GDPE1069MAR Power Transmission and …REFERENCE CODE GDPE1069MAR | PUBLICATION DATE MARCH 2014 POWER TRANSMISSION AND DISTRIBUTION (T&D) IN ASIA-PACIFIC – INFRASTRUCTURE, INVESTMENT

REFERENCE CODE GDPE1069MAR | PUBLICATION DATE MARCH 2014

POWER TRANSMISSION AND DISTRIBUTION (T&D) IN ASIA-PACIFIC – INFRASTRUCTURE, INVESTMENT

AND REGULATION ANALYSIS

Power Transmission and Distribution (T&D) In Asia-Pacific – Infrastructure, Investment and Regulation Analysis 2 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.

POWER TRANSMISSION AND DISTRIBUTION (T&D) IN ASIA-PACIFIC – INFRASTRUCTURE, INVESTMENT AND REGULATION ANALYSIS

Executive Summary

Incorporation of Renewable Energy into Grid to Drive Transmission and Distribution Market

As demand for electricity continues to increase,

power producers are diversifying the sources from

which electricity is generated. Countries are

increasingly investing in alternative fuels, such as

wind, solar, hydro, biomass and nuclear power, to

meet the growing demand. Among the Asia-Pacific

countries, China and India have the most extensive

plans for expanding installed renewable capacity.

By 2020, China and India are expected to have

respective wind power capacities of around XX

Gigawatts (GW) and XX GW. The incorporation of

renewable energy into their grids will drive

investment in their Transmission and Distribution

(T&D) sectors. Australia and Japan also have

robust plans for increasing the share of renewable

energy in their respective power mixes.

Smart Grid Deployment to Promote Efficient Power Consumption

Nearly all of the major countries in Asia-Pacific are

pursuing the deployment of smart grid technology,

with the intention of increasing the efficiency of

their power distribution systems and ensuring that

their power consumption is monitored effectively.

China is the leading country in this region in terms

of smart grid development. The State Grid

Corporation of China plans to invest $XX billion in

various smart grid projects between 2012 and

2015. In September 2013 the Indian government

published the “Smart Grid Vision and Roadmap for

India”. In Japan, four smart city demonstration

projects are currently in progress, while in 2010

Australia began modernizing its power distribution

system with the “Smart Grid, Smart City” project.

Robust Regulatory Framework

Most of the Asia-Pacific countries are working

towards setting up a robust regulatory framework

for facilitating the growth of their T&D sectors.

They are formulating effective policies and targets

for driving this growth. China has set a target to

interconnect its existing grids and form an

integrated synchronous national grid by 2020. India

has a very detailed set of rules and regulations for

its T&D sector. The regulations relate to inter-state

transmission licenses, electricity grid code, and

long- and medium-term open access, among other

things. New Zealand also has a good regulatory

framework, which specifically contains regulations

pertaining to interconnection rules and grid

reliability standards. Japan enacted the Electricity

System Reform law in November 2013. The law

concerns establishing a national grid company by

2015, unbundling the generation and transmission

sector and liberalizing the power market for

residential purposes. Other countries, including

Indonesia, are likely to establish a suitable

regulatory framework in the near future.



Table of Contents

1 Table of Contents

1 Table of Contents ................................................................................................................... 3

1.1 List of Tables .......................................................................................................................... 7

1.2 List of Figures ....................................................................................................................... 11

2 Transmission and Distribution Market, Asia-Pacific .............................................................. 14

2.1 Global Transmission and Distribution Market........................................................................ 14

2.2 Transmission and Distribution Market, Asia-Pacific .............................................................. 14

3 China Transmission and Distribution Market, China ............................................................. 16

3.1 China Overview .................................................................................................................... 16

3.1.1 China, Power Supply Structure, China .......................................................................... 17

3.1.2 Transmission Infrastructure, China ................................................................................ 18

3.1.3 China, Distribution Infrastructure, China ........................................................................ 26

3.1.4 China, Smart Grid, China .............................................................................................. 32

3.1.5 China, T&D Imports and Exports, China ........................................................................ 34

3.1.6 China, T&D Market, Investment, China ......................................................................... 35

3.1.7 China, T&D Market, Drivers, China ............................................................................... 37

3.1.8 China, T&D Market, Restraints, China ........................................................................... 39

3.1.9 China, T&D Market, Regulations and Initiatives, China ................................................. 40

4 Transmission and Distribution Market, India ......................................................................... 45

