Power distribution utilities in the Southeast Asian (SEA) region are embarking upon the next phase of digital transformation through smart grids. An investment of $9.8 billion in smart grid infrastructure is expected between 2018 and 2027 in the SEA region as per a study by the Northeast Group. It estimates the largest market segment will be advanced metering infrastructure (AMI), the technology behind smart metering, where an investment of $4.6 billion will be made. While Malaysia and Singapore have already started installation of smart meters for consumers, Thailand, the Philippines and Indonesia have launched pilot projects.

Southeast Asia Infrastructure presents a round-up of key developments on the smart grid and smart metering front in the region…

Malaysia

Malaysia is a key emerging market for smart meters as the government is focusing on conserving energy and improving service quality under the Eleventh Malaysia Plan 2016-2020. Recently, Malaysian power utility Tenaga Nasional Berhad (TNB) announced plans to install 9.1 million smart meters in peninsular Malaysia by 2026. Around 1.5 million smart meters are scheduled to be installed at consumer premises in Melaka and selected areas in the Klang Valley between 2018 and 2020 (regulatory period-2 or RP-2). Nearly 300,000 smart meters were installed in Melaka under RP-2 Phase 1 in 2018, while another 1.2 million will be installed by 2020 in Selangor, Kuala Lumpur and Putrajaya/Cyberjaya under Phase 2. The Malaysian government has earmarked RM1.2 billion for smart metering during RP-2.

In November 2019, Pestech International Berhad secured a RM 38.38 million contract from TNB for the supply and delivery of smart meters around the Klang Valley.

Singapore

The Singapore government launched the Smart Nation initiative in 2014 as a national effort to support better living using technology. Under the initiative, Energy Grid 2.0 was introduced – a next-generation grid system that aims to transform the way gas, solar and thermal energy sources are converted into electrical energy, transmitted, stored and used.

The National Research Foundation has also set up the Smart Grid and Power Electronics Consortium Singapore to provide a platform for companies to access the latest technologies developed by researchers, and to translate them into commercially viable products and services.

The SP Group, one of Singapore’s largest corporations, has already installed smart meters for business consumers which are e-buying electricity from retailers of their choice. Smart meters will be extended to all other consumer classes by 2020. The utility is also launching a pilot scheme to extend smart metering for water supply and gas, leveraging on the existing automated meter reading system.

Thailand

In 2015, Thailand’s National Energy Policy Council approved a national smart grid plan as per which state-owned utilities will spend up to Baht 200 billion ($5.6 billion) for implementing smart grid projects by 2036. The objective of the plan is to encourage  adequate, efficient, sustainable, and quality electricity supply to maximise benefits to the country.

Further, as per the Power Development Plan 2018-37, the Electricity Generating Authority of Thailand (EGAT) and the Provincial Electricity Authority (PEA) will develop a smart grid in the Eastern Economic Corridor. The PEA and Metropolitan Electricity Authority (MEA) have smart grid roadmaps for consumer engagement.

In October 2018, EGAT and the PEA signed an MoU to study the technical aspect of smart grid pilot project in Mae Hong Son province. EGAT plans to invest $30 million in the Mae Hong Son pilot project that envisages implementation of microgrids. Further, the PEA has a smart metering pilot project under way in Pattaya city in Chonburi province. Under the project, about 116,000 smart meters will be deployed by Itron and the ALT Telecom Public Company until 2020.

The MEA is also installing smart meters in six districts namely – Khlong Toei district, Sam Sen district, Rat Burana district, Nonthaburi district, Bang Yai district and Bang Bua Thong district. The project, for replacing 29,250 conventional meters, began in 2018 and is expected to be completed by 2020. In July 2019, the MEA and Krungthep Thanakom Company signed an MoU to develop electricity infrastructure for the Smart Metropolitan Bangkok project.

Indonesia

Indonesia’s smart grid roadmap was drafted in 2016. Due to the diverse structure of Indonesia with over 5,000 inhabited islands, the plan suggests separate smart grid approaches for the main island, small islands and medium-sized islands. Presently, smart grid projects in Indonesia are limited to a few research and demonstration projects in Nusa Penida, Morotai, Karimun, and Sumba islands, where hybrid microgrids with photovoltaic, wind power and storage have been built up, as well as AMI in Jakarta.

The state-owned electricity distribution company Perusahaan Listrik Negara (PLN) is undertaking measures to promote smart metering and has signed agreements for installation of over 1 million smart meters. In 2017, PLN signed a new contract with Itron for 500,000 smart meters, which expands upon their initial agreement announced in June 2016 to deploy 635,000 smart meters. In March 2019, PLN signed an MoU with a French company, Think Smart Grid. Both parties agreed to develop smart microgrids in Mandalika, West Nusa Tenggara province, as well as on the Sulawesi Island.

Others

In the Philippines, the Departments of Energy (DoE), in July 2019, notified a draft circular on providing a national smart grid policy framework for the Philippine electric power industry and roadmap for distribution utilities. The Manila Electric Company, the largest private sector electric distribution utility in the Philippines, started rolling out smart meters from 2015 and set a target of 3.3 million smart meters by 2024. So far, the company has installed 100,000 smart meters as against 140,000 meters approved by the regulator.

In the case of Vietnam, AMI implementation is a key part of the country’s Smart Grid Development Roadmap. The Asian Development Bank and the World Bank have committed $750 million and $500 million, respectively, to finance transmission upgrades, smart grid networks and capacity building. A smart power grid development project is also being implemented in Ho Chi Minh City, which is being developed as a smart city in the period 2017-20. Vietnam also targets building at least 2 smart cities in 2017-20 – Hanoi, Ho Chi Minh City.

Meanwhile, Myanmar is still at a nascent stage in terms of metering implementation. Recently, smart meters have been introduced in the Daw Bone and Pabedan townships by EVER Company as part of a demonstration project.

Conclusion

With expanding electricity access, addition of renewables in the energy mix, growth of e-mobility, and consumers’ demand for enhanced services, smart electricity infrastructure comprising smart grids and smart meters are crucial requisites for SEA countries.  With these growth drivers, SEA countries are likely to emerge as key markets in the smart metering space in the coming years.