Investment in Smart Grid technology in the Asia Pacific
July 8, 2011
A report from market research firm Pike Research, shows investment in smart grid technologies by utilities and governments within Asia Pacific will rise over the next several years. The total smart grid market will increase from $11.9 billion in 2011 to $28.8 billion by 2017. The report forecasts that cumulative smart grid investment in the region will reach $171.3 billion by 2017.
Smart grid market drivers differ significantly by country within the Asia Pacific region. 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.
Japan’s electric utilities have been investing capital in power infrastructure, resulting in advanced capabilities in transmission infrastructure and power delivery services; however, the March 2011 earthquake, tsunami, and resulting Fukushima nuclear accident are likely to redefine not only Japan’s smart grid planning, but the direction of the nation’s utility industry.
Korea 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.
Transmission upgrades will be the largest application category within the region, representing 54% of total smart grid investment between now and 2017. Distribution automation and advanced metering infrastructure (AMI) will also be key applications, capturing 18% and 15% of total spending, respectively.
