UiTM Shah Alam ASGC2. An Analysis of Business Potential for Smart Residence Technology System in ASEAN Economic Community : An academic perspective

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1 , An Analysis of Business Potential for Smart Residence Technology System in ASEAN Economic Community : An academic perspective Achara Jivacate 1, Wattanapong Rakwichian 1, Prapita Thanarak 2, Watchara Wongpanyo 1, Boonyawat Vichanpol 1 and Chatkaew Chailuecha 1 1 School of Energy and Environment, University of Phayao, Thailand, 2 School of Renewable Energy Technology, Naresuan University, Thailand 1

2 2 World Population Population (millions) Major Area World 7,349 8,501 9,725 11,213 Africa 1,186 1,679 2,478 4,387 Asia 4,393 4,923 5,276 4,889 (ASEAN 10 countries / thousands ) (632,282) (723,270) (789,976) (766,171) Europe Latin America and the Caribbean Northern America Oceania Ref. : World Population Prospects : The 2015 Revision

3 * * * 6,101 Mtoe Figure 5 : Total Global Primary Energy Supply Fuel Sharing in 1973 % % * * ** * * * * * ,541 Mtoe Figure 6 : Total Global Primary Energy Supply Fuel Sharing in 2013 % * ** Energy Consumption * ** Remark : *Coal (peat and oil shale) ** Other (geothermal, solar, wind, heat, etc.) Ref. : Key World Energy Statistics ,699 Mtoe Figure 7 : Total Global Primary Energy Supply Fuel Sharing in

4 * * * 6,131 TWh Figure 8 : Total Global Electricity Production in % * ** * * 41.3 * Energy Consumption * * 41.3 * ,322 TWh Figure 9 : Total Global Electricity Production in 2013 % * ** % * ** Remark : *Coal (peat and oil shale) ** Other (geothermal, solar, wind, heat, etc.) Ref. : Key World Energy Statistics ,816 TWh Figure 10 : Total Global Electricity Production in

5 5 Global Temperature Ref. : Global Temperature Report 2015, National Oceanic and Atmospheric Administration (NOAA) of United States

6 6 Problem Solution Distributed Generation all Electric Appliances (Smart Grid) Smart Grid System Smart Residence System Smart Residence System Smart Residence System Sustainable Smart Town System Eco & Smart Lifestyle Commercial Potentiality

7 Distributed Generation all Electric Appliances (Smart Grid) Ref. : 7

8 Smart Residence Monitor / Forecast / Manage / Control Smart Grid System Smart Residence System Ref. : 8

9 Smart Residence System Gator Tech. USA : From embedding ICT to adapting to sustainability principles Ref. : The Gator Tech Smart House: A Programmable Pervasive Space 9

10 Smart Residence System Gator Tech. USA : A Programmable Pervasive Space Ref. : The Gator Tech Smart House: A Programmable Pervasive Space 10

11 11 Smart Residence System Sustainable Smart Town System Fujisawa Model Smart Life Smart Space Design Smart Infrastructure Creation Ref. :

12 12 Eco & Smart Lifestyle Commercial Potentiality Ref. :

13 13 Figure 1 : Population Comparison Figure 2 : GDP (PPP) Comparison Ref. : Doing Business in ASEAN 2 nd edition, ASEAN+3 Business 2015

14 14 Figure 3 : Internet Penetration Comparison Figure 4 : Electricity / Capata Comparison Ref. : Doing Business in ASEAN 2 nd edition, ASEAN+3 Business 2015

15 15 Brunei Darussalam Cambodia Summarized Country Information Natural-resource-based economy, export of oil, gas and related products but the impact of falling oil price on its economy, attempt to conduct petrochemical hub promotion, high purchasing power, retail business, growing transportation, secure politics, inexpensive electricity price, boost for banking and tourism industries whereas the small market and workforce shortage The lowest wage in Asean, foreign investment promotion of road construction, natural resource abundance and diversity whereas the disadvantages ; underdeveloped infrastructure facilities, skilled work force shortage, unreliable banking and financial system, frequent changes on commercial regulations, insufficient electricity and needs to focus on solidifying its national grid, expensive electricity price due to electricity generated from diesel oil, potential in the renewable energy

