In East Asia, Korea’s electrical component manufacturer LSIS plans to break into the Southeast Asia microgrid market.
LSIS told The Korea Times that Indonesia in particular will become a key player in the Southeast Asia microgrid market drawing large-scale investment in the electrical grid sector.
Kim Won-il, vice president of LSIS’s convergence business group, said: “We are seeking to expand our presence in the country’s energy market with our information and communications technology converged smart grid system.”
LSIS, which is exhibiting at an electricity supply trade show in Indonesia this week, said it is seeking to share its technological expertise with the Indonesian archipelago, which consists of more than 18,000 islands.
Mr Won-il said the company will demonstrate how it applied microgrid technology to its research and development centres in Korea’s Cheongju, North Chungcheong Province, and Anyang, Gyeonggi Province.
Southeast Asia microgrids – Indonesia
LSIS’s microgrid system is in line with the Indonesian government-led initiative to build “energy-independent islands”, reports The Korea Times.
In April, the government announced it would invest 4.6 trillion won (US$3.87 billion) by 2017 to build energy-sufficient islands that would use only renewable energy sources.
LSIS executives met officials from public institutions and companies in Indonesia in June, forming a partnership to increase investment in the smart grid sector.
LSIS will also focus on localizing key technologies to build trust in Southeast Asia.
The company was at the centre of government-led microgrid projects for three years from February 2010, demonstrating a series of electricity management systems on Marado, the Indonesia’s southernmost island.
South Korea smart grid potential
LSIS’ expansion news comes as the market for national smart grid equipment in South Korea is also expected to grow by more than 20% during the five years to 2019.
Research released in July 2015 suggests that rapid industrialisation coupled with higher living standards has resulted in a sharper focus on the environmental impact of emissions from fossil-fuel-based power stations.
The South Korean government has imposed emission cuts on power plants as well as invested in clean and renewable power sources.
A report by Research and Markets suggests that as smart grids have the ability to integrate power generated from renewable and non-renewable resources, increased investment in the renewable energy sector is expected to propel the growth of the market.