Russia’s ageing power generation sector presents a growing opportunity for power service companies after years of low investment, finds Frost & Sullivan’s Strategic Analysis of the Power Plant Services Market in Russia.
The Russian power service market’s revenues totalled €849.2m in 2010 and will reach €1134.1m in 2017, according to the analysis. Frost & Sullivan’s expert analysts thoroughly examined the segments of gas turbines, steam turbines and boiler servicing.
“Despite the challenges that the Russian power plant services market faces, there are a number of opportunities across the various functional segments of gas turbines, steam turbines and boilers,” said Frost & Sullivan’s analysts.
“The market is projected to expand, driven by ageing electricity generation fleet, ongoing liberalisation of the electricity market, together with the rising trend of outsourcing services.”
An ageing electricity generation fleet is the strongest driver for expanding the services market in Russia. Its impact is predicted to rise with privatisation requirements that oblige buyers to upgrade and maintain plants, regardless of their age and condition.
Yet a reluctance to outsource power plant services, along with the strong presence of local companies with competitive prices, are hurdles for new entrants and foreign companies, said analysts.
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