ANZ Power Plant Services Markets: Full Maintenance Contracts Favoured in the Gas Turbine Sector.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c54566) has announced the addition of Frost & Sullivan's new report: ANZ Power Plant Services Markets to their offering.

The research service titled ANZ Power Plant Services Markets provides an overview of third-party maintenance services to thermal power plants and the associated market revenues in Australia and New Zealand. The study consists of detailed analysis of key market drivers, restraints, and trends that are impacting both OEMs and non-OEM service companies. Analysis and trends on gas and steam turbine power plant owners and the pricing of service contracts are also provided. In this research service, Frost & Sullivan's expert analysts thoroughly examine the Australian and New Zealand power markets. The study covers maintenance, repair and overhaul (MRO) and turnkey operation and maintenance (O&M) in gas turbine and steam turbine power plants for boilers, steam turbines, gas turbines, generators, and auxiliary equipment.

The following technology is covered in this research service:

-- Power Plant Services: Power plant services incorporate plant and equipment maintenance, overhaul, repair (when separated from plant operation), and physical operation of the facility (when separated from ownership). It essentially relates to the third-party outsourcing services provided by OEMs and non-OEM companies.

The burgeoning demand for electricity in the Australia and New Zealand (ANZ) region is giving way to new power plants across the region, thereby generating fresh opportunities for power plant service vendors. Gas turbines power plants, in particular, are altering power generation trends in Australia, with a significant growth in their installed capacity, especially the combined cycle gas turbine plants (CCGT), due to factors such as faster construction periods, less emission characteristics, and increasing availability of natural gas. This, in turn, is propelling demand for contractual services, as owners that have opted for these power plants largely rely on original equipment manufacturers (OEMs) to provide maintenance and spares. Moreover, there are not many independent companies in Australia capable of delivering services for combustion turbines. Hence, the prospects for OEMs look promising for contractual services for gas turbine power plants.

However, lack of skilled manpower remains a major challenge for market participants, causing huge pressure and service quality concern. It has been observed that there has been a gradual decline in the availability of manpower for certain power plant services including turbine and generator overhaul. "This problem is likely to become more pronounced with the retirement of current employees as there is little knowledge about the assembly or repair procedures of old technology equipment, even with the utilities," notes the analyst of this research service. "The impact of this challenge is likely to remain high during the medium and long terms of the forecast period."

Full Maintenance Contracts Favoured in the Gas Turbine Sector

Australia is a relatively mature market for power plant services. The liberalization of the market led to more challenges for the utilities, which had to reposition themselves to strive in the market. Power companies are looking at continuous improvement by optimizing operational costs, applying best practices in maintenance and improving their power generation efficiencies. The preference for outsourcing services is not universal due to marked differences between the major technologies. OEMs provide major overhauls in the market, especially in the gas turbine sector owing to the technological complexities involved. While most participants in the gas turbine sector were found to hold a full maintenance contract, the percentage was substantially lower for steam turbines and boilers, signifying greater reliance on in-house expertise.

Overall, both Australia and New Zealand represent matured service markets, with the Australian power plant services market being larger in terms of the revenue share (92.6 percent) in 2006. The ratio of service revenues as a proportion of installed capacity is, however, higher in New Zealand. This is due to the fact that a majority (approximately 58.0 percent) of the power generated in New Zealand is gas turbine-based, unlike in Australia where steam turbine-driven generators contribute to more than 80.0 percent of the thermal power production. "While the ANZ market for outage maintenance (the MRO market) is likely to grow at a compound annual growth rate (CAGR) of 4.4 percent between 2006 and 2013, the market for turnkey operation and maintenance (O&M) services is still in a very nascent stage," says the analyst. "This is due to the presence of large in-house O&M teams within both public and private power generation utilities."

For more information visit http://www.researchandmarkets.com/reports/c54566