Southeast Asia Smart Grid: Market Forecast - Northeast Group, LLC

northeast group, llc 

Southeast Asia Smart Grid: 

Market Forecast (2012 – 2022) 

September 2012 | www.northeast-‐group.com 

© 2012 Northeast Group, LLC

Southeast Asia Smart Grid: Market Forecast (2012-‐2022) 

Southeast Asia is a rising smart grid market that will offer substantial consumer benefits and vendor 

opportunities beginning in the mid-‐part of this decade. The region currently trails other global regions 

in terms of smart meter deployments and 

regulatory frameworks but this is beginning to 

change. 

There are already pilot projects in 

several countries throughout Southeast Asia 

and high economic growth rates will both 

require and sustain large-‐scale deployments. 

As a region, Southeast Asia has the highest 

projected GDP growth rates of all emerging 

smart grid markets, led by Vietnam at over 7% 

per year through the next five years. By 2022, Southeast Asian countries will likely have an electricity 

demand profile similar to Latin American and Eastern European countries where large-‐scale smart 

meter deployments are already on the table. These high GDP growth rates are not guaranteed however, 

and will present structural, political, and social challenges to Southeast Asian countries. Understanding 

how these countries plan to manage their growth is critical to understanding the role that smart grid 

will play in Southeast Asia. 

Most importantly, Southeast Asian countries—most of which are not endowed with large domestic 

supplies of traditional energy resources—will face severe energy challenges in order to sustain industrial 

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infrastructure plays in supporting these programs, and because these programs are leading indicators 

of governments that will look to smart grid as a solution for growing challenges. 

The link between overall economic growth and smart grid is critical in Southeast Asia, because some 

other indicators point towards possibly lower smart grid potential in the region. For example, current 

electricity consumption rates are among the lowest in the world, while distribution loss rates are 

comparatively moderate, offering less short-‐term savings potential compared with other global regions. 

Additionally, regulatory frameworks remain largely undeveloped in the region. Even in the more 

advanced countries, deployments are still at the initial pilot level. 

Southeast Asia’s high economic growth rates 

imply that these indicators will not remain as 

significant barriers to smart grid for long. By the 

end of the decade, all countries in the region will 

be facing challenges that smart grid will be best 

placed to solve. As a result, many countries will 

begin investing large amounts in smart grid in the 

near-‐medium term. Strong policies supporting 

renewable energy and energy efficiency in 

countries such as Malaysia, Singapore, and 

Thailand show that smart grid investments are 

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just around the corner. Indonesia, the Philippines, and Vietnam will all face similar challenges with high 

growth rates and must determine how best to incorporate smart grid infrastructure to meet these 

challenges. By following the lead of Singapore and implementing associated renewable energy and 

energy efficiency policies like Malaysia and Thailand, all Southeast Asian countries can begin to invest 

in and benefit from smart grid within the next five-‐to-‐ten years. 

Key questions answered in this report: 

• How large will the smart meter market in Southeast Asia become over the next decade? 

• Which countries are developing smart grid regulatory frameworks and what will they look like? 

• Which international vendors are already active in Southeast Asia? Which domestic vendors 

could become key players? 

• How will recent industry reforms and restructuring affect the smart grid market? 

• What pilot projects are in place and what hurdles have they faced? 

• How will efforts at the regional level from ASEAN affect grid modernization? 


