Re-Powering Market Size, Share, Opportunities, And Trends By Type (Site Repowering, Heat Recovery Repowering, Hot Wind-Box Repowering, Feed-Water Heater Repowering), By Application (Commercial, Industrial, Others), And By Geography - Forecasts From 2023 To 2028

The re-powering market is anticipated to grow at a steady pace throughout the forecast period. Re-powering refers to the refurbishment or modernization of power plants, particularly those that have been in operation for a considerable period. This process might involve replacing outdated equipment, adopting more efficient technologies, and improving the overall performance and environmental impact of the power plant. The multiple objectives and benefits of re-powering coupled with technological advancements and increasing demand for renewable energy is a major growth driver of the re-powering market. Moreover, the increasing demand for electricity, aging infrastructure, and stricter environmental regulations are further accelerating the re-powering market. 

Advantages of re-powering the plants

There are numerous objectives of the re-powering which can enhance the overall system thereby propelling the re-powering market. For instance, upgrading older power plants with modern equipment and technologies can lead to higher energy conversion efficiency, reducing the consumption of fuel or other resources for the same output. Re-powering can lead to reduced emissions of greenhouse gases and pollutants, contributing to environmental protection and compliance with stricter environmental regulations. Additionally, upgrading power plants can enhance grid stability and flexibility, helping to accommodate fluctuations in energy demand and supply.

Technological Advancements

As new and more efficient technologies emerge, older power generation facilities may become outdated and less competitive. Re-powering allows power plant operators to integrate advanced technologies, such as improved turbines, control systems, and energy storage solutions, to enhance overall efficiency and performance. For example, newer turbine designs such as combined cycle gas turbines (CCGT), advanced steam turbines, and high-efficiency generators, offer higher energy conversion efficiency, enabling power plants to produce more electricity using the same input resources. Moreover, for biomass and waste-to-energy re-powering projects, advanced gasification and pyrolysis technologies enable more efficient conversion of organic materials into energy, reducing waste and emissions.

Renewable Energy Integration

The global shift towards renewable energy sources like solar, wind, and hydropower has driven the need for re-powering existing fossil fuel-based power plants. Converting or retrofitting these plants to generate electricity from renewable sources can support the transition to a more sustainable energy mix therefore the need for renewable energy integration is expected to accelerate the re-powering market. For instance, 2020 saw a 3% growth in the usage of renewable energy as demand for all other fuels declines according to the IEA. The percentage of renewable energy in the world's electrical generation increased from 27% in 2019 to 29% in 2020 as per the same source. 

Increasing Demand for Electricity 

The increasing electricity demand is a crucial driver for re-powering initiatives in the energy and power generation sector. As populations grow, economies expand, and technology becomes more prevalent, the demand for electricity rises steadily which is driving the re-powering market. For instance, the quantity of energy utilized in the United States in 2022 was around 4.05 trillion kWh which was a record-high number and was 14 times more than electricity use in 1950. The total amount of energy used for end uses in the US increased by 2.6% in 2022 compared to 2021 according to the US Energy Information Administration. 

Aging Infrastructure

Many power plants globally are approaching the end of their operational lifespans. Re-powering provides an opportunity to extend the useful life of these facilities, postponing the need for massive capital investments in brand-new power plants. For instance, more than 100 coal fire plants were replaced in the US between 2011 and 2020 as per the EIA. Moreover, the benefits of replacing old plants are phenomenal. For example, According to a study by the University of Oxford published in December 2022, repurposing some of Maharashtra's oldest and most expensive coal plants for clean energy and grid stability services can result in savings of Rs. 5700 crores.

Environmental Regulations

Stricter environmental regulations aimed at reducing greenhouse gas emissions and promoting sustainable practices can be a significant driver for the re-powering market. Converting older, high-emission power plants to cleaner and more efficient technologies can help companies comply with environmental standards. For instance, the new climate bill (Inflation Reduction Act of 2022) allotted a whopping 369 billion dollars to various climate-change-related initiatives, including offering tax breaks to Americans who choose to build their homes with solar panels, or businesses that buy carbon capture and storage systems. Moreover, in July 2021, the European Commission proposed the Fit for 55 Package which is a comprehensive set of legislative proposals to align EU policies with the 2030 climate target.

Restraints in the Market

While re-powering offers numerous benefits, several challenges in the re-powering market can hinder or slow down the adoption of such initiatives. For example, re-powering often involves significant upfront costs, especially when retrofitting and upgrading existing power plants with advanced technologies. The high initial investment can be a deterrent for some power plant operators, especially if they are already facing financial constraints. Moreover, re-powering often involves modifying and upgrading existing infrastructure. These changes can introduce new risks and uncertainties related to equipment reliability, performance, and operational challenges.

