When researching power equipment, I focused on two areas: gas turbines and transformers.
While studying gas turbines in the context of GEVs (Geometric Electric Vehicles), I discovered their extremely long production cycles, with orders booked for up to 28 years. This results in very little supply elasticity. However, they are using aero-engine production lines to modify gas turbines, leading to a substitution effect emerging in the supply chain.
Further research revealed many similarities and overlaps in the manufacturing processes of aero-engines and gas turbines, both requiring high-temperature turbine blades, fuel chambers, and so on. In other words, if electricity premiums are maintained long enough and prices remain high enough, is it possible that many aero-engine production lines will shift to gas turbines?