Australia

Australia's energy sector has gone through a transformation over the last seven years. Since 1994, the electricity market has been deregulated and utilities have been separated, each of them taking on a separate role within the electricity market.

In 1994, Pacific Power International (PPI) was the biggest utility company in Australia, employing 12,000 people. Today, the staff has been reduced to 450 and its role in the electricity sector is radically different.

The process of establishing Pacific Power's role in the competitive electricity market commenced in 1995 and ended in August 2000. In those five years, PPI separated various generator and transmission components.
Robert Lang (right), CEO of Pacific Power, with John Williams, the company's strategy manager

Today, Pacific Power is no longer Australia's largest utility company but it maintains a clear vision of how to emerge as Australia's leading energy services business by becoming a project developer, asset manager and expert consultant throughout Australia and Asia.

Pacific Power has taken on its new role quite successfully and Robert Lang, CEO of PPI, is enthusiastic about its future. "PPI is a ongoing company, it is a great company with great expertise and with great value to add to the industry, not only here in Australia but also in Asia."

"We are very keen to develop partnerships with Asian partners, in Japan and across the spectra. Because that is where we really can add some value. I think the people in Pacific Power International not only have the experience, but they have got the right approach for Asia and we very much value the partners we have in Japan, particularly at moment," he adds.

Together with its Japanese partners, Pacific Power has successfully gained the confidence of several power companies in Japan, Vietnam, Malaysia, Cambodia and China. "In Asian countries, they like the Australian way of doing business. I think we are not as intense as the Americans and Europeans are. They like the Australian laid back approach. We don't go racing to a customer saying this is your problem, this is what you have to do, we will fix it. We rather say, this is your problem and we have a number of different solutions of how to fix it. Tell us which one you like."

Pacific Power International has had a very strong relationship with Japanese enterprises for decades. "Together with Mitsui Toshiba and IHI, we have cut some very good business. We are also very proud of our partnership with Tepco because they are the world largest combined cycle gas turbine and coal plant operator and thus an important partner in building our expertise in the gas industry," Lang says.

"Our work and knowledge, and our abilities in Australia and our partners" particular expertise from their Japanese experience make it a very powerful alliance. We are relatively small, specialist power industry and services company. We can do very little without our partners. Partnerships are key," he stresses.

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