Power Sector Report

Ed 1 2016

Capex and Markets $ Infrastructure and Utilities

A Complete Map of the Power Sector

Power Sector GTD Vol 5. Generation and T&D

Capex and Markets

Vol 5. GTD provides information and analysis of the Capex and Markets of the

Generation and T&D sectors, with historical data and forecasts.

Capex - analysed by energy source

Markets - sales of mechanical generating equipment, and electrical

generating and T&D equipment

Marketing commentary

Vendor and competitive analysis

Analysis of utilities

Special chapters with technical and market analysis

The Power Sector Reports encompass the entire spectrum of power generation,

transmission and distribution; utilities, merchant generators, industry, small captive

and domestic generators, and the growing segment of “hidden power” not included

in national statistics.

The Power Sector series consists of 9 volumes, providing modules of information,

so that you can access exactly what you want, no more no less.

PS5 POWER SECTOR REPORT GTD - CAPEX & MARKETS

CHAPTER OUTLINE

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EXECUTIVE SUMMARY THE POWER SECTOR REPORT THE STRUCTURE OF THIS REPORT

How this volume fits into the Power Sector Report series. 1. INTRODUCTION TO THE POWER SECTOR

The scale of the power sector is outlined as an introduction, in capacity and $ with commentary on its composition by the constituent sectors - generation, transmission and distribution (GTD).

2. UTILITY SECTORS The 135,000 electricity, gas and water & waste utilities are shown regionally on a global map

and the 11,000 electrical utilties are analysed by region and major country, with a breakdown of public/private ownership. A table summrises the electrical utility sector in every country.

3. OTHER UTILITY SECTORS, AS GENERATORS AND CONSUMERS The other utilities are identified - oil, gas, water & waste, telecoms, railways – they are large generators and consumers of electricity, and some have dedicated transmission and distribution networks.

4. INDUSTRIAL AND CAPTIVE GENERATION Industry is a significant generator of power and an even larger consumer, drawing from the grid more than it supplies in most but not all countries. Industry is an important owner of transmission and distribution assets such as transformers. “Hidden power “, mostly private generators under 1 MW, is a segment attracting increasing attention and has been underestimated in the past.

5. CONSUMERS OF ELECTRICITY AS INVESTORS Use by end-sector, with further analysis by type of industrial use and purpose of use.

6. CAPITAL EXPENDITURE Capex is plotted globally from 2000 to 2015 and forecast to 2020, with analysis by segment; generation, transmission and distribution and summarised with analysis by energy source from 2000 to 2020; coal, gas, oil, nuclear, wind, utility solar PV, rooftop solar PV. The rapid growth of small solar PV is demonstrated. The composition of capex is analysed.

7. GENERATION CAPEX BY ENERGY SOURCE Generating capex is analysed by energy source (see previous chapter details) for the world, 7 regions and 11 major countries, at eight intervals in the PDF - 2000, 2010 and annually from 2015 to 2020 - and in the Excel database annually from 2000 to 2020. The current status and prospects for each energy source are discussed.

8. GENERATION TECHNOLOGIES The composition of plant for the various generating technologies is outlined and analysed by share of cost, for the following technologies; coal fired plants, gas turbine simple cycle (OCGT), gas turbine combined cycle (CCGT), oil-fired steam turbine plant, diesel engine-generator, wind turbine, solar photovoltaic, hydropower and nuclear power.

9. T&D CAPEX Transmission and distribution capex is plotted for the world, 7 regions and 11 major countries, at

eight intervals in the PDF for 2000, 2010 and annually from 2015 to 2020 - and in the Excel database

annually from 2000 to 2020.

10. DEFINITION OF THE POWER SECTOR EQUIPMENT MARKET The power sector is defined, with broad parameters to include electrical utilities, IPPS, industrial captive generation and small scale distributed generation. In the generating sector it is important to understand the overlap of mechanical equipment, which constitutes over ¾ of equipment expenditure in the power generation sector, between electrical uses and mechanical uses, such as

PS5 POWER SECTOR REPORT GTD - CAPEX & MARKETS

CHAPTER OUTLINE

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heat and steam output in district heating and industrial process. Plants such as industrial boilers are a large component in fossil fuel power generation but they have even larger applications in other industries.

11. REGIONAL AND NATIONAL EQUIPMENT MARKETS FOR GENERATION, TRANSMISSION AND DISTRIBUTION EQUIPMENT BY GEOGRAPHY

Country markets are analysed by product, with sales of total generating, transmission and distribution equipment in nominal values in the PDF - for 2000, 2010 and annually from 2015 to 2020 - and in the Excel database annually from 2000 to 2020 for the world, 7 regions and 11 major countries. Generating products include: boilers, steam turbines, gas turbines, HRSG (heat recovery steam generators), diesel & HFO engines, wind turbines, hydro turbines, solar PV modules, solar PV inverters, FGD (flue gas desulphurisation), SCR/SNCR (selective catalytic reduction/selective non-catalytic reduction), PM (particulate matter removal; ESP, scrubbers, fabric filters/baghouses), CPP (coal preparation plant), fly ash handling plant, insulated cable, compressors, piping, instruments and control equipment, GSU generator transformers, GCB (generator circuit breakers), switchgear and power plant automation. Transmission and distribution products include transformers, switchgear, circuit breakers, circuit protectors, surge arresters, distribution panels, fusegear, switches, disconnectors, protection relays, lightning arresters, isolators, energy cable - insulated and uninsulated conductors, insulators and bushings, spacers and dampers, HVDC, AC filters for HVDC, steel towers, poles of wood, concrete, steel and composite, pole-top assemblies, meters and utility automation.

12. SALES OF MECHANICAL GENERATION PLANT BY REGION Individual product markets for mechanical generating equipment are analysed by country, in nominal values in the PDF - for 2000, 2010 and annually from 2015 to 2020 - and in the Excel database annually from 2000 to 2020 for the world, 7 regions and 11 major countries. Product markets include boilers, steam turbines, gas turbines, HRSG (heat recovery steam generators), diesel & HFO engines, wind turbines, hydro turbines, solar PV modules, solar PV inverters, FGD (flue gas desulphurisation), SCR/SNCR (selective catalytic reduction/selective non-catalytic reduction), PM (particulate matter removal, ESP, scrubbers, fabric filters/baghouses), CPP (coal preparation plant), fly ash handling plant, insulated cable, compressors, piping, instruments and control equipment, GSU generator transformers, GCB (generator circuit breakers), switchgear and power plant automation. Vendor shares or rankings are provided for the individual categories/products and sections have marketing and technical commentary. Where available these have been supplemented with extracts from dedicated StatPlan product marketing reports, with higher levels of detail.

