Five Ways GE is Embracing ASEAN’s Power Generation Challenge
About 20% of the region’s population, 134 million people, live without electricity and the electrification rates vary considerably between the countries - 30% in Myanmar, 55% in Cambodia, all the way up to 100% in Singapore. To close the gap, Indonesia plans to add 20GW of electricity by 2019, while Cambodia and Myanmar hope to achieve 100% electrification in the next 10-15 years. At the same time, the region’s economic growth rate is above 5%, driving further electricity demand to power development.
GE ASEAN President & CEO, Wouter Van Wersch shared some of GE’s plans, strategies, and experiences in some of ASEAN’s fast emerging energy markets. (Photo credit: Infocus International Group).
Meeting these needs is one of the biggest, most exciting power generation opportunities in the world, and GE ASEAN President & CEO, Wouter Van Wersch, spoke about the challenge - and GE’s response - at the annual Power Week summit in Singapore on November 8.
His “Power Generation in Emerging AEC Markets” presentation to more than 70 private and public sector energy officials from Asia, and around the world, covered the ASEAN energy landscape today, the main market trends, and how digital technologies can help emerging nations achieve their future power targets.
Trends include the need for new energy mixes (renewables and fossil fuels), innovative distributed power solutions such as micro grids, and mobile power generation solutions.
While the ASEAN energy challenge is significant – given differing rates of growth, infrastructure development, and political systems - GE is embracing the opportunity, and here are five key take-aways from Van Wersch’s presentation.
Localize
Localization, stressed Van Wersch, is essential for sustaining growth in the region.
“GE’s ‘be in ASEAN, for ASEAN’ mindset is backed by a commitment to appoint locals to run GE businesses in the markets. We also seek to continuously create jobs, build capacity, develop skills, launch new technologies, and invest in facilities and infrastructure.”
Play the Long Game
Van Wersch said localization had to be supported by a commitment to stay in the region for the long-term. In GE’s case, he said the company has been in ASEAN for over a century and has established a strong presence through ongoing investment to support new business plans.
“In ASEAN, GE has invested to build a robust business footprint that includes 12 manufacturing and service operations serving Energy, Aviation, Oil & Gas, and Digital customers in the region.
“This provides deep domain knowledge that allows GE to transfer technology, talent, expertise, and connections through well-established networks.”
AEC a framework for growth
The launch of the ASEAN Economic Community (AEC) in 2015 was a critical step towards deepening ties among member nations, Van Wersch added.
“The AEC provides a framework to foster socio-economic development through trade expansion and liberalization. Greater cooperation will also enhance the development of better infrastructure demanded by a fast-growing middle class throughout the region.”
Public-Private Partnerships Deliver Success
In Van Wersch’s opinion, expansion and development will be accelerated by businesses and governments collaborating more to create ‘win-win’ partnerships
“Public-Private Partnerships offer great opportunities to attract foreign investment, create jobs, and take growth to new levels across the region. This means working together to overcome barriers to investment,
devising long-term financing structures, prioritizing projects, and providing comprehensive, clear information for potential investors.
“And based on experience, open business environments allow private organizations to better contribute to ASEAN’s connectivity in both infrastructure development, and the financing of projects.”
Digital Solutions Unlock Value
Van Wersch closed by talking about GE’s digital industrial capabilities and how they help energy players unlock value across many parts of their operations.
On the digital power plant concept he said, “A digital power plant combines the world’s most adaptable and reliable power plants, with an agile digital infrastructure, and suite of innovative applications built for the industrial internet.”
“Digital helps to improve the productivity of power plants; produce output more efficiently, reduce losses and outages for transmission and distribution. New systems also help consumers produce locally or reduce consumption – these things taken together, will lead to lower operating, and delivered energy costs.”
Citing GE research, Van Wersch said digital-led benefits are significant.
“A digital steam power plant can increase efficiency up to 1.5% over the life of a plant to generate additional power for 67,000 homes, and reduce coal consumption by 35,000 tons annually.”
ASEAN customers are eager to utilize digital solutions noted Van Wersch. He said GE is currently
working with existing coal plants in the region, to help them improve their operating efficiencies and performance.
“GE’s digital solutions are relevant to most industries as they help our customers, partners and suppliers to significantly reduce their carbon footprint.”
Overall, GE will continue to provide solutions which provide more affordable, reliable, and sustainable power to support ASEAN’s growth, concluded Van Wersch.