Frost & Sullivan: Demand for Service and Efficiency Drives Western European Power Plant Services Market

LONDON, April 12, 2010 - Increased stability and expanded market growth are in the immediate reach
of the Western European power plant services market. Despite the global
economic slowdown, the power plant service sector is experiencing optimistic
growth fuelled by rising investments in the power generation industry. The
expected climb in revenues is driven by a growing demand for service
requirements with the ageing fleet of power plants and a revived customer
emphasis on efficiency.

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New analysis from Frost & Sullivan (www.energy.frost.com), Western
European Power Plant Services Markets, finds that the market earned revenues
of US$3,973 million in 2008 and estimates this to reach US$5,145 million in
2015. The market is expected to grow at a compound annual growth rate (CAGR)
of about 3.8 percent. The Western European countries covered in this research
service are Austria, Belgium, Denmark, Finland, France, Germany, Greece,
Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal,
Spain, Sweden, Switzerland and the United Kingdom.

"Besides Europe's ageing fleet of power plants, the growth in the
installed capacity of combined cycle gas turbine (CCGT) (gas fired plants)
augurs well for the services market because gas turbine contracts tend to be
of higher value," says Frost & Sullivan Energy Industry Director Harald
Thaler. "Although the boiler and steam turbine markets are considered
relatively mature, the gas turbine market is in a growth phase, with
developments in new installed capacity driving the market."

In addition to these developments, some of the key short-term restraints
for the western European power plant services market include increasing focus
on renewable energy sources such as wind, potential resurgence of nuclear
power, capacity constraints or shortage of skilled labour, unwillingness of
some utilities to outsource complete operation and maintenance (O&M)
contracts and adverse effects of economic slowdown.

"The shortage of experienced and skilled manpower for the servicing
business in Western Europe is turning into a major impediment for providing
services to customers," explains Harald. "The market also faces the challenge
of public opposition to fossil fuel plants, especially coal fired plants."

Despite these underlying problems, there are several opportunities
present across the various functional segments of gas turbines, steam
turbines and boilers. The market growth is primarily driven by lack of
adequate in-house capability, rising trend of services for newly built
plants, growth in new installed capacity and customers' focus on improving
efficiency and cost.

Western European Power Plant Services Markets is part of the Energy &
Power Growth Partnership Services programme, which also includes research in
the following markets: centralized power generation, conventional thermal
power generation, and power plant services. All research services included in
subscriptions provide detailed market opportunities and industry trends that
have been evaluated following extensive interviews with market participants.

If you are interested in more information on this study and to know more
about our Energy & Power Growth Partnership Services programme, please send
an e-mail to Chiara Carella, Corporate Communications, at
chiara.carella@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

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Western European Power Plant Services Markets

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    Contact:
    Chiara Carella
    Corporate Communications - Europe
    P: +44 (0) 20-7343-8314
    M: +44 (0) 753-3017689
    E: chiara.carella@frost.com
    www.frost.com

Chiara Carella, Corporate Communications - Europe of Frost & Sullivan, +44 (0) 20-7343-8314, mobile, +44 (0) 753-3017689, chiara.carella at frost.com