Ageing Fleets and New Capacity Additions Support Stable Revenue Growth in Power Plant Servicing Market, Finds Frost & Sullivan

Ageing Fleets and New Capacity Additions Support Stable Revenue Growth in Power Plant Servicing Market, Finds Frost & Sullivan PR Newswire LONDON, Sept. 26, 2012 -- Service providers to leverage new opportunities as market shifts to gas-fired power generation LONDON, Sept. 26, 2012 /PRNewswire/ -- The Western European power plant services market is likely to experience stable growth even as it shifts from coal-fired power plants to gas-fired ones. Revenue growth will be supported by the sale of Long Term Service Agreements (LTSAs) with the new build gas-fired power plants. New analysis from Frost & Sullivan (http://www.energy.frost.com), Western European Power Plant Services Markets, finds that the markets earned revenues of €2.50 billion in 2011 and estimates this to reach €2.84 billion in 2018. "A key market driver will be an ageing fleet of power plants," noted Frost & Sullivan Research Analyst Neelam Patil. "The continued trend of LTSAs for gas turbines and the willingness of power utilities to outsource operations and maintenance activities to third-party service providers will drive revenue growth for services." Western Europe's continued focus on energy efficiency is resulting in the rapid replacement of large, steam-fired power generation facilities by more compact and efficient combined cycle gas-fired power plants. New build gas-fired power plants are often sold with high value LTSAs, resulting in revenue growth for the power plant services market.