Mu-hyup: "To Capture Smart Grid Market Opportunities, Expansion into Vietnam and Southeast Asia Needed"

Publication of 'Global Smart Grid Market Status and Entry Strategies for Our Companies'

Source=Korea Smart Grid Business Group

[Asia Economy Reporter Kim Pyeonghwa] In the smart grid market, which is growing at an average annual rate of 18.2%, it is advised that domestic related companies should enter four countries?Vietnam, Indonesia, India, and the Philippines?to achieve success.

The Korea International Trade Association’s International Trade and Commerce Research Institute announced a report titled “The Global Smart Grid Market Status and Our Companies’ Entry Strategies in the Carbon Neutral Era” on the 7th. A smart grid refers to a system that integrates information and communication technology (ICT) into the existing power grid to observe and control the power grid in real time, thereby optimizing the efficiency of power grid operations.

According to the report, the global smart grid market size is expected to grow from $36 billion last year at an average annual rate of 18.2%, reaching approximately $160 billion by 2030. The report selected Vietnam, Indonesia, India, and the Philippines as promising countries for domestic smart grid companies to enter in this clearly growing market. This selection was based on a comprehensive review of each country’s market potential, Korea’s export scale, per capita power consumption, and corporate environment evaluation.

Vietnam, Indonesia, India, and the Philippines all have high market growth potential and excellent corporate environments, making them highly attractive for market entry. In particular, the smart grid sectors of advanced metering infrastructure (AMI) and microgrids and energy storage systems (ESS) utilizing renewable energy are expected to be promising. A microgrid is a smart grid system that can self-supply electricity within a small local area.

On the other hand, the United States, Canada, Singapore, Germany, and Japan received high evaluations in terms of corporate environment and are classified as low-risk groups, but their markets are already mature with low growth potential, and companies that have already secured market dominance make entry difficult.

In Vietnam, Ho Chi Minh Power Corporation and energy solution company Trilliant plan to install about 1 million AMI units in Hanoi and Ho Chi Minh City by 2025. The expansion of intelligent transmission and distribution systems to reduce energy loss rates is also expected. In Indonesia, demand for microgrid installations using renewable energy such as solar and wind power is expected to increase mainly on small island units.

In India, since 2017, advanced work on AMI, renewable energy, and microgrids has been underway. The goal is to complete nationwide AMI deployment by 2027. The Philippines, composed of about 7,000 islands, is vulnerable to power outages caused by natural disasters, so it is implementing ESS introduction projects to ensure stable power supply.

Kim Moonseon, senior researcher at the Korea International Trade Association, advised, “To target overseas smart grid markets, it is necessary to increase understanding of local projects, strengthen partnerships with local companies, and form consortia with companies that have overseas expansion experience.”

This content was produced with the assistance of AI translation services.