Southeast Asia Smart Metering Market To Reach $6.9 billion by 2022

News provided by

Northeast Group, LLC

Sep 24, 2012, 05:07 ET

WASHINGTON, Sept. 24, 2012 /PRNewswire/ -- The smart metering market in Southeast Asia will reach $6.9 billion by 2022, according to a new study released today by Northeast Group, LLC. The study Southeast Asia Smart Grid: Market Forecast (2012-2022) forecasts the growth of advanced metering infrastructure (AMI), or smart metering, in eight Southeast Asian countries over the next decade. It also provides details on additional smart grid projects taking place in the region. The majority of Southeast Asia's smart grid activity will take place in the second half of the forecast period, after strong GDP growth rates have further increased electricity consumption. Already, domestic and international smart grid vendors are positioning themselves in the region to capitalize on the projected growth in the market.

"Southeast Asia's potential for smart grid is largely driven by high projected GDP growth rates which will boost electricity demand," according to Northeast Group. "Southeast Asian economies are forecast to grow at an average of nearly 6% per year throughout this decade despite the slowdown in other regions of the world. Southeast Asia's swift growth creates both challenges and opportunities for its electric infrastructure."

Chief among the challenges are concerns that unreliable electric infrastructure and rising energy costs could dampen overall economic growth potential. Countries such as Indonesia and the Philippines are scrambling to add peak electric generation capacity, while in many countries the existing transmission and distribution grids are insufficient to meet growing demand. Power outages are already commonplace and likely to increase if new infrastructure is not deployed. Meanwhile, dependence on foreign sources of fuel introduces price risks to customers—and in many cases the governments that subsidize their power.

"Rising electricity demand due to GDP growth presents unique challenges for Southeast Asia," Northeast Group continued. "But the financial flexibility that growth provides also creates opportunities. Southeast Asian countries are expected to invest more than $50 billion per year in overall infrastructure in the next few years, with a significant portion allocated to the power and utility sector. Investments in smart grid will be a critical component of these expenditures. They will help manage electricity demand growth, improve reliability, and increase the share of domestic renewable sources of energy in the generation mix."

Indeed, smart grid activity is already picking up, led by the developed economy of Singapore, which has plans for a full smart meter deployment. Pilot projects are also already in development in Thailand and Malaysia, with additional projects under discussion in Indonesia and the Philippines. In anticipation of the increased activity, domestic firms, international smart metering vendors, and communications providers are positioning themselves in the Southeast Asian smart grid market. In addition to smart metering, there are large opportunities for distribution automation vendors and even vendors for projects such as smart street lighting.

"The smart metering market is rapidly advancing in Southeast Asia. Low per-capita electricity consumption rates in many of these countries currently make large-scale deployments cost prohibitive, but that will quickly change in the coming years, as GDP growth remains high. Additionally, in some countries in the region, electricity theft rates are above average and can be best addressed with smart metering. Along with improved reliability, these factors show that the benefit potential of smart grid in Southeast Asia is quickly increasing. In response, the number of local firms in the market and partnerships between international and Southeast Asian metering vendors is expected to pick up in the medium term," added Northeast Group.

Northeast Group forecasts 5 sub-segments of the AMI market, including meter hardware, communications, IT, professional services, and installation for eight countries across Southeast Asia. Countries covered include:

  • Singapore;
  • Thailand;
  • Malaysia;
  • Indonesia;
  • Philippines;
  • Vietnam;
  • Cambodia;
  • Laos.

In addition to AMI market forecasts, the report surveys activity in distribution automation, wide area measurement, and home energy management. The report also highlights domestic and international firms active in the market.

Northeast Group's report is 123 pages long and includes over 70 charts, tables and graphics. The report was completed using both primary and secondary sources, including on-the-ground research in the region. To order a copy of the report, please email Ben Gardner at: [email protected]

ABOUT: Northeast Group, LLC is a Washington, DC-based smart grid market intelligence firm. Our research is focused on the smart grid opportunity in emerging market countries. 

