Investment in smart grid technologies by utilities and governments in the Asia Pacific will rise at a significant pace over the next several years, causing the region’s smart grid market to increase from $11.9 billion this year to $28.8 billion by 2017, concludes a new report from Pike Research.
According to Andy Bae, a senior analyst at the firm, market drivers vary among countries in the region.
For instance, “Chinese market players believe that the construction of a smart grid is a key part of economic growth and enhancing the ability to optimize energy allocation, including the integration of new generation capacity from both renewable and fossil-fuel sources,” he says.
“Japan’s electric utilities have been investing huge amounts of capital in power infrastructure, resulting in advanced capabilities in transmission infrastructure and power-delivery services,” Bae continues. “However, the tragic March 2011 earthquake, tsunami and resulting Fukushima nuclear accident are likely to redefine not only Japan’s smart grid planning, but perhaps the direction of the nation’s utility industry.
Korea, on the other hand, “seeks to leverage its technology leadership in the IT and communications space to form an advanced smart grid infrastructure within the country, as well as an opportunity to export smart grid technologies around the world,” Bae adds. “Significant and influential smart grid projects are also under way in Australia, India and the Association of Southeast Asian Nations region.”
Transmission upgrades will be the largest application category within the region, representing 54% of total smart grid investment between now and 2017, Bae says. Distribution automation and advanced metering infrastructure will also be key applications, capturing 18% and 15% of total spending, respectively.