13. MECHANICAL AND ELECTRIAL EQUIPMENT IN GENERATION, TRANSMISSION AND DISTRIBUTION BY REGION

Product markets for mechanical generating equipment are analysed by country, in nominal values in the PDF - for 2000, 2010 and annually from 2015 to 2020 - and in the Excel database annually from 2000 to 2020 for the world, 7 regions and 11 major countries. Products include transformer, circuit breakers, energy cable - insulated and uninsulated conductors, utility automation and power plant automation. Vendor shares or rankings are provided for the individual categories/products and sections have marketing and technical commentary. Where available these have been supplemented with extracts from dedicated StatPlan product marketing reports, with higher levels of detail.

14. SALES OF TRANSMISSION AND DISTRIBUTION EQUIPMENT MARKETS BY REGION Product markets for T&D equipment are analysed by country, in nominal values in the PDF - for 2000, 2010 and annually from 2015 to 2020 - and in the Excel database annually from 2000 to 2020 for the

PS5 POWER SECTOR REPORT GTD - CAPEX & MARKETS

CHAPTER OUTLINE

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world, 7 regions and 11 major countries. Products include switchgear, circuit protectors, surge arresters, distribution panels, fusegear, switches, disconnectors, protection relays, lightning arresters, isolators, insulators and bushings, spacers and dampers, HVDC, AC filters for HVDC, steel towers, poles of wood, concrete, steel and composite, pole-top assemblies, meters. Vendor shares or rankings are provided for the individual categories/products and sections have marketing and technical commentary. Where available these have been supplemented with extracts from dedicated StatPlan product marketing reports, with higher levels of detail.

15. THE VALUE CHAIN – FROM MATERIALS TO CAPEX The cost of any product can be measured at various stages, from being a piece of unworked metal, to

its installation in working order and finally as a share of capital expenditure. Different price levels

apply through the supply chain, and the point of interest in the chain depends on the business to

which the value is being applied. The report analyses the value chain at 6 levels, from BOM (bill of

materials) to capex, with all market-ups included. In using the market information in this and other

reports it is essential to specify which point in the value chain is being used. Capex can be 2½ times

the factory gate price, over 3 times manufacturing cost and 5 times materials cost.

16. PRICE TRENDS AND FACTORS DRIVING PRICES In recent years the prices of electrotechnical products have been voltile due to variations in many factors which affect them. Price trends are reviewed with commentary on PPI - Producer Price Index, industry trends, production capacity, and the manufacturing input cost composition.

METHODOLOGY

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PS5 POWER SECTOR REPORT GTD - CAPEX & MARKETS

TABLE OF CONTENTS

EXECUTIVE SUMMARY ................................................................................................................................. 15

THE POWER SECTOR REPORT ...................................................................................................................... 27

THE STRUCTURE OF THIS REPORT ............................................................................................................... 28

1. INTRODUCTION TO THE POWER SECTOR ............................................................................................ 29

The scale of the power sector ............................................................................................................. 29

The participants in the Power Sector .................................................................................................. 30

2. UTILITY SECTORS ................................................................................................................................. 32

3. OTHER UTILITY SECTORS, AS GENERATORS AND CONSUMERS .......................................................... 42

4. INDUSTRIAL AND CAPTIVE GENERATION ............................................................................................ 43

5. CONSUMERS OF ELECTRICITY AS INVESTORS ...................................................................................... 46

6. CAPITAL EXPENDITURE ........................................................................................................................ 51

Generation, Transmission and Distribution ........................................................................................ 51

7. GENERATION CAPEX BY ENERGY SOURCE ........................................................................................... 57

8. GENERATION TECHNOLOGIES ............................................................................................................. 64

Coal fired plants ................................................................................................................................... 66

Gas turbine simple cycle (OCGT) ......................................................................................................... 67

Gas turbine combined cycle (CCGT) .................................................................................................... 67

Oil-fired steam turbine plant ............................................................................................................... 68

Diesel engine-generator ...................................................................................................................... 68

Wind turbine ....................................................................................................................................... 69

Solar photovoltaic ............................................................................................................................... 69

Hydropower ......................................................................................................................................... 69

Nuclear power ..................................................................................................................................... 70

9. T&D CAPEX ............................................................................................................................................. 72

10. DEFINITION OF THE POWER SECTOR EQUIPMENT MARKET ............................................................... 75

11. REGIONAL AND NATIONAL EQUIPMENT MARKETS FOR GENERATION, T&D EQUIPMENT ................ 79

World ................................................................................................................................................... 79

United States ....................................................................................................................................... 83

Europe ................................................................................................................................................. 86

France .................................................................................................................................................. 89

Germany .............................................................................................................................................. 92

Italy ...................................................................................................................................................... 95

Spain .................................................................................................................................................... 98

United Kingdom ................................................................................................................................. 101

CIS ...................................................................................................................................................... 104

Russia ................................................................................................................................................. 107

Asia Pacific ......................................................................................................................................... 110

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Japan .................................................................................................................................................. 113

China .................................................................................................................................................. 116

India ................................................................................................................................................... 119

Southeast Asia ................................................................................................................................... 122

Middle East ........................................................................................................................................ 125

Africa ................................................................................................................................................. 128

Latin America ..................................................................................................................................... 131

Brazil .................................................................................................................................................. 134

12. SALES OF MECHANICAL GENERATION PLANT BY REGION ................................................................ 137

The total generating equipment market ........................................................................................... 137

Vendors ............................................................................................................................................. 138

Boilers ................................................................................................................................................ 140

Steam turbines .................................................................................................................................. 142

Gas turbines ....................................................................................................................................... 144

HRSG, Heat recovery steam generators ............................................................................................ 146

Diesel & HFO engines ........................................................................................................................ 148

Wind turbines .................................................................................................................................... 150

Hydro turbines ................................................................................................................................... 152

Solar PV modules ............................................................................................................................... 154

Solar PV inverters .............................................................................................................................. 156

FGD Flue gas desulphurisation .......................................................................................................... 158

SCR, Selective catalytic reduction/SCNR Selective non-catalytic reduction ...................................... 160

PM, Particulate removal; ESP, scrubbers, fabric filters/baghouses .................................................. 162

CPP, Coal preparation plant .............................................................................................................. 164

Fly ash handling plant ........................................................................................................................ 165

Compressors ...................................................................................................................................... 167

Piping ................................................................................................................................................. 168

Instruments and control equipment ................................................................................................. 169

13. MECHANICAL AND ELECTRIAL EQUIPMENT IN GENERATION, T&D BY REGION ............................... 170

Transformer categories ..................................................................................................................... 170

Circuit breakers ................................................................................................................................. 175

Energy cable - insulated and uninsulated conductors ...................................................................... 179

Utility automation ............................................................................................................................. 186

Power plant automation ................................................................................................................... 186

Utility automation – transmission and distribution .......................................................................... 186

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14. SALES OF TRANSMISSION AND DISTRIBUTION EQUIPMENT MARKETS BY REGION ........................ 189

