Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Korea advised to bring smart grid tech to Vietnam, Indonesia, India, Philippines
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By Kim Hyun-bin
By Kim Hyun-bin
Domestic companies operating smart grid businesses are advised to enter Vietnam, Indonesia, India and the Philippines to enhance their performance in a market, which shows annual growth of 18.2 percent, according to Korea International Trade Association (KITA) report released, Monday.
According to the KITA report titled “Carbon neutral era, global smart grid market status and Korean companies entry strategies,” the global smart grid market is expected to reach around $160 billion by 2030, growing at a compound annual growth rate (CAGR) of 18.2 percent from $36 billion last year.
The report selected four countries, Vietnam, Indonesia, India, and the Philippines, as promising countries for Korean smart grid companies to enter after evaluation of the market potential of each country including Korea's export size, electricity consumption per capita, and corporate environment evaluation.
A smart grid refers to a system that optimizes power grid operation efficiency by applying information and communication technology (ICT) to the existing power grid and monitoring and controlling the power grid in real time.
The four countries have high market growth potential and excellent business environments making them highly attractive to enter. In the smart grid field, the microgrid and energy storage systems (ESS), advanced metering infrastructure (AMI), and renewable energy are expected to surge. A microgrid is a smart grid system that can supply electricity to a small area.
On the other hand, the U.S., Canada, Singapore, Germany, and Japan were found to be low-risk groups with highly rated business environments. However, they have already matured and have low growth potential.
In Vietnam, Ho Chi Minh Electricity Corporation and energy solutions company Trilliant Networks plans to install about 1 million AMI component devices in Hanoi and Ho Chi Minh City by 2025. In Indonesia, the demand for microgrid installation using renewable energy such as solar and wind power is expected to increase mainly in small island areas.
Since 2017, India has been upgrading AMI, renewable energy and microgrids. It aims to supply AMI to the entire country by 2027. The Philippines is a country made up of about 7,000 islands and is vulnerable to power outages caused by natural disasters.
“In order to target the overseas smart grid market, strategies such as increasing understanding of local projects, strengthening partnerships with local companies, and forming a consortium with companies with experience in overseas expansions are necessary,” Kim Mun-sun a senior researcher at the KITA said.