- Category: Smart Grid
25 Jan 2013
- Published on Friday, 25 January 2013 09:57
- Hits (1984)
Global investments in smart grid technologies increased by seven percent in 2012 to $13.9 billion, due to demand in the U.S. and China, according to new figures by research firm Bloomberg New Energy Finance.
The statistics also projects an over 10 percent compound annual growth rate in the next five years, with investments expected to hit almost double to $25.2 billion.
Smart metering and related infrastructure and services dominated the market, which accounted for $7.1 billion or nearly half of the total investment last year. Comprising the other half of investment were distribution automation, integrated demonstration projects in areas like demand response, home energy management and smart electric vehicle charging.
The U.S. remains to be the largest regional market for smart grid technologies, with $4.3 billion worth of investment in 2012. Even so, this represented a decline from $5.1 billion in 2011.
Meanwhile, China is just a step behind, seeing an increase in investment from $2.8 billion to $3.2 billion last year. The growth is largely due to support of major smart metering procurement by the national State Grid company.
Bloomberg said China is expected to outmatch the U.S. as the largest smart grid market this year as the U.S. government’s stimulus-funded projects wind up and Chinese investment continues to scale up.
Overall, Asia raised its investment to $5.6 billion in 2012, with new digital energy initiatives in the pipeline in Japan, India, Korea and some Southeast Asian countries.
The European market’s growth was slim with $1.4 billion, up from $1.1 billion in 2011. However, Bloomberg noted that investments will increase after 2014 as a number of countries like Britain and France start major deployments, and investments in smarter distribution networks also get a boost.
“Growth in the smart grid industry remains strong. Asia and Europe will be responsible for the greatest spending increases between 2013 and 2018,” said Albert Cheung, practice head for energy smart technologies at Bloomberg New Energy Finance.
“Utilities, policy-makers and regulators are increasingly aware of the economic, environmental and reliability benefits of smart grid technologies. These enable consumers to make better-informed choices about how they use energy. They also improve the reliability of the grid and allow it to integrate larger amounts of intermittent and distributed renewable power.” – EcoSeed Staff