mega trends impacting asia pacific microgrid market
TRANSCRIPT
Mega Trends Impacting Asia Pacific Microgrid Market
Suchitra SriramProgram Manager - Energy and Power Systems, Asia Pacific
October 2011
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Market Summary
• 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.
• 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.
• 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.
• 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.
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Market Summary (Cont’d…)
• 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.
• 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.
• 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.
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Microgrid Overview
Microgrid Market: Market Life Cycle (APAC), 2010
Users/Buyers
Competitive Conditions
Introduction
• Few trials of early adopters
• Few competitors
Growth• Increasing adopter
trials of products / services
• Entry of new competitors
• Competition for the market share
• Undifferentiated products/services
Maturity• Increasing
selectivity of purchase• Likely price
reduction for volume gain
• Elimination of the weakest competitors
Decline• Saturation of end users
• Decreasing usage of products/services
• Competition to maintain the market share
• Difficulties in gaining the market share
• Emphasis on efficiency/low costs
• Exit of some competitors
Micro grid
Source: Frost & Sullivan analysis.
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Microgrid End User Segmentation
MicrogridEnd User
Urban
Rural
Industrial
Sub-segment
Rural/Farmland
Islands
Military
Buildings
Communities
Hospitals
Manufacturing
Priority/ImportanceCountry
Attractiveness
Cost effective
Independent Power and Security
-NA-
Energy efficiency
Energy efficiency
Indonesia, Thailand
Malaysia, Japan, South Korea, Singapore
New Zealand
Note: For governments, the importance of microgrid technology is to improve efficiency and to include the renewable energy sources.
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Microgrid Solution Segmentation
Power Source Automation
• Automation of micro-turbines and other generation sources according to the demand the grid power prices.
Energy Management System
• Management of loads (turning on heavy load when prices are lowers, lighting management etc.).
Modeling and Simulation Tools
• A stimulation platform of incorporating power system and control models with external hardware systems.
• It could represent the dynamic behavior of microgrid during grid connected and off-grid operations; both in balanced and unbalanced conditions.
Demand/ Response System
• Response to increase demand through increased generation or through grid power.
• Supplying power to the grid when load is lower.• Isolating least important loads when demand is high.
Energy Trading Platforms
• Platform for trading of energy generated by micro sources.
Microgrid solution areas are categorized as below
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Industry Challenges
Lack of Government
PolicyRaising end-
user awareness
Industry
Challenges
Technical
CapabilitiesOwnership Issues
Source: Frost & Sullivan analysis.
Microgrid Market: Major Industry Challenges (Asia Pacific), 2010
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Drivers and Restraints
Denotes long-term impact
Denotes current impact
Source: Frost & Sullivan analysis.
Drivers
Restrain
ts
Drivers
Restrain
ts
Increasing focus on renewable energy
Unreliable power quality and power shortages
Solution to rural electrification
Lack of standardisation High initial set up cost
Restricted market commercialization
Key Takeaway: Increasing focus on renewable energy is the key driving factor in formulating future strategy for microgrid
Microgid Market: Key Market Drivers and Restraints Asia Pacific, 2011-2017
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Note: All figures are rounded. The base year is 2010 Source: Frost & Sullivan analysis.
Microgrid Market Revenue Forecast
Key Takeaway: As demand for electricity increases, corporations tend to have their own power supply
2010 2011 2012 2013 2014 2015 2016 2017
Revenue 42.0 55.9 78.8 130.0 226.1 297.4 371.7 438.6
Growth Rate 33.0 41.0 65.0 74.0 31.5 25.0 18.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
0
50
100
150
200
250
300
350
400
450
500
Grow
th R
ate
(%)
Re
ve
nu
e ($
Mil
lio
n)
Year
Microgrid Market Revenue Forecast, 2007–2017Asia Pacific
CAGR = 39.8%
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Microgrid Value Chain and Key Players
• SolarQ-Cells SEFirst Solar, IncSun Power Corporation• Wind General Electric CompanyMitsubishi Electric Corporation• BiomassJana Landfill Sdn BhdRecycle Energy Sdn Bhd
Generation Components(Solar/Wind/ Biomass)
• Diesel Genset• Gas Turbines• Solar• Wind• Biomass
• Beacon Power Corporation
• A123 Systems, Inc
• Ceramic Fuel Cells Limited
Storage Components(Charge Controllers, Battery, Inverters
• Charge Controllers• Batteries/ Energy• Storage• Inverters
• General Electric Company
• Siemens AG• ABB• ALSTOM
Micro Grid component(Load & Generation Controllers)
• Load & Generation Controllers
• Automation Hardware
• Automation software
ABBGeneral Electric CompanyALSTOMEmco Limited
Distribution Components (Transformers/Isolators etc.)
• Transformers• Isolators
• Echelon Corporation
• Schneider Electric
• Jiangsu Linyang Co Ltd
• Secure Meters Ltd
Smart Metering Components
• Meter Hardware
• Communicatio--ns vendors
• Sembcorp Industries
• Logica• AGL Energy
Project Developers and Plant operators
• Services
Source: Frost & Sullivan analysis.
Microgrid Value Chain and Key Players
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Microgrid Future Business Models
Com
mun
ity
Bas
ed M
odel
Hybrid Based
ModelUtilit
y Based
Model
Microgrid
Private Sector
Based Model
Source: Frost & Sullivan analysis.
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For Additional Information
Donna JeremiahCorporate CommunicationsAsia Pacific+603 6204 [email protected]
Carrie LowCorporate CommunicationsAsia Pacific+603 6204 [email protected]
Suchitra SriramProgram ManagerEnergy & Power [email protected]