Power management investments in Singapore set to increase, with focus on intelligent power management software solutions
Businesses are mainly concerned about operational and cost efficiencies but also recognize the importance of pivoting to renewables
Singapore, A new report by global power management company Eaton found that one in three (33%) companies in Singapore increased their investments in power management due to the COVID-19 pandemic, a trend that was also observed in other markets in Asia-Pacific (APAC) such as Australia (60%) and Indonesia (40%). Titled “The Future of Power Management in Asia-Pacific”, the report examines the power management challenges and opportunities businesses are facing as they embark on their energy transition journey in six fast-growing APAC markets: Singapore, Australia, Indonesia, Japan, South Korea and Taiwan.
COVID-19 has forced businesses to examine their management of power
COVID-19 saw the acceleration of digital transformation plans to both maintain business continuity and innovate new digital products and services amidst work from home and safe distancing measures. When looking at the pandemic’s impact on investments in power management, only 10% reported a decrease in investment amount in Singapore. Close to four in five companies either increased or saw no change to their investments, in likely recognition of the need for reliable power management solutions to keep mission-critical systems and services online. Similarly, most investment timelines were either accelerated or saw no change (60%). Those that were positively impacted saw a median rise in investment amount of 18% and moved up their investment timeline by approximately four years.
This growth in investments is expected to continue, with four in five Singapore companies looking to adopt new solutions to improve power management in the next one to three years. In line with Singapore’s growing appetite for digitalization, 63% are keen to explore the use of intelligent power management software, which will help companies optimize power management through emerging technologies such as holistic monitoring, predictive analytics and automation. There is also interest in energy storage (54%) to manage the intermittency of renewable energy, and containerized modular solutions (46%) to cater to data centers of varying sizes and their specific power needs.
Sustainable development is driving change but costs are still a major factor
When examining businesses’ current power management priorities, energy cost and optimization (87%) and eliminating downtime (70%) were the most commonly cited. This emphasis on operational and cost efficiency can be attributed to the high operating costs and the need for a constant, stable power supply in an international business and data center hub like Singapore.
Three in five are looking to increase their use of renewables (60%), a proportion that will likely grow as the Government unveils more details around the Singapore Green Plan 2030. Many new initiatives such as schemes to encourage electric vehicle adoption and the growing move towards renewables will likely encourage businesses across a broad range of sectors to have an effective energy management strategy in place. Such conversations have probably been initiated, with 53% of businesses looking to explore new sustainable energy sources in the next one to three years.
Changing regulations are a concern in Singapore
In light of this dynamic power and sustainability landscape, many Singapore businesses noted changing government and industry regulations (57%) as a big challenge. Companies here are not alone in this regard, with businesses in Indonesia (57%) and South Korea (53%) citing similar issues. This highlights the need for closer collaboration between the public and private sector in order to jointly achieve sustainable development goals. Despite these concerns, three in five still feel that their organization is equipped to handle such changes to the power grid and the evolving regulations.
Evidence of this close relationship is seen in the high level of awareness of government initiatives to encourage energy savings among Singapore businesses (80%). Of this number, the level of participation in such energy savings initiatives is also high (79%), reflecting a willingness to work together to optimize costs and adopt new technologies.
“Organizations in Singapore have shown resilience and adaptability despite the disruption caused by the COVID-19 pandemic. Their willingness to adopt new solutions and work with the government to meet sustainability targets will boost their global competitiveness amidst the transition towards a cleaner, energy-efficient future,” said Richard Farrell, Asia-Pacific Director – Digitalization, Cloud and Data Center Segment, Eaton. “As a partner to many of these companies in Singapore and the region, Eaton is actively working to help them understand how they can optimize their power management approach and achieve a greener path to digital development.”
Businesses that are interested to learn more about the report’s findings are invited to sign up for Eaton’s upcoming data center webinars at http://eaton.sg/energyaware.
Eaton commissioned independent market research firm, Blackbox Research, to conduct a study to better understand the power management practices and priorities of businesses in Singapore, Australia, Indonesia, Japan, South Korea and Taiwan. A total of 180 professionals in power management-related roles participated in the survey between December 2020 and January 2021. 30 respondents from each market were selected representing local, multi-national and state-owned companies across a range of sectors.
About Eaton Electrical Sector
Eaton’s electrical business is a global leader with deep regional application expertise in power distribution and circuit protection; power quality, backup power and energy storage; control and automation; life safety and security; structural solutions; and harsh and hazardous environment solutions. Through end-to-end services, channel and an integrated digital platform and insights Eaton is powering what matters across industries and around the world, helping customers solve their most critical electrical power management challenges.
Eaton’s mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic, and mechanical power – more safely, more efficiently, and more reliably. Eaton’s 2020 revenues were $17.9 billion, and we sell products to customers in more than 175 countries. We have approximately 92,000 employees. For more information, visit Eaton.com.