The integration of renewable energy into grid systems – more than simply deploying renewable energy to replace the region’s large dependence on coal – is the biggest challenge facing Asia’s electric industry, according to findings from this year’s Black & Veatch Asia Electric Report.
“The report reveals that pressures to lower grid emissions are mounting from investors, large customers and governments as infrastructure needs continue to transform,” said Narsingh Chaudhary, Executive Vice President & Managing Director, Asia Pacific. “The introduction of more renewable energy is changing the very nature of electric grid management and this means Asian electricity providers must plan and invest seriously across the entire system of generation, transmission and distribution assets.”
The need to focus investments beyond generation into transmission and distribution is underlined throughout the report. For example, 25 percent of industry respondents are not confident in the performance and resilience of their transmission and distribution systems. In addition, two of the top three threats to providing reliable service to customers are cited as underinvestment in transmission and insufficient energy storage.
“The energy transition is underway across the region with more than 80 percent of respondents saying they are channeling capital to clean energy investments,” said Harry Harji, Associate Vice President for Black & Veatch‘s management consulting business in Asia. “Solar, in particular, looks set to receive increased investments over the next five years while almost half of respondents think hydrogen will emerge as an alternative to gas generation by 2030.”
Black & Veatch’s high-impact reports, in a series previously known as Strategic Directions publications, provide industry insights and analysis based on market-leading research. Encompassing several annual reports examining the electric, water and other sectors, the series serves to inform and educate industry players on key issues, challenges and opportunities.