Smart Grid Set to $4.5 Billion in Asia by 2020
A new report into the potential for smart grid growth in Southeast Asia by Pike Research claims that investments will lead to a doubling of revenues over the next eight years.
The report claims that revenues generated by investments in transmission, substation and distribution upgrades, as well as smart meters, will grow at a compound annual rate of 10%, rising from approximately $1.9 billion in 2011 to about $4.5 billion in 2020.
Pike says that most Southeast Asian countries are struggling to keep pace with new trends in global clean energy development, but points to significant progress in some emerging economies.In Thailand, Malaysia, Indonesia and the Philippines, authorities have begun developing firm plans for nationwide smart grid deployments.
Nevertheless, while policymakers in the region agree on the importance of smart grids, deployments still have a long way to go, says Pike.Most countries face low electrification levels, underdeveloped power grid infrastructure and a shortage of capital and technologies. Just providing sufficient electricity is a challenge for some governments.
However, the Smart Grid market will continue to boom in Southeast Asia with experts predicting a boom, claiming that this is an opportunity for utilities, regulators, governments and solution providers to meet up and learn from each other.