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TMCNet:  Smart Grids' Ability to Simplify Distributed Generation Encourages its Installation in Asia-Pacific, Finds Frost & Sullivan

[May 12, 2013]

Smart Grids' Ability to Simplify Distributed Generation Encourages its Installation in Asia-Pacific, Finds Frost & Sullivan

KUALA LUMPUR, Malaysia, May 12, 2013 /PRNewswire via COMTEX/ -- The smart grids market in Asia-Pacific got a huge boost from the roll-outs of advanced metering infrastructure (AMI) in Australasia and Smart City projects in North Asia. The market can expect higher revenue inflow with the rising popularity of Demand response systems and energy management system (EMS) installations as well as Southeast Asia's desire to switch to smart grids.


New analysis from Frost & Sullivan (http://www.energy.frost.com), Asia-Pacific Smart Grids Market Overview, finds that the market earned approximately US$5.40 billion in 2012 and estimates this to reach US$15.83 billion in 2018.

The increased generation of renewable energy creates snags in the transfer of power over an already stressed network. This highlights the need for smart distribution control and management systems, which can better maintain power grid reliability and stability.

Smart grid projects in South Korea, Singapore and Japan are testing the feasibility of distributed generation using photovoltaics, biomass, wind energy and electrical vehicle charging, in addition to AMI, EMS in homes and buildings. In fact, the use of AMI and HEMS in Jeju, South Korea has demonstrated the devices' ability to reduce energy usage in homes.

"Significant M&A and joint ventures in the market ensure advanced product offerings, which will drive market growth," said Frost & Sullivan Energy & Environmental Research Analyst Avanthika Satheesh P. "Besides, the need to replace aging equipment in the power grid and utilities' awareness of the benefits of smart equipment and automation systems further enhance the market's potential." Countries such as Japan and South Korea expect electric vehicles (EVs) to comprise 20 percent of the total vehicles on the road by 2030. However, EV charging is an additional load on the power grid, especially during peak hours.

A smart grid is a viable solution to the transmission and distribution (T&D) issue, as it can identify the peak-load hours and appreciate off-peak charging of the vehicles. Besides, vehicle-to-grid and vehicle-to-home technology has added advantages when implemented along with a smart grid.

Despite its obvious benefits, the smart grid market is pegged back by its high cost of implementation, lack of standardization, and security concerns. For instance, in Australia, there were protests against the home installations of the higher priced smart meters instead of the conventional energy meters. Further, there were security concerns, as hackers could tamper with the energy usage data.

Utilities have to assuage these valid end-user concerns by educating customers about AMI and demand response systems, and highlighting the benefits of installing a smart meter. Original equipment manufacturers (OEMs) can also help increase the adoption of smart meters by reducing their costs.

"The OEMs, utilities and customers play equally important roles in shifting from a conventional grid to a smart grid," noted Satheesh. "The market's prospects appear bright, as countries in the Asia-Pacific are likely to undertake large-scale projects over the next six years." If you are interested in more information on this research, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Asia-Pacific Smart Grids Market Overview is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services cover automation opportunities in Southeast Asia and ANZ smart grid market as well as the T&D services market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

-- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.

-- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies Contact Us: Start the discussion Join Us: Join our community Subscribe: Newsletter on "the next big thing" Register: Gain access to visionary innovation Asia-Pacific Smart Grids Market OverviewP69F-14 Contact:Donna JeremiahCorporate Communications - Asia PacificP: +61 (02) 8247 8927F: +61 (02) 9252 8066E: djeremiah@frost.com Carrie LowCorporate Communications - Asia PacificP: +603 6204 5910F: +603 6201 7402E: carrie.low@frost.com Jessie LohCorporate Communications - Asia PacificP: +65 6890 0942F: +65 6890 0988E: jessie.loh@frost.com http://www.frost.com SOURCE Frost & Sullivan http://rt.prnewswire.com/rt.gif NewsItemId=DA12311&Transmission_Id=201305122337PR_NEWS_USPR_____DA12311&DateId=20130512

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