Peaking Power Plant Market 2024

The peaking power plant market size has grown strongly in recent years. It will grow from $106.79 billion in 2023 to $113.39 billion in 2024 at a compound annual growth rate (CAGR) of 6.2%. The growth during the historical period can be attributed to several factors, including the increasing integration of energy storage technologies, government initiatives and energy policies, fluctuations in natural gas prices, a growing focus on grid reliability, and the expansion of power grid infrastructure.

The peaking power plant market size is expected to see strong growth in the next few years. It will grow to $146.46 billion in 2028 at a compound annual growth rate (CAGR) of 6.6%. The anticipated growth during the forecast period can be attributed to rising electricity demand, the development of decentralization and microgrids, growth in energy storage, integration of renewable energy sources, and the increasing need for reliable power in remote areas, alongside a global rise in power demand. Key trends expected during this period include the digitalization of power systems and smart grid technologies, advancements in battery technology, innovations in energy storage capabilities, and ongoing product innovations.

The rising demand for electricity is expected to drive the growth of the peaking power plant market in the coming years. Electricity is a form of energy generated by the movement of charged particles, such as electrons or protons, which can exist as a static charge or a dynamic current. The increased demand for electricity is attributed to various factors, including growing consumption, infrastructure improvements, fluctuating fuel prices, and environmental regulations. Peaking power plants play a critical role in ensuring grid reliability and stability by supplying additional electricity during peak demand periods or when other power sources are unavailable. Their ability to rapidly increase or decrease output makes them essential for managing fluctuations in energy supply and maintaining a balance between supply and demand. According to the International Energy Agency (IEA), global electricity demand is projected to grow by approximately 4% in 2024, up from 2.5% in 2023. As a result, the increasing demand for electricity is fueling the expansion of the peaking power plant market.

Leading companies in the peaking power plant market are focusing on developing innovative facilities, such as hybrid renewable power plants with advanced battery energy storage systems (BESS), to offer reliable solutions for peak power needs. These hybrid power plants combine wind and solar energy, taking advantage of the complementary nature of these resources to ensure a more consistent and dependable power supply. For example, in September 2023, ReNew Surya Ojas Private Limited, an Indian energy company, launched its first hybrid renewable power plant. This project, located in Karnataka, integrates solar and wind energy with advanced BESS technology, optimizing the use of natural resources to generate electricity. The plant is designed to provide up to 300 MW of power to the grid during peak demand periods, with the added benefit of storing surplus energy generated during high production times and releasing it when demand surges.

In August 2024, Adani Power, an Indian public utility company, acquired the 600 MW Butibori power plant from Reliance Power Limited for $0.36 billion (Rs 3000 crore). This acquisition is part of Adani Power's strategy to strengthen its position in the power sector, particularly in addressing peak demand requirements. Reliance Power Limited, also based in India, is involved in various power generation projects, including peaking power plants.

Major companies operating in the peaking power plant market are Enel S.p.A., Siemens AG, NRG Energy Inc., The Southern Company, Duke Energy Corporation, PG&E Corporation, NextEra Energy Inc., Alstom SA, General Electric Company, Xcel Energy Inc., Dominion Energy Inc., The AES Corporation, FirstEnergy Corp., WSP Global Inc., Eversource Energy, CenterPoint Energy Inc., Wärtsilä Oyj Abp, MAN Energy Solutions SE, ENGIE SA, APR Energy LLC, Edina UK Limited, Clarke Energy Limited.

Asia-Pacific was the largest region in the peaking power plant market in 2023. North America is expected to be the fastest growing region in the market. The regions covered in the peaking power plant market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the peaking power plant market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A peaking power plant, also known as a peaker plant, is a power generation facility that provides additional electricity during periods of high demand or peak loads. These plants are typically used to supplement the base load power supplied by other, more stable and consistent power sources. While peaking plants are generally more expensive to operate than base load plants, they have the advantage of being able to start quickly, allowing them to respond to sudden spikes in electricity demand. Peaker plants often utilize gas turbines or other technologies that enable rapid increases in power output.

The primary types of peaking power plants include natural gas, hydropower, diesel, and others. Natural gas peaker plants, often referred to as gas peakers, are specifically designed to operate during times of high electricity demand. These plants serve various purposes such as grid support, backup power, and renewable energy integration, and are used by a range of end-users, including commercial, residential, utility, and industrial sectors.

The peaking power plant market research report is one of a series of new reports that provides peaking power plant market statistics, including peaking power plant industry global market size, regional shares, competitors with a peaking power plant market share, detailed peaking power plant market segments, market trends, and opportunities, and any further data you may need to thrive in the peaking power plant industry. This peaking power plant market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The peaking power plant market includes revenues earned by entities by hydroelectric plants, battery storage systems, flywheel energy storage, and steam turbine plants. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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