16 16 Indonesia Laos PDR Summarized Country Information the largest economy in the South East Asian, large market, strong banking system, inexpensive workforce, natural resource abundance and diversity, and being coal exporter, however due to an archipelagic island country microgrid technology is required to reduce fuel transportation, underdeveloped infrastructure facilities, unclarity of laws and regulations low wage, abundance of biology, energy and natural resources, battery of ASEAN, hydro power plant for base and peak load, underdeveloped infrastructure facilities, instability of the national currency (the kip), unskilled workforce and no exit to the Sea (land - locked country), promote low- carbon growth and more sustainable future under Paris Agreement entered into force at the end of this year, goal for access to electricity at least 98% of population by the end of 2030 (at present, over 90% of people have enough electricity for use in homes + businesses_ Vientiane Times Website 24 Oct.16)

17 17 Malaysia Myanmar Summarized Country Information the third highest of oil reserves in the Asia-Pacific region, complete infrastructure system, various industries but small markets, high cost of capital, unclear rules and regulations efficiency in Smart Grid leader due to official policy on RE, readiness for solar, wind, and biomass from palm, efficiency in Energy Hub due to close to primary resources such as gas, petrol, coal and RE resources, industrial country and need for peak power during the daytime and good opportunity for PV market low wage, abundant oil and natural gas resources, border adjacent to China and India, the large sized market, more opportunity for RE, solar having Global Horizontal Irradiation (GHI) levels of between 1,600 and 2,000 kwh/m2/yr and average Direct Normal Irradiation (DNI) levels of about 1,400 kwh/m2/yr, however undeveloped public utilities and insecure politics

18 18 Philippines Singapore Summarized Country Information workers having skills in technology and English communication, import of diesel oil like Cambodia, considerable potential in wind and solar energy, but high risk for monsoon, strong labour union, frequent change in rules and regulations and high corruption, undeveloped public utilities, difficult in transportation due to countries with islands, policy of renewable energy, renewable energy mix such as solar, wind, biomass and microgrid to smart grid high per capita income, maritime and financial hub, readiness for information technology, policy of energy conservation, renewable energy, smart grid, smart devices, considerable potential in the first smart grid country via smart home, smart building, EV, relying on raw material import and low skilled workforce shortage, high operational expenditure

19 19 Thailand Vietnam Summarized Country Information role as hub linking to ASEAN mainland such as Laos, Cambodia, Vietnam, Malaysia, etc., the sea connecting to the Philippines and Brunei, near to all country by air and by sea, major industrial production base of the world, secure financial institutions, official policy with RE, EE and smart grid, middle production technologies, but without strong intellectual property protection, potential for solar and capacity building of technology low wage, crude oil reserve as the second-highest in the South East Asia-Pacific, with a coastline stretching over 3,200 km, focus on low carbon business and clean energy - wind energy and solar, solar use during daytime and wind use during nighttime, boost for offshore nuclear power plant plan, large number of population, high cost of land and office rental, undeveloped public facilities and unclarity of laws

20 20 Tools Method Results Literature Review / Journal In-depth Interview (AEC Energy academic group) Questionnaires (AEC Energy academic group) SWOT Analysis AEC's Smart Residence Business Potential Analysis Research Process Potential Considerable Moderate Limited Method

