May 17, 2020

Global gas-genset market to double

Admin
2 min
Petro reserves
Driven by recent discoveries of gas reserves in several countries, the global gas-generator set (genset) market is forecast to increase from $3.3 billi...

Driven by recent discoveries of gas reserves in several countries, the global gas-generator set (genset) market is forecast to increase from $3.3 billion in 2013 to $6 billion in 2020, at a Compound Annual Growth Rate (CAGR) of 8.9 percent, says research and consulting firm GlobalData.

According to the company’s latest report, the North American region has the highest share of the global gas-genset market, with 33 percent, followed by Latin America and Asia-Pacific, with respective shares of 30 percent and 20 percent.

The U.S. will continue to be the dominant player during the forecast period, since the discovery of shale gas reserves in the country, along with its commercial exploitation of these reserves, have helped lower gas prices and therefore further driven the market for gas-gensets.

 “From a long-term perspective, gas-gensets are more economical compared to diesel-gensets, but even so, they are still not the preferable option for all end consumers,” Sayani Roy Nath, GlobalData's analyst covering Power.

“Global consumers need to be made more aware of the benefits of using gas-gensets, including the fact that they help in the reduction of greenhouse gas emissions. Moreover, governments need to take more assertive action in terms of infrastructural development for gas networks.”

Another key market driver is the fact that many countries have implemented strict emission norms for regulating the level of harmful emissions from diesel-gensets, which will boost the adoption of gas-gensets.

However, most countries, both developed and developing, do not have proper gas infrastructure. As a result, even if gas is available in a particular country, it cannot be transported to distant locations due to the absence of gas pipelines. Furthermore, the investment required for laying pipelines is also high.

Due to these limiting factors, end consumers often find it relatively more expensive to opt for gas-gensets, which could therefore restrict any further market growth.

This report gives detailed information on the gas generator market, focusing on the U.S., the UK, India, Brazil, China and Nigeria. Drivers, restraints, revenue forecast, segmentation of revenue by voltage level, end user segmentation and market share analysis are covered at the country level.

This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.

Source: www.globaldata.com/

 

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Jul 26, 2021

Ofwat allows retailers to raise prices from April

Ofwat
Utilities
water
prices
Dominic Ellis
3 min
Ofwat confirms levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue

Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.

The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.

Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.  

In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue. 

Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”  

There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:   

  1. Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps. 
  2. Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold. 
  3. Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice. 

Further consultation on the proposed adjustments to REC price caps can be expected by December.

Anita Dougall, CEO and Founding Partner at Sagacity, said Ofwat’s decision comes hot on the heels of Ofgem’s price cap rise in April.

"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.

"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."

United Utilities picks up pipeline award

A race-against-time plumbing job to connect four huge water pipes into the large Haweswater Aqueduct in Cumbria saw United Utilities awarded Utility Project of the Year by Pipeline Industries Guild.

The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.

“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.

Camus Energy secures $16m funding

Camus Energy, which provides advanced grid management technology, has secured $16 million in a Series A round, led by Park West Asset Management and joined by Congruent VenturesWave Capital and other investors, including an investor-owned utility. Camus will leverage the operating capital to expand its grid management software platform to meet growing demand from utilities across North America.

As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.

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