Europe is Expected to Grow Considerably

Europe is expected to hold a significant share of the re-powering market during the forecast period. The factors attributed to such a share are increasing electricity demand, the need for upgrading and interconnecting capacity, and government initiatives. For instance, the REpowerEU plan was launched by the EU in May 2022 to diversify its energy supplies and produce clean energy. Additionally, according to the TYNDP, Europe's interconnection capacity should quadruple by 2030 to promote social and economic wellbeing which is defined by ENTSO-E as the capability to lessen congestion between two electrical markets to exchange power in an economically advantageous way.

Major Market Players

• BayWa r.e. (BayWa renewable energy) is a global renewable energy company headquartered in Munich, Germany. BayWa r.e. is involved in the development, construction, and operation of renewable energy projects across various technologies, including solar, wind, bioenergy, and geothermal.
• Iberdrola is a major multinational utility company based in Spain. It is one of the world's largest electric utility companies and is primarily engaged in the generation, transmission, distribution, and retail of electricity. It offers the repowering of offshore wind farms, onshore wind farms, and energy transition. 

Key Market Developments

• In January 2022, a new digital platform was created by Bryden Wood to facilitate the replacement of coal-fired boilers at existing power facilities.  The design aims to repower two terawatts of coal-generating capacity with a fast and repeatable system. 
• In November 2022, a global Repowering Coal Initiative was launched at COP27 by Microsoft to enable every coal plant owner in the world to assess their coal plant for conversion to clean energy. 

Segmentation:

• By Type
  • Site Repowering
  • Heat Recovery Repowering
  • Hot Wind-Box Repowering
  • Feed-Water Heater Repowering
• By Application
  • Commercial
  • Industrial
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • The Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others

1. INTRODUCTION

1.1. Energy Transition Status

1.2. Sector-wise Analysis: Examination of Key Industries and Their Implications

1.2.1. Transport

1.2.2. Buildings

1.2.3. Industry

1.2.4. Power

1.3. Socio-Economic Impact of Energy Transition

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. ENERGY AND POWER INDUSTRY OVERVIEW

4.1. Introduction

4.2. Energy Industry Overview

4.2.1. Global Energy Production (in EJ)

4.2.1.1. Americas

4.2.1.2. Europe

4.2.1.3. Middle East & Africa

4.2.1.4. Asia Pacific

4.2.2. Energy Mix, By Fuel

4.3. Power Industry Overview

4.3.1. Global Power Generation (in TWh)

4.3.2. Power Mix

4.3.2.1. Renewable

4.3.2.2. Non-Renewable

4.4. Russian-Ukraine War Impact

4.4.1. Supply Shocks

4.4.2. Rising Energy Prices

4.4.3. Repercussions On Economic Policy

5. MARKET DYNAMICS

5.1. Market Drivers

5.2. Market Restraints

5.3. CO2 Emissions

5.3.1. Coal

5.3.2. Oil

5.3.3. Natural Gas

5.4. Clean Energy Investment

5.4.1. Electricity Generation

5.4.2. Energy Infrastructure

5.4.3. End-Use

5.5. Recommendations

6. GOVERNMENT REGULATIONS/POLICIES

6.1. Introduction

6.2. Net Zero Commitments

6.3. Remuneration Schemes

7. RE-POWERING MARKET, BY TYPE

7.1. Introduction

7.2. Site Repowering

7.3. Heat Recovery Repowering

7.4. Hot Wind-Box Repowering

7.5. Feed-Water Heater Repowering

8. RE-POWERING MARKET, BY APPLICATION

8.1. Introduction

8.2. Commercial

8.3. Industrial

8.4. Others

9. RE-POWERING MARKET, BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. United States

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. United Kingdom

9.4.2. Germany

9.4.3. France

9.4.4. Spain

9.4.5. Others

9.5. The Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Israel

9.5.4. Others

9.6. Asia Pacific

9.6.1. Japan

9.6.2. China

9.6.3. India

9.6.4. South Korea

9.6.5. Indonesia

9.6.6. Thailand

9.6.7. Others

10. RECENT DEVELOPMENT AND INVESTMENTS

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Market Share Analysis

11.3. Vendor Competitiveness Matrix

12. COMPANY PROFILES

12.1. RES

12.2. Repowering India

12.3. Repower

12.4. BayWa r.e.

12.5. Iberdrola

12.6. Vestas

12.7. General Electric

12.8. Repowering Solutions

12.9. Repower Holdings

12.10. Solas Energy

RES

Repowering India

Repower

BayWa r.e.

Iberdrola

Vestas

General Electric

Repowering Solutions

Repower Holdings

Solas Energy