4.1 India, Overview ..................................................................................................................... 45

4.1.1 India, Power Supply Structure, India ............................................................................. 46

4.1.2 India, Transmission Infrastructure, India ........................................................................ 47

4.1.3 India, Distribution Infrastructure, India ........................................................................... 59

4.1.4 India, Smart Grid, India ................................................................................................. 68

4.1.5 India, Transmission and Distribution Market, Investments, India ................................... 70



Table of Contents

4.1.6 Imports and Exports, India............................................................................................. 72

4.1.7 India, Transmission and Distribution Market, Drivers ..................................................... 73

4.1.8 India, Transmission and Distribution Market, Restraints, India ...................................... 77

4.1.9 India, T&D Market, Regulations and Initiatives, India..................................................... 77

5 Indonesia, Transmission and Distribution Market ................................................................. 87

5.1 Indonesia, Overview ............................................................................................................. 87

5.1.1 Indonesia, Power Supply Structure ............................................................................... 87

5.1.2 Indonesia, Transmission Infrastructure .......................................................................... 88

5.1.3 Indonesia, Distribution Infrastructure ............................................................................. 98

5.1.4 Indonesia, Smart Grid ................................................................................................. 104

5.1.5 Indonesia, T&D Market, Imports and Exports .............................................................. 105

5.1.6 Indonesia, Transmission and Distribution Market, Investments ................................... 106

5.1.7 Indonesia, Transmission and Distribution Market, Drivers ........................................... 109

5.1.8 Indonesia, Transmission and Distribution Market, Restraints ...................................... 110

5.1.9 Indonesia, Transmission and Distribution Market, Regulations and Initiatives ............. 111

6 Japan, Transmission and Distribution Market ..................................................................... 115

6.1 Japan, Overview ................................................................................................................. 115

6.1.1 Japan, Power Supply Structure ................................................................................... 116

6.1.2 Japan, Transmission Infrastructure ............................................................................. 116

6.1.3 Japan, Distribution Infrastructure ................................................................................. 124

6.1.4 Japan, Smart Grid ....................................................................................................... 130

6.1.5 Japan, T&D Market, Imports and Exports .................................................................... 131

6.1.6 Japan, Transmission and Distribution Investments ...................................................... 132

6.1.7 Japan, T&D Market, Drivers ........................................................................................ 134

6.1.8 Japan, Transmission and Distribution Market, Restraints ............................................ 135

6.2 Japan, Power Market, Regulatory Structure Overview ........................................................ 135



Table of Contents

6.3 Japan, Power Market, Sector Reforms ............................................................................... 136

6.4 Japan, Power Market, New Policies and Strategy............................................................... 137

6.4.1 Cross-regional co-ordination of transmission operators ............................................... 138

6.4.2 Full retail competition .................................................................................................. 138

6.4.3 Unbundling of the T&D sector ..................................................................................... 138

7 Australia, Transmission and Distribution Market ................................................................. 139

7.1 Australia, Overview............................................................................................................. 139

7.1.1 Australia, Power Supply Structure ............................................................................... 140

7.1.2 Australia, Transmission Infrastructure ......................................................................... 140

7.1.3 Australia, Distribution Infrastructure ............................................................................. 148

7.1.4 Australia, Smart Grid ................................................................................................... 152

7.1.5 Australia, Transmission and Distribution Market, Imports and Exports ........................ 153

7.1.6 Australia, Transmission and Distribution Market, Drivers ............................................. 154

7.1.7 Australia, Transmission and Distribution Market, Restraints ........................................ 155

7.1.8 Australia Transmission and Distribution Investments................................................... 156

8 Australia, Power Market, Regulatory Structure ................................................................... 162

8.1 Australia, Power Market, Regulatory Structure Overview .................................................... 162

8.2 Power Market Restructuring in Australia ............................................................................. 162

8.3 Carbon Pollution Reduction Scheme .................................................................................. 163

8.4 Carbon Capture and Storage Projects ................................................................................ 163

8.5 Clean Energy Policies ........................................................................................................ 164

9 New Zealand Transmission and Distribution Market ........................................................... 165

9.1 New Zealand, Overview...................................................................................................... 165

9.1.1 New Zealand, Power Supply Structure ........................................................................ 166

9.1.2 New Zealand, Transmission Infrastructure .................................................................. 167



Table of Contents

9.1.3 New Zealand, Distribution Infrastructure ...................................................................... 177

9.1.4 New Zealand, Smart Grid ............................................................................................ 184

