Click here to close now.

SYS-CON MEDIA Authors: Kevin Jackson, Peter Silva, Greg Wind, Glenn Rossman, Michael Jannery

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
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
SYS-CON Events announced today that On the Avenue Marketing Group, a sales and marketing firm that utilizes events to market and sell products to consumers, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. On the Avenue Marketing Group (OTA) is a sales and marketing firm that utilizes events to market and sell products to consumers. On behalf of our clients, we attend thousands of fairs, festivals, exp...
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that ...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
SYS-CON Events announced today that Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® and DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo® and DevOps Summit 2015 Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Plutora, Inc., the leading global provider of enterprise release management and test environment management SaaS solutions, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Headquartered in Mountain View, California, Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies ...
SYS-CON Events announced today that kintone has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business applic...
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular In...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
SYS-CON Events announced today that FierceDevOps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. FierceDevOps keeps software developers and IT operations personnel updated on the latest news and trends around the rapidly evolving role of the traditional IT worker.
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, 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...
SYS-CON Events announced today that IndependenceIT, a leading software provider of simplified IT management solutions for workspaces, applications and desktops-as-a-service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IndependenceIT's Cloud Workspace® Suite combines application, end-user and infrastructure management into a seamless, easy-to-manage platform, with a unified management interface an...
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.