Southeast Asia, Australia, New Zealand emissions control markets forecast to grow to US$1.54B in 2017 on increasing investment in power plants, mostly coal-fired, upgrades to existing power plants: Frost & Sullivan

Rachel Carter

SINGAPORE , September 8, 2011 (press release) – Southeast Asia Generated US$795.2 Million, while ANZ Accounted for US$429.7 Million of the Total Revenue in 2010

The rise in green consciousness all over the world has exerted pressure on power plant owners to build new plants that emit fewer pollutants and adhere strictly to globally-approved standards of emission control. As most of the planned power plants in Southeast Asia and Australia and New Zealand (ANZ) regions are based on coal-fired technology, there is an urgent call to adopt advanced power generating techniques. These novel solutions not only aid compliance with emission standards but also increase energy efficiency and plant availability rate.

New analysis from Frost & Sullivan (http://www.energy.frost.com), Asia Pacific Power Plant Services Market, finds that the Southeast Asian and ANZ markets together earned revenues of US$946.7 million in 2010. This is likely to grow to US$1.54 billion in 2017 due to increasing investments in power plants, renovation and modernisation of existing power plants and growing presence of independent power producers that are more open to outsourcing power plant services.

"The use of advanced technologies in power generation will provide more opportunities for power plant service providers to offer highly skilled and prompt service to utilities and independent power producers," says Frost & Sullivan Program Manager Suchitra Sriram. "The future of the power generation equipment manufacturers is not just limited to selling high-end technical equipment but include the provision of technologically competent, prompt, timely and cost-effective service."

Regular power plant servicing serves the dual purpose of improving the energy efficiency of the plant as well as deferring significant capital investment in new plant constructions in the short term. Technological advancements in main power plant equipment, an ageing fleet, and plants’ rising concerns about emission all contribute to the need for plant servicing.

While servicing can help postpone the construction of new plants, it is not possible to entirely do away with the need to set up new ones, mainly due to the escalating demand for electricity, which in turn, is a consequence of the population explosion and increasing rate of urbanization. Despite the market’s huge potential, there are limited operation and maintenance (O&M) outsourcing opportunities, as these tasks are normally undertaken by the in-house staff of power plants.

Power plants continue to view power generation and operation as their core business and seldom outsource these functions to service providers. Most power plant owners in the region perceive long-term service agreements with OEMs as very expensive, incommensurate with the value it offers. Hence, in many cases, power plant owners undertake maintenance and repair services through open tenders, on a transactional basis.

Although power plants are mostly reluctant to relinquish control over O&M, utilities do see some merit in outsourcing power plant servicing to its subsidiary service companies.

"The expanding presence of independent power producers (IPPs) in the power market and the mounting pressure on utilities to decrease operating costs are likely to enhance outsourcing opportunities over the next six to seven years," notes Sriram. "The market is expected to expand once technically advanced power generating equipment gets deployed across greenfield, brownfield and re-powering power plants."

If you are interested in more information on this study, please send an e-mail to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

Asia Pacific Power Plant Services Market is part of the Energy & Power Growth Partnership Services program, which also includes research in the following markets: North American Power Plant Services Market, Strategic Analysis of the Power Plant Services Market in Russia, Western European Power Plant Services Market and Strategic Analysis of CEE Power Plant Services Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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