Mega Trends Impacting Asia Pacific Microgrid Market

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Frost & Sullivan Analyst Briefing on Mega Trends Impacting the Asia Pacific Microgrid Market

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Mega Trends Impacting Asia Pacific Microgrid Market

  1. 1. Mega Trends Impacting Asia Pacific MicrogridMarket<br />Suchitra Sriram<br />Program Manager - Energy and Power Systems, Asia Pacific<br />October 2011<br />
  2. 2. Market Summary<br />Microgrid provides an alternative to traditional energy generation and distribution. Using smart grid technologies, it enables integrated control of distributed power generation assets operating either in connection with the main grids or “islanded” from the utility power grid.<br />Issues of unreliable power quality, increased focus on renewable energy, need for rural electrification, focus on higher efficiency have resulted in more emphasis on developing microgrid infrastructure.<br />Microgrid or embedded generation would reduce the strain on the national grid, reduce carbon footprint, reduce wastage from transmission, and improve power quality and reliability. Thus embedded generation is likely to have more market opportunities, especially when there are more microgrid sites set up and where the automation system improves.<br />The market in Asia Pacific is in its nascent stage but substantial growth is expected in the forecast period buoyed by increased government funding. Countries such as Japan and Australia that are able to generate additional power based on renewable energy sources such as solar and wind are likely to increase microgrid adoption.<br />
  3. 3. Market Summary (Cont’d…)<br />APAC countries do not have set policies on microgrid which has limited the rapid adoption of microgrid. However, countries such as Australia, Singapore, Malaysia have imposed policies on embedded generation above a certain power range in order to reduce the stress on the national grid. <br />Many pilot projects are underway in the focus countries aimed at proof testing the feasibility of microgrid solutions and possible large scale rollout of microgrid projects in the future.<br />The microgrid markets are attracting many companies from different industries: IT solution players, inverter companies, telecommunication start-ups, engineering companies, renewable companies, defense contractors, and power plant operators.<br />
  4. 4. Microgrid Overview <br />Micro grid<br />Microgrid Market: Market Life Cycle (APAC), 2010<br />Introduction<br />Growth<br /> Maturity<br /> Decline<br />Users/<br />Buyers<br /><ul><li> Increasing adopter trials of products / services
  5. 5. Increasing selectivity of purchase
  6. 6. Saturation of end users
  7. 7. Decreasing usage of products/services
  8. 8. Few trials of early adopters
  9. 9. Entry of new competitors
  10. 10. Competition for the market share
  11. 11. Undifferentiated products/services
  12. 12. Likely price reduction for volume gain
  13. 13. Elimination of the weakest competitors
  14. 14. Competition to maintain the market share
  15. 15. Difficulties in gaining the market share
  16. 16. Emphasis on efficiency/low costs
  17. 17. Exit of some competitors
  18. 18. Few competitors</li></ul>Competitive Conditions<br />Source: Frost & Sullivan analysis.<br />
  19. 19. Microgrid End User Segmentation<br />Sub-segment<br />Priority/Importance<br />Country Attractiveness<br />Rural<br />Microgrid<br />End User<br />Urban<br />Industrial<br />Note: For governments, the importance of microgrid technology is to improve efficiency and to include the renewable energy sources.<br />
  20. 20. Microgrid Solution Segmentation<br />Microgrid solution areas are categorized as below<br />
  21. 21. Industry Challenges<br />Microgrid Market: Major Industry Challenges (Asia Pacific), 2010<br />Raising end-user awareness<br /> Lack of Government <br />Policy<br />Industry Challenges<br />Technical<br />Capabilities<br />Ownership Issues<br />Source: Frost & Sullivan analysis.<br />
  22. 22. Drivers and Restraints<br />Key Takeaway: Increasing focus on renewable energy is the key driving factor in formulating future strategy for microgrid<br />Microgid Market: Key Market Drivers and Restraints Asia Pacific, 2011-2017<br />Drivers<br />Drivers<br />Unreliable power quality and power shortages<br />Solution to rural <br />electrification<br />Increasing focus on renewable energy<br />Restraints<br />Restraints<br />Lack of standardisation<br />Restricted market commercialization <br />High initial set up cost<br />Denotes current impact<br />Denotes long-term impact <br />Source: Frost & Sullivan analysis.<br />
  23. 23. Note: All figures are rounded. The base year is 2010 Source: Frost & Sullivan analysis. <br />Microgrid Market Revenue Forecast<br />Key Takeaway: As demand for electricity increases, corporations tend to have their own power supply<br />Microgrid Market Revenue Forecast, 2007–2017<br />Asia Pacific<br />CAGR = 39.8%<br />
  24. 24. Microgrid Value Chain and Key Players<br />Storage Components<br />(Charge Controllers, Battery, Inverters<br />Distribution Components (Transformers/Isolators etc.)<br /><ul><li>Charge </li></ul> Controllers<br /><ul><li>Batteries/</li></ul> Energy<br /><ul><li>Storage
  25. 25. Inverters
  26. 26. Transformers
  27. 27. Isolators
  28. 28. Beacon Power Corporation
  29. 29. A123 Systems, Inc
  30. 30. Ceramic Fuel Cells Limited</li></ul>ABB<br />General Electric Company<br />ALSTOM<br />Emco Limited<br />Microgrid Value Chain and Key Players<br />Generation Components<br />(Solar/Wind/ Biomass)<br />Micro Grid component<br />(Load & Generation Controllers)<br />Smart Metering Components<br />Project Developers and Plant operators<br /><ul><li>Diesel Genset
  31. 31. Gas Turbines
  32. 32. Solar
  33. 33. Wind
  34. 34. Biomass
  35. 35. Meter Hardware
  36. 36. Communicatio--ns vendors
  37. 37. Services
  38. 38. Load & Generation Controllers
  39. 39. Automation Hardware
  40. 40. Automation software
  41. 41. Solar</li></ul>Q-Cells SE<br />First Solar, Inc<br />Sun Power Corporation<br /><ul><li>Wind </li></ul>General Electric Company<br />Mitsubishi Electric Corporation<br /><ul><li>Biomass</li></ul>Jana Landfill Sdn Bhd<br />Recycle Energy Sdn Bhd<br /><ul><li>Echelon Corporation
  42. 42. Schneider Electric
  43. 43. Jiangsu Linyang Co Ltd
  44. 44. Secure Meters Ltd
  45. 45. Sembcorp Industries
  46. 46. Logica
  47. 47. AGL Energy
  48. 48. General Electric Company
  49. 49. Siemens AG
  50. 50. ABB
  51. 51. ALSTOM </li></ul>Source: Frost & Sullivan analysis.<br />
  52. 52. Microgrid Future Business Models<br />Private Sector Based Model<br />Community Based Model<br />Microgrid<br />Utility Based Model<br />Hybrid Based Model<br />Source: Frost & Sullivan analysis.<br />
  53. 53. Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter<br />http://www.facebook.com/pages/Frost-Sullivan/249995031751?ref=ts<br />http://www.linkedin.com/companies/4506<br />http://www.slideshare.net/FrostandSullivan<br />http://twitter.com/frost_sullivan<br />
  54. 54. For Additional Information<br />Donna Jeremiah<br />Corporate Communications<br />Asia Pacific<br />+603 6204 5832<br />djeremiah@frost.com<br />Carrie Low<br />Corporate Communications<br />Asia Pacific<br />+603 6204 5910<br />carrie.low@frost.com<br />SuchitraSriram<br />Program Manager<br />Energy & Power Systems<br />apacfrost@frost.com<br />

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