The
India microgrid market is growing owing to the rising demand for renewable
energy that has spurred the need to microgrid construction and grid
modernization along with rising government investment on microgrid for flexible
and efficient electric grid. The increasing requirement to strengthen the grid
resilience, managing the grid disturbance mitigation and development cost
advantage by managing power supply and demand have led to an increased focus on
microgrid to overcome the need for faster system response and optimize the
performance. Moreover, technological advancements in control
systems and advancements in energy storage technologies have further boosted
the demand for microgrids. Government measures such as Make in India
initiative, emphasis on self-reliance, national smart grid missions, and
national policies for mini and micro grids are further increasing the demand
for microgrids in the country. Moreover, the market is expected to be driven by
computerized change of force circulation through shrewd meters, which empowers
organizations to advance toward computerized change and requires more energy
utilization, flood in charge projects, expanding need for continuous power
supply, and consequently depending on microgrid foundation. Additionally, the
growing movement toward smart microgrids, especially due to increasing emphases
of digital India programs and smart techniques are promoting the development of
the microgrid market in India during the forecast period.
Microgrids
are small-scale electrical networks that can operate independently or in
conjunction with the main power grid. In addition, the collection of
interconnected loads and dispersed energy sources act as a single, controlled
entity with regard to the grid and are contained within well-defined electrical
limits. The basic purpose of microgrids is to use renewable energy sources,
such as energy generating and storage systems, to their fullest potential. They
typically consist of a combination of distributed energy resources such as
solar panels, wind turbines, battery energy storage systems, and generators. In
emergency situations, it also serves as a grid backup. In most cases, they are
situated at or close to the consumption locations and are managed by a
microgrid controller. Microgrids are increasingly being used in a range of
applications, from providing backup power for critical infrastructure to
enabling communities to generate and manage their own energy. Microgrids are
electricity distribution systems containing loads and distributed energy
resources such as distributed generators, storage devices, or controlled loads
that can be operated in a controlled, coordinated way either while connected to
the main power network or while islanded. The price of power from a microgrid
is around one-fifth of the price of diesel, making it an economical option for
many people in rural India.
India’s
Movement toward Smart Microgrids
The
ongoing advancements in microgrid and its subsets such as microgrid control
system technologies, including the use of artificial intelligence and machine
learning, are improving the performance and efficiency of microgrids and
driving the demand for these solutions. Energy storages provide numerous
advantages, including balancing supply and demand, enhancing power quality,
reducing the intermittency of renewable resources, and providing auxiliary
services such as frequency and voltage management in microgrid operation.
Moreover, the adoption of smart microgrids as an extension of regular
microgrids requires intelligent software and solutions that are managing the
effective electricity flow in networks and enabling real time efforts to
optimize the grid operations. India’s movement toward digitalization and
adoption of smart cities are enabling the establishment of smart microgrids in
the infrastructure. The microgrid control system can use data analytics and
predictive algorithms to optimize the operation of microgrids and improve
energy efficiency. The deployment of microgrid solutions that can store excess
energy and provide backup power during outages is being made possible by the
development of advanced energy storage technologies, electric vehicle energy
stations, and battery energy storage systems (BESS) that use lithium-ion and
magnesium-ion batteries. The advancement of energy storage systems such as
hybrid energy storage systems (HESSs) which are distinguished by the coupling
of two or more energy storage technologies, has evolved to achieve the
appropriate performance by combining the relevant characteristics of various
technologies. Thus, movements toward smart microgrids are expected to drive the
growth of the India microgrid market during the forecast period.
Growing
Government Support and Initiatives
The
continuous development and deployment of microgrids through policies,
incentives, and funding programs throughout the country are offering an edge to
the market players to establish new microgrids and are driving the growth of the
market. The Government of India in an attempt to promote microgrids, have
issued a draft national policy on renewable energy-based mini and microgrids.
The policy proposed to set-up at least 10,000 renewable micro and mini-grid
projects across the country, with 500 MW of generation capacity to be developed
through private players by 2022 to cater around 237 million people experiencing
energy shortage. In addition, the Government of India's vision of Atmanirbhar
Bharat call for the National Renewable Energy Program (NREP) to be implemented
to fully use the country's potential for renewable energy is enabling the
international microgrid product providers to establish their manufacturing
setups. Moreover, in March 2023, the Indian Army under the ‘National Green
Hydrogen Mission’ signed an agreement with the National Thermal Power
Corporation Renewable Energy Limited to install green hydrogen-based microgrid
power plant project in the forward areas along the Northern borders of eastern
Ladakh. For instance, India Renewable Energy Development Agency (IREDA) has
signed an energy compact with Husk Power Systems with a combined value of USD
4.2 million in debt financing for a project to construct as many as 140
microgrids in Bihar and Uttar Pradesh. These contracts are aimed at advancing
the development of efficiency and quality of electrical services in the
country, improving the resilience and reliability of the power grid, and
shortening the duration of electrical disconnection. Thus, growing government
support and initiatives have propelled the demand of microgrids in India.