Table of Contents 

i. Executive Summary 1 

ii. Methodology 

8 

1. Introduction 10 

1.1 What is smart grid? 10 

1.2 Smart grid’s role in regional interconnection 16 

1.3 How has smart grid been used elsewhere in the world? 18 

2. Southeast Asia smart grid snapshot 24 

2.1 The region in comparison 26 

2.2 Regional drivers 28 

2.3 Regional challenges 32 

2.4 Most recent developments 34 

3. Regional market forecast 37 

4. Singapore 41 

4.1 Electricity industry structure 43 

4.2 Smart metering regulatory environment 45 

4.3 Market forecast 46 

4.4 Utility activity 48 

5. Thailand 51 





6. Malaysia 64 





7. Indonesia 74 





8. Philippines 85 






9. Vietnam 95 





10. The rest of the region 104 

11. Vendor activity 105 

11.1 Domestic vendors 106 

11.2 International vendors active in smart grid in Southeast Asia 107 

11.3 International vendors poised to expand in Southeast Asia 111 

12. Conclusion 112 

13. Appendix 113 

13.1 List of companies covered in this report 113 

13.2 List of acronyms 114 

List of Figures, Boxes, and Tables 

Southeast Asia smart grid: key takeaways 

AMI forecast by country 

AMI forecast data by country 

Figure 1.1: Smart grid value chain 

Figure 1.2: Smart grid model highlighting focus in Southeast Asia 

Table 1.1: Benefits of AMI in Southeast Asia 

Table 1.2: Demand response options 

Figure 1.3: ASEAN grid interconnections 

Figure 1.4: Smart grid activity in emerging markets 

Figure 2.1: Emerging markets smart meter potential 

Figure 2.2: Per-‐capita electricity consumption 

Figure 2.3: Per-‐capita CO 2 emissions 

Figure 2.4: Average annual GDP growth in Southeast Asia 

Figure 2.5: Per-‐capita consumption in Southeast Asia 

Figure 2.6: Renewable sources of energy in Southeast Asia 

2 

7 

7 

10 

11 

13 

15 

17 

19 

25 

26 

26 

27 

28 

30 


Figure 2.7: Renewable energy potential in 2030 

Figure 2.8: Distribution losses in Southeast Asia 

Table 2.1: Smart grid market drivers and barriers in Southeast Asia 

Figure 3.1: Timeline of smart grid developments in Southeast Asia 

Figure 3.2: AMI forecast by country 

Table 3.1: AMI forecast data by country 

Figure 3.3: AMI cost breakdown 

Figure 3.4 Annual AMI deployments in Southeast Asia 

Figure 3.3: Southeast Asia smart meter penetration rate 

Figure 3.4: Leading Southeast Asian countries’ smart meter penetration rate 

Figure 3.6: AMI forecast by segment 

Table 3.2: AMI forecast data by segment 

Table 4.1: Singapore key data 

Figure 4.1: Singapore AMI penetration rate 

Table 4.2: Smart grid indicators in the Singapore 

Box 4.1 Political risk in Singapore 

Figure 4.2: Singapore AMI forecast 

Table 4.3: Singapore AMI forecast data 

Figure 4.3: Intelligent Energy System program 

Table 5.1: Thailand key data 

Figure 5.1: Thailand AMI penetration rate 

Table 5.2: Smart grid indicators in Thailand 

Figure 5.2: Electricity industry structure in Thailand 

Box 5.1: Political risk in Thailand 

Table 5.3: Thailand AMI forecast data 

Figure 5.3: Thailand AMI forecast 

Figure 5.4: PEA’s 15-‐year smart grid plans 

Table 6.1: Malaysia key data 

Figure 6.1: Malaysia AMI penetration rate 

Table 6.2: Smart grid indicators in Malaysia 

Box 6.1: Political risk in Malaysia 

Figure 6.2: 5 strategic pillars of Malaysia’s New Energy Policy 

30 

31 

33 

37 

38 

38 

39 

39 

40 

40 

40 

40 

41 

41 

42 

44 

47 

47 

49 

51 

51 

52 

54 

56 

57 

58 

62 

64 

64 

65 

67 

69 


Figure 6.2: Malaysia AMI forecast 

Table 6.3: Malaysia AMI forecast data 

Table 7.1: Indonesia key data 

Figure 7.1: Indonesia AMI penetration rate 

Table 7.2: Smart grid indicators in Indonesia 

Box 7.1: Political risk in Indonesia 

Figure 7.2: Indonesia AMI forecast 

Table 7.3: Indonesia AMI forecast data 

Figure 7.3: Annual meter deployments in Indonesia 

Table 8.1: Philippines key data 

Figure 8.1: Philippines AMI penetration rate 

Table 8.2: Smart grid indicators in the Philippines 

Box 8.1: Political risk in the Philippines 

Figure 8.2: Philippines AMI forecast 

Table 8.3: Philippines AMI forecast data 

Table 9.1: Vietnam key data 

Figure 9.1: Vietnam AMI penetration rate 

Table 9.2: Smart grid indicators in Vietnam 

Figure 9.2: Electricity regulatory structure in Vietnam 

Box 9.1: Political risk in Vietnam 

Table 9.3: Vietnam AMI forecast data 

Figure 9.3: Vietnam AMI forecast 

Table 10.1: Cambodia key data 

Table 10.2: Laos key data 

Figure 11.1: Leading smart grid vendors in Southeast Asia 

Table 12.1: The next steps and necessary actions 

71 

71 

74 

74 

75 

78 

81 

81 

83 

85 

85 

86 

89 

92 

92 

95 

95 

96 

98 

99 

101 

102 

104 

104 

105 

112 


Companies covered in this report 

• ABB (Switzerland) 

• Accenture (US) 

• Alstom (France) 

• Cisco (US) 

• Clarity (Australia) 

• Comintel (Malaysia) 

• Echelon (US) 

• Electricity Generating Authority of Thailand 

• Electricity of Vietnam 

• Elster (Germany) 

• GE (US) 

• Hitachi (Japan) 

• Holley Metering (China) 

• Itron (US) 

• Landis+Gyr (Switzerland) 

• Meralco (Philippines) 

• Metropolitan Electricity Authority 

(Thailand) 

• MiM (Malaysia) 

• Mitsubishi (Japan) 

• National Grid Corporation of the 

Philippines 

• Perusahaan Listrik Negara (Indonesia) 

• Petronas (Malaysia) 

• Provincial Electricity Authority (Thailand) 

• Power Seraya (Singapore) 

• Sabah Electricity (Malaysia) 

• Sarawak Energy (Malaysia) 

• Senoko Power (Singapore) 

• Siemens (Germany) 

• Silver Spring Networks (US) 

• Singapore Power (Singapore) 

• ST Electronics (Singapore) 

• Tenanga Nasional Berhad (Malaysia) 

• Toshiba (Japan) 

• Trilliant (US) 

• Tuas Power (Singapore) 


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