Power generation and its supply chain

Why the concentration exists

Rapidly increasing capital costs and extended lead times for traditional gas turbine resources are forcing resource planners to adapt. A capacity need once met by a large gas turbine project may now require smaller modular turbines, reciprocating engines, linear generators, or a mix of variable renewable energy and storage. Large power transformers, high-voltage switchgear, and transmission cables also carry multi-year lead times, which limits how fast new generation projects can come online. Together, these constraints mean utilities must choose between waiting years for a large frame unit and assembling capacity from a portfolio of smaller, faster-delivered assets.[2][3]

Policy adds another layer of concentration by limiting which manufacturers can supply certain projects. Federally funded projects may require OEMs to comply with the Build America, Buy America Act, which can apply to both equipment and transportation. Projects funded through DOE may also require a US-flag vessel, with direct impact on capacity and cost. On January 20, 2025, Executive Order 14156 declared a national energy emergency due to inadequate energy production and generation capacity. A later Defense Production Act determination on April 20, 2026 prioritized reliable coal supply chains and baseload power generation for national defense.[4][5]

What the evidence shows

Who supplies it

Three OEMs dominate the global gas turbine market. GE Vernova, Mitsubishi Power, and Siemens Energy remain dominant, although some reshuffling is expected as new suppliers emerge. GE Vernova is headquartered in Cambridge, Massachusetts, with approximately 85,000 employees across roughly 100 countries. The company's installed base generates approximately 30% of the world's electricity, while its 7HA gas turbine set a Guinness World Record for operating at 63.08% gross efficiency at Japan's Chubu Electric Nishi-Nagoya power plant. GE Vernova holds 36,000 patents and patent applications in 60 countries as of 2024.[1][10][18]

GE Vernova supplies one-quarter of the world's electricity and operates more than 100 manufacturing sites in over 25 countries. In 2024 the company spent US$20 billion on raw materials across 109 countries, generated US$35 billion in revenue, and held a backlog worth US$119 billion. Its manufacturing output in 2024 supported 31 GW of new power generation, 71 GW of grid-enabling infrastructure, and 6 GW of solar inverters. The company's 2025 backlog exceeded US$115 billion, and revenue reached approximately US$37 billion, with Power, Wind, and Electrification segments contributing about 50%, 30%, and 20% respectively. GE Vernova's R&D expenditures exceeded US$1 billion in 2025, funding H-Class gas turbine efficiency gains and hydrogen-ready adaptations.[14][15]

Where it sits in the stack

44 upstream · 7 downstream

What would break it

Alternative technologies are emerging to fill the gap left by constrained gas turbine supply. Smaller modular turbines, reciprocating engines, linear generators, or a mix of variable renewable energy and storage resources are being considered where a large gas turbine project might have been used. NASA Glenn's novel linear alternator can operate at 99% efficiency at temperatures up to 950°C, with the double-fed design reducing eddy-current losses by 25% compared to traditional single-fed linear alternators. As of 2014, Japan had the largest pumped storage capacity in the world, with over 27 GW, giving it a separate buffer against generation shortfalls.[2][6][13]

What to watch

GE Vernova is ramping manufacturing capacity to produce approximately 20 GW of turbines annually by mid-2026. The company plans to invest nearly $600 million in its US factories and facilities over the next two years, with the new investments expected to create approximately 1,500 new US jobs. GE Vernova's broader plan includes $11 billion in capex and R&D from 2025 through 2028, plus a target to add 150 GW of generating capacity by 2030. The company is also investing more than $90 million in Schenectady, NY and more than $160 million in Greenville, SC to support capacity growth and hydrogen fuel testing, creating over 200 and 650 new jobs respectively by 2026.[11][12][16][17][19]

A landmark deal delivers nearly 1 GW of LM2500XPRESS turbines to Crusoe. On February 2, 2026, GE Vernova closed its $5.3 billion acquisition of the remaining 50% stake in Prolec GE, adding approximately $3 billion of transformer revenue. In Germany, the Wittenau project execution period is expected to extend from June 2026 to March 2031, and the Neukölln project from June 2026 to January 2032. China's Zhangzhou Nuclear Unit 2 connected to the grid on November 22, 2025, and Xcel Energy announced 17 new power initiatives and more than 5,000 MW of added capacity by 2030.[7][8][9][16]

GE Hitachi Nuclear Energy plans to invest more than $50 million in 2025-2026 in Wilmington, NC to launch its next generation nuclear fuel design for the BWRX-300 small modular reactor. Chubu Electric will increase the interconnection capacity of the Higashi Shimizu Substation from 300 MW to 900 MW, which should be operational by 2027. On January 20, 2025, Executive Order 14156 declared a national energy emergency due to inadequate energy production and generation capacity. On April 20, 2026, the President issued a determination under the Defense Production Act to ensure reliable coal supply chains and baseload power generation capacity for national defense.[5][11][13]

Related nodes

No other tracked node in the atlas currently shares this parent.

Sources

1. powermag.com · 2026-01-15T13:06:56
2. gdsassociates.com · 2026-06-12T22:05:29
3. powermag.com · 2026-04-01T11:25:10
4. power.mhi.com · 2026-01-08T00:00:00
5. whitehouse.gov · April 20, 2026
6. technology.nasa.gov
7. powermag.com
8. powermag.com · 2024
9. gevernova.com
10. gevernova.com · 2026-03-18
11. gevernova.com · 2025
12. gevernova.com
13. en.wikipedia.org · 2014
14. supplychaindigital.com · 2024
15. matrixbcg.com · 2025
16. forbes.com · February 2, 2026
17. thescxchange.com · Jan 29, 2025
18. ge.com · 2024
19. sustainabilitymag.com · June 18, 2025