Hydro turbine generator unit refers to the generating equipment, which converts hydro-energy into electrical energy. It is the main power equipment to generate electric energy in hydropower plants. The role of the turbine is to transform the energy of water, steam or wind into mechanical energy that will make the generator spin. The generator transforms the mechanical energy into electricity. In hydropower plants, this combination of generator and turbine is called a generating unit. Increasing demand for reliable and continuous electricity from industrial sector driving the hydro turbine generator unit market growth.
The global hydro turbine generator unit market is expected to witness significant growth during the forecast period (2020–2027) owing to the technological advancements in turbine design. Ongoing technological advancements in turbine design coupled with the integration of Industrial Internet of Things (IIOT) devices to improve efficiency will drive the hydro turbine generator unit market growth. IIoT devices use sensors and embedded software to collect, share, and analyze data. IIoT technologies allow machines to communicate autonomously with other machines, enabling them to identify trends and actionable insights from historical and real-time data. IIoT technologies allow utilities in the hydropower industry to leverage data and optimize multiple aspects in power plants. These technological advancements make hydropower a much more promising and practical solution for the energy crisis. Emerging technological trends are aimed at increasing hydropower’s flexibility, efficiency, and cost-effectiveness. Some of the most salient flexibility technologies under development include- stabiliser fins, an adjustable diaphragm installed in the draft tube cone, J-grooves, air injection/admission, axial water injection with high/low velocity and low/high discharge, tangential water injection at a cone wall, and two-phase air-water injection along the axis. For instance, in July 2017, NTN Corporation introduced NTN Micro Hydro Turbine, an independent power type compact hydroelectric generator, to produce electricity efficiently by placing it in existing water channel.
The availability of lower cost alternatives for hydro power is one of the key factor hampering the growth of the hydro turbine generator unit market. New extraction methods in the fossil fuel industry have greatly reduced their operating costs. Other low-cost renewable energy sources such as wind and solar have also taken hold on the market. Both of these alternatives have influence over the overall energy prices, which hydropower industry must evaluate to remain competitive. Additionally, constructing a new hydropower plant in the market requires years of permits, environmental studies, and large cost overheads. These obstacles can be difficult for hydropower providers to overcome. This in turn, could hamper the growth of global hydro turbine generator unit market during the forecast period.
Global Hydro Turbine Generator Unit Market - Impact of Coronavirus (Covid-19) Pandemic
Globally, most of the countries are affected by COVID-19 and most of the countries have announced lockdown. Some companies in the market are formally resuming work and are facing challenges to increase production capacity in a short period of time and make up for the previous losses due to shutdown of manufacturing activities. COVID-19 has had an impact on the hydropower industry worldwide, particularly by leading to a reduction of demand, and disruptions in the power supply chain. Companies are battling with challenges such as working capital issues, demand stagnation along with limited financial capacity. Manufacturing of most power sector equipment such as hydro turbine generator units is going into a sharp slowdown. Furthermore, the demand for electricity had reduced significantly due to the COVID-19 pandemic. Governments around the world were compelled to reduce the business activity in response to minimize the threat of coronavirus. There is a significant increase in residential load demand while there is a substantial decrease in commercial and industrial loads as the lockdown has severely reduced the industrial and commercial activities across the globe. This situation has created new challenges in the technical and financial activities of the hydro power sector.
Asia Pacific held dominant position in the global hydro turbine generator unit market in 2019
Asia Pacific held dominant position in the global hydro turbine generator unit market in 2019, accounting for 48.9% share in terms of value, followed by Europe and North America.
|Base Year:||2019||Market Size in 2019:||US$ 7,320.0 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||3.5%||2027 Value Projection:||US$ 9,510.0 Mn|
Andritz AG, General Electric, The Voith Group, Toshiba Energy Systems & Solutions Corporation, Harbin Electric International Company Limited, Dongfeng Electric Machinery Co., Ltd., Power Machines, Hitachi Mitsubishi Hydro Corporation, IMPSA, Zhefu Holding Group Co., Ltd., Bharat Heavy Electricals Limited (BHEL), Gilbert Gilkes & Gordon Ltd., Kirloskar Brothers Limited, WWS Wasserkraft GmbH, FLOVEL Energy Private Limited, and Litostroj Power.
|Restraints & Challenges:||
Figure 1: Global Hydro Turbine Generator Unit Market Share (%), By Region, 2019
Asia Pacific is expected to account for the largest market share during the forecast period, owing to the high presence of key players such as Toshiba Energy Systems & Solutions Corporation, HARBIN ELECTRLC INTERNATIONAL COMPANY LIMITED, Dongfeng Electric Machinery Co., Ltd., Hitachi Mitsubishi Hydro Corporation, and Bharat Heavy Electricals Limited (BHEL). For instance, in September 2020, Toshiba Energy Systems & Solutions Corporation, a Japan-based power generation equipment manufacturer, won the contract to provide two 70 MW hydro-turbines and hydro-generators to Tanahu Hydropower Plant, Nepal. The plant is expected to function from 2024.
