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

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
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with b...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
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...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...