Vendors ............................................................................................................................................. 190

Switchgear ......................................................................................................................................... 193

Circuit protectors ............................................................................................................................... 194

Surge arresters .................................................................................................................................. 195

Distribution panels ............................................................................................................................ 196

Fusegear ............................................................................................................................................ 198

Switches ............................................................................................................................................. 199

Disconnectors .................................................................................................................................... 200

Protection relays ............................................................................................................................... 201

Lightning arresters ............................................................................................................................. 202

Isolators ............................................................................................................................................. 203

Insulators and bushings, spacers and dampers ................................................................................. 205

Spacers and dampers ........................................................................................................................ 207

HVDC .................................................................................................................................................. 209

AC filters for HVDC ............................................................................................................................ 210

Steel towers ....................................................................................................................................... 212

Poles of wood, concrete, steel and composite ................................................................................. 215

Pole-top assemblies........................................................................................................................... 216

Meters ............................................................................................................................................... 218

15. THE VALUE CHAIN – FROM MATERIALS TO CAPEX ........................................................................... 224

The value chain at 6 levels ................................................................................................................. 224

16. PRICE TRENDS AND FACTORS DRIVING PRICES ................................................................................ 229

Price Trends ....................................................................................................................................... 229

PPI - Producer Price Index ................................................................................................................. 229

Industry.............................................................................................................................................. 230

Production capacity ........................................................................................................................... 230

Manufacturing input cost composition ............................................................................................. 231

METHODOLOGY ......................................................................................................................................... 235

Market sizing and bottom up forecasting ......................................................................................... 239

The Sanity Check and Validation ....................................................................................................... 239

FIGURES

Figure 1: The global utility landscape ........................................................................................................................... 32

Figure 2: Industry uses of different energy sources in the US ..................................................................................... 47

Figure 3: Energy use by type of industry in the US (All types of energy) ..................................................................... 47

Figure 4: % of total machine drive electricity used in manufacturing in the US .......................................................... 48

Figure 5: Machine drive electricity use as a percentage of total delivered energy use by each industry in the US .... 49

Figure 6: Total global capital expenditure on Generation, T&D, nominal $ billion 2000 to 2020 ............................... 51

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Figure 7: Comparison of expenditure on GTD in real ($2015) and nominal values, 2000-20 ...................................... 52

Figure 8: Global capital expenditure broken by GTD, nominal $ billion, 2000 to 2020 ............................................... 52

Figure 9: Total capex in Generation, T&D 2000-2010 compared with 2010-20. ......................................................... 53

Figure 10: Investment surges 1900 to2015 .................................................................................................................. 53

Figure 11: Total Capital Expenditure on Generation, Transmission and Distribution by region in 2016 ..................... 54

Figure 12: Capital expenditure on generation by energy source, nominal $ billion2000 to 2020, .............................. 55

Figure 13: Total Capital Expenditure on Generation, T&D by Region and Year, nominal $ billion, 2000, 2010, 2020 55

Figure 14: Composition of global capital expenditure Generation, Transmission and Distribution, 2015 .................. 56

Figure 15: Where circuit breakers are used in electricity systems ............................................................................ 175

Figure 16: Commodity price Index 1996 to 2016 ....................................................................................................... 231

Figure 17: Industrial metals prices 2007 to 2016 ....................................................................................................... 232

Figure 18: Labour compensation cost, including direct pay, social insurance expenditures, and labour taxes. ....... 233

Figure 19: Labour costs including wages and salaries, social insurance and labour-related taxes ............................ 233

Figure 20: Minimum wages in China in yuan per month 1995 to 2012 ..................................................................... 234

Figure 21:The composition of annual demand for capacity, new plus replacement ................................................. 236

TABLES

Table 1: Ownership of assets in the power sector by owner type ............................................................................... 31

Table 2: The world’s electrical utility landscape .......................................................................................................... 37

Table 3: Infrastructure of utilities ................................................................................................................................ 42

Table 4: Indian utilities’ generating capacity 1947 -2015 by fuel ................................................................................. 43

Table 5: Indian captive power plant generating capacity 1947 -2015 by fuel ............................................................. 44

Table 6: Sale of diesel gensets in India by international manufacturers > 1 MW from 1990 to 2004 ......................... 44

Table 7: World - Generation capex by technology, nominal $ million, 2000 to 2020 .................................................. 57

Table 8: USA - Generation capex by technology, nominal $ million, 2000 to 2020 ..................................................... 58

Table 9: Europe - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................ 58

Table 10: France - Generation capex by technology, nominal $ million, 2000 to 2020 ............................................... 59

Table 11: Germany - Generation capex by technology, nominal $ million, 2000 to 2020 ........................................... 59

Table 12: Italy - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................... 59

Table 13: Spain - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................. 59

Table 14: United Kingdom - Generation capex by technology, nominal $ million, 2000 to 2020 ................................ 60

Table 15: CIS - Generation capex by technology, nominal $ million, 2000 to 2020 ..................................................... 60

Table 16: Russia- Generation capex by technology, nominal $ million, 2000 to 2020 ................................................ 60

Table 17: Asia Pacific - Generation capex by technology, nominal $ million, 2000 to 2020 ........................................ 60

Table 18: Japan - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................ 61

Table 19: China - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................. 61

Table 20: India - Generation capex by technology, nominal $ million, 2000 to 2020 .................................................. 61

Table 21: Korea, Australasia - Generation capex by technology, nominal $ million, 2000 to 2020 ............................. 61

Table 22: South East Asia - Generation capex by technology, nominal $ million, 2000 to 2020 ................................. 62

Table 23: Middle East - Generation capex by technology, nominal $ million, 2000 to 2020 ....................................... 62

Table 24: Africa - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................ 62

Table 25: LAC - Generation capex by technology, nominal $ million, 2000 to 2020.................................................... 62

Table 26: Brazil - Generation capex by technology, nominal $ million, 2000 to 2020 ................................................. 63

Table 27: Composition of generation capex over all technologies, 2000 and 2015 .................................................... 64

Table 28: Some principal cost components of generating capex ................................................................................. 65

Table 29: Cost breakdown of capex in construction of a coal fired plant at installed cost .......................................... 67

Table 30: Cost breakdown of capex in construction of gas-fired OCGT or CCGT plant at installed cost ..................... 68

Table 31: Cost breakdown of capex in construction of an oil-fired steam turbine plant at installed cost .................. 68

Table 32: Cost breakdown of capex in construction of a diesel or FO reciprocating engine plant at installed cost .... 68

Table 33: Cost breakdown of capex in construction of a wind turbine at installed cost ............................................. 69

Table 34: Cost breakdown of capex in construction of a solar PV plant at installed cost ............................................ 69

Table 35: Cost breakdown of capex in construction of a hydropower plant at installed cost ..................................... 70

