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Rising Demand for Energy
Comprehensive Programs to Boost Infrastructure in East and Southeast Asia
Despite the global economic crisis, large projects are currently
underway in East and Southeast Asia in which energy – and hence
wire and cables – plays an important role. According to the March
2009 edition of the trade journal, “Wire”, demand for wire and cables is
expected to grow by more than 13% per year up to the year 2011. In
order to stimulate economic development, the Chinese government is
investing signifi cant amounts in electrical power supply and telecom-
munication networks. Among the larger projects is a program to boost t
the role of Xinjiang Uygur Autonomous Region in the northwest of the e
country, a region rich in oil, natural gas, and coal, and to develop it
into the main energy supplier for China and a center of trade with
Central Asia. The foreign trade information agency Germany Trade
and Invest (gtai) reports that fi fteen large-scale projects to simplify y
the movement of railway goods are either in the planning stages, or r
already under construction. In Shanghai, the metropolis in the east
of the country, huge efforts are underway to prepare for World Expo
2010 – an event at which China hopes to underline its claim as a global
player in electronic drive technology, energy-effi cient building technology,
and groundbreaking solutions in solar energy technology. With
more than 11 million inhabitants, the Tianjin Binhai New Area, near the
northern Chinese port of Tianjin, also plays a prominent role. Here,
more than US $ 40 billion is set to be invested in traffi c infrastructure,
energy and water supplies, and environmental measures by 2011.
Interestingly, this city is also seen as the center of the Chinese wind
energy industry.
However, large projects are also underway in other countries in the
ASEAN region. For example, the government of Thailand is preparing
an economic stimulus package worth US $ 40 billion, which is due
to be ratifi ed in the second half of 2009. A quarter of this amount is
earmarked for infrastructure measures, including the expansion
and modernization of rail-based transport systems. By the end of the
year, the Vietnamese government is planning to invest around US $ 9
billion, particularly in the areas of traffi c, transport, water management,
environmental measures, and housing construction. Indone-
sia, the largest of the ASEAN countries, both in terms of geographic
Advanced drawing technology for power cables – MSM 85
size, and in terms of its national economy, is also drawing attention
to itself with a number of spectacular projects. Experts believe that
electricity demand in the country will increase by an average of 9%
per year for the next decade. On top of a project which is already running,
the Indonesian government has set up a program to build new
power stations, offering a total additional capacity of 10,000 MW, which
is due to be completed by 2015. Drawing on sources in the Indonesian
Electric Cable Manufacturers Association, gtai reports that of the
US $ 17.3 billion set aside for this program, at least US $ 2.3 billion
will be spent on setting up power transmission and distribution lines.
The growing demand for energy in East and Southeast Asia represents
a huge challenge for the wire and cable industry – and one that
NIEHOFF can help to meet.
02I 2009 POWER&TRENDS I 15