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Need for Energy Security Powers up Substation Integration and Automation in the Asia Pacific, Finds Frost & Sullivan


News provided by

Frost & Sullivan

14 Jun, 2012, 08:36 GMT

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- Aging Substations Create Significant Opportunities for Replacement Sales and Retrofits

KUALA LUMPUR, Malaysia, June 14, 2012 /PRNewswire/ -- The recent nuclear power plant accident in Fukushima has highlighted the need for energy security in the Asia Pacific. Governments are looking at alternative sources of energy to meet the escalating demand for electricity in the region. Malaysia and Vietnam are targeting a renewable energy contribution of nearly 11 percent and 6 percent respectively to the energy mix by 2015, which will directly stimulate the demand for substation integration and automation.

New analysis from Frost & Sullivan (http://www.energy.frost.com), Asia-Pacific Substation Integration and Automation Market, finds that the market earned revenues of US$308.3 million in 2010 and estimates this to reach US$376.0 million in 2015.

It is not possible to connect diverse sources of renewable energy without having better visibility and control of the network. The high volatility in power generated from renewable energy sources makes it necessary for utilities to fully automate their grids to achieve higher operational efficiency and reduce the system average interruption duration index.

While the integration of renewable energy sources into a fully automated grid is expected to stoke the need for new transmission and distribution substations, the rising demand for higher electricity generation capacity is intensifying the need for superior electrical infrastructure.

"There is also a significant need to improve existing power infrastructure, particularly in Southeast Asia, as most of the substations are not fully automated," says Frost & Sullivan Consulting Analyst Jieqiang Tan.

While utilities are eager to incorporate fully automated systems in the transmission and distribution substations so they can monitor and identify the location of faults, industrial customers are cost conscious and more circumspect about their investments. However, they are likely to increase their spending with greater awareness of the long-term benefits of automated substations.

The market is characterized by large multinational companies, which provide an extensive range of products and turnkey solutions, especially for the retrofit market.

"However, the volatile market projects an unclear picture of ROI and in some cases, retrofitting aging substations is not economically viable," notes Tan. "The degree of automation varies from project to project and depends on the age of the infrastructure, the demographics, and the condition of existing automation infrastructure."

The replacement market is also abuzz with activity, as the substation equipment installed in many countries in the Asia Pacific have either exceeded or are nearing their recommended operational life.

If you are interested in more information on this study, please send an e-mail with your contact details to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com.

Asia-Pacific Substation Integration and Automation Market is part of the Energy & Power Growth Partnership Services program, which also includes research in the following markets: North American Substation Integration and Automation Market and World Automation and Control Solutions Market in Power Industry. All research services included in subscriptions provide detailed market opportunities and industry trends that have been 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?

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Asia-Pacific Substation Integration and Automation Market
P454-14

Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247-8927
M: +61 (0) 407-598-937
F: +61 (02) 9252-8066
E: djeremiah@frost.com

Carrie Low
Corporate Communications – Asia Pacific
P: +603-6204-5910
F: +603-6201-7402
E: carrie.low@frost.com

Jessie Loh
Corporate Communications – Asia Pacific
P: +65-6890-0942
E: jessie.loh@frost.com

http://www.frost.com

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