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Navigant Research Predicts $31 Billion Investment In Asia Pacific Microgrids By 2023
Cumulative investment in microgrids throughout the Asia Pacific region is set to total $30.8 billion between 2014 and 2023 as a result of increased demand for electricity and generation capacity from renewable energy sources. This is according to new research from Navigant Research, which published a new report on Tuesday.
“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.”
Asia Pacific microgrids could play a major role in the continuing electrification of rural Asia and Pacific countries, which have been turning to community renewable energy projects in an effort to move away from the prohibitively expensive diesel alternative that has for so long been predominant in the region.
The Galvin Electricity Project describes microgrids as “modern, small-scale versions of the centralized electricity system.”
Like the bulk power grid, smart microgrids generate, distribute, and regulate the flow of electricity to consumers, but do so locally.
As such, the most attractive microgrid market in the Asia Pacific region are remote microgrids, which operate separate from the larger grid and integrate effectively and efficiently with newer and more cost-effective renewable energy solutions.
The report predicts that “some of the developed nations, including Australia, Japan, Singapore, and South Korea, will pursue technology development and pilot projects in the next few years and then will deploy diverse applications.”
With the current Australian trend towards fossil fuel generation, one may criticize the country’s inclusion in this prediction, but Asia-specific countries have made a habit of outperforming their Pacific neighbors in terms of renewable energy commitments and technology innovation.