Increasing Electricity Demand along with Capacity Additions Driving the Southeast Asian Power Plant Services Market

Business Wire, April 1, 2008

SINGAPORE -- The Southeast Asian power plant market is witnessing appreciable growth, thanks largely to the increasing electricity demand and ongoing capacity additions. Furthermore, some of the plants are being forced to function beyond their planned and scheduled hours of operation to satisfy demand. Power plant owners are likely to be forced to outsource more of the services to experienced original equipment manufacturers (OEMs) and third-party services providers, increasing the scope of business in the existing power plants.

New analysis from Frost & Sullivan (http://www.energyandpower.frost.com), Southeast Asia Power Plant Services Markets, finds that the market earned revenues of $472.9 million in 2007 and estimates this to reach $714.6 million in 2014.

"Fast-paced economic growth and increasing electricity demand have led to increased thermal power generation capacity addition in Southeast Asia," notes Frost & Sullivan Research Analyst Soundharya Nagarajan. "The surging demand for electricity has also increased the dependency on existing power plants and these two factors are likely to increase servicing opportunities in the power plant services market."

New power plants are increasingly entering into long-term service agreements. This has been the trend in some of the newly installed coal and gas fired power plants in the countries in this region. The shut down period for major overhaul is also decreasing among the power plants owing to their higher availability and reliability. This indicates an increase in the maintenance and services activities being outsourced to the more experienced service providers.

However, the dominating presence of utilities in the power sector in some of the countries is a hindrance to the growth and development of the Southeast Asian power plant services market. Utility-run power plants have a large in-house maintenance work force that caters to the routine maintenance and inspections of major equipment.

"In the case of boilers and steam turbines, the in-house labor force have gained experience over the years in servicing and maintaining these equipment, limiting the portion of work outsourced to only spare parts supply," says Nagarajan. "Some of the utilities have service subsidiaries catering to the maintenance and service of state-run power plants and have plans of extending their services to the independent power producers (IPP) segment as well."

To overcome these challenges, OEMs and other service providers will have to convince end users of the economic benefits of separating ownership from operation. This apart, they should work on providing customized service packages based on the requirements and financial capabilities of end users.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Southeast Asia power plant services market, then 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. Upon receipt of the above information, an overview will be sent to you by e-mail.

Southeast Asia Power Plant Services Markets is part of the Energy & Power Growth Partnership Service program, which also includes research in the following markets: ANZ Power Plant Services Market, Western Europe Power Plant Services Market, and Chinese Power Plant Services Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

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Southeast Asia Power Plant Services Markets

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