Asia-Pacific Region to Emerge as the Main Destination for Transmission and Distribution Investments During the Period 2011-2030

Friday 14 October 2011, Amsterdam

The Asia-Pacific region will surpass other global regions in attracting investments in transmission and distribution technologies. The cumulative T&D investments in the Asia-Pacific region during this period are estimated to be around $2.5 trillion. The bulk of these investments will be made in distribution infrastructure. China will be the main country investing heavily in T&D infrastructure. North America will remain the other major region to invest significantly. The period 2011-2030 will see North American nations investing more than $1 trillion in T&D technologies. The US will emerge as the key nation in this region to drive the investments.


Distribution Technologies to Attract More Investments than Transmission Technologies

Distribution technologies will attract more investments than transmission technologies during the period 2011-2030. The investments in distribution technologies at a global level are expected to constitute around 67% of total transmission and distribution investments, while investments in transmission technologies will account for the remainder. Greater investment in distribution technologies will be due to the drive for electrification, which is ongoing in different countries. The other factor to drive the investments in distribution infrastructure will be the incorporation of efficient technologies to make the power grids a smart grid. The intelligent and efficient technologies will help to reduce distribution losses and enable consumers to help the utilities in reducing peak-hour demand through mechanisms such as demand response.


Rising Population and Economic Growth to be the Major Driver for Investments in Transmission and Distribution Until 2030

Incremental growth in population and the need to support economic growth will drive investments in T&D infrastructure. The rising population in the Asia-Pacific nations has prompted governments to frame policies for deeper penetration of electricity. Electrification will demand greater installation of distribution lines, transformers, relays and meters, which entails greater investments in distribution infrastructure.

Irregular supply of electricity leads to annual business losses to the tune of billions of dollars. A stable electric supply has thus become a prerequisite for many economies to support their economic growth and help their local business houses to become competitive globally. This has called for additional investments in efficient transmission and distribution technologies that will help to cut down losses.


China to Emerge as the Nation to Make the Largest Investments in Transmission and Distribution Technologies

China will emerge as the largest investor in transmission and distribution technologies for the period 2006-2030. China has embarked on an ambitious mission to upgrade its power grid, and has set aside billions of dollars for the purpose. The country is expected to account for 23% of all the global investments made in power transmission and distribution infrastructure during the period 2006-2030. The high degree of investments will be required to support its plan to construct new transmission lines to connect Central and Western China with the hydropower generation centers in Eastern China. Its intention to add greater capacities of renewable energy will see a large number of high voltage lines being constructed to connect the remotely located renewable plants. Distribution investments will also increase as it extends electric connections for its rural and semi-urban population.


About the market research:
ASDReports has published its latest research, "Transmission and Distribution Infrastructure - Global Investment Analysis to 2030", which provides an insight into the global investments that are expected to be made in transmission and distribution (T&D) technologies during the period 2006-2030. The report provides information related to T&D investments in different global regions such as North America, Europe and Asia-Pacific.