nickel. Improper disposal of this ash can lead to environmental contamination of soil and water bodies.
• Technological and Efficiency Challenges: Integrating advanced technologies to improve efficiency and reduce emissions remains a challenge. Issues such as optimizing heat rate performance, proper coal combustion, and effective maintenance of equipment are critical for efficient plant operation.
• Thermal Energy Storage: Storing excess energy generated by thermal power plants, particularly from intermittent renewable sources, is a challenge due to the efficiency losses when converting heat back to electricity and the cost implications of storage technologies.

Market Growth Opportunities

• Rising Global Electricity Demand: As global electricity consumption increases, there is a robust demand for stable and reliable power sources to support industrialization and urbanization, especially in developing regions. This demand fuels the expansion of thermal power plants which provide a steady energy supply.
• Natural Gas Expansion: There’s a significant shift towards natural gas-based thermal power plants, which are not only more efficient but also emit fewer pollutants compared to traditional coal-fired plants. This shift is particularly notable in North America and parts of Asia, where natural gas is abundant and cheaper to utilize.
• Technological Advancements: Innovations in combustion and operational technologies are making thermal power plants more efficient and environmentally friendly. These advancements include improvements in turbine efficiency and emissions control systems, which enhance the overall performance and appeal of thermal power investments.
• Asia-Pacific Market Dominance: The Asia-Pacific region remains a dominant player in the thermal power plant market due to continuous industrial activities and energy demands in countries like China and India. This region is expected to maintain its lead, propelled by ongoing large-scale industrialization and extensive construction of new thermal power facilities.
• Integration with Renewables: There is an increasing trend towards integrating thermal power plants with renewable energy sources. This integration helps to balance the intermittency of renewables like solar and wind, providing a more reliable power supply and opening new operational efficiencies.

Recent Developments

1. EDF (Électricité de France)

• Recent Developments:
  • Innovation: EDF has been focusing on carbon capture and storage (CCS) technologies to reduce emissions from its thermal power plants. In 2023, EDF partnered with TotalEnergies and Air Liquide to develop a CCS project at the Le Havre industrial zone in France.
  • Partnerships: EDF signed a memorandum of understanding (MoU) with GE Vernova in 2023 to collaborate on hydrogen-ready gas turbine technology for thermal power plants.
  • Government Collaboration: EDF is working with the French government to transition its coal-fired plants to biomass or hydrogen-based systems by 2024, as part of France’s decarbonization strategy.
• Contribution to the Thermal Power Sector:
  • EDF is leading efforts to decarbonize thermal power generation through CCS, hydrogen, and biomass technologies.
  • The company is also investing in digital solutions to optimize thermal plant efficiency.

2. American Electric Power Company, Inc. (AEP)

• Recent Developments:
  • Innovation: AEP has been investing in advanced ultra-supercritical (AUSC) coal technology to improve the efficiency of its thermal power plants. In 2023, the company announced a pilot project for AUSC technology at its Rockport Plant in Indiana.
  • Acquisitions: In 2022, AEP acquired Solar Energy Solutions, a renewable energy firm, to diversify its energy portfolio and reduce reliance on thermal power.
  • Partnerships: AEP partnered with Babcock & Wilcox in 2023 to develop carbon capture systems for its existing coal-fired plants.
• Contribution to the Thermal Power Sector:
  • AEP is focusing on improving the efficiency and reducing the environmental impact of coal-based thermal power plants.
  • The company is also integrating renewable energy to complement its thermal power operations.

3. Siemens AG

• Recent Developments:
  • Innovation: Siemens launched its SGT-800 gas turbine in 2023, which is designed for high efficiency and low emissions in thermal power plants. The turbine is capable of running on hydrogen blends.
  • Partnerships: Siemens partnered with Mitsubishi Heavy Industries in 2022 to develop hydrogen combustion technology for gas turbines.
  • Acquisitions: In 2023, Siemens acquired C&S Electric, an Indian company, to strengthen its presence in the thermal power and energy distribution sectors.
• Contribution to the Thermal Power Sector:
  • Siemens is advancing hydrogen-ready gas turbine technology, enabling thermal power plants to transition to cleaner fuels.
  • The company is also providing digital twin solutions to optimize thermal plant operations.

4. General Electric Company (GE)

• Recent Developments:
  • Partnerships: GE partnered with Hitachi in 2022 to develop advanced carbon capture technologies for thermal power plants.
  • Government Collaboration: GE is working with the U.S. Department of Energy on the Carbon Capture Demonstration Projects Program to reduce emissions from thermal power plants.
• Contribution to the Thermal Power Sector:
  • GE is a leader in high-efficiency gas turbines and hydrogen combustion technology.
  • The company is also focusing on carbon capture to make thermal power more sustainable.

5. Chubu Electric Power Co. Inc.

• Recent Developments:
  • Innovation: Chubu Electric has been testing ammonia co-firing technology at its Kawagoe Thermal Power Station since 2022. Ammonia is a zero-carbon fuel that can reduce emissions from coal-fired plants.
  • Partnerships: In 2023, Chubu Electric partnered with JERA and IHI Corporation to develop ammonia-based thermal power generation.
• Contribution to the Thermal Power Sector:
  • Chubu Electric is pioneering ammonia co-firing technology, which has the potential to decarbonize coal-fired thermal power plants.
  • The company is also investing in renewable energy to complement its thermal power operations.

Conclusion

The Thermal Power Plant Market is positioned at a crucial intersection of growth and transformation. Despite the surge in renewable energy sources, thermal power continues to be the backbone of the global energy supply, particularly in regions with high industrial energy demands. The market is witnessing a shift towards more efficient and environmentally friendly technologies, such as natural gas plants and advanced combustion technologies, which enhance the operational efficiency and reduce the environmental impact of these plants.

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