Asia-Pacific Microgrid Market Poised for Exponential Growth: Frost & Sullivan

Sept. 18, 2014
The Asia-Pacific microgrid market is poised for “exponential growth,” a 38.3 percent rise from $84.2 million in 2013 to $814.3 million in 2020, according to a new Frost & Sullivan report.

The Asia-Pacific microgrid market is poised for “exponential growth,” a 38.3 percent rise from $84.2 million in 2013 to $814.3 million in 2020, according to a new Frost & Sullivan report.

Test pilots are underway in most countries – largely to secure resilient supply. Japan leads the pack, according to the report, “Analysis of the Asia-Pacific Microgrid Market, which looks at Japan, South Korea, Indonesia, Malaysia, the Philippines, and Australia.

Rural electrification programs are spurring growth in developing countries, while commercial microgrids are drivers in developed nations.

“Rural electrification projects such as the 1000 islands project in Indonesia, solar photovoltaic (PV) program in the Philippines, and off-grid projects in Malaysia are promoting the market,” said Avanthika Satheesh, Frost & Sullivan energy & environmental senior research analyst. “In developed countries, a separate renewable energy (RE) fund, such as the one from ARENA Australia, gave the market added thrust.”

Sarawak Energy in Malaysia, Perusahaan Listrik Negara (PLN) in Indonesia and power corporations in the Philippines to electrify rural areas using off-grid microgrids. In Indonesia, utility companies are giving priority to rural electrification, and they intend to complete 90 percent of electrification by 2025.

Similarly, in the Philippines and Malaysia, where electrification rates are below 100 percent, utility companies are turning to microgrids to achieve complete electrification.

While the importance of microgrids in the region is evident, the market still has to clear several hurdles to achieve its full potential, according to the report.

For instance, land acquisition for solar PV installation is complicated in rural areas, where land is unregistered. Acquisition of skilled labor in remote areas is another challenge that can hold the market back to some extent.

More importantly, the capital cost of installing the microgrid is high when it is installed with energy storage systems (ESS). This will deter its adoption in various countries unless there is strong government support for the project implementation. The lack of structured financing model for commercial microgrids also dulls its market prospects, according to Frost & Sullivan.

“However, the increasing electricity tariffs will eventually turn utility companies away from expensive diesel fuels to renewable sources of energy in their off-grid microgrids. As the use of RE necessitates ESS, market participants can expect stronger governmental support through favorable regulations, funds and subsidies,” Satheesh said.

Analysis of the Asia-Pacific Microgrid Market is part of the Frost & Sullivan Energy & Power Growth Partnership Service program.

About the Author

Kevin Normandeau | Publisher

Kevin is a veteran of the publishing industry having worked for brands like PC World, AOL, Network World, Data Center Knowledge and other business to business sites. He focuses on industry trends in the energy efficiency industry.

Related Content

Dancing_Man / Shutterstock.com

United Nations Development Program Advances Zimbabwe Minigrid Initiative

March 22, 2024
Five potential minigrid sites have been identified as part of the United Nations Development Program’s $1.5 million Energy Offer Project.

Utilities Recognize Value of Microgrids: Many Speaking at MGK Conference 24

March 22, 2024
Speakers from the IOUs, municipal and co-op sectors spotlighted at MGK will include Cobb EMC of Georgia, American Municipal Power, Ameren, Duke Energy, Georgia Power, Baltimore...
SEALANDSKYPHOTO / Shutterstock.com

California Energy Commission Awards $3M Grant to Fund Vehicle-to-Grid Project

March 22, 2024
The grant will fund an innovative V2G program that will connect a fleet of electric school buses to the grid.
Rendering credit Schneider Electric

Schneider Electric Pairing EcoStruxure Microgrid Line with MainSpring's Flex-Fuel Linear Generator

March 21, 2024
The EcoStruxure Microgrid offering is aimed squarely at commercial and industrial customers. Mainspring’s generator offers fuel flexibility and resiliency, the companies say.

In the Race to 100% Renewable Energy, Islands Will Win — With the Right Grid Improvements

March 18, 2024
Looked at individually, islands are often overlooked as unimportant players on the global economic stage. Smaller geographies, smaller communities, fewer resources, and often ...

RR301.pg
RR301.pg
RR301.pg
RR301.pg
RR301.pg

How Microgrid Controls Tie Multiple Power Systems Together

In this white paper learn how tying multiple power systems together with intelligent controls is integral when installing a microgrid.