Brunei Power Market - Growth, Trends, and Forecasts (2020 - 2025)
The market is segmented by Generation (Thermal, Renewable, and Others) and Transmission and Distribution
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
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The power market in Brunei is expected to grow at a CAGR of more than 1% in the forecast period of 2020-2025. Factors such as increasing population and power consumption are resulting in the growth of the power market. With a decrease in the production of oil and gas, Brunei is expected to shift towards renewable power sources in the upcoming period. Whereas on the flip side, apart from decreasing oil and gas production, the initial high investment for the development of renewable power sources is a challenge ahead of Brunei.
The Brunei power market is highly dependent on thermal energy, which is the primary source of electricity generation in Brunei.
In 2015, Brunei committed to generating its 10% of power from renewable energy sources by 2035, which is expected to create vast opportunities for the market players in the future.
Brunei is also planning to develop the Temburong Smart City, where this city is projected to become the 'Green Jewel of Brunei' and would be powered mostly from solar. Initiatives like these are expected to drive the power market significantly.
Scope of the report
The Brunei power market report includes:
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Key Market Trends
Thermal Energy Major Source of Power Generation
Power generation uses a variety of sources ranging from fossil fuels like natural gas and oil to renewable sources like wind and solar. The energy mix for electricity generation in Brunei is dominated by fossil fuels, especially natural gas, contributing almost 99% of power generation, in 2018.
Brunei has not witnessed any significant change in the electricity generation capacity since 2017. With a capacity of 0.8 MKw, the electricity capacity is stagnant in the nation, which is entirely supplied by fossil fuel-based plants.
In a country like Brunei, with a population of only 0.4 million but natural gas production capacity of more than 12 billion cubic meters, in 2018, making it not only self-sufficient to meet its power demand using natural gas but also an exporter in the market.
Berakas Power Management Company is the primary operating company controlling more than 40% of the national electricity supply with four different power plants.
The Department of Electricity Services (DES) is the government utility in charge of the generation, transmission, and distribution of electricity in the country. The DES also sets the standards for the usage of power in public buildings and oversees their overall electro-mechanical maintenance.
· With vast natural gas reserves and a lack of initiatives by the government in alternative energy sources, thermal energy is going to dominate the power market in the forecast period.
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Government Initiatives and Future Renewable Potential to Drive the Market
Brunei has planned to achieve a 63% reduction in total energy consumption by 2035. Electricity consumption also witnessed a significant drop in 2018 reaching 2109 GWh.
Brunei government announced in 2015, is working towards increasing renewable share in power generation by 10% by 2035, giving the main focus on photovoltaic and waste to energy production.
In August 2019, Brunei Shell Petroleum announced to invest millions to build 3 MW solar parks next to its head office, converting it from gas to solar power, which will a step towards renewable electricity in the forecast period.
As of 2019, Brunei has only one solar farm in operation with a capacity of 1.4 MW. 'Tenaga Suria Brunei (TSB)' is located in Seria and is operational since 2010, housing 9234 solar panels supplying power to 200 houses.
Although natural gas is the primary source of electricity in Brunei, in the upcoming period, renewables are expected to expand their share and drive the power market of Brunei.
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The Brunei power market is consolidated. The major companies include the Department of Electrical Services, Berakas Power Management Company, Brunei LNG Sdn. Bhd., General Electric Company, Toshiba Corp, and others.