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Table 36: Cost breakdown of capex in construction of a nuclear power plant (equipment costs at installed cost) ... 71

Table 37: World – T&D capex by technology, nominal $ million, 2000 to 2020 .......................................................... 72

Table 38: USA - T&D capex, nominal $ million, 2000 to 2020 ...................................................................................... 72

Table 39: Europe - T&D capex, nominal $ million, 2000 to 2020 ................................................................................. 72

Table 40: France - T&D capex, nominal $ million, 2000 to 2020 .................................................................................. 72

Table 41: Germany - T&D capex, nominal $ million, 2000 to 2020 .............................................................................. 72

Table 42: Italy - T&D capex, nominal $ million, 2000 to 2020 ..................................................................................... 72

Table 43: Spain - T&D capex, nominal $ million, 2000 to 2020 .................................................................................... 72

Table 44: United Kingdom - T&D capex, nominal $ million, 2000 to 2020 .................................................................. 73

Table 45: CIS - T&D capex, nominal $ million, 2000 to 2020 ....................................................................................... 73

Table 46: Russia- T&D capex, nominal $ million, 2000 to 2020 ................................................................................... 73

Table 47: Asia Pacific - T&D capex, nominal $ million, 2000 to 2020 .......................................................................... 73

Table 48: Japan - T&D capex, nominal $ million, 2000 to 2020 ................................................................................... 73

Table 49: China - T&D capex, nominal $ million, 2000 to 2020 ................................................................................... 73

Table 50: India - T&D capex, nominal $ million, 2000 to 2020 .................................................................................... 73

Table 51: Southeast Asia - T&D capex, nominal $ million, 2000 to 2020 ..................................................................... 73

Table 52: Middle East - T&D capex, nominal $ million, 2000 to 2020 ......................................................................... 74

Table 53: Africa - T&D capex, nominal $ million, 2000 to 2020 ................................................................................... 74

Table 54: LAC - T&D capex, nominal $ million, 2000 to 2020 ...................................................................................... 74

Table 55: Brazil - T&D capex, nominal $ million, 2000 to 2020.................................................................................... 74

Table 56: Generation equipment cost in nominal $ million, at purchase price, at installed cost and ......................... 79

Table 57: Transmission equipment cost, at purchase price, at installed cost and % of capex, World, 2000-20 ......... 79

Table 58: Distribution equipment cost , at purchase price, at installed cost and % of capex, World, 2000-20........... 79

Table 59: Ratio of sales of mechanical and electrical equipment in generation and T&D, 2000 to 2020 ................... 80

Table 60: Generation equipment cost at purchase price in nominal $ million, World, 2000 to 2020 ......................... 80

Table 61: Transmission equipment cost at purchase price in nominal $ million, World, 2000-20 .............................. 81

Table 62: Distribution equipment cost at purchase price in nominal $ million, World, 2000-20 ................................ 82

Table 63: Generation equipment cost , at purchase price, at installed cost and ......................................................... 83

Table 64: Transmission equipment cost , at purchase price, at installed cost and % of capex, USA, 2000-20 ............ 83

Table 65: Distribution equipment cost , at purchase price, at installed cost and % of capex, USA, 2000-20 .............. 83

Table 66: Generation equipment cost at purchase price in nominal $ million, United States, 2000 to 2020 ............. 83

Table 67: Transmission equipment cost at purchase price in nominal $ million, USA, 2000-20 ................................. 84

Table 68: Distribution equipment cost at purchase price in nominal $ million, USA, 2000-20 ................................... 85

Table 69: Generation equipment cost, at purchase price, at installed cost and % of capex, Europe, 2000-20 ........... 86

Table 70: Transmission equipment cost, at purchase price, at installed cost and % of capex, Europe, 2000-20 ........ 86

Table 71: Distribution equipment cost, at purchase price, at installed cost and % of capex, Europe, 2000-20 .......... 86

Table 72: Generation equipment cost at purchase price in nominal $ million, Europe, 2000 to 2020 ....................... 86

Table 73: Transmission equipment cost at purchase price in nominal $ million, Europe, 2000-20 ............................ 87

Table 74: Distribution equipment cost at purchase price in nominal $ million, Europe, 2000-20 .............................. 88

Table 75: Generation equipment cost, at purchase price, at installed cost and.......................................................... 89

Table 76: Transmission equipment cost, at purchase price, at installed cost and % of capex, France, 2000-20 ........ 89

Table 77: Distribution equipment cost, at purchase price, at installed cost and % of capex, France, 2000-20 ........... 89

Table 78: Generation equipment cost at purchase price in nominal $ million, France, 2000 to 2020 ........................ 89

Table 79: Transmission equipment cost at purchase price in nominal $ million, France, 2000-20 ............................. 90

Table 80: Distribution equipment cost at purchase price in nominal $ million, France, 2000-20 ............................... 91

Table 81: Generation equipment cost, at purchase price, at installed cost and % of capex, Germany, 2000-20 ....... 92

Table 82: Transmission equipment cost, at purchase price, at installed cost and % of capex, Germany, 2000-20..... 92

Table 83: Distribution equipment cost, at purchase price, at installed cost and % of capex, Germany, 2000-20 ....... 92

Table 84: Generation equipment cost at purchase price in nominal $ million, Germany, 2000 to 2020 .................... 92

Table 85: Transmission equipment cost at purchase price in nominal $ million, Germany, 2000-20 ......................... 93

Table 86: Distribution equipment cost at purchase price in nominal $ million, Germany, 2000-20 ........................... 94

Table 87: Generation equipment cost , at purchase price, at installed cost and % of capex, Italy, 2000-20 .............. 95

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Table 88: Transmission equipment cost, at purchase price, at installed cost and % of capex, Italy, 2000-20 ............. 95

Table 89: Distribution equipment cost, at purchase price, at installed cost and % of capex, Italy, 2000-20 ............... 95

Table 90: Generation equipment cost at purchase price in nominal $ million, Italy, 2000 to 2020 ............................ 95

Table 91: Transmission equipment cost at purchase price in nominal $ million, Italy, 2000-20 ................................. 96

Table 92: Distribution equipment cost at purchase price in nominal $ million, Italy, 2000-20 ................................... 97

Table 93: Generation equipment cost , at purchase price, at installed cost and % of capex, Spain, 2000-20 ............. 98

Table 94: Transmission equipment cost , at purchase price, at installed cost and % of capex, Spain, 2000-20 .......... 98

Table 95: Distribution equipment cost , at purchase price, at installed cost and % sof capex, Spain, 2000-20 .......... 98

Table 96: Generation equipment cost at purchase price in nominal $ million, Spain, 2000 to 2020 .......................... 98

Table 97: Transmission equipment cost at purchase price in nominal $ million, Spain, 2000-20 ............................... 99

Table 98: Distribution equipment cost at purchase price in nominal $ million, Spain, 2000-20 ............................... 100

