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
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Most organizations prioritize data security only after their data has already been compromised. Proactive prevention is important, but how can you accomplish that on a small budget? Learn how the cloud, combined with a defense and in-depth approach, creates efficiencies by transferring and assigning risk. Security requires a multi-defense approach, and an in-house team may only be able to cherry pick from the essential components. In his session at 19th Cloud Expo, Vlad Friedman, CEO/Founder o...
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps 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. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...