Trends in the Distributed Power Generation Market in Southeast Asia : Growing Power Demand and Shift Toward Low Carbon Emission Technologies will Drive the Market
Utilities in Southeast Asia continue to strengthen their power supply through large-scale power plants. However, the sheer magnitude of the demand-supply mismatch calls for an immediate solution. Utilities are, therefore, driven to look beyond the scope of their traditional business models, and are increasingly willing to shift toward adopting distributed power solutions through decentralized systems. The distributed power generation market is not highly organized and different types of power plants have been developed based on the availability of fuel, operational flexibility, and the type of application.
Key Findings
The key types of power plants analyzed in this study are biomass and waste to power, solar photovoltaic (PV), internal combustion engine (diesel/heavy fuel oil (HFO)/gas engines/generator sets) based power plants, and temporary rental power plants.
The overall installed capacity of the distributed power generation (DPG) market in Southeast Asia was estimated to be MW in 2015 and is forecast to reach MW by 2020.
Indonesia, the Philippines, and Myanmar are considered to be high potential markets during the forecast period. Indonesia and the Philippines, which are characterized by isolated islands, require distributed generation (DG); Myanmar’s low electrification rate of % makes DG application a vital power system to provide electricity for smaller load centers.
The major market drivers for DPG solutions are the huge power supply and demand gap, delays in centralized power plants’ construction, transmission and distribution (T&D) infrastructure challenges, and huge demand for low carbon emission technologies.
Myanmar’s acute power shortage during the summer months coupled with underinvestment in existing thermal power plants and high transmission line losses of % results in a need for DPG solutions in the country. In Indonesia, the electrical power industry has witnessed a high growth in demand, averaging % per annum from 2005 to 2015, while the overall electrification rate stood at % till 2015. Moreover, severe power crisis and long delays in centralized power projects have forced the government to increasingly focus on DPG solutions.
DPG solutions are developed and installed using different business models such as temporary rental power plants, hybrid system, and a microgrid set-up.
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