Tough challenges need to be met with smart solutions. For 125 years, GE has been delivering innovative products and services that create significant value for our power generation customers as they face physical, financial, environmental and sustainability challenges.
At GE's Gas Power Systems, we're pushing the boundaries of what's possible to help our customers achieve the right balance between power plant performance and environmental sustainability. We have the broad experience and advanced equipment needed to reliably convert the full spectrum of liquid and gas fuels to energy, with natural gas-fueled combined cycle power plants offering one of the cleanest and most efficient methods of producing electricity from fossil fuels.
Our world-class portfolio utilizes the centuries of experience and has expanded across the entire plant. It includes industry-leading gas and steam turbines, generators, heat recovery steam generators, condensers and other balance of plant equipment. We've also combined decades of technology leadership at GE with digitally-driven solutions so that our customers can take advantage of valuable insights and data to deliver innovation business outcomes.
Today, one out of every six people in the world is without access to electricity. Power demand is growing globally and access to reliable, affordable electricity is a critical enabler for economic growth and quality of life. According to the International Energy Agency (IEA), by 2020, the global economy's GDP is expected to grow by 3.5 percent annually and the population will increase by about one billion. In line with these economic and demographic forecasts, the IEA projects that total energy demand will rise by one-third through 2040. This corresponds to a 1 percent compound annual growth rate in Organisation for Economic Co-operation and Development (OECD) countries and a 3 percent growth rate across the rest of the world. Between new installed capacity and retired plants, an additional 6,700 gigawatts (GW) of power is expected to be added in the next 25 years.
Power generation trends
Gas is the fastest growing of the fossil fuels and, within the next 18 years, is forecasted to become the single largest source of installed capacity. By 2040, the OECD/IEA expects gas to emerge as a power player in the global energy mix, rivaling the popularity of the industry's traditional choices: coal and oil.
Renewable power capacity additions will be twice that of gas additions in the next decade; however larger load factors will allow gas and other fossil fuels to maintain their dominance in power generation. Gas turbine power plants serve as a complement to intermittent renewables generation, offering such valuable features as rapid start, output flexibility, and turndown capability.