Smart Grid in Asia Pacific: Potential,Opportunities, and Growth

Asia-Pacific is consider one of the most dynamic and the fastest growing region in the world. With over quarter of the world population located in this part, and most of the countries still in development stages, there is huge growth potential in almost all segments. The hyper- growth is fueling the demand for more energy, which in turn is creating significant market opportunities for clean-tech market. According recent report, published by the leading clean tech market intelligence firm PikeResearch, Smart Grid investment in Asia Pacific is set to reach $171.3 billion by 2017. The report notes that for every country the drivers for Smart Grid implementation are significantly different.

According to senior analyst, Andy Bai, "Chinese market players believe that the construction of a smart grid is a key part of economic growth and enhancing the ability to optimize energy allocation, including the integration of new generation capacity from both renewable and fossil fuel sources.  Japan’s electric utilities have been investing huge amounts of capital in power infrastructure, resulting in advanced capabilities in transmission infrastructure and power delivery services; however, the tragic March 2011 earthquake, tsunami, and resulting Fukushima nuclear accident are likely to redefine not only Japan’s smart grid planning, but perhaps the direction of the nation’s utility industry.  Korea seeks to leverage its technology leadership in the IT and communications space to form an advanced smart grid infrastructure within the country, as well as an opportunity to export smart grid technologies around the world.  Significant and influential smart grid projects are also underway in Australia, India, and the Association of Southeast Asian Nations (ASEAN) region.” The analyst further adds, the transmission upgrades, Distribution Automation, and Advanced Metering Infrastructure will capture majority of the market with each segment having share of 54%, 18%, and 15% respectively". 

The report provides in-depth analysis for market drivers, business models and applications, technology issues,  and government policy within Asia-Pacific Region. The study covers detailed forecast by application for China, India, Korea, Australia, Japan, and the ASEAN region. Overall, the study addresses following key questions. 

Key Questions Addressed

• What are the key market drivers for smart grid development in each Asia Pacific market?
• Which business models are being employed for APAC smart grid deployments? How are these similar to other models found around the world, and how do they differ?
• Who are the key industry players influencing the development of APAC smart grid initiatives? Are there opportunities for additional participants to enter the market?
• For each country, what is the size of the market opportunity within each smart grid application segment?
• What are the key technology issues facing smart grid industry players in each market?

India launches its first Smart Mini-Grid System

Renewable Energy Based Smart Mini-Grid System Commissioned Minister of New & Renewable Energy, Dr. Farooq Abdullah and Minister of Power, Shri Sushilkumar Shinde jointly commissioned the India’s first of its kind Renewable Energy Based Smart Mini-Grid System at TERI Retreat in Gurgaon today. The system has been developed with the support from the Ministry of New & Renewable Energy. Speaking on the occasion Dr. Farooq Abdullah said that India needs to tap all sources of energy in order to meet its growing demand for power. He said that the country must have strong safeguards so that it gets the best technology and also develops it indigenously. Shri Sushilkumar Shinde said that renewable energy is important as it reaches unreachable areas. He said that smart mini-grids will be very useful for stand-alone projects in villages and inaccessible areas. Secretary, Ministry of New & Renewable Energy Shri Deepak Gupta and Director General, TERI Dr. R.K. Pachauri were also present on the occasion.

A Smart Mini-Grid (SMG), or Micro-Grid, is an intelligent electricity distribution network, operating at or below 11 KV, where the energy demand is effectively and intelligently managed by diverse range of Distributed Energy Resources (DERs) such as solar PV, micro-hydro power plants, wind turbines, biomass, small conventional generators such as diesel gensets etc in combination with each other through smart control techniques.

Globally, managing existing energy resources and demand in an optimal and efficient manner has become the need of the hour. Enhancing energy-security and energy-access, particularly in emerging economies is one of the major challenges that one has to deal with. Smart grid has been evolved as one of the solutions to tackle these challenges. Advanced sensing, communication and control technologies are used in smart grids these days for not only generation and transmission of power but also distribution and utilization of electricity in a more intelligent and effective manner.

Such an application will not only foster the effective inter-connection and utilization of multiple renewable energy resources but would also help in advancing access to energy to the last mile in the most optimum way by improving the efficiency of the overall system. The Smart Mini-Grid system has a great potential in large commercial and industrial complexes, hospitals, shopping malls/ complexes, apartments, residential complexes, educational institutions, remote un-electrified as well as electrified locations to ensure maximum flexibility, reliability and safety.

The project was sanctioned to TERI under the aegis of Asia-Pacific Partnership on Clean Development and Climate (APPCDC) in March, 2009 with the contribution of Rs.87 lakhs from the Ministry of New & Renewable Energy. The project was completed with the technical collaboration of the Solar Energy centre under the Ministry of New & Renewable Energy. The smart mini grid has been deployed at TERI Retreat building in which 3.2 kW wind generator, 10.5 kW solar PV power, 1 kW thin film, 2 kW SPV systems, 100kW biomass gasifier and diesel generator have been integrated to demonstrate optimal evacuation of renewable power. 

-- Press Release 

India among the top 10 Smart Grid Investment countries

A recent research report published by Innovation Observatory reveals that utilities worldwide will spend US$378 billion in Smart Grid technologies by 2030. However, the lion share (almost 80%)  of the total investment will be taken by only 10 countries. The United States will be leading the Smart Grid investment for the next five years. By 2030, it will spend US$66 billion for intelligent smart grid infrastructure. Apart from smart meters, the investment will be geared towards grid automation, communication infrastructure, IT systems and hardware, home area network, and system integration. China, which will take over the US as the leading Smart Grid market by 2016, will supposedly spend US$99 billion by 2030, which includes roll-out of 360 million Smart Meters.

The two emerging nations India and Brazil also have massive smart grid investment plans and are among the top 10 list. India, which will be the third largest smart grid investment market, is set to install 130 million Smart Meters by 2021. At present, the market in India is nascent with only few smart meters roll out happened. But it seems to gather pace from 2012 onwards. During the same period, Brazil, which will be the sixth largest smart gird market, is set to replace 63 million smart meters.

The other members of the top 10 includes leading European countries the UK, Germany, France, and Spain and Japan and South Korea from the Asia Pacific region.

The competition to win the contracts will be fierce among the technology suppliers to tap the massive market opportunity. Companies will have to tailor their strategy based on the scale of the project, the region of the market, their expertise, and smart grid value chain they operate in.

Top 10 List

1) China

2) USA

3) India

4) France

5) Germany

6) Brazil

7) Spain

8) The UK

9) Japan

10) South Korea