Table 99: Generation equipment cost , at purchase price, at installed cost and % of capex, UK, 2000-20 ............... 101

Table 100: Transmission equipment cost , at purchase price, at installed cost and % of capex, UK, 2000-20 .......... 101

Table 101: Distribution equipment cost, at purchase price, at installed cost and % of capex, UK, 2000-20 ............ 101

Table 102: Generation equipment cost at purchase price in nominal $ million, United Kingdom, 2000 to 2020 ..... 101

Table 103: Transmission equipment cost at purchase price in nominal $ million, UK, 2000-20 ................................ 102

Table 104: Distribution equipment cost at purchase price in nominal $ million, UK, 2000-20 .................................. 103

Table 105: Generation equipment cost, at purchase price, at installed cost and % of capex, CIS, 2000 to 2020...... 104

Table 106: Transmission equipment cost, at purchase price, at installed cost and % of capex, CIS, 2000-20 ........... 104

Table 107: Distribution equipment cost , at purchase price, at installed cost and % of capex, CIS, 2000-20 ............ 104

Table 108: Generation equipment cost at purchase price in nominal $ million, CIS, 2000 to 2020 .......................... 104

Table 109: Transmission equipment cost at purchase price in nominal $ million, CIS, 2000-20 ............................... 105

Table 110: Distribution equipment cost at purchase price in nominal $ million, CIS, 2000-20 ................................. 106

Table 111: Generation equipment cost, at purchase price, at installed cost and % of capex, Russia, 2000 to 2020 107

Table 112: Transmission equipment cost, at purchase price, at installed cost and % capex, Russia, 2000-20 .......... 107

Table 113: Distribution equipment cost, at purchase price, at installed cost and % of capex, Russia, 2000-20 ....... 107

Table 114: Generation equipment cost at purchase price in nominal $ million, Russia, 2000 to 2020 ..................... 107

Table 115: Transmission equipment cost at purchase price in nominal $ million, Russia, 2000-20 .......................... 108

Table 116: Distribution equipment cost at purchase price in nominal $ million, Russia, 2000-20 ............................ 109

Table 117: Generation equipment cost , purchase price, at installed cost and % of capex, Asia Pacific, 2000-20 .... 110

Table 118: Transmission equipment cost , purchase price, at installed cost and % of capex, Asia Pacific, 2000-20 . 110

Table 119: Distribution equipment cost , purchase price, at installed cost and % capex, Asia Pacific, 2000-20 ....... 110

Table 120: Generation equipment cost, purchase price , Asia Pacific, 2000 to 2020 ................................................ 110

Table 121: Transmission equipment cost, purchase price , Asia Pacific, 2000-20 ..................................................... 111

Table 122: Distribution equipment cost, purchase price, Asia Pacific, 2000-20 ........................................................ 112

Table 123: Generation equipment cost, purchase price, at installed cost and % of capex, Japan, 2000-20 ............. 113

Table 124: Transmission equipment cost, purchase price, at installed cost and % of capex, Japan, 2000-20........... 113

Table 125: Distribution equipment cost, purchase price, at installed cost and % of capex, Japan, 2000-20 ............ 113

Table 126: Generation equipment cost, purchase price , Japan, 2000 to 2020 ......................................................... 113

Table 127: Transmission equipment cost, purchase price , Japan, 2000-20 .............................................................. 114

Table 128: Distribution equipment cost, purchase price in nominal $ million, Japan, 2000-20 ................................ 115

Table 129: Generation equipment cost, purchase price, at installed cost and % of capex, China, 2000-20 ............. 116

Table 130: Transmission equipment cost, purchase price, at installed cost and % of capex, China, 2000-20 ........... 116

Table 131: Distribution equipment cost, purchase price, at installed cost and % of capex, China, 2000-20 ............. 116

Table 132: Generation equipment cost, purchase price, China, 2000 to 2020 .......................................................... 116

Table 133: Transmission equipment cost, purchase price, China, 2000-20 ............................................................... 117

Table 134: Distribution equipment cost, purchase price, China, 2000-20 ................................................................. 118

Table 135: Generation equipment cost, purchase price, at installed cost and % of capex, India, 2000-20 .............. 119

Table 136: Transmission equipment cost, purchase price, at installed cost and % of capex, India, 2000-20 ............ 119

Table 137: Distribution equipment cost, purchase price, at installed cost and % of capex, India, 2000-20 .............. 119

Table 138: Generation equipment cost, purchase price, India, 2000 to 2020 ........................................................... 119

Table 139: Transmission equipment cost, purchase price, India, 2000-20 ................................................................ 120

10

Table 140: Distribution equipment cost, purchase price , India, 2000-20 ................................................................ 121

Table 141: Generation equipment cost, purchase price, installed cost and % of capex, Southeast Asia, 2000-20 .. 122

Table 142: Transmission equipment cost, purchase price, at installed cost and % of capex, SE Asia, 2000-20 ........ 122

Table 143: Distribution equipment cost, purchase price, at installed cost and % of capex, SE Asia, 2000-20 .......... 122

Table 144: Generation equipment cost, purchase price, Southeast Asia, 2000 to 2020 ........................................... 122

Table 145: Transmission equipment cost, purchase price, SE Asia, 2000-20 ............................................................. 123

Table 146: Distribution equipment cost, purchase price, SE Asia, 2000-20 ............................................................... 124

Table 147: Generation equipment cost, purchase price, at installed cost and % of capex, Middle East, 2000-20 ... 125

Table 148: Transmission equipment cost, purchase price, at installed cost and % of capex, Middle East, 2000-20 . 125

Table 149: Distribution equipment cost, purchase price, at installed cost and % of capex, Middle East, 2000-20 ... 125

Table 150: Generation equipment cost, purchase price, Middle East, 2000 to 2020 ................................................ 125

Table 151: Transmission equipment cost, purchase price, ME, 2000-20 ................................................................... 126

Table 152: Distribution equipment cost, purchase price, Middle East, 2000-20 ....................................................... 127

Table 153: Generation equipment cost, purchase price, at installed cost and % of capex, Africa, 2000-20 ............. 128

Table 154: Transmission equipment cost, purchase price, at installed cost and % of capex, Africa, 2000-20 .......... 128

Table 155: Distribution equipment cost, purchase price, at installed cost and % of capex, Africa, 2000-20 ............ 128

Table 156: Generation equipment cost, purchase price, Africa, 2000 to 2020 ......................................................... 128

Table 157: Transmission equipment cost, purchase price, Africa, 2000-20 ............................................................... 129

Table 158: Distribution equipment cost, purchase price, Africa, 2000-20 ................................................................. 130

Table 159: Generation equipment cost, at purchase price, at installed cost and % of capex, LAC, 2000-20 ............ 131