Key questions answered in this report:

  • How large will the smart meter market in Southeast Asia become over the next decade?
  • Which countries are developing smart grid regulatory frameworks and what will they look like?
  • Which international vendors are already active in Southeast Asia? Which domestic vendors could become key players?
  • How will recent industry reforms and restructuring affect the smart grid market?
  • What pilot projects are in place and what hurdles have they faced?
  • How will efforts at the regional level from ASEAN affect grid modernization?

Table of Contents

i.

Executive Summary

1

ii.

Methodology

8

1.

 Introduction

10

1.1

What is smart grid?

10

1.2

Smart grid's role in regional interconnection

16

1.3

How has smart grid been used elsewhere in the world?

18

2.

Southeast Asia smart grid snapshot

24

2.1

The region in comparison

26

2.2

Regional drivers

28

2.3

Regional challenges

32

2.4

Most recent developments

34

3.

Regional market forecast

37

4.

Singapore

41

4.1

Electricity industry structure

43

4.2

Smart metering regulatory environment

45

4.3

Market forecast

46

4.4

Utility activity

48

5.

Thailand

51

5.1

Electricity industry structure

53

5.2

Smart metering regulatory environment

55

5.3

Market forecast

57

5.4

Utility activity

59

6.

Malaysia

64

6.1

Electricity industry structure

64

6.2

Smart metering regulatory environment

68

6.3

Market forecast

70

6.4

Utility activity

72

7.

Indonesia

74

7.1

Electricity industry structure

76

7.2

Smart metering regulatory environment

78

7.3

Market forecast

80

7.4

Utility activity

82

8.

Philippines

85

8.1

Electricity industry structure

87

8.2

Smart metering regulatory environment

89

8.3

Market forecast

91

8.4

Utility activity

93

9.

Vietnam

95

9.1

Electricity industry structure

97

9.2

Smart metering regulatory environment

99

9.3

Market forecast

101

9.4

Utility activity

102

10.

The rest of the region

104

11.

Vendor activity

105

11.1

Domestic vendors

106

11.2

International vendors active in smart grid in Southeast Asia

107

11.3

International vendors poised to expand in Southeast Asia

111

12.

Conclusion

112

13.