21 Summarized SWOT PO SI TIVE NE GA TIVE (INTERNAL) STRENGHTS : secure politics, strong banking system, maritime + financial hub, low wage, complete infrastructure system, skill in technology and English communication, natural resource based economy, having official policy, and potential for RE (energy mix : solar, wind, biomass), energy conservation, ICT readiness, considerable potential in smart grid (via smart residence, smart building and EV WEAKNESSES : frequent changes on commercial regulations, unclear laws and regulations, complex technology (EXTERNAL) OPPORTUNITIES : government policy to support investment in RE, high per capita income, high purchasing power, having taste of premium quality product consumption, rapid improvement in RE technology, market expanding due to AEC establishment, border adjacent to China and India, natural resource abundance and diversity, efficiency in energy hub due to close to primary resources (gas, petrol / coal / RE), very few competitors in smart residence business, having difficulty in some countries about transportation of fossil energy or electricity wiring (island country), realization of RE / smart residence / smart grid importance, good opportunity in capacity building in case of little knowledge, good opportunity for PV market THREATS : very high cost of initial investment, having various rules (regulations, laws and taxes) in different countries, limited group of technology and equipment, inadequate readiness of supporting system for smart residence / smart grid making, lacking knowledge and understanding due to new concept of smart grid Method 21

22 22 Results and Discussion AEC Energy Academic Group In Depth Interview AEC has potential for doing smart residence system business AEC has a good opportunity for business growth AEC has policy, technologies, budget, purchasing power and key players on the business of solar cells, electrical devices, information and communication technologies (ICT). AEC has great future in renewable technology supporting peak load during daytime with solar energy.

23 23 Results and Discussion AEC Energy Academic Group In Depth Interview Singapore shows its leadership in ICT, banking and financial hub, greatest purchasing power, high GDP per capita. Singaporeans and Thais have taste of premium quality product consumption. They are willing to buy for satisfaction and image no matter how high the price is. Malaysia has diversified economy, business strength, converged infrastructures and modernization. Indonesia has strengthening economic growth, banking system, capital market, low cost workforce, abundant resources and energy policy promotion. Philippines has considerable knowledge of technologies and the ability to keep up in a rapidly changing world but internet speed has to be improved.

24 24 Results and Discussion AEC Energy Academic Group In Depth Interview Vietnam promotes renewable energy : solar and hybrid system development for remote areas, high mountain, isolated islands where the national grid system is unreachable. Brunei Darussalam has purchasing power, lifestyle of luxury shopping, growth in business and transportation but without energy conservation. Myanmar has abundant fuel oil and natural gas fields. Solar energy can be deployed for development since 36% of total areas in the country receive an annual average of solar radiation in the range of MJ/m 2 /day.

25 25 Results and Discussion AEC Energy Academic Group In Depth Interview Laos PDR has biomass, hydro, solar, wind and geothermal energy. The government promotes solar energies, provides lighting services through the installation of solar home systems where the national grid system is unreachable. The government supports the solar energy business development in the country. Cambodia has insufficient electricity (diesel, coal and hydro). The electricity price is very expensive. The government focuses on solidifying its national grid and and transmission lines before expanding into more costly renewable technology.

26 26 Results and Discussion AEC Energy Academic Group Marketing Survey Questionnaires Smart residence system in AEC becomes welcome opportunity because : 60% of the respondents considered smart residence system very interesting Sources of electricity consumption derive from electricity provider and self-supply energy by renewables (solar). The home automation systems are installed in the residences, such as lighting system, television and audio. Energy saving electric appliances are installed such as air conditioning system, television, microwave and fridge. Energy saving benefits are for environmental concerns, quality of life, nation energy security and positive image.

27 27 Conclusion The government should provide financial support and promotion for business opportunity. Capacity building or capacity development should be focused on users and consumers in demand ฤnd supply sides to strengthen their skills and visions. ICT program design must be renovated or improved in the future to prove the feasibility, usefulness, safety, security in assistive and friendly environments and perceived compatibility.

28 28 Conclusion ICT program design must be easy to use for the end users, especially for the old aged people. personal data protection system should be integrated with ICT security standard system to maximize efficiency in home office and ensure workplace security and personal security. Finally, all of the benefits serve modern, active and comfortable lifestyle.

29 29 Thank You for Your Attention and See You in Vietnam Smart Grid Congress III