Table 160: Transmission equipment cost, at purchase price, at installed cost and % of capex, LAC, 2000-20 ......... 131

Table 161: Distribution equipment cost, at purchase price, at installed cost and % of capex, LAC, 2000-20 ........... 131

Table 162: Generation equipment cost, purchase price , Latin America, 2000 to 2020 ............................................ 131

Table 163: Transmission equipment cost, purchase price , LAC, 2000-20 ................................................................. 132

Table 164: Distribution equipment cost, purchase price , LAC, 2000-20 ................................................................... 133

Table 165: Generation equipment cost, purchase price, at installed cost and % share of capex, Brazil, 2000-20 .... 134

Table 166: Transmission equipment cost, purchase price, at installed cost and % share of capex, Brazil, 2000-20 . 134

Table 167: Distribution equipment cost, purchase price, at installed cost and % share of capex, Brazil, 2000-20 ... 134

Table 168: Generation equipment cost, purchase price , Brazil, 2000 to 2020 ......................................................... 134

Table 169: Transmission equipment cost,purchase price , Brazil, 2000-20 ............................................................... 135

Table 170: Distribution equipment cost, purchase price , Brazil, 2000-20 ................................................................ 136

Table 171: Sales of generation equipment, purchase price by region and country , 2000-20 .................................. 137

Table 172: Market shares of generating equipment vendors, 2015 .......................................................................... 139

Table 173: Sales of boilers at purchase price by region and country, 2000 to 2020 ................................................. 140

Table 174: Leaders in industrial boiler production .................................................................................................... 141

Table 175: Sales of steam turbines, generators & condensers at purchase price by region and country, 2000-20 .. 143

Table 176: Market shares of steam turbine vendors, 2015 ....................................................................................... 143

Table 177: Sales of gas turbines & generators at purchase price by region and country, 2000 to 2020 ................... 144

Table 178: Market shares of gas turbine vendors, 2015 ............................................................................................ 145

Table 179: Sales of HRSG heat recovery steam generators at purchase price by region and country, 2000-20 ....... 146

Table 180: Leaders in HRSG production ..................................................................................................................... 147

Table 181: Sales of HFO/diesel reciprocating engines at purchase price by region and country in .......................... 148

Table 182: Diesel engine vendors.............................................................................................................................. 149

Table 183: Sales of wind turbine at purchase price by region and country in nominal $ million, 2000-20 ............... 150

Table 184: Global market shares of wind turbine manufacturers, 2015 ................................................................... 151

Table 185: Global market shares of off-shore wind turbine manufacturers, 2015 .................................................... 151

Table 186: Types of hydro turbine with applications ................................................................................................. 152

Table 187: Sales of hydro turbine, generator and regulators at purchase price by region and country, 2000-20 .... 152

Table 188: Global market shares of off-shore wind turbine manufacturers, 2015 .................................................... 153

Table 189: Sales of solar PV modules at purchase price by region and country in nominal $ million, 2000-20 ........ 154

Table 190: Global market ranking of top 10 solar PV manufacturers, ranked by MW shipped, 2014 ....................... 155

Table 191: Sales of solar PV inverters at purchase price by region and country in nominal $ million, 2000-20 ....... 156

11

Table 192: Global market ranking of top 7 solar inverter manufacturers, ranked by value, 2015 ............................ 157

Table 193: Sales of FGD flue gas desulphurization at purchase price by region and country, 2000-20 .................... 158

Table 194: Top FGD vendors ...................................................................................................................................... 159

Table 195: Sales of SCR selective catalytic reduction at purchase price by region and country, 2000-20 ................ 160

Table 196: Top SCR vendors ....................................................................................................................................... 161

Table 197: Sales of particulate removal at purchase price by region and country, 2000-20 ..................................... 162

Table 198: Top PM removal vendors ......................................................................................................................... 163

Table 199: Sales of CPP coal preparation plant at purchase price by region and country , 2000-20 ........................ 164

Table 200: Sales of fly ash handling plant at purchase price by region and country lion, 2000-20 ........................... 165

Table 201: Top coal handling vendors ....................................................................................................................... 166

Table 202: Sales of compressors at purchase price by region and country , 2000-20 ............................................... 167

Table 203: Compressor manufacturers ...................................................................................................................... 167

Table 204: Sales of piping at purchase price by region and country , 2000-20 ......................................................... 168

Table 205: Piping companies/installers market share in China ................................................................................. 168

Table 206: Sales of instruments and control equipment at purchase price by region and country , 2000-20 .......... 169

Table 207: Sales of GSU generator transformers at purchase price by region and country, 2000-20 ....................... 171

Table 208: Sales of power transformers at purchase price by region and country, 2000-20 .................................... 171

Table 209: Sales of distribution transformers at purchase price by region and country, 2000-20 ............................ 172

Table 210: Transformer manufacturers market shares ............................................................................................. 174

Table 211: Sales of GCB generator circuit breakers at purchase price by region and country, 2000-20 ................... 176

Table 212: Sales of HV circuit breakers at purchase price by region and country, 2000-20 ...................................... 177

Table 213: Sales of MV circuit breakers at purchase price by region and country, 2000-20 ..................................... 177

Table 214: GCB circuit breakers and switchgear market shares ................................................................................ 178

Table 215: cable types ................................................................................................................................................ 179

Table 216: Sales of insulated cable in the generation sector, purchase price by region and country , 2000-20 ....... 180

Table 217: Sales of HV cable in transmission including subsea, purchase price by region and country, 2000-20 .... 180

Table 218: Sales of MV and LV cable including MV subsea, purchase price by region and country, 2000-20 .......... 181

Table 219: Sales of HV bare conductors at purchase price by region and country, 2000-20 .................................... 181

Table 220: Sales of MV and LV bare conductors at purchase price by region and country, 2000-20 ........................ 182

Table 221: The top global cable manufacturers by industry ...................................................................................... 183

Table 222: Cable manufacturers global market shares by country............................................................................ 183

Table 223: Sales of generator utility automation at purchase price by region and country, 2000-20 ...................... 186

Table 224: Sales of automation technology for transmission, purchase price by region and country, 2000-20 ....... 188

Table 225: Sales of distribution automation including SCADA, purchase price by region and country, 2000-20 ..... 188

Table 226: Sales of transmission equipment at purchase price by region and country, 2000 to 2020 ..................... 189

Table 227: Sales of distribution equipment at purchase price by region and country, 2000 to 2020 ....................... 190

Table 228: Overall T&D market leaders ..................................................................................................................... 191

Table 229: Voltage levels in switchgear categories.................................................................................................... 193

Table 230: Sales of transmission circuit protectors at purchase price by region and country, 2000-20 ................... 194

Table 231: Sales of distribution circuit protectors at purchase price by region and country, 2000-20 ..................... 194

Table 232: Sales of at transmission surge arresters purchase price by region and country, 2000-20 ....................... 195

