Energy Handbook 2011 - GBR

P o w e r S u m m i t - T h e E n e r g y H a n d b o o k 2 0 1 1
C o u n t r y P r o f i l e : S i n g a p o r e
Transmission and
Distribution
While Singapore took the decision to
liberalise electricity generation, the
transmission and distribution network has
remained in the hands of Singapore Power,
a leading utility company which owns
and operates all of Singapore’s electricity
and gas network. “While our business is
regulated, we run as a corporate entity,
always seeking to enhance our operations
through innovation and rigorous quality
processes,” says Sim Kwong Mian,
Managing Director of SP Power Grid,
which manages and operates Singapore’s
electricity grid. And certainly Singapore
Power has been able to construct
one of the world’s most efficient and
sophisticated underground power grids.
While south-east Asia in general suffers
from imperfect grids and power cuts,
Singapore is distinguished by the reliability
of its power supply. “The nature of the
industry is one where expectations for
Q – How important is
Asia for MTU’s power
products?
A – We have seen
tremendous growth in
our power business in the
last couple of years, and
this looks set to continue
into the future. Currently
about one third of our
revenues in Asia come
from our products to the
power generation industry. The demand for power
in Asia and the region is very high, so we have a
strong position here.
Q – What have been some of the recent projects
that MTU Asia has been involved with in the
region?
A – MTU Asia Singapore has become the hub
for the whole region and thus we engage with
a variety of countries. For example, we recently
launched an office in India, which was officially
opened in February 2011. India is a very important
market for us in power generation so we are
building up our presence there. We are also
constantly improving our distribution network and
increasing the number of our dealers with respect
quick delivery are very high and constantly
increasing,” says Sim. “The multinational
companies that set up base in Singapore
require a quick start to their operations
and the first thing they need is the speedy
delivery of our services. To manage such
high expectations, we are always pushing
ourselves to deliver in shorter periods of
time. “Over the past years one of our
challenges has been to design the grid in
such a way to prevent any interruptions
in electricity supply and also to minimise
any risk of a voltage dip. As a result we
have built up one of the best transmission
and distribution systems in the world.”
The age of the Singapore grid has
necessitated renewed investment in the
construction of new cable tunnels, both to
replace old cables and to further expand
the grid. In what is expected to be a very
costly investment, the next six or seven
years will see the construction of largescale
tunnels below Singapore to carry
more-efficient transmission cables.
Interview with Hermann Roehm, Director, MTU Onsite Energy
to our diesel and gas generator sets.
Q – Competition in this region is very high for the
provision of power generators. How do you rate
the levels of competition here and what is MTU
Asia’s competitive advantage?
A – Of course MTU Asia operates in a very
competitive market, but our biggest advantage
is that we develop all of our engines with the
best and most up-to-date technology. We are
a technology leader here, not only for power
generation but for all our products, and especially
when it comes to fuel oil consumption. This is
very important for any continuous applications,
where the major cost driver is the amount of fuel
you consume. If you could save 5–10% in fuel
consumption, then the customer is already very
satisfied.
Q – How do you see MTU Asia’s role developing in
the region?
A – Our key mission is to develop and provide
our customers with very reliable products using
cutting-edge technology in the area of power
generation. We are also focusing on new markets
and our customer base, and we are looking into
long-term partnerships with those customers who
need our technology to operate their power plants
safely and more effectively.
International Power
Market
With electricity demand expected to
balloon in Asia, there has been an
increase in Singaporean companies
playing a role in power plant construction
in the region, as well as an influx of
major international power players like
Wärtsilä, Siemens and GE.
The presence of companies who specialise
in gas, diesel and combined-cycle plants
provides countries in the Asia Pacific with
the opportunity to choose a power plant
most applicable to the local market.
Colben Energy
The emergence of smaller Singaporebased
power plant companies is another
trend, as an ever-increasing number of
companies have realised the potential of
entering the power industry. As a power
plant constructor and operator in the
south-east Asian region, Colben Energy
currently operates fossil-fuel, hydro
and biomass power plants in Vietnam,
Cambodia and Malaysia. Diversifying from
its original business in fire protection,
the company ventured into the power
business and most recently has been
targeting renewable energies.
Colben Energy positions itself as a smaller
player, but one which has the unique
experience of working in countries where
other companies are afraid to go.
George Tan, CEO of Colben Energy, reveals
where his company has an advantage:
“The countries where we work are frontier
countries, and they are very challenging
markets. Most companies are not
attracted to come there and bid for power
plant projects since there are concerns
about these countries’ infrastructures, the
political risk, and the ability of customers
to pay. These countries demand direct
negotiations; they set the parameters and
ask you to put your proposal forward. If
the company is granted approval, it can
negotiate. This is where Colben Energy
steps in, because we have the experience
of working in those countries and know
how to make the best deals for our
clients.”
Looking ahead, Colben Energy plans to
continue its expansion into the region with
a renewed focus on renewable energy
projects. Having learned that the key to
success in south-east Asia is the ability
to have local partners on the ground, the
company plans to increase its presence.
“For a small company to grow, it is
necessary to present its whole track
record and all of its assets,” Tan says.
“Given our successes in the region we
will be seeing ourselves participating in
projects in Vietnam, Cambodia, Thailand,
and Malaysia over the next several years.
We are opening up to opportunities to
find strategic partners or investors as we
continue our work in those countries.”
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