The power sector contributes a major share to the Gross Domestic Product (GDP) for any country and is a significant source for its economic growth. The Asia Pacific region consists of many developing nations, such as Malaysia, and India, among others, which owing to the lack of proper infrastructure have high percentage of unelectrified areas. Moreover, several countries in the region, such as Indonesia, and Philippines, have numerous islands and are faced with the difficulty of establishing the required infrastructure in these remote areas. The countries have to spend millions of dollars to extend grid to these remote areas, which is currently not a viable option. Therefore, with the aim of achieving 100% rural electrification rates, the Asia Pacific countries have switched to the distributed forms of energy, such as microgrids and minigrids.
Read Report Overview: APAC Microgrid Market
A microgrid is a small-scale power grid that can operate independently or in conjunction with the area's main electrical grid. Microgrids have become a viable business model attributing to the sharp decline in the prices of energy generation technologies, such as solar, and wind. Additionally, the decreasing costs of the energy storage technologies, such as Lithium ion batteries, have improved the economics of microgrids with numerous policies being formulated for the promotion of the same. The governments of several countries across the Asia Pacific region are implementing policies to reduce the dependency on fossil fuels and promote energy security.
Distributed energy management systems and next generation software that build mathematical model and predict the return on investment with the maximum accuracy act as opportunities for the APAC microgrid market. These software are being employed by several global players, such as ABB, and Schneider Electric, among others, and several product launches related to the software have been witnessed as well. Homer energy solutions is expected to dominate the market in this segment. Another opportunity that is believed to be a lucrative one is the blockchain technology. It is currently in the experimental stage, and its first pilot project has been a successful run.
Role of Regulatory Bodies and Consortia
Microgrid market in Asia Pacific is highly influenced by various program and policies, such as smart grid plans, and rural electrification policies, among others. These policies are formulated and implemented by various regulatory bodies, such as ministries related to renewable energy, along with utilities, and the Energy Service Company (ESCO), among others. These bodies are implementing policies for the promotion of rural electrification, encouraging the use of renewable energy sources, and reducing the dependency on fossil fuels for meeting the energy demand. Regulatory bodies have also introduced tariffs and incentives to make microgrids business model more attractive to the stakeholders. The adoption of a proper policy framework and initiated amendments in the policies, by several countries, have helped various stakeholders to implement numerous microgrid projects across the globe, thus, driving the APAC microgrid market.
Asia Pacific Microgrid Market Size by Geography
Asia Pacific is witnessing extensive investments into microgrids, both from the regulatory bodies, and companies. Adoption of microgrids is expected to help the countries achieve their rural electrification targets which will drive the need for energy generation and storage technologies across all the countries of Asia Pacific.
Competitive Landscape
The competitive landscape for the Asia Pacific microgrid market exhibits an inclination towards organizations adopting strategies, such as mergers, acquisitions, partnerships, and product launches, among others. Contracts, collaborations, partnerships, agreements, and joint ventures were the key business development strategies.
Request A Free Sample: https://bisresearch.com/requestsample?id=487&type=download
For instance, in Oct-2016, ABB recently launched its plug and play microgrid solution which is suitable for remote area application as well as commercial and industrial applications. BPCG plans to invest $1 billion in the next 5 years in Thailand. As there is no such single company which provides all the microgrid solutions single handedly, the key players are collaborating with energy generation and storage manufacturers to provide all the solutions in one go. Extensive Investments being made by major players and companies into the microgrid market of Asia Pacific is a clear indicator that the market is expected to witness a robust growth in the near future.