Performance of the OCGT and CCGT segments in the global natural gas fired power generation market.

The global natural gas fired power generation market is expected to grow at a CAGR of 2.79% during the forecast period. Based on type, the global natural gas fired power generation market has been segmented into open cycle gas turbine (OCGT) and combined cycle gas turbine (CCGT).

An OCGT plant consists of a single compressor or gas turbine connected to an electricity generator via a shaft. Since OCGTs involve a simpler operation, they are faster and less expensive to construct than CCGTs. Also, when the power purchase agreement (PPA) relates to the provision of peak power, OCGTs are the preferred choice. Moreover, OCGTs require less equipment to function than CCGTs, which require heat recovery steam generators, condensers, steam turbine generators, cooling towers, additional generator step-up transformers, and water treatment systems.

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Thus, the need for less equipment also means less space and land requirements, thus further adding to their convenience and cost-effectiveness. However, the lower efficiency of OCGTs when compared with CCGTs increases the cost per unit of power generated. Hence, owing to the above-mentioned benefits, several natural gas fired power plants owners and operators are choosing OCGTs by giving up on CCGTs altogether. Hence, the OCGT segment is expected to grow rapidly and will improve its position by making it the largest segment in the global natural gas fired power generation market during the forecast period.