Growing
Demand for Renewable Energy
India
currently stands fourth globally in renewable energy installed capacity,
including large hydro, along with fourth position in the wind power and solar
power capacity. In addition, as of October 2022, a total of 172.72 Gigawatt
(GW) of capacity from non-fossil fuels sources have been installed in the
country that comprehend 119.09 GW of renewable energy, 46.85 GW in large hydro
and 6.78 GW in nuclear power capacity. Microgrids have the potential to boost
the economy by bringing electricity to remote, Tier 2, and Tier 3 regions,
enabling small and medium-sized businesses to grow. Out of the total installed
generation capacity, the energy generation from the renewable energy source is
42.26%. Moreover, the country is emphasizing on increasing energy consumption
through renewable energy due to the rising environmental concerns and growing
energy needs. The Government of India added 14.21 GW of renewable energy (RE)
capacity during the period of January 2022 to October 2022 to meet the demand
for electricity consumption. This has brought the demand for microgrids and
several other applications while constructing the infrastructure of power
plants. For instance, in remote Himalayan regions of Ladakh, solar microgrids
have boosted tourism income by about USD 24,000 in close to two years of being
deployed. The rapid growing concerns for protecting the environment from Carbon
monoxide (CO) gas and the proliferation in renewable energy techniques have
increased the demand for effective energy management in India.
Furthermore,
in line with the Prime Minister’s announcement at COP26, the Ministry of New
and Renewable Energy is working toward achieving 500 GW of installed
electricity capacity from non-fossil sources by 2030. Microgrids can optimize
the use of renewable energy sources and ensure that energy is available when
needed. Many utilities service providers have invested in clean, renewable
energy sources to run their existing and future facilities as a result of the
rising electricity consumption, smart cities, data center power usage, adoption
of electric vehicles, and desire to reduce carbon footprint. Therefore, the
growing adoption of renewable energy sources such as solar and wind power is
driving the need for microgrids that can effectively integrate these sources
and manage their variability. Thus, the growing demand for renewable energy is
attributing the growth of the India microgrid market.
Recent
Development
- On Mar
03, 2023, Tata Power Renewable Microgrid, an integrated power companies
announced the Less is More initiative to empower rural entrepreneurs with
affordable energy-efficient machines and appliances. The initiative
launched at the Microgrid sites in rural UP and Bihar focuses on
addressing issues such as lack of awareness about new technologies and
quality products and inaccessibility to energy-efficient appliances and
machines.
- On
February 20, 2023, Delta Electronics India Private Limited, an energy management
and industrial automation solutions firm announced a wide portfolio of
IoT-based Smart Green Solutions at ELECRAMA 2023, which includes a smart
microgrid-based green EV charging station and the new open-loop
variable-torque standard drive VP3000 series. The company aims to foster
India's sustainable cities and smart factories with the new product
launch.
- On
April 08, 2022, IElectrix, a consortium of energy specialists from Europe
and India announced the launch of its Shakti microgrid in New Delhi. The
company aims to improve the resilience and quality of the electricity
supply in the city and aiding operators to efficiently balance the grid
between supply and demand.
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Market
Segmentation
The
India microgrid market is segmented into connectivity, type, pattern, offering,
and end-user. Based on connectivity, the market is divided into grid
connectivity and off-grid connectivity. Based on type, the market is segmented
into AC microgrids, DC microgrids, and hybrid. Based on pattern, the market is
bifurcated into urban, semi-urban, and rural. Based on offering, the market is
divided into hardware and software & service. The hardware segment is
further bifurcated into power generator, energy storage systems, and
controllers. Based on end user, the market is divided into government,
utilities, military, healthcare, commercial & industrial, and others.
Market
Players
Major
market players in the India microgrid market are Exelon Corporation, Hitachi
Ltd, Eaton Corporation Plc., Siemens India Private Limited, General Electric
Company, Schneider Electric SE, Toshiba India Pvt. Ltd., Mera Gao Micro Grid
Power Pvt. Ltd., Gram Power India Pvt Ltd, and Greenpeace foundation.
|
Attribute
|
Details
|
|
Base Year
|
2023
|
|
Historic Data
|
2019 –
2022
|
|
Estimated Year
|
2024
|
|
Forecast Period
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2025
– 2029
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|
Quantitative Units
|
Revenue in USD Million and CAGR for 2019-2023 and 2024-2029
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|
Report coverage
|
Revenue
forecast, company share, growth factors, and trends
|
|
Segments covered
|
Connectivity
Type
Pattern
Offering
End
User
Region
|
|
Country scope
|
India
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|
Region scope
|
East, West, North, and South
|
|
Key companies profiled
|
Exelon Corporation, Hitachi
Ltd, Eaton Corporation Plc, Siemens India Private Limited, General Electric
Company, Schneider Electric SE, Toshiba India Pvt Ltd., Mera Gao Micro Grid
Power Pvt. Ltd., Gram Power India Pvt Ltd, and Greenpeace foundation.
|
|
Customization scope
|
10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
|
|
Pricing and purchase options
|
Avail
customized purchase options to meet your exact research needs. Explore purchase options
|
|
Delivery Format
|
PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
|
Report
Scope:
In this report,
the India Microgrid market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- India Microgrid Market, By
Connectivity:
o
Grid
Connectivity
o
Off-Grid
Connectivity
- India Microgrid Market, By Type:
o
AC
Microgrids
o
DC
Microgrids
o
Hybrid
- India Microgrid Market, By Pattern:
o
Urban
o
Semi-urban
o
Rural
- India Microgrid Market, By
Offering:
o Hardware
§ Power Generator
§ Energy Storage Systems
§ Controllers
o Software & Service
- India Microgrid Market, By End
User:
o
Government
o
Utilities
o
Military
o
Healthcare
o
Commercial
& Industrial
o
Others
- India Microgrid Market, By Region:
o
East
o
West
o
North
o
South
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the India microgrid market.
Available
Customizations:
India microgrid
market report with the given market data, TechSci Research offers
customizations according to a company's specific needs. The following
customization options are available for the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
The India
microgrid market is an upcoming report to be released soon. If you wish an
early delivery of this report or want to confirm the date of release, please
contact us at
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