9.1.5 New Zealand, Transmission and Distribution Market, Imports and Exports ................. 185

9.1.6 New Zealand, Transmission Investment ...................................................................... 186

9.1.7 New Zealand, Transmission and Distribution Market, Drivers ...................................... 186

9.1.8 New Zealand, Transmission and Distribution Market, Restraints ................................. 187

9.2 New Zealand, Regulatory Structure, Overview ................................................................... 188

9.3 New Zealand, Regulatory Scenario, Major Policies ............................................................ 189

9.3.1 Electricity Industry Act ................................................................................................. 189

9.3.2 Renewable Energy Policies ......................................................................................... 190

9.3.3 Energy Efficiency Measures ........................................................................................ 190

10 Appendix ............................................................................................................................ 192

10.1 Market Definitions ............................................................................................................... 192

10.1.1 Power .......................................................................................................................... 192

10.1.2 Installed Capacity ........................................................................................................ 192

10.1.3 Electricity Generation .................................................................................................. 192

10.1.4 Thermal Power Plant ................................................................................................... 192

10.1.5 Nuclear Power............................................................................................................. 192

10.1.6 Renewable Energy Resources .................................................................................... 192

10.2 Abbreviations...................................................................................................................... 193

10.3 Bibliography........................................................................................................................ 196

10.4 Methodology ....................................................................................................................... 202

10.4.1 Coverage .................................................................................................................... 202

10.4.2 Secondary Research ................................................................................................... 202

10.4.3 Primary Research ....................................................................................................... 203

10.5 Disclaimer .......................................................................................................................... 204



Table of Contents

1.1 List of Tables

Table 1: Transmission and Distribution Market, China, Cumulative Length of Transmission Lines (Ckm), 2000–

2020 ............................................................................................................................................... 20

Table 2: Transmission and Distribution Market, China, Transmission Capacity (MVA), 2000–2020................. 23

Table 3: Transmission and Distribution Market, China, Number of Transmission Substations, 2000–2020...... 26

Table 4: Transmission and Distribution Market, China, State Grid Corporation of China and China Southern

Power Grid, Power Sales (TWh), 2007–2012 .................................................................................. 28

Table 5: Transmission and Distribution Market, China, Distribution Line Length (Ckm), 2000–2020 ................ 30

Table 6: Transmission and Distribution Market, China, Number of Distribution Substations at 35kV level, 2000–

2020 ............................................................................................................................................... 32

Table 7: Transmission and Distribution Market, China, Generation and Grid Investment by State Grid

Corporation of China ($bn), 2006–2013 .......................................................................................... 36

Table 8: Transmission and Distribution Market, China, Generation and Grid Investment by China Southern

Power Grid, 2008–2012 .................................................................................................................. 37

Table 9: Transmission and Distribution Market, China, Key Features of 12th FYP ........................................... 44

Table 10: Transmission and Distribution Market, India, Growth of Transmission Lines below 66kV (Ckm) 1947–

2013 ............................................................................................................................................... 49

Table 11: Transmission and Distribution Market, India, Growth of Transmission Lines of 66kV and Above

(Ckm), 1947–2013 .......................................................................................................................... 51

Table12:TransmissionandDistributionMarket,India,CumulativeLengthofTransmissionLines(Ckm),2000–2020 . 53

Table 13: Transmission and Distribution Market, India, Cumulative Length of Transmission Lines (Ckm), 2000–

2020 ............................................................................................................................................... 55

Table14:TransmissionandDistributionMarket,India,TransmissionCapacity(MVA),2000–2020 .......................... 57

Table15:TransmissionandDistributionMarket,India,NumberofTransmissionSubstations,2000–2020 ................ 59

Table 16: Transmission and Distribution Market, India, Number of Villages Provided with Electricity, 1950–

2013 ............................................................................................................................................... 62

Table17:TransmissionandDistributionMarket,India,CumulativeLengthofDistributionLines(Ckm),2000–2020 .... 64



Table of Contents

Table 18: Transmission and Distribution Market, India, Distribution Capacity (MVA), 2000–2020 ................... 67

Table 19: Transmission and Distribution Market, India, Average Cost of Supply and Average Revenue

Realized (INR/kWh), 2009–2012..................................................................................................... 68

Table 20: Transmission and Distribution Market, India, Inter-regional Transmission Capacity (MW), End of 12th

FYP ................................................................................................................................................ 70

Table 21: Transmission and Distribution Market, India, Investments in Power Distribution under various

