African Steam Turbine Market Set to Grow Amidst Rising Electricity Demand, Notes Frost & Sullivan

By Frost Sullivan, PRNE
Sunday, August 15, 2010

CAPE TOWN, South Africa, August 16, 2010 - Driven by a period of significant economic growth, the demand for
electricity within sub-Saharan Africa is rapidly approaching supply capacity
and in many countries exceeding it. The resultant demand for new generation
capacity is boosting growth in the steam turbine market for the region.



"The sub-Saharan African steam turbine market is expected to grow
considerably due to the cost efficiencies in power production attained from
coal-fired power plants in coal-rich countries," notes Frost & Sullivan
Research Analyst Ross Bruton. "The emergence of combined cycle technologies
and development of the geothermal power industry in East Africa are also
likely to open up new market opportunities."

New analysis from Frost & Sullivan (, The
Sub-Sahara African Steam Turbine Market, finds that the market earned
revenues of US$147.4 million in 2008 and estimates this to reach US$261.4
by 2014. The markets covered in this research service by region are
South Africa, Botswana, Zimbabwe, Kenya, Mauritius and Namibia.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

In countries with an abundance of natural coal reserves, the development
of coal-fired power plants is the most cost-effective means of power
production. However, these cost efficiencies may fall away in the long-term
due to the depletion of natural resources and potential carbon taxes or
cap-and-trade mechanisms placed on industries with high carbon emissions.

"Due to the high carbon emissions of coal fired power plants, and their
subsequent contribution to global warming, carbon taxes or cap-and-trade
mechanisms are often applied to power industries in countries, like South
, in order to decrease the national carbon footprint," explains Bruton.
"The application of these mechanisms will decrease the cost efficiencies
attained through coal-fired power production and subsequently restrain growth
of the market."

Nevertheless, due to the small carbon footprint of most countries in
sub-Saharan Africa, and the current high demand for electricity in the
region, this is anticipated to only have a significant effect on the rest of
the region in the long term.

Competitors in the market should focus on the R&D of clean coal as well
as combined cycle technologies. Furthermore, after the successful growth of
the geothermal and bagasse cogeneration power industry in Kenya and
Mauritius, competitors should diversify their target market to incorporate
renewable energy production.

"Cheaper Chinese manufacturers have begun to enter the sub-Sahara African
steam turbine market previously dominated by European manufacturers,"
explains Bruton. "Therefore, the current competitors in the market should
either concentrate on the R&D of high quality, reliable products that are
able to attain market leading efficiencies in power production or implement
cost price reduction strategies in order to remain competitive."

The Sub-Sahara African Steam Turbine Market is part of the Energy & Power
Growth Partnership Services programme, which also includes research in the
following markets: The East African Genset Market, The West Africa
Transformer Market and the South African Boiler Market. All research services
included in subscriptions provide detailed market opportunities and industry
trends that have been evaluated following extensive interviews with market

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                  The Sub-Sahara African Steam Turbine Market

    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402

Patrick Cairns, Frost & Sullivan, Corporate Communications - Africa, +27-18-464-2402, patrick.cairns at

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