Powering the future

The energy transition has largely centred on the maturing of renewable energy, with efforts to ensure that solar and wind farms’ viability outperforms traditional fossil-fuel-based power generation.

Renewables need conventional support

EIC has recently seen a surge of financial incentives, including those provided under the US 2022 Inflation Reduction Act, which have significantly boosted financial support across the solar panel and wind turbine supply chains. Despite these advances, technical challenges persist, particularly around integrating large amounts of intermittent renewable energy into power grids. As a result, traditional turbines may still have a supporting role to play in the energy transition by helping to stabilise a greener but more variable grid.

According to EICDataStream, solar and wind farms are projected to dominate new power generation capacity additions around the world until 2030, with the exception of the Middle East, where renewables are expected to contribute only 47.2% of new capacity. In other regions – Asia-Pacific, Europe, the Americas and Africa – renewable energy sources will significantly outpace conventional systems, with traditional gas and coal-fired power plants and nuclear reactors comprising just 25–37% of new installations.

While this variation is region-specific, one shared objective is to ensure grid reliability while accommodating fluctuating power demands. Solar and wind power sources have inherent limitations because of their intermittent generation capabilities. Conventional turbines address this issue by providing a steady baseload supply, or by quickly compensating for power shortages to deliver peaking power. While conventional turbines make up only about a quarter of future additions, they will remain essential to supporting the energy transition.

Growth in gas-fired power

Brazil and the US are at the forefront of adding new gas-fired capacity, expanding renewable energy infrastructure while integrating combined-cycle gas-fired capacity in anticipation of the growing clean energy sector.

The US is deploying peaking power plants equipped with fast-start turbines to respond quickly to peak demands on the grid. For instance, the 380MW Timmerman gas-fired project in Texas will use 20 Wartsila 50SG advanced engines that can ramp up to full power in just a few minutes, ensuring reliability in areas with high renewable energy penetration. Other countries, such as Indonesia, the UK and Singapore, are also deploying peaking power plants to complement renewable sources.

Traditional turbines may still have a supporting role to play in the energy transition by helping to stabilise a greener but more variable grid

Hydrogen’s role in cleaner combustion

A critical evolution in turbine technology is in combining hydrogen with natural gas to reduce emissions. Hydrogen-ready turbines, designed to operate on a blend of both fuels, represent a step toward lower-carbon power generation. While these turbines initially run on natural gas, they can gradually transition to higher hydrogen blends as hydrogen production scales up.

Germany is emerging as a leader in this area, with projects such as EnBW’s Heilbronn Combined Cycle Gas Turbine Power Plant showcasing innovative approaches. This 750MW plant is set to replace an ageing coal facility and will also supply a significant amount of thermal energy. GE Vernova’s 9HA.01 turbine can burn up to 20% hydrogen by volume and switch to higher blends as the sector matures. Construction work started in March 2024 and is expected to be finished in 2026. By 2030, the project will contribute significantly to Germany’s 4GW pipeline of natural gas-hydrogen and pure hydrogen power projects.

This transition is not without its challenges. Given its nascency, hydrogen production and supply infrastructure still need to be developed, limiting the scalability of such projects. However, with substantial government subsidies, such as Germany’s US$227.69bn commitment to expand 10GW of hydrogen-ready plants, the sector is poised for growth.

The future of energy transition

The energy transition will require a combination of renewable energy sources and traditional gas and coal-fired power plants, including hydrogen-ready plants. As renewable energy technology progresses and challenges in grid integration remain, traditional turbines will be essential in maintaining a stable and reliable energy supply. While the path to a greener grid will rely on turbines, they are adapting to support a more sustainable future.

By Firdaus Azman, Energy Consultant, EIC

Image credit | Getty