News Feed Item

Capacity Augmentation and Distribution Grid Automation will be the focus for Transmission and Distribution Sector in Asia Pacific, says Frost & Sullivan

-Frost & Sullivan's Top Five Predictions for Asia Pacific's Power T&D and Utility Industry in 2014-

SINGAPORE, Jan. 22, 2014 /PRNewswire/ -- It is expected that transformation in the key areas of capacity augmentation and distribution grid automation will drive the transmission and distribution sector in the Asia Pacific region for the year.

2014: Investments in T&D Network Rides Heavily on Expanding Capacity Additions

Asia Pacific's growing demand for electricity is likely to increase power generation by 4.1% in 2014. This needs to be actively supplemented by Transmission & Distribution (T&D) grid expansion to ensure reliable power supply. The majority of the T&D investments are likely to be concentrated in Southeast Asia in 2014.

The growing economies such as Vietnam, Indonesia and Myanmar are likely to focus more on the transmission grid expansion and reliability. Rural electrification and increasing the overall electrification ratio will be their top priority.

"For instance, as a result of favourable regulations, the Vietnam power T&D sector opens up several opportunities for private investors in 2014.  During this period, capital will be spent mostly on building and enhancing the 220 kV and 500 kV network. Investments are also expected in the 110 kV network to strengthen the links between the transmission and the distribution system," said Avanthika Satheesh, Senior Research Analyst, Energy & Environment Practice, Frost & Sullivan Asia Pacific.

2014: Electricity Tariff is on the Upswing Especially in Southeast Asia

"As Singapore moves towards the cheaper and diversified LNG sources of fuel for power generation, it is expected that its wholesale market electricity prices are likely to fall by end of 2014. However, its current electricity prices are already one of the highest in the region, due to its market based pricing model," Satheesh noted.

"For the rest of the countries in the Asia Pacific region such as Thailand, Vietnam and South Korea, electricity tariffs are expected to rise due to reasons such as variations in fuel adjustment rates, rise in crude oil prices and in certain economies, currency depreciation," she added.

One exception will be Japan, where electricity prices are expected to decrease in 2014 is Japan. At present, electricity tariffs in Japan are very high due to the shortfall of electricity after the closure of nuclear power plants. However, prices are most likely to decline by the end of 2014 as new coal power plants and LNG plants are likely to get commissioned.

2014: Cash Crunch Situation faced by Utilities in Australia and Japan Likely to Improve

The T&D electrical equipment market has been on the decline in Japan as the utility companies have reduced their capital and operational expenditure drastically to meet the power demand, by buying expensive fossil fuels for thermal power generation. In 2014, this situation should improve as the country is likely to start operating two new coal fired power plants and twelve LNG fired power plants by the end of 2014.

The trade-off between reliability and high capital expenditure is a challenge faced by the utility companies and regulators in the last couple of years in Australia. It is reported that in Australia, the average age of T&D system assets is between 30 and 35 years. This calls for continuous replacement of assets to maintain the health of the grid. The market had experienced a drastic fall of capital expenditure by utility companies in 2013, as utility companies were not allowed to pass on the bills to the consumers by the regulation authority.

The capital expenditure in T&D sector is likely to marginally improve in 2014 by 3.7% which will be AUD 9.98 billion. CAPEX is likely to increase as a result of shifting focus to replacement with a slow decrease in augmentation expenditure.  However, this spending will still be much lesser than the capital spending in 2012.

2014: Smart-meter Installations and Distribution Grid Automation Takes a Major Part of Smart Grid Investments

"Several smart grid test-beds were developed across the Asia Pacific region in 2013. Projects in Japan, Taiwan, South Korea, Singapore, and Malaysia are in the various stages of testing," explained Satheesh.

For 2014, key investments in the sector would be focused on smart-meter installations by regional electricity utilities and implementation of tested and approved smart technologies in selected smart cities. Key highlights include:

  • In Southeast Asia, total electricity meter installation would reach 160 million units, and total smart meter penetration rate will be around 2.5% by end of 2014.
  • Widespread smart-meter installations are expected to kick-start in Thailand by PEA in 2014.  The Smart Grid development project (2013-2017, Thailand) focuses on Substation Automation, renewable energy integration and battery storage.
  • In Vietnam, smart distribution automation will be initiated in 2014 by the Danang Power Company.
  • Thailand has immediate opportunities in the smart metering in the next year with pilot and trial projects in the PEA regions.

2014: No Major Initiatives on Strengthening ASEAN Grid

The concept of continentalisation, i.e. greater integration between supply and demand in the region, was planned and the ambitious ASEAN grid was chartered. However, not much progression on this major initiative is expected to happen during 2014.

Technical challenges and business regulations are the key challenges that need to be urgently addressed by the countries involved in developing the ASEAN grid.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

Media Contact:

Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
E: [email protected]

Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
F: +603 6201 7402
E: [email protected]

Melissa Tan
Corporate Communications – Asia Pacific
P: +65 6890 0926
F: +65 6890 0999
E: [email protected]


SOURCE Frost & Sullivan

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
In his session at 19th Cloud Expo, Nick Son, Vice President of Cyber Risk & Public Sector at Coalfire, will discuss the latest information on the FedRAMP Program. Topics will cover: FedRAMP Readiness Assessment Report (RAR). This new process is designed to streamline and accelerate the FedRAMP process from the traditional timeline by initially focusing on technical capability instead of documentation preparedness. FedRAMP for High-impact level systems. Early in 2016 FedRAMP officially publishe...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Governments around the world are adopting Safe Harbor privacy provisions to protect customer data from leaving sovereign territories. Increasingly, global companies are required to create new instances of their server clusters in multiple countries to keep abreast of these new Safe Harbor laws. Is it worth it? In his session at 19th Cloud Expo, Adam Rogers, Managing Director of Anexia, Inc., will discuss how to keep your data legal and still stay in business.