Schemes($bn), End of 12th FYP...................................................................................................... 72

Table 22: Transmission and Distribution Market, India, Transmission and Distribution Losses (%), 2001–2013

....................................................................................................................................................... 76

Table 23: Transmission and Distribution Market, India, Mandated Monthly Availability of Transmission

Elements (%), 2014 ........................................................................................................................ 78

Table 24: Transmission and Distribution Market, India, Mandated Monthly Availability of Transmission

Elements (Days), 2014 ................................................................................................................... 79

Table 25: Transmission and Distribution Market, India, Annual Registration by Grid Voltage, 2012................. 80

Table 26: Transmission and Distribution Market, India, Grid Voltage (kV), 2014 ............................................. 81

Table 27: Transmission and Distribution Market, India, Application Fees ($), 2014 ......................................... 82

Table 28: Transmission and Distribution Market, India, Timeframe for Processing Applications (Days), 2014 . 82

Table 29: Transmission and Distribution Market, India, Rates for Long-, Medium- and Short-term Open Access,

2014 ............................................................................................................................................... 83

Table 30: Transmission Towers Market, Indonesia, Cumulative Length of Transmission Lines (Ckm), 2000–

2020 ............................................................................................................................................... 90

Table31:TransmissionandDistributionMarket,Indonesia,TransmissionCapacity(MVA),2000–2020 .................. 94

Table 32: Indonesia, Planned Transmission Infrastructure, 2012–2021 .......................................................... 97

Table 33: Transmission and Distribution Market, Indonesia, Distribution Lines (Ckm), 2000–2020.................. 99

Table 34: Indonesia, SAIDI and SAIFI Values, 2007–2012 ........................................................................... 101

Table 35: Indonesia, Electrification Ratio, 2007–2011 .................................................................................. 102



Table of Contents

Table 36: Indonesia, Electrification Rate Targets (%), 2012–2031 ................................................................ 103

Table 37: Indonesia, Planned Distribution Infrastructure, 2012–2021 ........................................................... 104

Table 38: Indonesia, Power Infrastructure Investment Break-down (%), 2012–2021 ..................................... 107

Table 39: Indonesia, Transmission and Distribution Investment Split by Years ($bn), 2012-2021 ................. 108

Table40:PowerMarket,Japan,CumulativeTransmissionLineLength(Ckm),2000–2020 ................................... 120

Table 41: Japan, Transmission Capacity (MVA), 2000–2020 ....................................................................... 122

Table 42: Japan, Transmission Substations, 2000–2020 .............................................................................. 124

Table 43: Japan, Distribution Line Length (Ckm), 2000–2020....................................................................... 126

Table 44: Japan, Transmission and Distribution Losses (%), 2000–2012 ..................................................... 128

Table 45: Japan, Distribution Substations, 2000-2020 .................................................................................. 130

Table 46: Japan, Smart City Projects, 2014 ................................................................................................. 131

Table 47: Japan, Electricity Investments ($bn), 2004–2011 .......................................................................... 133

Table 48: Japan, Breakdown of Electricity Investment into Generation and Transmission and Distribution (%),

2011 ............................................................................................................................................. 133

Table 49: Power Market, Australia, Cumulative Transmission Line Length (Ckm), 2000–2020...................... 143

Table 50: Australia, Transmission Capacity (MVA), 2000–2020 ................................................................... 146

Table 51: Australia, Transmission Substations, 2000–2020.......................................................................... 148

Table 52: Australia, Distribution Line Length (Ckm), 2000–2020 .................................................................. 151

Table 53: Australia, SAIDI and SAIFI Values, 2003–2012 ............................................................................ 152

Table 54: Power Market, Australia, Transmission Investment ($m), Current Regulatory Period .................... 157

Table 55: Power Market, Australia, Distribution Investment ($m), Current Regulatory Period ........................ 158

Table 56: Power Market, Australia, Transmission Networks, Operating Expenditure ($m), Current Regulatory

Period........................................................................................................................................... 159

Table 57: Power Market, Australia, Distribution Networks, Operating Expenditure ($m), Current Regulatory

Period........................................................................................................................................... 161



Table of Contents

Table 58: Power Market, New Zealand, Cumulative Transmission Line Length (Ckm), 2000–2020 ............... 170

Table 59: Power Market, New Zealand, Completed Transmission Projects, 2012–2013 ............................... 171

Table 60: Power Market, New Zealand, Transmission Projects to be Commissioned, 2012–2013 ................ 171

