China’s Power Rental Market Mired with High Competition While Indonesia has High Demand from a Power Deficit

Press Release

SAN ANTONIO, Texas, June 01, 2016 (GLOBE NEWSWIRE) -- In two new reports from Verify Markets, the Chinese and Indonesian power rental markets show high competition in China and power deficit demand in Indonesia ( There are a large number of companies in the power rental market in China and most of these companies are local or national. Old and depreciated diesel generators offered at lower-than-average rental prices characterize these local or national companies. Prices pose a challenge to foreign companies who generally work with newer generators in China. For rental prices of newer generators, capital cost recovery also needs to be factored in, along with other costs of a power rental company.

Indonesia’s power rental market is primarily driven by the low electrification and low availability of power in the country. Since Indonesia is a nation composed of a large number of islands, creating a large networked grid to supply electricity across the country is extremely difficult. PT. PLN (Persero), the government electricity distribution company in Indonesia, has placed individual power plants on many islands. These plants are based on either renewable or non-renewable power sources and to cater to the electricity needs of these islands in Indonesia. A few of these plants are of temporary nature and powered by diesel or gas based generators from the power rental companies in the country. These plants form the major part of the power rental market in Indonesia.

There is a diverse set of end user industries in China for the power rental market including events, construction, oil and gas, maritime and manufacturing, among others. In 2015, generators sizing greater than 800 kW were the major contributors to the power rental market in China. Prime power applications dominated the power rental market in China in 2015. Due to the large number of companies operating in the power rental market in China, there is no major market leader and the market is very fragmented. Fuel efficiency and stricter emission norms are expected to make the power rental market in China attractive towards the end of the forecast period (2016 to 2022) by the removal of smaller companies working at extremely low average rental prices.

Continuous power application is attributed to largest share of the power rental market in Indonesia. Generators sizing greater than 1 MW also were the primary contributors to the power rental market in Indonesia, owing primarily to the large power demand from utility. Diesel fuel dominated the power rental market in Indonesia due to its easier availability and easy transport options. Indonesia’s government is working on improving the country’s natural gas distribution infrastructure and it is expected that the share of natural gas in the power rental market of Indonesia will go up in the later half of the forecast period (2016 to 2022).

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