Southeast Asia Smart Metering Market To Reach $6.9 billion by 2022

WASHINGTON, Sept. 24, 2012 /PRNewswire/ -- The smart metering market in Southeast Asia will reach $6.9 billion by 2022, according to a new study released today by Northeast Group, LLC. The study Southeast Asia Smart Grid: Market Forecast (2012-2022) forecasts the growth of advanced metering infrastructure (AMI), or smart metering, in eight Southeast Asian countries over the next decade. It also provides details on additional smart grid projects taking place in the region. The majority of Southeast Asia's smart grid activity will take place in the second half of the forecast period, after strong GDP growth rates have further increased electricity consumption. Already, domestic and international smart grid vendors are positioning themselves in the region to capitalize on the projected growth in the market.

"Southeast Asia's potential for smart grid is largely driven by high projected GDP growth rates which will boost electricity demand," according to Northeast Group. "Southeast Asian economies are forecast to grow at an average of nearly 6% per year throughout this decade despite the slowdown in other regions of the world. Southeast Asia's swift growth creates both challenges and opportunities for its electric infrastructure."
Chief among the challenges are concerns that unreliable electric infrastructure and rising energy costs could dampen overall economic growth potential. Countries such as Indonesia and the Philippines are scrambling to add peak electric generation capacity, while in many countries the existing transmission and distribution grids are insufficient to meet growing demand. Power outages are already commonplace and likely to increase if new infrastructure is not deployed. Meanwhile, dependence on foreign sources of fuel introduces price risks to customers—and in many cases the governments that subsidize their power.

"Rising electricity demand due to GDP growth presents unique challenges for Southeast Asia," Northeast Group continued. "But the financial flexibility that growth provides also creates opportunities. Southeast Asian countries are expected to invest more than $50 billion per year in overall infrastructure in the next few years, with a significant portion allocated to the power and utility sector. Investments in smart grid will be a critical component of these expenditures. They will help manage electricity demand growth, improve reliability, and increase the share of domestic renewable sources of energy in the generation mix."

Indeed, smart grid activity is already picking up, led by the developed economy of Singapore, which has plans for a full smart meter deployment. Pilot projects are also already in development in Thailand and Malaysia, with additional projects under discussion in Indonesia and the Philippines. In anticipation of the increased activity, domestic firms, international smart metering vendors, and communications providers are positioning themselves in the Southeast Asian smart grid market. In addition to smart metering, there are large opportunities for distribution automation vendors and even vendors for projects such as smart street lighting.

"The smart metering market is rapidly advancing in Southeast Asia. Low per-capita electricity consumption rates in many of these countries currently make large-scale deployments cost prohibitive, but that will quickly change in the coming years, as GDP growth remains high. Additionally, in some countries in the region, electricity theft rates are above average and can be best addressed with smart metering. Along with improved reliability, these factors show that the benefit potential of smart grid in Southeast Asia is quickly increasing. In response, the number of local firms in the market and partnerships between international and Southeast Asian metering vendors is expected to pick up in the medium term," added Northeast Group.
Northeast Group forecasts 5 sub-segments of the AMI market, including meter hardware, communications, IT, professional services, and installation for eight countries across Southeast Asia. Countries covered include:

• Singapore;
• Thailand;
• Malaysia;
• Indonesia;
• Philippines;
• Vietnam;
• Cambodia;
• Laos.

In addition to AMI market forecasts, the report surveys activity in distribution automation, wide area measurement, and home energy management. The report also highlights domestic and international firms active in the market.
Northeast Group's report is 123 pages long and includes over 70 charts, tables and graphics. The report was completed using both primary and secondary sources, including on-the-ground research in the region. To order a copy of the report, please email Ben Gardner at: ben.gardner@northeast-group.com

ABOUT: Northeast Group, LLC is a Washington, DC-based smart grid market intelligence firm. Our research is focused on the smart grid opportunity in emerging market countries. 

Key questions answered in this report:

• How large will the smart meter market in Southeast Asia become over the next decade?
• Which countries are developing smart grid regulatory frameworks and what will they look like?
• Which international vendors are already active in Southeast Asia? Which domestic vendors could become key players?
• How will recent industry reforms and restructuring affect the smart grid market?
• What pilot projects are in place and what hurdles have they faced?
• How will efforts at the regional level from ASEAN affect grid modernization?

Table of Contents
i.	Executive Summary	1
ii.	Methodology	8
1.	Introduction	10
1.1	What is smart grid?	10
1.2	Smart grid's role in regional interconnection	16
1.3	How has smart grid been used elsewhere in the world?	18
2.	Southeast Asia smart grid snapshot	24
2.1	The region in comparison	26
2.2	Regional drivers	28
2.3	Regional challenges	32
2.4	Most recent developments	34
3.	Regional market forecast	37
4.	Singapore	41
4.1	Electricity industry structure	43
4.2	Smart metering regulatory environment	45
4.3	Market forecast	46
4.4	Utility activity	48
5.	Thailand	51
5.1	Electricity industry structure	53
5.2	Smart metering regulatory environment	55
5.3	Market forecast	57
5.4	Utility activity	59
6.	Malaysia	64
6.1	Electricity industry structure	64
6.2	Smart metering regulatory environment	68
6.3	Market forecast	70
6.4	Utility activity	72
7.	Indonesia	74
7.1	Electricity industry structure	76
7.2	Smart metering regulatory environment	78
7.3	Market forecast	80
7.4	Utility activity	82
8.	Philippines	85
8.1	Electricity industry structure	87
8.2	Smart metering regulatory environment	89
8.3	Market forecast	91
8.4	Utility activity	93
9.	Vietnam	95
9.1	Electricity industry structure	97
9.2	Smart metering regulatory environment	99
9.3	Market forecast	101
9.4	Utility activity	102
10.	The rest of the region	104
11.	Vendor activity	105
11.1	Domestic vendors	106
11.2	International vendors active in smart grid in Southeast Asia	107
11.3	International vendors poised to expand in Southeast Asia	111
12.	Conclusion	112
13.	Appendix	113
13.1	List of companies covered in this report	113
13.2	List of acronyms	114