Table 61: Power Market, New Zealand, Operational Performance versus Target, 2013 ................................ 173

Table 62: Power Market, New Zealand, Operational Performance Target for 2014 ....................................... 173

Table 63: New Zealand, Transmission Capacity (MVA), 2000–2020............................................................. 175

Table 64: New Zealand, Transmission Substations, 2000–2020 ................................................................... 177

Table 65: New Zealand, Distribution Line Length (Ckm), 2000–2020 ........................................................... 182

Table 66: New Zealand, Distribution Line Length (Ckm), 2000–2020 ........................................................... 183

Table 67: New Zealand, Distribution Capacity (MVA), 2000–2020 ............................................................... 184

Table 68: New Zealand, Transmission Investments, 2012 ............................................................................ 186

Table 69: Power Market, New Zealand, NZEECS Programs ........................................................................ 191

Table 70: Abbreviations ............................................................................................................................... 193



Table of Contents

1.2 List of Figures

Figure 1: Transmission and Distribution Market, China, Cumulative Length of Transmission Lines (Ckm),

2000–2020 ..................................................................................................................................... 19

Figure 2: Transmission and Distribution Market, China, Transmission Capacity (MVA), 2000–2020 ............... 22

Figure 3: Transmission and Distribution Market, China, Number of Transmission Substations, 2000–2020 .... 25

Figure 4: Transmission and Distribution Market, China, Distribution Line Length (Ckm), 2000–2020 .............. 29

Figure 5: Transmission and Distribution Market, China, Number of Distribution Substations at 35kV level,

2000–2020 ..................................................................................................................................... 31

Figure 6: Transmission and Distribution Market, China, Generation and Grid Investment by State Grid

Corporation of China ($bn), 2006–2013 .......................................................................................... 35

Figure 7: Transmission and Distribution Market, India, Growth of Transmission Lines below 66kV (Ckm), 1947–

2013 ............................................................................................................................................... 48

Figure 8: Transmission and Distribution Market, India, Growth of Transmission Lines of 66kV and Above

(Ckm), 1947–2013 .......................................................................................................................... 50

Figure 9: Transmission and Distribution Market, India, Cumulative Length of Transmission Lines (Ckm), 2000–

2020 ............................................................................................................................................... 52

Figure 10: Transmission and Distribution Market, India, Power Grid, 2013 ..................................................... 54

Figure 11: Transmission and Distribution Market, India, Transmission Capacity (MVA), 2000–2020 ............... 56

Figure 12: Transmission and Distribution Market, India, Number of Transmission Substations by Voltage Type,

2000–2020 ..................................................................................................................................... 58

Figure 13: Transmission and Distribution Market, India, Number of Villages Provided with Electricity, 1950–

2013 ............................................................................................................................................... 61

Figure 14: Transmission and Distribution Market, India, Cumulative Length of Distribution Lines (Ckm), 2000–

2020 ............................................................................................................................................... 63

Figure 15: Transmission and Distribution Market, India, Distribution Capacity (MVA), 2000–2020 .................. 66

Figure 16: Transmission and Distribution Market, India, Transmission and Distribution Losses (%), 2001–2013

....................................................................................................................................................... 75



Table of Contents

Figure 17: Transmission and Distribution Market, Indonesia, Cumulative Length of Transmission Lines (Ckm),

2000–2020 ..................................................................................................................................... 89

Figure 18: Transmission and Distribution Market, Indonesia, Transmission Capacity (MVA), 2000–2020........ 93

Figure 19: Transmission and Distribution Market, Indonesia, Planned Transmission Lines, 2012 ................... 97

Figure 20: Transmission and Distribution Market, Indonesia, Distribution Lines (Ckm), 2000–2020 ................ 98

Figure 21: Transmission and Distribution Market, Indonesia, Electrification-Rate Targets (%), 2012–2031 ... 102

Figure 22: Transmission and Distribution Market, Indonesia, Power Infrastructure Investment Break-Down (%),

2012–2021 ................................................................................................................................... 107

Figure 23: Transmission and Distribution Market, Indonesia, Transmission and Distribution Investment Split by

Years ($bn), 2012–2021 ............................................................................................................... 108

Figure 24: Power Market, Japan, Schematic Representation of Transmission Infrastructure ....................... 118

Figure 25: Power Market, Japan, Cumulative Transmission Line Length (Ckm), 2000–2020 ........................ 119

