It has been observed that the deployment of renewable energy based generation technologies, such as solar PV, has been increasing at a much faster pace and accounts for significant market share, when compared with the other generation technologies. Additionally, the consumption of fossil fuels, such as diesel, and natural gas, for the energy consumption has decreased drastically. Every Asia Pacific country is witnessing the similar trend.
Rural microgrid projects have increased in the countries that are experiencing high percentage of unelectrified areas, whilst the commercial/industrial microgrid projects have increased in the countries having 100% electrification rates. Several countries are actively planning to ensure energy security and develop smart grids which is expected to drive the microgrid market in APAC.
Moreover, the number of renewable energy based hybrid microgrid projects has increased when compared with stand-alone projects due to the policy mandates across several countries which aim at reducing the consumption of fossil fuels, and promoting renewable energy technologies. This has been mainly witnessed across the commercial and industrial sectors.
The consumption of energy storage technologies, such as Lithium Ion batteries, has also increased exponentially owing to their decreasing costs, and added benefits over the conventional batteries. It has been witnessed that the microgrid projects comprising the combination of solar-lithium ion batteries are being proposed at a higher rate. Island microgrid projects, followed by rural microgrid projects, are expected to grow at a faster pace attributing to a significant percentage of population living with no access to electricity. In addition to that, rural electrification targets and policies are expected to drive the employment of island and rural microgrids, which is believed to transform the Asia Pacific market.
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