Saudi
Arabia Microgrid Market is anticipated
to grow at a rapid pace in the forecast period 2024-2028. The
technological advancements in control systems & advancements in energy
storage technologies, together with government support and initiatives, have
all contributed to the rise of the Saudi Arabian market. Growing preference and
demand for renewable energy and uninterrupted power supply (UPS) among businesses
is also boosting market growth. The IoT industry will expand faster because of
the fast 5G rollout in Saudi
Arabia and the ongoing digital
transformation, which will lead to a surge in power generation and transmission
use cases needing advance microgrid capabilities. Saudi Arabia offers strong
fiber connectivity across the Middle East and is connected to several parts of
the world, hence, creating microgrids demand to unprecedented levels in the kingdom.
Microgrids are small-scale electrical networks that can operate
independently or in conjunction with the main power grid. Microgrids
are used to describe small-scale power generation. A microgrid may connect to
the grid and disengage from it, allowing it to operate both off-grid and
connected to the grid. 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.
Technological Advancements in Control Systems & Advancements in Energy
Storage Technologies
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 demand for these solutions. Energy
storage provides numerous advantages, including balancing supply and demand,
enhancing power quality, reducing the intermittency of renewable resources, and
providing auxiliary services like frequency and voltage management in microgrid
(MG) operation. The microgrid control system can use data analytics and predictive
algorithms to optimize the operation of the microgrid and improve energy
efficiency. The use of lithium-ion and magnesium-ion in their batteries
while the development of advanced energy storage technologies and Battery
energy storage systems (BESS), is enabling the deployment of microgrid
solutions that can store excess energy and provide backup power during outages.
The energy
storage systems, such as Hybrid Energy Storage Systems (HESSs), which are
characterized by the integration of two or more different energy storage
technologies, have been developed as a way to achieve the right performance by
combining the appropriate features of different technologies. Thus, technological advancements in control
systems & energy storage technologies are leading to the growth of Saudi
Arabia Microgrid Market in the forecasting period.
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Government Support and Initiatives
Saudi Arabia (KSA) is supporting the development
and deployment of microgrids through policies, incentives, and funding
programs, ultimately driving growth in the market. King Abdullah City for
Atomic and Renewable Energy (K.A.CARE) started developing an energy mix program
in the past years to implement microgrid technologies in the Saudi Electric
Power System (EPS). For example, the Saudi Electricity Corporation has signed
two contracts with China Electric Power Equipment and Technology Corporation
and Al Gihaz Contracting Company, with a combined value of USD 720 million for
a project to promote the installation of microgrids and other 60,000 smart
devices to the kingdom’s electricity distribution network. These contracts are
aimed at advancing the development of efficiency and quality of electrical
services in Saudi Arabia, improving the resilience and reliability of the power
grid and shortening the duration of electrical disconnection. Moreover, in
order to keep up with the global growth of microgrid systems, the Saudi Water
and Electricity Regulatory Authority (WERA) is actively working to update and
define a standard for microgrids. The Kingdom is focusing on creating a Micro
Grid Assurance (K.A.CARE) standard for
other research and technical institutions to help them carry out their
activities effectively. For instance, The IEEE 2030 standard was proposed to
replace the IEEE 1547.4 standard, which includes guidelines for understanding
the interoperability of smart grids, the integration of communication architectures
and power systems, and information technology architectures. This has brought great
technical attention in advancing the microgrid, enabling the consumers to rely
more on the technology. Thus, growing government support and initiatives have propelled
the demand of microgrid in the Saudi Arabian market.
Growing
Demand for Renewable Energy
The
rapid growing concerns for protecting the environment and the proliferation of
renewable energy techniques have brought the demand of effective energy
management in Saudi Arabia. The microgrid 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 centre power usage, adoption of electric
vehicles and the desire to reduce carbon footprint. The two main energy sources
in Saudi Arabia are oil and natural gas, both of which have a negative
influence on the environment. Moreover, initiatives such as King Salman's
Renewable Energy Initiative and Vision 2030 call for the implementation of the
National Renewable Energy Program (NREP) to fully exploit the country's
renewable energy potential. The kingdom has amended its goal for renewable
energy to attain 27.3 GW of capacity by 2023 and 58.7 GW by 2030. By 2030,
Saudi Arabia aspires to transition toward a combination of 50 percent natural
gas and 50 percent renewable energy, replacing the petroleum that presently
supplies 42 percent of the nation's 110 gigawatt daily electrical demands.
