Southeast Asian countries will invest $13.6bn in smart grid infrastructure between 2014 and 2024, according to a new study published by Northeast Group.
This venture will include smart metering as well as electricity transmission infrastructure and distribution networks using sensors, communications and software.
Southeast Asian countries will position around 37.3m smart meters between 2014 and 2024 at an estimated cost of $8.8bn.
In addition, these countries will invest $2.5bn in distribution automation, or advanced monitoring and control of the distribution network with sensors and communications. Other smart grid segments will contribute to $2.2bn as additional investment.
By 2024, Thailand, Indonesia, Malaysia, Singapore, the Philippines and Vietnam will be largest markets of smart grid. Currently, Singapore is the leading region in market development.
Smart grid investment over the next decade will shift from North America and Europe to emerging market regions. Southeast Asian countries are just beginning on the path of modernizing their electric infrastructure, said, Ben Gardner, president, Northeast Group.
The investment will be triggered by key factors including strong GDP growth of nearly 6 percent through 2018 and corresponding growth in electricity demand. In addition, electrification programs and growth in renewable resources will also be other driving aspects for the investment.
In Southeast Asia, many countries have already formulated smart grid roadmaps and pilot projects. Regulatory outlines are still under development but in several years the market is expected to catch momentum. Utilities as well as vendors of this region have begun preparing together for the finalization of regulations.
Major and active vendors in this region include ABB, Alstom, Echelon (NES), EDMI (Osaki), Elster, Enverv, GE, Itron, Schneider, Secure, Siemens, Silver Spring Networks, ST Electronics, Trilliant and many more.
Rajani Baburajan
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