Welcome!

News Feed Item

Implementation of Power Sector Reforms Essential to Drive Investments in 2014, says Frost & Sullivan

~Frost & Sullivan's Top Five Predictions for Power Generation and Renewable Energy in the Asia Pacific for 2014

SINGAPORE, Jan. 22, 2014 /PRNewswire/ -- Buoyant peak power demand, favorable coal prices and a resurgent Southeast Asian economy are likely to drive investments in the Asia Pacific power generation industry for 2014.

2014: Peak Power Demand Remains Buoyant due to Sustained Economic Growth

The rising electricity demand is likely to augment power generation in the Asia Pacific (APAC) region by 4.1% in 2014.

As per the IMF's outlook, Indonesia, Malaysia, The Philippines, Thailand and Vietnam are forecasted to register a combined GDP growth of 5.7% in 2014. The growth will be driven by rising domestic consumption, credit expansion and rising middle class income.

2014: Coal will be the fuel of choice in Asia, but international financing options are restricted

"Coal will remain the fuel of choice even in 2014, due to a combination of low prices and abundant availability. Furthermore, the low natural gas prices in the US have led to a rapid increase in US coal exports to Asia," noted Ravi Krishnaswamy, Vice-President for the Energy & Environment Practice, Frost & Sullivan Asia Pacific.

"Indonesia and Vietnam are expected to ride the demand wave for coal-fired power plants mainly due to the vast capacity additions they intend to achieve to bridge the power deficit," he added.

The U.S. Export-Import (Ex-Im) Bank and the European Bank for Reconstruction and Development have announced in late 2013 that they will stop financing coal power projects abroad.

2014: Asia Pacific remains unfazed by Fukushima Crisis and Remains Committed to Pursuing Nuclear Power

"In 2012 and 2013, carbon emissions in Japan increased sharply due to the country's heavy reliance on fossil fuels for power generation in the aftermath of the 2011 Fukushima Daiichi disaster. Hence to improve its current energy situation and to reduce emissions, Japan is most likely to seriously consider options to restart its nuclear power projects," noted Krishnaswamy.

Similarly, South Korea which is heavily dependent on nuclear power for almost one third of its power generation is currently facing questions on its safety of nuclear projects. In 2014, the country is likely to vigorously work on addressing the safety issues and include nuclear power in their planned installed capacity growth in the coming years. The government is likely to launch a revised nuclear policy in early 2014.

Southeast Asia's nuclear ambition is set to begin with Vietnam taking the lead. Vietnam's first nuclear power plant's construction which was scheduled to start in 2017 might commence earlier subject to the outcome of political discussions in the next few months.

2014: Solar PV (Photovoltaic) and other renewable energy installations continue to shine due to Price Stability and Government Support

Many nations in Asia Pacific region have recently introduced Feed-in-Tariff (FiT) schemes for different renewable sources of electric power in the last two years and many have brought favourable changes to their already existing tariff schemes.

Introduction of FiT for solar photovoltaics (PV) in Japan in 2012 had a great impact on the market and it led to the explosive growth of the sector in 2013. In 2014, similar market trend is likely to continue as the solar PV rates are likely to remain stable and the electricity tariffs are already very high.

In 2013, Indonesia had revised its FiT rates which are likely to encourage the start of numerous geothermal, biomass and many other renewable energy (RE) projects in the country.

"Thailand plans to add 1000 MW of solar PV by the end of 2014. The growth of RE projects has been impressive in Thailand since the introduction of the FiT policy in 2006," said Krishnaswamy.

"However, the FiT was only limited for a period of 10 years. In a radical change from the old policy, Thailand's National Energy Policy Commission (NEPC) has approved new FiT for both ground mounted and rooftop solar PV with a FiT validity of 25 years. Such a policy change is likely to stir-up the growth of RE in Thailand in 2014," he added.

The RE developers in The Philippines are not satisfied with the FiT rates implemented by The Philippines' Energy Regulatory Commission for wind, hydro, solar and biomass. However, in 2014, some biomass, small hydropower and wind projects are likely to make a headstart.

In Vietnam, UK firm Tortech and Malaysian firm CHE group are undertaking construction of 20 10MW biomass fired power plants. The firms have said that they have been encouraged by the lucrative FiT schemes in the country. In Malaysia, the SEDA (Sustainable Energy Development Authority) is likely to introduce wind power under the FiT scheme in 2014.

2014: De-regulation and Power Market Reforms Key to Retain Investors' Confidence for this Sector

Japan's electricity sector is poised to experience a turnover as government has passed the electricity bill to bring reforms in the sector which has been the first priority of the Prime Minister Abe after the nuclear accident of 2011. The establishment of a national grid and liberalisation of the power market are the key agendas of this reform. The liberalisation of utilities is expected to end the monopolistic market. 

The Prime Minister has said that approximate investments of US$299 billion are required till 2020 for the transformation of the power sector. Two coal-fired thermal power plants and twelve gas-fired plants are likely to be completed by end of 2014 and their supply of electricity will replace the oil-based power by approximately 20.0% of its current generating capacity.

In Malaysia, the New Energy Plan 2011- 2015 initiated by the government focuses on the de-regulation of electricity prices and reduction of subsidies. This step will encourage higher investments in all the three sectors of power industry – generation, transmission, and distribution. Regulations will provide incentives for the use of energy efficient equipment at both individual and utility level.

"Implementation of several of the proposed power sector reforms in the Asia Pacific countries will accelerate investments and lead to harmonisation of the regional electricity markets," concluded Krishnaswamy.

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]

http://www.frost.com

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
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, will examine the regulations and provide insight on how it affects technology, challenges the established rules and will usher in new levels of diligence...
SYS-CON Events announced today that Calligo has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo is an innovative cloud service provider offering mid-sized companies the highest levels of data privacy. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalized support service from its globally located cloud platfor...
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, discussed the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information.
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-securit...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...