Over
the next ten years, Saudi Arabia is anticipated to receive an investment of
more than USD 20 million to produce renewable energy. The Ministry of Energy’s
spending on power and renewable energy projects is expected to reach USD 293
billion by 2030. Furthermore, with response to the Saudi Green initiatives, the
kingdom is planning to generate 50 percent of its energy from renewable sources
by 2030 and intends to plant 10 billion trees in the upcoming years. An additional
40 billion will also be planted across the Middle East. Therefore, the growing adoption of renewable energy sources
such as solar and wind power is driving the need for microgrid that can
effectively integrate these sources and manage their variability. Thus,
the growing demand for renewable energy is attributing the growth of microgrid
in Saudi Arabian Market.
Recent
Development
- On 03
April 2023, General Electric (GE) Saudi Arabia and the Saudi Authority for
Industrial Cities and Technological Zones (Modon) inked an agreement on
industrial complex to encourage and empower entrepreneurs and SMEs in
accordance with the National Industry Strategy. According to the Saudi Vision
2030, the deal also seeks to diversify the Saudi economy.
- On 24
February 2023, the largest company in Saudi Arabia, Obeikan Digital Solutions,
a division of Obeikan Investment Group, joined the worldwide network of
Schneider Electric to speed up digital transformation, promote sustainability,
and digitize & electrify sustainable production. The firms will work
together to speed up the digital transformation in key power industries through
the collaboration agreement. By embracing possibilities to lead the way in the
development of smart buildings, the firm will be able to grow its business and
increase its market share and profitability.
Market
Segmentation
The Saudi Arabia Microgrid Market is
divided into connectivity, type, pattern, offering, and end user industry. 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, semiurban,
and rural. Based on offering, the market is divided into hardware and software
& service. The hardware segment is further divided into power generator,
energy storage systems, and controllers. Based on end user industry, the market
is divided into government, utilities,
military, healthcare, commercial & industrial, and others.
Market Players
Major
market players in the Saudi Arabia Microgrid Market are S&C Electric Company
Saudi Arabia, Siemens Ltd. Saudi Arabia, Eaton Arabia, Honeywell International
Inc. Saudi Arabia, ABB Middle East, General Electric Saudi Arabia, Schneider
Electric Saudi Arabia, Exelon Corporation.
|
Attribute
|
Details
|
|
Base Year
|
2022
|
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Historic Data
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2018 – 2022
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|
Estimated Year
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2023
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Forecast Period
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2024 – 2028
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Quantitative Units
|
Revenue in USD Million, and CAGR for 2018-2023 and
2024-2028
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Report coverage
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Revenue forecast, company share,
growth factors, and trends
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|
Segments covered
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Connectivity
Type
Pattern
Offering
End User
|
|
Regional scope
|
Eastern Region, Northern
& Central Region, Western Region,
Southern Region
|
|
Key companies profiled
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S&C Electric Company Saudi Arabia, Siemens Ltd.
Saudi Arabia, Eaton Arabia, Honeywell International Inc. Saudi Arabia, ABB
Middle East, General Electric Saudi Arabia, Schneider Electric Saudi Arabia,
Exelon Corporation.
|
|
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)
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Report Scope:
In this report, the Saudi Arabia Microgrid Market has been
segmented into following categories, in addition to the industry trends which
have also been detailed below:
·
Saudi
Arabia Microgrid Market, By Connectivity:
o
Grid
Connectivity
o
Off-Grid
Connectivity
·
Saudi
Arabia Microgrid Market, By Type:
o
AC
Microgrids
o
DC
Microgrids
o
Hybrid
·
Saudi
Arabia Microgrid Market, By Pattern:
o
Urban
o
Semiurban
o
Rural
·
Saudi
Arabia Microgrid Market, By Offering:
o
Hardware
§
Power
Generator
§
Energy
Storage Systems
§
Controllers
o
Software
& Service
·
Saudi
Arabia Microgrid Market, By End User:
o
Government
o
Utilities
o
Military
o
Healthcare
o
Commercial
& Industrial
o
Others
·
Saudi
Arabia Microgrid Market, By Region:
o
Eastern
Region
o
Northern
& Central Region
o
Western
Region
o
Southern
Region
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Saudi Arabia Microgrid Market.
Available Customizations:
Saudi Arabia Microgrid Market report with
the given market data, Tech Sci 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).
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