Figure 26: Japan, Transmission Capacity (MVA), 2000–2020 ...................................................................... 121

Figure 27: Japan, Transmission Substations, 2000–2020............................................................................. 123

Figure 28: Japan, Distribution Line Length (Ckm), 2000–2020 ..................................................................... 125

Figure 29: Japan, Transmission and Distribution Losses (%), 2000–2012 .................................................... 127

Figure 30: Japan, Distribution Substations, 2000–2020 ................................................................................ 129

Figure 31: Japan, Electricity Investments ($bn), 2004–2011 ......................................................................... 132

Figure 32: Japan, Breakdown of Electricity Investment into Generation and Transmission and Distribution (%),

2011 ............................................................................................................................................. 133

Figure 33: Power Market, Australia, Schematic Representation of Transmission Networks in National Electricity

Market, 2013 ................................................................................................................................ 141

Figure 34: Power Market, Australia, Cumulative Transmission Line Length (Ckm), 2000–2020 .................... 142

Figure 35: Australia, Transmission Capacity (MVA), 2000–2020 .................................................................. 145

Figure 36: Australia, Transmission Substations, 2000–2020 ........................................................................ 147

Figure 37: Australia, Distribution Line Length (Ckm), 2000–2020 ................................................................. 150



Table of Contents

Figure 38: Power Market, Australia, Transmission Investment ($m), Current Regulatory Period ................... 156

Figure 39: Power Market, Australia, Distribution Investment ($m), Current Regulatory Period ...................... 157

Figure 40: Power Market, Australia, Transmission Networks, Operating Expenditure ($m), Current Regulatory

Period........................................................................................................................................... 159

Figure 41: Power Market, Australia, Distribution Networks, Operating Expenditure ($m), Current Regulatory

Period........................................................................................................................................... 160

Figure 42: Power Market, New Zealand, Schematic Representation of Power Transmission , 2013 .............. 168

Figure 43: Power Market, New Zealand, Cumulative Transmission Line Length (Ckm), 2000–2020 ............. 169

Figure 44: New Zealand, Transmission Asset Outage Count, 2004–2012 .................................................... 172

Figure 45: New Zealand, Transmission Capacity (MVA), 2000–2020 ........................................................... 174

Figure 46: New Zealand, Transmission Substations, 2000–2020.................................................................. 176

Figure 47: New Zealand, Schematic Representation of Power Distribution, 2013 ......................................... 180

Figure 48: New Zealand, Distribution Line Length (Ckm), 2000–2020 .......................................................... 181

Figure 49: New Zealand, Distribution Capacity (MVA), 2000–2020............................................................... 183



Japan, Transmission and Distribution Market

6.1.6 Japan, Transmission and Distribution Investments

The T&D network in the country is not in a good state of repair, and requires replacements and

refurbishment within the next XX years. However, there has been a substantial decline in

investment in the T&D segment during the last few years, which has caused the condition of the

network system to deteriorate further. Insufficient deregulatory measures have been responsible for

this low investment. Moreover, the segment is not regarded as an attractive option for investment,

due to the lack of budgetary sources, as well as the long gestation period for investments. Post-

liberalization risks and criticism of Japan’s wheeling charges have added to the problems,

disincentivizing would-be investors even further.

The following figures show generation and T&D investments from 2004 to 2011, as well as the

breakdown of the electricity investment for 2011 between the generation and T&D segments.

Figure 31: Japan, Electricity Investments ($bn), 2004–2011

2004 2005 2006 2007 2008 2009 2010 2011

Ele

ctric

ity in

vest

men

ts ($

bn)

Generation investment T&D investment

Source: FEPC, 2013



Japan, Transmission and Distribution Market

Table 47: Japan, Electricity Investments ($bn), 2004–2011

Years Generation investment T&D investment

2004

2005

2006

2007

2008

2009

2010

2011

Source: FEPC, 2013

Figure 32: Japan, Breakdown of Electricity Investment into Generation and Transmission and Distribution (%), 2011

Generation

Transmission and distribution

Source: FEPC, 2013

Table 48: Japan, Breakdown of Electricity Investment into Generation and Transmission and Distribution (%), 2011

Year Generation investment T&D investment

2011

Source: FEPC, 2013


Appendix


10 Appendix

10.1 Market Definitions

10.1.1 Power

This term refers to the rate of production, transfer, or energy use, usually related to electricity.

Measured in Watts and often expressed in kilowatts (kW) or Megawatts (MW), it is also known as

‘real’ or ‘active’ power.