Latin America is expected to exhibit significant growth during the forecast period, owing to the rising investments for the modernization of hydro power plants. For instance, in December 2020, The Voith Hydro supplied two 7.9-MW Kaplan-S turbines, generators, and other systems to small hydropower plant in Tamboril, Brazil.
> 100MW (Large Hydro) segment is expected to drive the market growth during the forecast period
Among generating unit capacity, the > 100MW (Large Hydro) segment is expected to hold dominant position in the global hydro turbine generator unit market during the forecast period. In large scale hydropower plants, the flowing water drives large water turbines, and dams are needed to store water in lakes, reservoirs, and rivers for later release. This stored water is used for power generation as well as irrigation, domestic or industrial use.
Figure 2: Global Hydro Turbine Generator Unit Market Value (US$ Mn) Analysis and Forecast, 2017 - 2027
The global hydro turbine generator unit market was valued at US$ 7,320.0 Mn in 2019 and is expected to reach US$ 9,510.0 Mn by 2027 at a CAGR of 3.5% between 2020 and 2027.
Major players operating in the global hydro turbine generator unit market include Andritz AG, General Electric, The Voith Group, Toshiba Energy Systems & Solutions Corporation, Harbin Electric International Company Limited, Dongfeng Electric Machinery Co., Ltd., Power Machines, Hitachi Mitsubishi Hydro Corporation, IMPSA, Zhefu Holding Group Co., Ltd., Bharat Heavy Electricals Limited (BHEL), Gilbert Gilkes & Gordon Ltd., Kirloskar Brothers Limited, WWS Wasserkraft GmbH, FLOVEL Energy Private Limited, and Litostroj Power.
Hydro turbine generator unit refers to the generating equipment which converts hydro-energy into electrical energy. Hydro turbine generator unit mainly consist of the hydro turbine and generator. In hydro turbine generator unit, a hydraulic turbine converts the energy of flowing water, steam or wind into mechanical energy. The rotor is attached to the turbine shaft and rotate at a fix speed. The generator converts the mechanical energy into electricity. The generator is connected to the turbine drive shaft. Typically, two different turbine technologies are used in the hydro turbine generator unit including impulsive turbine and reaction turbine. The selection of hydropower turbine is based on the height of standing water (water head) and volume or flow characteristics of the water at the site. The impulse turbine uses the kinetic energy force of the directed water or steam for the production of power. Impulsive turbine is generally used in high head and low flow applications such as domestic systems. In reaction turbines, the pressure of the water changes as it moves through the blades of the turbine. The reaction turbine directly uses water pressure to move blades; hence, reaction turbines need to be submersed in water. Reaction turbines are used for low head sites.
In the hydropower sector, enhanced digital controls are part of a growing trend towards improving the performance of turbines, plants and equipment, by reducing costs and optimising asset management. Equipment manufacturers are embracing digitisation as a way to widen their scope of services. The digital control systems and software play a major role in improving decision-making and supporting hydro operations to work more efficiently with other renewable technologies. For instance, In January 2021, Deschutes Valley Water District (DVWD), U.S. replaced existing Francis turbine with Voith’s new high-efficiency turbine.
The global hydro turbine generator unit market is expected to grow significantly during the forecast period, owing to the digitisation of hydro power plants. The Internet of Things (IoT) has the potential to significantly transform the industrial sector. With the industrial internet of things (IIoT), the hydro power plants of the future will enter auto-pilot mode where subtle changes occur based on real-time and historical data. The IIoT and Industry 4.0 are moving the hydropower market into the future. The move towards digitisation is changing the way in which hydropower plants are operated and maintained. The International Hydropower Association (IHA) estimates that, by 2030, over half of the world’s hydropower plants will be due for upgrade and modernisation or have already been renovated. Digitisation plays a key role in the modernisation of the existing fleet of hydropower facilities. Therefore, digitisation of hydro power plant will offer various growth opportunities for the global hydro turbine generator unit market during the forecast period. For instance, in June 2019, General Electric signed a contract with Hydro-Québec, a Canadian government company, to upgrade existing Hydro Quebec's Montagnais substation's protection and control systems.
Among turbine type, Francis turbine segment is expected to exhibit the significant growth during the forecast period. Francis turbines are the most frequently used turbines for hydropower plants. This turbine is used for medium or large scale hydroelectric plants. Therefore, growing demand of Francis turbine is expected to drive growth of the hydro turbine generator unit market. For instance, in 2019, General Electric signed a contract with Nachtigal Hydro Power Company, jointly owned by the Republic of Cameroon, Electricite de France (EDF), International Finance Corporation, Africa 50, and STOA to provide seven new 60 MW Francis turbines.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.