Energy RD Performance: Gas Turbine Case Study

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business entirely by nearly selling it to MHI in 1987.55 However, it charged back two years later with major new development programs in the face of renewed demand. Siemens later announced plans to buy Westinghouse’s Power Generation Business Unit by which it would acquire all the institutional knowledge, workers, and patents for the US manufacturer’s gas turbines. Westinghouse/Siemens is currently redistributing its engineering personnel towards combustion turbines at the expense of steam turbines. The power generation market and external drivers have finally interacted with the technological developments that have been ongoing since the 1930s, propelling the entire gas turbine industry. Orders for gas turbines are again increasing as generators respond to turbine improvements, market changes and the need for more dynamic generation capability in the future. This boom can again be seen in Figure 16 by examining the most recent decade. Today, the most important players in turbine R&D include manufacturers, purchasers, and governments. Major manufacturers include the General Electric Company, Siemens AG, Solar Turbines, Westinghouse Electric Corporation (whose power generation business has recently been acquired by Siemens), Mitsubishi Heavy Industries, and Asea Brown Boveri. These companies have growing groups of partners who are entering the expanding field. Other companies, such as Rolls-Royce and Pratt & Whitney, excel at jet engine development which sometimes lead to power generation spinoffs. Turbine purchasers are utilities and non-utility power producers worldwide. Finally, governments have also played a role in gas turbine R&D by promulgating policies and programs that affect power generation technologies. The outlook for gas and combined turbines looks bright. While Figure 16 showed how utilities had ordered gas turbines, Figure 15 shows how utility management used the gas turbine capacity they had purchased. As narrated by the history, the utilities used the gas turbines they purchased following the 1965 Great Northeast Blackout. Then, as capacity stagnated and gas prices rose, they made less of their electricity with their gas turbines. When improved gas turbines reemerged in the market in the late 1980s and 1990s, utilities began to both order more gas turbines and operate them more often. 55 Interview with Lee McLurin, Westinghouse. 35

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