10.1.2 Installed Capacity

Installed capacity refers to a generator’s nameplate capacity as stated by the manufacturer or the

maximum rated output of a generator under given conditions. Installed capacity is given in MW on

a nameplate physically fixed to the generator.

10.1.3 Electricity Generation

This term refers to producing electric energy by transforming other forms of energy. It also refers to

the amount of electric energy produced, expressed in Gigawatt hours (GWh).

10.1.4 Thermal Power Plant

This refers to a plant in which turbine generators are driven by burning fossil fuels.

10.1.5 Nuclear Power

This refers to electricity generated by the use of the thermal energy released from the fission of

nuclear fuel in a reactor.

10.1.6 Renewable Energy Resources

This refers to naturally replenishing energy resources limited in the amount of energy that is

available per unit of time. For example, biomass, geothermal, solar, wind can all be termed

renewable resources.


Appendix


10.2 Abbreviations

Table 70: Abbreviations AC Alternating Current

ACS Average Cost of Supply

ADB Asian Development Bank

AEMC Australian Energy Market Commission

AEMO Australian Energy Market Operator

AER Australian Energy Regulator

APEC Asia- Pacific Economic Co-operation

ARR Average Revenue Realized

AT&C Aggregate Technical and Commercial

BSEB Bihar State Electricity Board

CAGR Compound Annual Growth Rate

CCS Carbon Capture and Storage

CEA Central Electricity Authority

CERC Central Electricity Regulatory Commission

Ckm Circuit kilometer

CO2 carbon dioxide

CSPG China Southern Power Grid

CTU Central Transmission Utilities

DC Direct Current

D/C Double Circuit

EIA Electricity Industry Act

EPCo Electric Power Co. Inc.

ESCJ Electric Power System Council of Japan

FCF Frequency Converter Facilities

FDI Foreign Direct Investment

FiT Feed-in Tariff

FTP Fast Track Program

FYP Five-Year Plan

GDP Gross Domestic Product

GHG Greenhouse Gas

GRS Grid Reliability Standards

GW Gigawatt


Appendix


HVDC High Voltage Direct Current

IAEA International Atomic Energy Association

ICT Inter-Connecting Transformers

IEA International Energy Agency

IEEE Institute of Electrical and Electronics Engineers

IEGC Indian Electricity Grid Code

IMO Independent Market Operator

IPP Independent Power Producers

ISTS Inter-State Power Transmission System

KEPCO Kansai Electric Power Company

km kilometer

kV kilovolts

kWh kilowatt hour

LDP Liberal Democratic Party

LRET Large-scale Renewable Energy Target

LV Low Voltage

MCE Ministerial Council of Energy

MedV Medium Voltage

MEMR Ministry of Energy and Mineral Resources

METI Ministry of Economy, Trade and Industry

mi miles

MNRE Ministry of New and Renewable Energy

MoU Memorandum of Understanding

MU Million Units

MVA Megavolt Ampere

NDRC National Development and Reform Commission

NEA National Energy Administration

NLDC National Load Dispatch Centers

OCCTO Organisation for Cross-regional Coordination of Transmission Operators

OECD Organization for Economic Co-operation and Development

PLN Perusahaan Listrik Negara

PPP Private Public Participation

R-APDRP Restructured Accelerated Power Development & Reforms Program

RCM Reserve Capacity Mechanism

REC Rural Electrification Corporation


Appendix


RGGVY Rajiv Gandhi Grameen Vidyutikaran Yojana

RLDC Regional Load Dispatch Centers

RoW Right of Way

SAIDI System Average Interruption Duration Index

SAIFI System Average Interruption Frequency Index

S/C Single Circuit

SCADA Supervisory Control and Data Acquisition

SEB State Electricity Boards

SERC Standing Council for Energy and Resources

SETC State Economic and Trade Commission

SGCC State Grid Corporation of China

SLDC State Load Dispatch Centers

SPC State Power Corporation

SRES Small-scale Renewable Energy Scheme

STU State Transmission Utilities

SWIS South West Interconnected System

T&D Transmission and Distribution

TEPCO Tokyo Electric Power Company

TWh Terawatt hours

UHV Ultra High Voltage

UHVDC Ultra High Voltage Direct Current

UNIDO United Nations Industrial Development Organization

WEM Wholesale Electricity Market

Source: Global Data


Appendix


10.3 Bibliography

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spx [Accessed on May 23, 2013].

