The article discusses the potential resolution of the “turbine crisis” affecting the renewable energy sector, particularly due to limitations in gas turbine manufacturing. As natural gas remains a key competitor for energy production, the current inability to meet energy demand with new turbine production has led many in the industry to favor renewable options, particularly solar and storage solutions.
Mitsubishi Heavy Machinery’s CEO, Itojima, announced plans to double turbine production within two years, highlighting that the industry is dominated by three main suppliers: Mitsubishi, GE Vernova, and Siemens Energy. However, the high capital investment needed for turbine manufacturing means significant market expansion is unlikely without collective confidence from these competitors.
Despite rising stock prices for fuel turbine manufacturers, which have increased by up to 86% this year, there is caution around expanding production capabilities. Executives are wary of over-investment, emphasizing efficiency and careful capital stewardship. Analysts predict that gas turbine orders may hit record highs this year, but there are still concerns about demand in the early 2030s and the overall supply chain issues impacting production.
In summary, while turbine manufacturing may see increased capacity, the industry remains cautious, balancing the need for expansion against the challenges posed by market conditions and renewable energy competition.
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