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Overall economic growth, increased industrialization and the demand for data centers and other tech hubs has made the Asia–Pacific region hot property once again. Venture capital money is pouring in as tech startups scramble to establish a physical presence from Luzon to Bhutan. These companies are attempting a broad range of innovations; many are thriving. But one common thread they all share is their thirst for power, and the world’s larger providers have taken notice.
Japanese conglomerate Marubeni Corporation established Marubeni Asian Power Singapore precisely for this situation. In addition to more than 36 gigawatts of gross capacity in a large independent power producer portfolio, the company caters to the aggregation, retail and new energy needs of the booming region. It also sits within the Power and Infrastructure Services Division of Marubeni Corporation and is a regional hub for Asia–Pacific.
“Asia–Pacific is progressing toward a liberalized electricity market.”
- Moroo Shino
Through a combination of industry experience and local knowledge, the organization is electrifying this dynamic corner of the globe and with the renewable revolution underway, there’s always market value to be added by a company agile and flexible enough to suit market direction in the long-term.
“Power retail is becoming a new frontier for us. Asia–Pacific is progressing toward a liberalized electricity market,” Moroo Shino, Marubeni Asian Power Singapore’s Chief Executive Officer, tells The CEO Magazine.
“We stopped developing coal-fired power plants six years ago. That’s common to the region, but since then we’ve been focusing on renewable energy such as land-mounted, floating and rooftop solar, hydro, geothermal and battery energy storage systems. We are increasingly focusing on an asset light model as well as the wholesale and retail of electricity in addition to new energy.”
Marubeni Corporation has decades of experience in the sector, and this year marks more than two decades years since Marubeni significantly accelerated its strategic power investments in the region. Led and steered by Chief Executive Officer Shino and supported by Executive Vice President of Business Development, Abhay Shah – both of whom have steered the company since 2019 – and the team, Marubeni Asian Power Singapore continues to be a cornerstone of the energy transition.
“In addition to the generation itself and aggregation and retail trading business, there are other areas – decarbonization, sustainability and ammonia – that we’re focused on,” Shah explains.
“These are things we actively track as part of the business, and we look for ways we can contribute directly and in particular, take on opportunities.”
Smartest Energy, Marubeni’s Group company, is exploring ways to expand in the Asia–Pacific market with the support of Marubeni Asian Power Singapore in a few new markets in the mid to long-term. In addition to its power retail focus, it is also exploring carbon reduction goals by way of carbon trading and renewable energy certificates.
“Not every country has the privilege to generate and utilize renewable energy competitively and commercially,” Shah points out.
“Reasons could be anything from a lack of required natural resources, land area and terrain, relevant infrastructure, economic value as well as policy and regulations. So through carbon trading and renewable energy certificates, we’re helping that along.”
Marubeni Asian Power Singapore is partnering with local power companies to investigate carbon capture systems, and is utilizing low-carbon alternate fuels as a commercially viable solution, especially in the current market environment.
As the business changes, so too does its footprint. Originally confined to the Philippines and Singapore, Marubeni Asian Power Singapore now has a presence in Vietnam, Thailand, Malaysia and Taiwan, to name a few.
“We have branch offices in most Asian countries, which allows us to maintain a dialogue with government, policy makers and relevant local and regional companies,” Shino says.
“We closely monitor regulations and policies, and give our views and ideas through formal channels to provide private sector perspectives.”
“We’ll visit countries and meet clients, but the individual teams have the freedom to get their jobs done.”
- Moroo Shino
These local operations have been the key to the company’s success in the region, Shah adds.
“It’s one of our biggest strengths,” he says. “Although we’re an international company, Marubeni Corporation has more than 125 offices in more than 70 countries, and that means we can hire local staff, respect local cultures, speak the language and engage with governments.”
The company’s wide reach addresses the reality that some markets in Asia are more bankable than others, Shah admits.
“And for any project we undertake, it’s important that it can be financed. So when we’re undertaking larger-scale project investments, especially as a developer or an investor, that’s a consideration for us,” he explains.
And that’s where financial partners such as DBS Bank and OCBC, some of the most trusted names in financial services in Asia, come in, helping Marubeni Asian Power Singapore to realize its portfolio of multibillion-dollar projects.
“Our integrated floating storage and regasification unit and combined cycle gas turbine plant in Indonesia, for example, was one of the first and only one of its kind in Asia,” Shah reveals.
“Bankability, capital efficiency and liquidity are at the core of what we do in power, renewable energy or new energy.”
“Bankability, capital efficiency and liquidity are at the core of what we do in power, renewable energy or new energy.”
- Abhay Shah
The worldwide shift to renewables has opened a floodgate of independent power producers, which has in turn made the market more competitive.
“And that’s relatively less attractive for some players to adopt the power purchase agreement model,” Shah says. “If the industry is gradually moving away from traditional power purchase agreements (PPAs), including an increasing usage of virtual PPAs, that’s where we want to be the front-runner.”
Shino and Shah believe in letting the teams in their charge do the work while management keeps things running smoothly.
“We have so many project leaders that no one person could manage it all,” Shino says. “We’ll visit countries and meet clients, but the individual teams have the freedom to get their jobs done with the required supervision and approval from management.
“It’s so important to have the right team structure with sufficient expertise and enough checks and balances. It’s not about one person making decisions; discussion among the team is vital, and I think that’s something that has naturally helped us grow.”
“Our legacy and diverse businesses are our biggest strengths.”
- Abhay Shah
The state of power is evolving organically and the increasing desire for renewables is driving that change. It’s only natural then that a company with a track record like Marubeni’s could enjoy such success.
“We’re 160 years old. Our legacy and diverse businesses are our biggest strengths,” Shah says. “Every project teaches us something we can then apply to the next and share across our divisions.”
As the world’s power needs change, few companies are as capable as Marubeni Asian Power Singapore to provide.
“In our time, we’ve gone from aircraft to coffee to shipping to power. One of Marubeni’s key strengths is that our experience allows us to stand out in whatever we do. Not many companies can say the same,” Shino concludes.
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