Facts Of Asia's Electric, Power and Renewable Energy Industry
Increased Power Consumption In The ASEAN Region Signifies Rental Power Potential
Rapid development and increased investments in various businesses due to favorable foreign direct investment (FDI) has increased power consumption by 2.5 times in the past 20 years in Southeast Asia. According to the IEA's World Energy Outlook 2015 for Southeast Asia, the region's electricity demand is likely to triple by 2040, for which an additional power generation capacity of 400 gigawatts (GW) is required. Utilities are unable to meet the rising electricity consumption due to poor T&D and low power production. This has increased power outages, driving the need for rental power in the region.
For instance, in 2013, 14 provinces in Thailand experienced blackouts because the required power was 2,500 megawatt (MW) while the local power plants were capable of producing only 2,000 MW. The remaining power deficit was purchased from other sources such as private players and neighboring countries. Such instances surged the need for emergency power supply, thus fueling the need for power rentals in the region.
Future Potential of Thailand's Power Capacity
Incorporated into this PDP for the first time is an Alternative Energy Development Plan and Energy Efficiency Development Plan. However, despite these measures, the final Plan shows that Thailand still plans to double its installed energy capacity over the next 20 years, to reach 70,410 MW by 2036. The key to much of this growth lies in plans to import significant amounts of electricity from projects in Laos and Myanmar.
Renewable Energy Potential In Thailand
Another important motivation is Thailand’s increasing dependence on energy import, which is expected to grow from 42% (2013) to 78% (2040). The share of natural gas imports almost doubles due to declining domestic production and the high demand for power generation. To limit energy imports, the national power plan (AEDP 2015-2036) foresees that, by 2040, biomass shall have the largest share with 13% (11 GW), followed by PV with 9% (8 GW), wind with 6% (5 GW) and hydropower with 5% (4 GW).