Root Cause Analysis of the Lack of Market Success of Micro Gas Turbine Systems

Abstract

Micro gas turbine systems were introduced to the market at the dawn of the twentieth century, with the selling arguments of small footprint, low gaseous (NOx) and acoustic emissions, low maintenance and versatility for high-grade Combined Heat and Power applications. Unfortunately, the technology has enjoyed very limited market success and, currently, its market share for decentralized applications is marginal. Fierce competition by reciprocating internal combustion engines (ICEs), an established technology, has always been identified as the main barrier hindering the market deployment of micro gas turbines. In this landscape, this work presents a root cause analysis that aims to identify the causes of this weak market penetration of MGTs. It aims to solve a block of the logic tree that represents the end-user choice to adopt one or the other technology. A single Key Performance Indicator is used to combine technical, economic, emission, and operational factors. This KPI is a compound indicator based on several weighted penalty factors and represents an original approach enabling the identification of the potential markets for this technology. The indicator is computed for the range of electrical power outputs in which microturbines compete. This work compares three different case studies all related to CHP applications. The new methodology confirms the lack of competitiveness of microturbines in market segments without specific heat or emission requirements.

Application of the Theory of Constraints to Unveil the Root Causes of the Limited Market Penetration of Micro Gas Turbine Systems

“…More specifically, Tilocca et al recently created a Key Performance Indicator to combine technical, economic, environmental, and operational factors into a single figure of merit to benchmark competing technologies in the same market [78]. This indicator is the sum of several weighted penalty factors, each representing the contribution of each cause into the Magnitudinal AND.…”

“…One of the limitations of this approach was the arbitrariness in assigning weights to different entities. In a follow-up work published in 2023, the same core group of authors presented an evolution of the methodology grounded in the Theory of Constraints [79]. This new Key Performance Indicator still combines technical, economic, and operational factors according to the end-user requirements.…”

Innovative desalination system driven by a solar micro gas turbine for off-grid applications

“…Although market for decentralised, micro energy systems is currently dominated by reciprocating Internal Combustion Engines (ICE), micro gas turbines are reportedly competitive against ICEs in applications requiring intermediate to high-grade heat and high heat-to-power ratio [11]. The micro gas turbines in these applications exhibit some variations with respect to large gas turbines, the utilisation of radial machinery being the most relevant feature.…”