AER (2013). State of the energy market 2013. Australian Energy Regulator. Available from

http://www.aer.gov.au/sites/default/files/Complete%20report%20A4.pdf

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Government. Available from http://www.environment.gov.au/node/35043 [Accessed on

February 13, 2014].

Bai J, et al. (2010). ‘‘China power sector investment may rise 68 pct-report’’, Reuters,

December 22, 2010. Available from http://uk.reuters.com/article/2010/12/22/china-power-

investment-idUKTOE6BL00X20101222. [Accessed on April 30, 2013].

Bhaskar (2012) via Livemint.com. More state discoms likely to revise tariffs. Available from

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revise-tariff.html [Accessed on February 3, 2013].

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Available from http://www.cieps-mki.com/?about-the-event/background [Accessed on January

28, 2014]

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Appendix


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Appendix


The Hindu (2013). India begins power export to Bangladesh. Hindu October 6, 2013. Available

from http://www.thehindu.com/news/national/india-begins-power-export-

bangladesh/article5205415.ece [Accessed on February 10, 2014]

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january/article5702082.ece [Accessed on March 3, 3014].

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Accessed on March 2014].

IMF (2014b). Gross Domestic Product, current prices (India). International Monetary Fund.

Available from


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[Accessed on February 3, 2014].

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p=0&a= [Accessed on January 9, 2013].

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2011&ey=2018&scsm=1&ssd=1&sort=country&ds=.&br=1&c=158&s=NGDPD&grp=0&a=

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Appendix


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Appendix


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Appendix


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households-by-2020 [Accessed on January 22, 2014].


Appendix


10.4 Methodology

GlobalData’s dedicated research and analysis teams consist of experienced professionals with a

pedigree in marketing and market research, consulting backgrounds in the energy industry, and

advanced levels of statistical expertise.

GlobalData adheres to the codes of practice of the Market Research Society (www.mrs.org.uk) and

the Strategic and Competitive Intelligence Professionals (www.scip.org).

All GlobalData’s databases are continuously updated and revised. The following methodology has

been followed for this report.

10.4.1 Coverage

The report provides an in-depth analysis of the T&D market in China, India, Indonesia, Australia,

New Zealand and Japan. This report analyzes the T&D market in terms of infrastructure,

investments and regulations. It provides information related to T&D lines, transmission capacity

and substations. It discusses the key drivers and restraints impacting the market. It also provides

information related to smart grid deployment in these countries, their power imports and exports

and planned investments in the T&D sector during the forecast period, as planned by their utilities.

The report provides:

Information related to power supply structure in the countries.

Analysis of T&D market related to network lines (in Ckm), capacity (in MVA) and substations

(units) for the countries.

Information related to smart grid and power imports and exports in the countries.

T&D investment planned during the forecast period in the countries.

Key regulations influencing the T&D market in these countries.

10.4.2 Secondary Research

The research process begins with exhaustive secondary research on internal and external sources

to source qualitative and quantitative information relating to each market.

The secondary research sources that are typically referred to include, but are not limited to:


Appendix


Company websites, annual reports, financial reports, broker reports, investor presentations and

US Securities and Exchanges Commission (SEC) filings

Industry trade journals and other literature

Internal and external proprietary databases

National government documents, statistical databases and market reports

News articles, press releases and web-casts specific to the companies operating in the market

10.4.3 Primary Research

GlobalData conducts extensive primary interviews with industry participants and commentators in

order to validate its data. A typical research interview fulfills the following functions:

It provides first-hand information on the market size, market trends, growth trends, competitive

landscape, and future outlook.

It helps in validating and strengthening the secondary research findings.

It further develops the team’s expertise and market understanding.

Primary research involves e-mail interactions, telephonic interviews as well as face-to-face

interviews for each market, category, segment and sub-segment across geographies.

The participants who typically take part in such a process include, but are not limited to:

Industry participants: CEOs, VPs, business development managers, market intelligence

managers and national sales managers

Outside experts: Investment bankers, valuation experts, research analysts and key opinion

leaders specializing in the alternative energy industry


Appendix


10.5 Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

permission of the publisher, GlobalData.

This report is a licensed product and should not to be reproduced without prior permission.

Documents

GDPE1069MAR Power Transmission and …REFERENCE CODE GDPE1069MAR | PUBLICATION DATE MARCH 2014 POWER TRANSMISSION AND DISTRIBUTION (T&D) IN ASIA-PACIFIC – INFRASTRUCTURE, INVESTMENT