Asia Pacific is experiencing a high rate of gradual rural electrification in various nations such as India, China, Philippines, and Malaysia due to the lack of proper infrastructures and abundance of unelectrified areas in these countries. According to the market intelligence report by BIS Research, titled ‘APAC Microgrid Market- Analysis and Forecast (2017-2026)’, the market is expected to reach value $22.56 billion by the end of 2026 from the $2.62 billion by the year 2016. The market growth is driven by the grid reliability, expansion costs, policy mandates and decreasing cost of renewable energies.
Electricity is an important contributor to the GDP for any country, and with the growth of the emerging economies, it is estimated that the nations would invest in solutions which can help them to achieve 100% electrification rate. Owing to this, most of the Asian countries have laid down regulations to achieve this target respectively. Moreover, in developed countries such as Japan, China, and Singapore, the focus is toward the energy security.
A microgrid is a small- scale grid that can operate independently or with the area’s main electrical grid and have become a feasible business model owing to the reduction in the prices of energy generation security and in the energy storage technologies such as Lithium Ion batteries.
The adoption and implementation of microgrid is still in its nascent stage. Companies have been investing extensively in the microgrids development and demonstration projects. However, it has been observed that the demonstration project does not have a business model, which leads to the estimation that the market has been built on detailed assumptions and limitations. The market has been segmented into different types of energy generations and energy storage solutions used in microgrids, across different application and geographical analysis.
To ensure energy security, countries have developed national smart grid plans and have promoted the use of renewable energy sources. This has compelled several countries to look for viable options which can ensure energy security, reduction in greenhouse gas emission and can provide electricity. Consequently, this has led to an increased investment by the utility providers, manufacturers providing solutions to the utility industry, and several other companies promoting the growth of microgrids across the APAC.
The government of various countries in the Asia- Pacific has implemented rules to reduce the dependency on the fossil fuels and to promote energy security. Furthermore, over the past few years, there has been an increase in the support from the several banks, for instance, in countries such as India and Pakistan, Asian Development Bank (ADB) is providing funds to achieve rural electrification target.
BIS Research has conducted an extensive research on the APAC microgrid market and compiled the observation and insight in this report. The market intelligence report aims at providing an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which include drivers, restraints, and opportunities prevailing in the industry.
For further queries, please write to us at [email protected] or call us at: +1 650 228 0182.