List of Figures, Boxes, and Tables
Southeast Asia smart grid: key takeaways	2
AMI forecast by country	7
AMI forecast data by country	7
Figure 1.1: Smart grid value chain	10
Figure 1.2: Smart grid model highlighting focus in Southeast Asia	11
Table 1.1: Benefits of AMI in Southeast Asia	13
Table 1.2: Demand response options	15
Figure 1.3: ASEAN grid interconnections	17
Figure 1.4: Smart grid activity in emerging markets	19
Figure 2.1: Emerging markets smart meter potential	25
Figure 2.2: Per-capita electricity consumption	26
Figure 2.3: Per-capita CO2 emissions	26
Figure 2.4: Average annual GDP growth in Southeast Asia	27
Figure 2.5: Per-capita consumption in Southeast Asia	28
Figure 2.6: Renewable sources of energy in Southeast Asia	30
Figure 2.7: Renewable energy potential in 2030	30
Figure 2.8: Distribution losses in Southeast Asia	31
Table 2.1: Smart grid market drivers and barriers in Southeast Asia	33
Figure 3.1: Timeline of smart grid developments in Southeast Asia	37
Figure 3.2: AMI forecast by country	38
Table 3.1: AMI forecast data by country	38
Figure 3.3: AMI cost breakdown	39
Figure 3.4 Annual AMI deployments in Southeast Asia	39
Figure 3.3: Southeast Asia smart meter penetration rate	40
Figure 3.4: Leading Southeast Asian countries' smart meter penetration rate	40
Figure 3.6: AMI forecast by segment	40
Table 3.2: AMI forecast data by segment	40
Table 4.1: Singapore key data	41
Figure 4.1: Singapore AMI penetration rate	41
Table 4.2: Smart grid indicators in the Singapore	42
Box 4.1 Political risk in Singapore	44
Figure 4.2: Singapore AMI forecast	47
Table 4.3: Singapore AMI forecast data	47
Figure 4.3: Intelligent Energy System program	49
Table 5.1: Thailand key data	51
Figure 5.1: Thailand AMI penetration rate	51
Table 5.2: Smart grid indicators in Thailand	52
Figure 5.2: Electricity industry structure in Thailand	54
Box 5.1: Political risk in Thailand	56
Table 5.3: Thailand AMI forecast data	57
Figure 5.3: Thailand AMI forecast	58
Figure 5.4: PEA's 15-year smart grid plans	62
Table 6.1: Malaysia key data	64
Figure 6.1: Malaysia AMI penetration rate	64
Table 6.2: Smart grid indicators in Malaysia	65
Box 6.1: Political risk in Malaysia	67
Figure 6.2: 5 strategic pillars of Malaysia's New Energy Policy	69
Figure 6.2: Malaysia AMI forecast	71
Table 6.3: Malaysia AMI forecast data	71
Table 7.1: Indonesia key data	74
Figure 7.1: Indonesia AMI penetration rate	74
Table 7.2: Smart grid indicators in Indonesia	75
Box 7.1: Political risk in Indonesia	78
Figure 7.2: Indonesia AMI forecast	81
Table 7.3: Indonesia AMI forecast data	81
Figure 7.3: Annual meter deployments in Indonesia	83
Table 8.1: Philippines key data	85
Figure 8.1: Philippines AMI penetration rate	85
Table 8.2: Smart grid indicators in the Philippines	86
Box 8.1: Political risk in the Philippines	89
Figure 8.2: Philippines AMI forecast	92
Table 8.3: Philippines AMI forecast data	92
Table 9.1: Vietnam key data	95
Figure 9.1: Vietnam AMI penetration rate	95
Table 9.2: Smart grid indicators in Vietnam	96
Figure 9.2: Electricity regulatory structure in Vietnam	98
Box 9.1: Political risk in Vietnam	99
Table 9.3: Vietnam AMI forecast data	101
Figure 9.3: Vietnam AMI forecast	102
Table 10.1: Cambodia key data	104
Table 10.2: Laos key data	104
Figure 11.1: Leading smart grid vendors in Southeast Asia	105
Table 12.1: The next steps and necessary actions	112

Companies covered in this report

• ABB (Switzerland)
• Accenture (US)
• Alstom (France)
• Cisco (US)
• Clarity (Australia)
• Comintel (Malaysia)
• Echelon (US)
• Electricity Generating Authority of Thailand
• Electricity of Vietnam
• Elster (Germany)
• GE (US)
• Hitachi (Japan)
• Holley Metering (China)
• Itron (US)
• Landis+Gyr (Switzerland)
• Meralco (Philippines)
• Metropolitan Electricity Authority (Thailand)
• MiM (Malaysia)
• Mitsubishi (Japan)
• National Grid Corporation of the Philippines
• Perusahaan Listrik Negara (Indonesia)
• Petronas (Malaysia)
• Provincial Electricity Authority (Thailand)
• Power Seraya (Singapore)
• Sabah Electricity (Malaysia)
• Sarawak Energy (Malaysia)
• Senoko Power (Singapore)
• Siemens (Germany)
• Silver Spring Networks (US)
• Singapore Power (Singapore)
• ST Electronics (Singapore)
• Tenanga Nasional Berhad (Malaysia)
• Toshiba (Japan)
• Trilliant (US)
• Tuas Power (Singapore)