Table 233: Sales of at distribution surge arresters purchase price by region and country, 2000-20 ........................ 195

Table 234: Sales of distribution panels at purchase price by region and country, 2000-20 ...................................... 196

Table 235: Sales of air core reactors for transmission at purchase price by region and country, 2000-20 ............... 197

Table 236: Sales of air core reactors for distribution at purchase price by region and country, 2000-20 ................. 197

Table 237: Sales of transmission fusegear at purchase price by region and country, 2000-20 ................................. 198

Table 238: Sales of distribution fusegear at purchase price by region and country, 2000-20 ................................... 198

Table 239: Sales of transmission switches at purchase price by region and country, 2000-20 ................................. 199

Table 240: Sales of distribution switches at purchase price by region and country, 2000-20 ................................... 199

Table 241: Sales of disconnectors for transmission at purchase price by region and country, 2000-20 ................... 200

Table 242: Sales of disconnectors for distribution at purchase price by region and country, 2000-20 ..................... 200

Table 243: Sales of protection relays for transmission at purchase price by region and country, 2000-20 .............. 201

12

Table 244: Sales of protection relays for distribution at purchase price by region and country, 2000-20 ............... 201

Table 245: Sales of lightning arresters for transmission at purchase price by region and country, 2000-20 ........... 202

Table 246: Sales of lightning arresters for distribution at purchase price by region and country, 2000-20 ............. 202

Table 247: Sales of isolators for transmission at purchase price by region and country, 2000-20 ........................... 203

Table 248: Sales of isolators for distribution at purchase price by region and country, 2000-20 ............................. 203

Table 249: Switchgear market shares, 2015 .............................................................................................................. 204

Table 250: Sales of HV insulators and bushings at purchase price by region and country, 2000-20 ........................ 205

Table 251: Sales of MV and LV insulators and bushings at purchase price by region and country, 2000-20............ 206

Table 252: Sales of HV spacers and dampers at purchase price by region and country, 2000-20 ............................ 207

Table 253: Sales of MV spacers and dampers at purchase price by region and country, 2000-20 ........................... 208

Table 254: Number of HVDC installations ................................................................................................................. 209

Table 255: Sales of HVDC capacitors at purchase price by region and country, 2000-20 ......................................... 210

Table 256: Sales of AC filters at purchase price by region and country, 2000-20 ..................................................... 210

Table 257: HVDC vendors share by MW capacity ..................................................................................................... 211

Table 258: Sales of steel transmission towers, purchase price by region and country, 2000-20 .............................. 213

Table 259: Sales of steel primary distribution towers, purchase price by region and country, 2000-20 .................. 213

Table 260: Sales of sub-transmission poles, purchase price by region and country, 2000-20 .................................. 215

Table 261: Sales of distribution poles, purchase price by region and country in nominal $ million, 2000 to 2020 .. 216

Table 262: Sales of pole-top assemblies for transmission poles, purchase price by region and country, 2000-20 .. 216

Table 263: Sales of pole-top assemblies for distribution poles,purchase price by region and country, 2000 -20 .... 217

Table 264: Sales of grid, commercial and indusrial meters, purchase price by region and country , 2000-20 ......... 218

Table 265: Sales of residential meters, purchase price by region and country , 2000-20 ......................................... 219

Table 266: Sales of HV smart grid technology for transmission at purchase price by region and country ,2000-20 220

Table 267: Sales of MV smart grid technology for distribution at purchase price by region and country , 2000-20 220

Table 268: Global meter market shares 2015 ........................................................................................................... 222

Table 269: Costs and mark-up from Bill of Materials to Capex ................................................................................. 225

Table 270: Products and technologies used in generating plants ............................................................................. 237

Table 271: Products and technologies used in transmission ..................................................................................... 238

Table 272: Products and technologies used in distribution ...................................................................................... 238

13

PS 5 - SAMPLE PAGES

By 2016 Chinese investment had grown so fast that this year it will be almost double the amount invested

either in the United States, $XXX billion versus $XXX billion, and $XXX billion in Europe. Combined, the

United States, China and Europe will account for XX% global investment in the power sector in 2016. India

is the third largest investing country, with $XX billion.

Generation capex by technology, nominal $ million, 2000 to 2020 (Table 36)

2000 2010 2015 2016 2017 2018 2019 2020

Coal

Gas

Oil

Nuclear

Hydro

Wind

Solar PV utility scale

Solar PV small rooftop

Bioenergy

Generation

Tables 37 to 55 contain analysis of transmission and distribution capex for the major regions and countries.

Table 1: World – T&D capex by technology, nominal $ million, 2000 to 2020

2000 2010 2015 2016 2017 2018 2019 2020

Transmission

Distribution

T&D

The expenditure in the generation sector is made up of several components. In 2015 XX% was composed

of civil works, owner’s cost and indirect costs, XX% on installation and XX% on the purchase of equipment.

In the generation segment mechanical plant far outweighs electrical, with XX% versus X%. Solar PV

modules rose to XX% in 2015 after a meteoric rise in the previous few years.

Composition of generation capex over all technologies, 2015 (Table 56)

Share of capex

Mechanical equipment

Electrical equipment

Solar PV modules

Installation cost

Civil, indirect cost and owner's cost

Capex

Equipment Markets

The analysis of the equipment markets is concerned with the XX% of capex devoted to purchases of plant

and equipment at buyer’s prices. The definition of buyer’s price varies with the type of equipment because

different equipment is sold through different marketing channels which incur different mark-ups at various

stages. An HV power transformer is a bespoke item which is purchased direct from the manufacturer to a

14

unique specification. The buyer’s price is therefore the manufacturer’s selling price. An MV or LV

transformer is a commodity item held in stock and purchased from a distributor, who adds a mark-up to

the manufacturer’s selling price. See Chapter 16 The Value Chain – From Materials to Capex.

There are just over XXX electricity, gas and water & waste utilities in the world; XXX electricity, XXX gas

and XXX water & waste. With numbers like these the range in size is huge, especially for water. The XXX

electrical utilities are the core of the power sector, the XXX gas and water & waste utilities consume a lot

of energy and except for smallest water distributors they mostly generate it themselves. The XXX electrical

utilities are the primary constituents of the power sector, the XXX gas and water & waste utilities are

secondary. The utilities have developed in diverse ways in the regions of the world.

