Indian power equipment players see an emerging opportunity in Japan and Germany.
With these countries jettisoning plans for new nuclear power capacity after the Fukushima incident and now planning to rapidly scale-up thermal capacity, domestic power gear manufacturers are looking at access to these new developed markets.
Equipment major Bharat Heavy Electricals Ltd (BHEL) is bullish on the prospects, especially by leveraging its global partnerships. “There is an opportunity… Ideally, we would see how best we can support our collaborators in these countries as they look at thermal and other forms of generation as an alternative to nuclear power,” the state-owned firm's Chairman and Managing Director, Mr B. P. Rao, told
BHEL has a tie-up with General Electric for manufacturing advance class gas turbines; with Alstom for supercritical boilers, Siemens for turbine generators, and with Mitsubishi Heavy Electric for pumps.
L&T, which has set up a plant in Hazira, Gujarat, in a tie-up with Mitsubishi Heavy Industries for manufacturing supercritical boilers and turbine generators, is also looking at the opportunity, especially in Japan, industry sources said.
Japan, the world's third-biggest user of nuclear power after the US and France, has 18 reactors operating with a combined capacity of 16,405 MWe (mega watt electric).
In the wake of the Fukushima disaster in March, long-term substitution of Japanese nuclear generation with natural gas and oil-fired generation has been proposed. This, analysts say, will fuel investment in the thermal power sector and the liquefied natural gas value chain.
Reversal of policy
Germany's coalition Government too has announced a reversal of policy that will see all the country's nuclear power plants phased out by 2022. The seven oldest reactors — which were taken offline for a safety review immediately after the Fukushima crisis — would never be used again. An eighth plant, which was already offline and has been beset by technical problems, would also be shut down for good. Six others would go offline by 2021 and the three newest by 2022.
BHEL has fully indigenised technology up to 600 MW and supplies steam turbines, generators, boilers and matching auxiliaries up to 800 MW ratings, including supercritical sets of 660 MW, 700 MW and 800 MW. It also offers turnkey services in the power sector.
L&T's manufacturing facility for boilers and turbines, which has been set up in partnership with Mitsubishi Heavy, has started production activities.
The remaining factories to manufacture power plant auxiliaries are also in the works. L&T is a strong player in the thermal equipment segment, backed by its capability to execute complete engineering procurement and construction contracts for power plants.