Appendix

113

13.1

List of companies covered in this report

113

13.2

List of acronyms

114

List of Figures, Boxes, and Tables


Southeast Asia smart grid: key takeaways

2

AMI forecast by country

7

AMI forecast data by country

7

Figure 1.1: Smart grid value chain

10

Figure 1.2: Smart grid model highlighting focus in Southeast Asia

11

Table 1.1: Benefits of AMI in Southeast Asia

13

Table 1.2: Demand response options

15

Figure 1.3: ASEAN grid interconnections

17

Figure 1.4: Smart grid activity in emerging markets

19

Figure 2.1: Emerging markets smart meter potential

25

Figure 2.2: Per-capita electricity consumption

26

Figure 2.3: Per-capita CO2 emissions

26

Figure 2.4: Average annual GDP growth in Southeast Asia

27

Figure 2.5: Per-capita consumption in Southeast Asia

28

Figure 2.6: Renewable sources of energy in Southeast Asia

30

Figure 2.7: Renewable energy potential in 2030

30

Figure 2.8: Distribution losses in Southeast Asia

31

Table 2.1: Smart grid market drivers and barriers in Southeast Asia

33

Figure 3.1: Timeline of smart grid developments in Southeast Asia

37

Figure 3.2: AMI forecast by country

38

Table 3.1: AMI forecast data by country

38

Figure 3.3: AMI cost breakdown

39

Figure 3.4 Annual AMI deployments in Southeast Asia

39

Figure 3.3: Southeast Asia smart meter penetration rate

40

Figure 3.4: Leading Southeast Asian countries' smart meter penetration rate

40

Figure 3.6: AMI forecast by segment

40

Table 3.2: AMI forecast data by segment

40

Table 4.1: Singapore key data

41

Figure 4.1: Singapore AMI penetration rate

41

Table 4.2: Smart grid indicators in the Singapore

42

Box 4.1 Political risk in Singapore

44

Figure 4.2: Singapore AMI forecast

47

Table 4.3: Singapore AMI forecast data

47

Figure 4.3: Intelligent Energy System program

49

Table 5.1: Thailand key data

51

Figure 5.1: Thailand AMI penetration rate

51

Table 5.2: Smart grid indicators in Thailand

52

Figure 5.2: Electricity industry structure in Thailand

54

Box 5.1: Political risk in Thailand

56

Table 5.3: Thailand AMI forecast data

57

Figure 5.3: Thailand AMI forecast

58

Figure 5.4: PEA's 15-year smart grid plans

62

Table 6.1: Malaysia key data

64

Figure 6.1: Malaysia AMI penetration rate

64

Table 6.2: Smart grid indicators in Malaysia

65

Box 6.1: Political risk in Malaysia

67

Figure 6.2: 5 strategic pillars of Malaysia's New Energy Policy

69

Figure 6.2: Malaysia AMI forecast

71

Table 6.3: Malaysia AMI forecast data

71

Table 7.1: Indonesia key data

74

Figure 7.1: Indonesia AMI penetration rate

74

Table 7.2: Smart grid indicators in Indonesia

75

Box 7.1: Political risk in Indonesia

78

Figure 7.2: Indonesia AMI forecast

81

Table 7.3: Indonesia AMI forecast data

81

Figure 7.3: Annual meter deployments in Indonesia

83

Table 8.1: Philippines key data

85

Figure 8.1: Philippines AMI penetration rate

85

Table 8.2: Smart grid indicators in the Philippines

86

Box 8.1: Political risk in the Philippines

89

Figure 8.2: Philippines AMI forecast

92

Table 8.3: Philippines AMI forecast data

92

Table 9.1: Vietnam key data

95

Figure 9.1: Vietnam AMI penetration rate

95

Table 9.2: Smart grid indicators in Vietnam

96

Figure 9.2: Electricity regulatory structure in Vietnam

98

Box 9.1: Political risk in Vietnam

99

Table 9.3: Vietnam AMI forecast data

101

Figure 9.3: Vietnam AMI forecast

102

Table 10.1: Cambodia key data

104

Table 10.2: Laos key data

104

Figure 11.1: Leading smart grid vendors in Southeast Asia

105

Table 12.1: The next steps and necessary actions

112

Companies covered in this report

  • ABB (Switzerland)
  • Accenture (US)
  • Alstom (France)
  • Cisco (US)
  • Clarity (Australia)
  • Comintel (Malaysia)
  • Echelon (US)
  • Electricity Generating Authority of Thailand
  • Electricity of Vietnam
  • Elster (Germany)
  • GE (US)
  • Hitachi (Japan)
  • Holley Metering (China)
  • Itron (US)
  • Landis+Gyr (Switzerland)
  • Meralco (Philippines)
  • Metropolitan Electricity Authority (Thailand)
  • MiM (Malaysia)
  • Mitsubishi (Japan)
  • National Grid Corporation of the Philippines
  • Perusahaan Listrik Negara (Indonesia)
  • Petronas (Malaysia)
  • Provincial Electricity Authority (Thailand)
  • Power Seraya (Singapore)
  • Sabah Electricity (Malaysia)
  • Sarawak Energy (Malaysia)
  • Senoko Power (Singapore)
  • Siemens (Germany)
  • Silver Spring Networks (US)
  • Singapore Power (Singapore)
  • ST Electronics (Singapore)
  • Tenanga Nasional Berhad (Malaysia)
  • Toshiba (Japan)
  • Trilliant (US)
  • Tuas Power (Singapore)

SOURCE Northeast Group, LLC