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Higher Demand for Backup Power Strengthens the Market for Diesel Gensets in Central and Eastern Europe Finds Frost & Sullivan - Poland, the Czech Republic and Romania are key countries and will account for 73 percent of total revenues - Energy.Frost.com
Higher Demand for Backup Power Strengthens the Market for Diesel Gensets in Central and Eastern Europe Finds Frost & Sullivan

 

NewswireToday - /newswire/ - London, United Kingdom, 2013/09/17 - Poland, the Czech Republic and Romania are key countries and will account for 73 percent of total revenues - Energy.Frost.com.

   
 
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The mature diesel generator set market in Central and Eastern Europe (CEE) will see steady growth as most industries in the region continue to rely on diesel gensets for backup power. Demand is further stimulated by the boom in commercial applications such as data centres and EU funding in infrastructure and manufacturing.

Recent analysis from Frost & Sullivan (energy.frost.com), Central and Eastern European Diesel Generator Set Market, finds that market revenues will reach $180.1 million in 2018 from $152.3 million in 2012. Poland, the Czech Republic and Romania will account for 73 percent of the total revenues. Romania, in particular, offers immense opportunities owing to large infrastructure investments in the country.

"The increasing likelihood of widespread grid instabilities caused by the use of renewable energy sources in the grid will create demand for stand-by power applications and smart grid compliant generating set technology in commercial and industrial sectors," said Frost & Sullivan Energy and Environmental Consultant Karsten Deubel. "Therefore, diesel generating sets will become popular as they can balance voltage dips due to their short ramp up times."

Conversely, renewable sources such as wind and biomass are cleaner alternatives and are preferred over diesel gensets. The need to comply with new emission standards will lead to the construction of new coal- and gas-biomass power plants in CEE. Nonetheless, the power supply gap between the closure and erection of new plants will boost the uptake of diesel gensets in the mid-term.

The market faces additional challenges as the economic slowdown has compelled businesses to postpone projects while higher operating and maintenance costs, owing to rising fuel prices, discourage users. In addition, the popularity of second-hand gensets, especially those sold by rental companies, places immense pricing pressures on suppliers. The entry of low-cost manufacturers looking to benefit from price-conscious end users will also shrink the profits of established vendors in CEE.

"In this competitive landscape, cost, reliability, and after-sales support are key factors for success," observed by Mr Deubel. "Focus on compactness, safety, remote monitoring and control, emergency restoration, and grid code compliance will be crucial to ensure adoption."

If you are interested in more information on this research, please send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com, with your full contact details.

Central and Eastern European Diesel Generator Set Market is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services include: European Marine Generator Set Market, Idea Labs Industry Scorecard for Power Generation, Argentinean and Chilean Uninterruptible Power Supply Market, and Electrical Equipment and Solutions for Marine and Offshore Market in Asia-Pacific. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Central and Eastern European Diesel Generator Set Market / M8DE-14

 
 
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Higher Demand for Backup Power Strengthens the Market for Diesel Gensets in Central and Eastern Europe Finds Frost & Sullivan

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Publisher Contact: Chiara Carella - Frost.com 
+44(0)20 7343 8314 / +44(0)75 3301 7689 (mobile) chiara.carella[.]frost.com
 
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