Asia Pacific Microgrid Investments to Total $30.8B from 2014-2023: Navigant Research

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Asia Pacific microgrid

Credit: 林 慕尧 / Chris Lim

Asia Pacific microgrid investments will total  $30.8 billion from 2014 to 2023, as demand for electrification and renewables grows in the region, according to a second quarter 2014 study by Navigant Research.

The report,  “Microgrids in Asia Pacific,” forecasts microgrid capacity growing from 37 MW in 2013 to 597.3 MW in 2023, when annual market value will reach nearly $5.8 billion.

“Several of the most heavily populated countries in the Asia Pacific region, including China, India, Indonesia, and Malaysia, are experiencing very high rates of rural electrification,” says Peter Asmus, principal research analyst with Navigant Research.  “Both developed and developing countries in the region are turning to microgrids to extend electrical service to remote and underserved communities.”

Both developed and developing countries in the region are turning to microgrids to extend electrical service to remote and underserved communities.”

Remote installations represent the most attractive microgrid market in the region, according to the report. They operate independently from the central grid, so offer opportunity for electrification in areas of China, India, Indonesia, Malaysia and the Philippines that lack transmission and distribution infrastructure.

Asia Pacific microgrids have mostly burned diesel fuel in Asia Pacific.  But remote installations are  increasingly fueled by renewables because of declining green energy costs.

Meanwhile,  developed nations in the region – Australia, Japan, Singapore and South Korea – will test diverse microgrid applications for businesses, manufacturers, campuses, institutions, utilities and communities over the next few years, according to the report.

Key players in the Asia Pacific microgrid industry include: ABB, Fuji Electric, GE Digital Energy, Hitachi, KT, LG CNS, Meidensha, Optimal Power Solutions, POSCO ICT, Sacred Sun, Samsung C&T, Sunfine and Toshiba, says Navigant Research.

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