Japan Smart Grid market to grow to %7.4 billion by 2016

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Japan Smart Grid market to grow to %7.4 billion by 2016

Greentech Lead Asia: The Japan Smart Grid market is
projected to grow to $7.4 billion by 2016, according to Zpryme.

From 2011 to 2016, the market is projected to grow at an
annual rate of 63.8 percent.

The building information communication technologies
segment is projected to grow the fastest, growing at an annual rate of 84.7
percent.

The advanced metering infrastructure (AMI) segment is
projected to be the largest, reaching $2.5 billion by 2016.

Distribution automation and communications are both
projected to be over $1.0 billion by 2016.

 

Since the wake of the Tsunami crisis Tokyo Electric Power
(TEPCO) was ordered by the government to invite bids from both domestic and
foreign firms for approximately 17 million smart meters by 2019, according to
Nikkei newspaper.

The smart meter initiative is part of a blueprint to cut
$1.3 billion in electric operating costs over the next 10 years. Companies such
as Toshiba, GE, Fuji Electric, Hitachi, Panasonic, and Osaki Electric are
engaged with TEPCO on the Yokohama Smart City Project (YSCOP). YSCOP is one of
four Smart Cities in Japan designed to establish the country as a global leader
in designing Smart Grids.

Japan plans to invest $1.7 trillion in its energy sector over the next 18
years.

Japan’s 2010 strategic energy plan contains the following
initiatives on the supply side:

* Build the world’s most advanced next-generation
interactive grid network as early as possible in the 2020s and

* Consider specific measures to double the electricity
wholesale market in three years. These are reflective of the importance the
country places on remaining on the cutting-edge.

Japan has already developed ecosystem technologies
including renewable energy such as solar power generation and wind power
generation, electric vehicles, home appliances with low-power consumption,
energy storage solutions and power-distribution automation systems.

“While millions are gathered in cities around the world
to commemorate the first anniversary of the tsunami, Japan will diligently at
work to not only re-engineer its electricity framework, but more importantly
aim to position itself as a global role model for the next generation grid,”
said Jason S. Rodriguez, director of Research at Zpryme.

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