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Frost & Sullivan: Malaysia to be one of the hottest destinations for Solar PV in Asia

Renewable Energy to be the Fastest Growing Market in Malaysia

 
PRLog - Dec. 8, 2011 - Kuala Lumpur, Malaysia – The implementation of feed-in-tariff (FiT) policy will bring the required momentum to accelerate solar PV market growth in Malaysia. Malaysia aims to become the second largest producer in solar manufacturing by 2020 and is emerging as the favored country for new PV manufacturing units.

Investments in solar PV power projects for 2012 is estimated at US$72 million, a 194% growth over 2011 and close to 12 MW of solar PV power is to be added in 2012, a massive year-on-year increase of 242.9%.

According to Ravi Krishnaswamy, Vice President of Energy & Power Systems, Frost & Sullivan Asia Pacific, banks are actively considering large-scale solar power projects as the next wave of investment option as they are well-equipped to understand risks better now.

Government support through a subsidy rationalization program that gradually removes subsidies from items such as fuel, gas, electricity and tolls bring their rates close to market rate, making solar power look less expensive in the long term.

“Falling global prices for PV modules could also aid the growth of grid connected solar market in Malaysia,” he said.

Conventional Power and Utility will remain the Largest Market

The shortage of gas will continue till Q3 2012 and is expected to get better after the commissioning of Malacca’s regasification project.

Krishnaswamy commented, “However the recently agreed cost sharing mechanism between TNB, Petronas and the Malaysian government, will alleviate TNB’s position. TNB will be looking to diversify its source of power in order to overcome supply challenges with any one fuel source.”

“Approval for tariff hikes in tandem with gas price increase will help TNB to strengthen its financial performance and thus focus on investments in other areas of value chain including transmission and distribution,” he continued.

The market for electrical equipment will remain strong with the transformers and switchgears segment alone representing a US$520 million market in Malaysia for 2012.

Malaysian companies including GLCs and private ones will actively look for investment opportunities in power sector in Southeast Asia and South Asia.

Energy Efficiency

Malaysia presents immense opportunity for energy efficiency (EE) and energy management services because of the energy intensive process and manufacturing industries. The Malaysian government has taken a major step by passing an EE law that will be the framework for promoting EE improvements.

The market is expected to be US$298.5 million in 2012, representing a 13% y-o-y growth due to increased awareness regarding sustainable development.

Currently, the commercial sector is the largest market, but the industrial sector is likely to gain momentum in 2012.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

MEDIA CONTACT:

Donna Jeremiah
Corporate Communications – Asia Pacific
P: +603 6204 5832
E: djeremiah@frost.com

Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
E: carrie.low@frost.com

# # #

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.

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Source:Frost & Sullivan
Location:United States
Industry:Energy
Tags:malaysia, Energy, renewable energy, solar pv, Power, Gas, conventional energy, Efficiency
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