15

Table 2: Generation equipment cost in nominal $ million, at purchase price, at installed cost and

% share of capex, World, 2000 to 2020

$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020

Equipment price

Installed cost

Capex

Equipment price

Installed cost

Capex

Generation equipment cost at purchase price in nominal $ million, World, 2000 to 2020

(Table 76)

$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020

Boilers

Steam turbines, generators and condensers

Gas turbines and generators

HRSG heat recovery steam generators

HFO/diesel reciprocating engines

Wind turbines

Hydro turbines, generator and regulators

Solar PV modules

Solar PV inverters

FGD flue gas desulphurisation

SCR selective catalytic reduction

Particulate removal (ESB, scrubbers, baghouse)

CPP coal preparation plant

Fly ash handling plant

Insulated cable

Compressors

Piping

Instruments and control

BOP/general facilities

Generator transformers

GCB generator circuit breakers

Other switchgear

Other electrical

Utility automation

Total equipment purchase price

Vendors

Different sets of competitors compete in the different world regions, but that the leading European and

American players. Three companies are leaders in almost every sector of the generating industry and

operate globally; GE, Siemens and Alstom. In 2015 GE acquired Alstom Power and Grid. It is the largest

investment GE has ever made. Close to 25% of the world’s power production capacity depends on Alstom

technology and services. ABB ranks equal to the three leaders in prestige but is dominant in transmission

and distribution…………………………

16

Circuit protectors

Table 3: Sales of transmission circuit protectors at purchase price by region and country in nominal

$ million, 2000 to 2020

$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020

World

USA

France

Germany

Italy

Spain

United Kingdom

Europe

Russia

CIS

Japan

China

India

Southeast Asia

Asia Pacific

Middle East

Africa

Brazil

Latin America

Table 4: Sales of distribution circuit protectors at purchase price by region and country in nominal

$ million, 2000 to 2020

$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020

World

USA

France

Germany

Italy

Spain

United Kingdom

Europe

Russia

CIS

Japan

China

India

Southeast Asia

Asia Pacific

Middle East

Africa

Brazil

Latin America

17

Sales of generation equipment at purchase price by region and country in nominal $ million, 2000 to

2020 (Table 113)

$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020

World

USA

France

Germany

Italy

Spain

United Kingdom

Europe

Russia

CIS

Japan

China

India

South East Asia

Asia Pacific

Middle East

Africa

Brazil

Latin America

18

Hydro turbines

Hydropower is providing approximately 17% of the world's electricity and more than 50% of clean,

renewable electricity output annually, worldwide. It has been estimated that only a third of the total world

hydro power capacity has been developed. However, this market has some drawbacks, such ecological

concern related to dams, relocation and rehabilitation of affected stakeholders, environmental Issues such

as methane from decaying vegetation, long gestation period and the high installation cost of dams.

There are a number of different hydropower turbine types available that are suited to different heads and

flows. The table below summarises the main hydropower turbines that are available.

Table 5: Types of hydro turbine with applications

Hydropower Turbine Type Typical Site Characteristics

Archimedean Screw Low heads (1.5 – 5 metres) Medium to high flows (1 to 20 m3/s).For higher flows multiple screws are used.

Crossflow turbine Low to medium heads (2 – 40 metres) Low to medium flows (0.1 – 5 m3/s)

Kaplan turbine Low to medium heads (1.5 – 20 metres) Medium to high flows (3 m3/s – 30 m3/s) For higher flows multiple turbines can be used.

Pelton/Turgo turbine High heads (greater than 25 metres) Lower flows (0.01 m3/s – 0.5 m3/s)

Waterwheels Low heads (1 – 5 metres) Medium flows (0.3 – 1.5 m3/s)

Francis turbines No longer commonly used except in very large storage hydropower systems. For older turbines : Low to medium heads (1.5 – 20 metres) Medium flows (0.5 – 4 m3/s)

Table 6: Sales of hydro turbine, generator and regulators at purchase price by region and country

in nominal $ million, 2000 to 2020

$ ‘000 2000 2010 2015 2016 2017 2018 2019 2020

World

USA

France

Germany

Italy

Spain

United Kingdom

Europe

Russia

CIS

Japan

China

India

South East Asia

Asia Pacific

Middle East

Africa

Brazil

Latin America

19

1. THE VALUE CHAIN – FROM MATERIALS TO CAPEX

The cost of any product such as cable, transformers or circuit breakers can be measured in a number of

ways, from being a piece of unworked metal, to its final installation in working order and finally as a

constituent of capital expenditure. Different price levels are important in this supply chain, and the point

of interest in the chain depends on the business to which the value is being applied. The value chain starts

with the input of raw materials, such as cold rolled steel, GOES, copper, aluminium etc. These inputs

typically constitute from 60-80% of the manufacturing cost of a finished product.

The value chain at 6 levels

1. BOM, bill of materials - Metal producers and refiners are concerned about the prices they can get for

their output in its basic form, ingots, rods, plates etc. For the equipment manufacturers this price

translates into the BOM (bill of materials) as a cost of production.

2. Manufactured cost - Adding the cost of fabricating the materials into finished products produces the

manufactured cost.

3. Factory gate price (MSP) - The addition of non-manufacturing costs such as sales and finance costs

brings it up to the factory gate price or manufacturer’s selling price. This does not include any transport

cost. (Note: factory gate price is sometimes quoted with manufacturer’s profit and sometimes not.)

4. Buyer’s price (equivalent to RSP) - Products such as electrical equipment is almost always sold with a

multi-channel strategy. Power and distribution transformers are a good example; there are usually

two sales channels. Power and large distribution transformers are bespoke items, each one

manufactured to a unique design for a unique purpose. They are ordered direct from manufacturers

and the buyer’s price is the factory gate price. Smaller distribution transformers are commodity items

and are stocked by distributors, who purchase them from the manufacturers, so the end-user’s

purchase price includes the distributor’s mark-up and profit, typically 30-35% of MSP. This stage may

also include an electrical contractor’s mark-up. Some utilities and industries keep these costs in-house

but the aging of skilled work forces is increasing leading to outsourcing as much as possible.

5. Installed equipment cost - The final stage in the value chain of the product takes in the cost of

transport and installation, currently around 25%-30%. It is the cost to the end-user of having an item

of equipment installed in working order.

6. Capex – However, the end-user has further costs which are not directly related to the equipment being

installed although the equipment cannot function without these activities;

Civil and structural costs – site preparation, drainage, construction of buildings on the site etc;

Project indirect costs – engineering, distribution labour and materials, scaffolding, costruction

management etc;

Owner’s cost - these included planning, feasibility and engineering studies, legal feees, permits,

insurance costs, property taxes etc:

The BOM affects each stage in the value chain, because everything starts with it but there are additions in

the value chain which are not dependent on the cost of materials. The manufacturing process is

independent of the cost of the materials, but the next sage in the value chain, the manufactured cost is

highly dependent on the cost of materials. In Stage 3, the manufacturer’s selling price, the non-

manufacturing costs such as sales and administration costs are not dependent on the cost of materials. In

stage 4, where a distributor adds a mark-up it is customarily as a % of the manufacturer’s selling price,

although not all of the costs of distribution will escalate with the price of the product. Finance,

warehousing and insurance costs will rise as the cost of the product increases but other distributor’s

costs………