What will limit the growth of global gas-fired power

One of the factors that will affect the market’s expansion is the high cost of imported gas.

Projected to reach approximately 890 gigawatts (GW) between 2025 and 2040, global gas-fired power generation is anticipated to encounter near-term challenges that could impede its growth.

According to Wood Mackenzie’s "Turbocharged vs turbo lag: The new landscape for gas-fired power” report, one of the factors that may limit the market’s growth is the high imported gas costs, specifically in Asia.

Manufacturing capacity constraints could also delay new gas plant construction.

“In the US, skyrocketing capital costs and power market prices below the cost of new gas generation pose challenges,” the report said. “In Europe, decarbonisation goals are pushing unabated gas to the margins by 2040.”

Looking towards 2030-2040, Wood Mackenzie said several key questions will shape the future of gas-fired power. 

“The materialisation of data centre demand, particularly in the United States, remains uncertain,” it said.  

The expansion of gas turbine manufacturing capacity is also crucial, as manufacturers remain cautious about long-term expansion plans.

“The emergence of net-zero power technologies, such as carbon capture and storage (CCUS) and hydrogen blending, presents both opportunities and challenges,” it added.