China Faces Limits on Power and Production

Jack Hao
Jack Hao

The global energy structure has accelerated the adjustment to green energy, and the investment in traditional energy is insufficient. Under the influence of COVID-19, energy supply and demand are disrupted, exacerbating the contradiction between supply and demand, resulting in global power shortage.

China recovered from the epidemic earlier than many other countries and is now almost the only major manufacturer, so industrial power consumption has increased significantly. Power rationing is mainly to alleviate the power shortage and achieve the goal of energy conservation and emission reduction. China is dominated by thermal power generation, and there is a serious shortage of clean energy. There are still big problems in the energy structure.

Source:  Weixunso     Read The Article

PSR Analysis: In 2021, China’s electricity demand will grow by more than 10%, which greatly exceeds the previously estimated demand growth of 6% to 7%. At present, the substantial growth of power demand has put great pressure on power supplies. Coal accounts for about 70% of China’s electricity consumption, but the output of coal is far lower than the demand for electricity.

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PG&E Blackouts Lead to Best Fourth Quarter for Mid-Range Power in Five Years

SUMMARY: Gen-set sales in Q4 2019 rose 3.5% from Q3 2019, driven primarily by growth in the middle power ranges. The 21-50kW range experienced the fastest growth at 7.5%, followed by 10-20kW at 3.7% and 101-300kW at 3.5%.

When looking at this growth by application, we see that standbys were the only application to experience meaningful growth this quarter, ending with a strong 7.5% increase. Unlike previous quarters, this increased demand came from more than residential consumers. Institutional and industrial consumers increased their demand by 2.5% and 3.75%, respectively. This is the strongest fourth quarter showing for these consumer types in the last five years.

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DATAPOINT: 2022 U.S. Production Hydraulic Power: 6,800 Units

6,800 units is the estimate by Power Systems Research of the number of Hydraulic Power Units to be produced in the United States during 2022.

A Hydraulic Power Unit (HPU) usually refers to a self-contained, free-standing engine assembly that is used to drive one piece of equipment. HPUs are powered by internal combustion engines or AC/DC electric motors.

This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.

Market Share:  Dominating production of HPUs in NA is Stanley Hydraulic with 49% of total units produced.  In second position is Great Northern (Brave) with 9.5%. Tradewinds Powers is third with 8%. 

Trends: Production of HPUs in the US increased 22% from 2020 to 2021.  Production is expected to increase another 6% from in 2022.  Hydraulic Power Units (power packs) are used in a variety of applications and industries ranging from marine, construction and military applications. 

The overall gain in 2022 is attributed to the increase in construction and marine related activities.  This product segment will continue to increase steadily over the next 5 years as warranted by current economic conditions and related demands. Expect an additional 10% increase by 2025.    PSR

Carol Turner is Senior Analyst, Global Operations, for Power Systems Research

Moscow Heat and Power Show

MOSCOW–The fourth annual Heat and Power Show was conducted here Oct. 22-24, and a significant part of the fair was dedicated to small generation and co-generation applications.

Although at the moment this fair is rather small, it has a good potential to become a large international show because it is only fair in Russia with such a specialization. There were about 100 participants from 12 countries.

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Liebherr Hydrogen Excavator Leads Bauma Innovators

iVT was a major winner at Bauma in Munich when it was recognized in the hotly contested Climate Protection category in the Bauma Innovation Awards. The hydrogen-combustion machine is the first ever Liebherr hydraulic excavator to be powered by a hydrogen engine

The machine’s prime power source is the H966 hydrogen combustion engine, which has six cylinders and uses port fuel injection (PFI), which Liebherr employs along with direct injection (DI) for its hydrogen engines

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On-Highway Batteries Serve as Emergency Backup Power

Audi and the utility EnBW are pioneering an energy storage facility built on retired electric vehicle (EV) batteries. This partnership is being billed as the solution to a major problem in each industry.

Tyler Wiegert
Tyler Wiegert

For automobile manufacturers, the question of how to recycle retired batteries has been pressing for some time. Utilities have been struggling with the perverse problem that excess generation from renewable sources has been slowing adoption, as surges from those sources can disrupt the stability of power grids.

EV batteries have a functional life of 3-10 years after they are retired from vehicle use, making them a ready tool for use by utilities.

Portland General Electric Company (PGE) also is seeking to create a more resilient grid for the utilization of renewable energy sources. They are launching a pilot program to incentivize the installation of home battery systems to act as a virtual power plant.

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COVID Creates Challenges and Opportunities in Power Gen

If you were hoping for COVID-19 to disappear from the news by the school year, it’s obviously not going to happen. With major companies like Google announcing they won’t be sending employees back to their offices until the summer of 2021 and COVID metrics climbing again in the South and West, we probably will be working on the impact of the pandemic well into next year.

Tyler Wiegert
Tyler Wiegert

It could almost be considered a truism to say that COVID-19 has been bad for business. The 33% annualized decline in GDP in Q2 2020 would apparently confirm that, and even the most positive about the economy must concede that a 9.5% single-quarter contraction is painful, to say the least. With businesses closed and housing starts in June lagging 4% behind last year, even with the brief reprieve when states began to reopen, the power generation segment has been hit hard by the pandemic.

Cummins, a giant in the industry, announced at the end of July that its revenues for Q2 2020 had fallen 38% from Q2 2019. That increased to 48% when looking at North America alone. Engine sales were down 47%, and power generation revenues declined by 37%. While Cummins was able to achieve positive net income because of a quick ramp-up in production in China after the worst of the virus had passed there, it was less than half of net income from Q2 2019.

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Outdoor Power Equipment To Grow 5.3%

Michael Aistrup
Michael Aistrup

Power Systems Research (PSR) projects the global outdoor power equipment market to grow from $34.01 billion in 2021 to $48.91 billion by 2028, a CAGR of 5.34% over the forecast period. The outdoor power equipment market includes consumer and commercial lawn mowers, chain saws, leaf blowers, and other motorized equipment used in the upkeep of lawn and gardens.

Global trends.North America is expected to dominate the market because of the growth of commercial and residential lawns and parks. The market in North America stood at $13.7 billion in 2021 and is expected to gain a huge portion of the global market share.

In Europe, continued automation in the lawn mower segment will increase demand for automated residential lawn mowers.

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