With climate change having a significant impact worldwide, decarbonization, decentralization, and digitalization are the three main 'Ds' transforming the power sector today. Reports published by many government agencies have forecast the growing penetration of distributed and renewable energy technologies in the overall power market.
The main objectives of this study are to provide some insights into the power industry structure in key Asian countries, list key stakeholders in the power generation industry, highlight major regulations driving investment into the power sector, present an analysis of the installed capacity, and provide a summary of the overall power generation risks. There has been an increasing demand for stable and reliable electricity supply driven by factors such as sustained economic growth, high population growth, and growing rate of urbanization in many Southeast Asian countries. The power market has been undergoing significant changes over the last few years due to the adoption of advanced technologies in power generation, transmission, and distribution. There is an urgent need for traditional power utilities to change their business models and adapt to these changes. Furthermore, these new trends have necessitated governments of all countries to devise policies and regulations that open up the power generation sector to make it more competitive and highly efficient. All these initiatives are targeted to attract increased private investments into the sector.
Implementation of power sector policies and the subsequent actual investments have had varying levels of success in each country driven by diverse internal and external factors. This success also depends on the maturity level of the electricity market in each country.
While the economic situation remains stagnant in western countries, many Asian nations are expected to register some of the highest GDP growth rates in the world. Governments in these countries are putting in place policy frameworks and institutional mechanisms to attract investment and facilitate private sector participation in the power market. This Regulatory Tracker research covers countries in Southeast Asia except Myanmar and Brunei, as well as key economies in the Far East such as Japan and South Korea.
Some of the regulations have a direct impact on driving specific investments either into the conventional power market or into the renewable energy market.
KEY ISSUES ADDRESSED
- What are the power sector structures like in Asia?
- Who are the key stakeholders exerting influence in the power market?
- Which are the key regulations that are having a high impact on the power sector?
- What is the current electricity mix in these countries and how is it likely to change in 2023?
- What are the market risks in each country for investors to assess?