Solar storage to boom in Asia
The Asia Pacific region’s utility sector is undergoing a transformation not unlike what is being witnessed here in the United States, with billions being spent on smart grid investments, storage and renewable energy.
Against the background of global climate talks in, the firm noted that business leaders have begun clean energy coalitions, and Frost & Sullivan believes that “large multinationals and investors will drive the shift towards a low emissions economic growth, irrespective of the outcome of the Paris agreement.”
In a new report, Frost & Sullivan lays out several predictions for the Asia Pacific region, including low commodity prices including oil and liquefied natural gas. “Despite the low price of LNG, the Gas-to-Power market in developing Asia is unlikely to take-off due to the lack of infrastructure (mainly transportation of gas) and strong competition from coal power,” said Ravi Krishnaswamy, vice president, of energy and environment at Frost & Sullivan Asia Pacific.
While coal will remain a major player, solar is expected to be the fastes growing source of generation with a startling annual growth rate of almost 29%.
“APAC will continue to remain a strong market for solar power with demand led by China, India, and Japan,” the firm said. “This positive growth will result in strong investments from the private sector both in the upstream and downstream segment of the solar industry value chain.”
Smart grid investments will exceed $100 billion, largely led by China, but with India and Japan both investing more than $10 billion. U.S. investments lag behind with $12.6 billion.
“Different sectors attract T&D investments in these countries. Smart Grid would be the main industry that would attract significant investments from countries such as China, Japan and Australia”, said Suchitra Sriram, a program manager at the firm.