Philippines Microgrid Market – Industry Trends and Forecast to 2029

Market Definition and Insights

A microgrid is a distinct energy system that consists of interconnected loads and distributed energy resources capable of operating in parallel with or independently from the main power grid. Microgrid, in general, are smaller versions of power networks that transport electricity from generators to consumers. They help to lower overall costs and provide grid backup in the event of an outage. Microgrid are more efficient than regular electrical grids and can be integrated with various renewable energy sources such as solar, wind, small hydro, geothermal, waste-to-energy, and combined heat and power (CHP) systems. Batteries, distributed generators, and solar panels can also power them. Furthermore, they are also a reliable source of electricity because they operate continuously during power outages.

In recent years, dependence on modern communication technologies, such as wireless cloud computing, is increasing, making power systems susceptible to cyber-attacks and hackers. Therefore, some sectors like military and research labs require a secure network with a round-the-clock power supply provided by microgrid as they are capable of functioning under ‘Island mode’ and independent of all external power and data transmissions. This has contributed to their augmenting demand across the region. Also, favourable government norms and policies toward integrating sustainable and efficient power generation sources boost the natural gas (NG) powered microgrid infrastructure.

Data Bridge Market Research analyses that the market is expected to reach the value of USD 620.14 million by 2029, at a CAGR of 17.6% during the forecast period. "Philippines” accounts for the largest “by off-grid/remote/island” segment in the Philippines microgrid market.

Philippines Microgrid Market Dynamics

Drivers

• Shift in trend toward gas-based power generation

The growing demand for gas-powered energy in the Philippines has a positive impact, as today, energy is generated in tons of data every day needed by government, institutions and corporations, and commercial houses for different industries. This is going to host the market growth in future as well continuously.

• Increase in demand for uninterrupted and reliable power supply for various applications

Power supply is necessary for the businesses designed to efficiently support critical and robust applications for big data-producing companies such as Google, Amazon, Facebook, IBM, and Microsoft because there is a constant production of data around the world, the need for more power centers is felt by the companies, which is providing is one of the huge factors for the market growth.

Restraints/ Challenges

• Uncertainty in laws and regulations related to distributed energy generation

Current transmission and distribution generation systems were developed and are operated as passive networks. There is a need to formulate and articulate policies and regulations that support DG and renewable energy sources (RES) integration into an electricity grid to increase supply security and ensure economic competitiveness to increase DG and RES deployment.

Regulatory and policy uncertainty barriers, which relate to bad policy design, discontinuity, and insufficient transparency of policies and legislation, may act as a restraining factor for the growth of the Philippines microgrid market.

Opportunity

• Rise in acquisitions and partnerships among various organizations

Coordination and investment in projects are essential for achieving sustained improvements in the microgrid industry. Thus, the government and other private organizations are striving through partnerships and acquisitions, thereby accelerating the growth of the industries. This helps to make awareness and profit of the organization and creates scope for new inventions in the industry. Also, through partnerships, the company can invest more in advanced technologies to provide security and safety features in microgrid products and technologies. Furthermore, this helps the companies get recognized in the competitive market, making a profit.

Covid-19 Impact on Philippines Microgrid Market

COVID-19 has affected the Philippines microgrid market. As power production was unaffected by the lockdowns, businesses and institutions constantly worked on these energy sources to enhance their products, such as microgrid. The demand for microgrid and clean energy is increasing day by day. There is no denying that the Philippines microgrid market has progressed positively during and after COVID-19.

Recent Developments

• In June 2020, Eaton, a power management company, successfully demonstrated a low-carbon residential microgrid in the Philippines. Now the company is working on technologies for a swift transition to solar power in collaboration with Czech Technical University. This development will help the company fulfil its goal of reducing the increased stress on existing power grids by introducing renewable alternatives
• In January 2020, Rolls-Royce plc announced the acquisition of majority shares in Qinous, a Germany-based microgrid energy storage system provider. The main aim of this acquisition is to become a leading energy storage provider in the microgrid market. Rolls-Royce plc now holds 73.1% shares in Qinous company

Philippines Microgrid Market Scope

Philippines microgrid market is segmented on the basis of connectivity, pattern, source, grid type and application. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Connectivity

• Off-Grid/Island/Remote
•  Grid Connected

Based on the connectivity, Philippines microgrid market is segmented into off-grid/island/remote and grid connected.

Pattern

• Remote
• Semi-Urban
• Urban

Based on the pattern, the Philippines microgrid market is segmented into remote, semi-urban and urban.

Source

• Diesel Generators
• Solar PV
• CHP
• Natural Gas
• Others

Based on the source, Philippines microgrid market is segmented into diesel generators, solar PV, CHP, natural gas and others.

Grid type

• AC Microgrid
• DC Microgrid
•  Hybrid Microgrid

Based on the grid type, Philippines microgrid market is segmented into AC microgrid, DC microgrid and hybrid microgrid.

Application

• Utility
• Campus
• Military
• Industrial
• Remote location
• Smart city
• Others

Based on application, Philippines microgrid market is segmented into remote location, utility, industrial, campus, military, smart city, and others.

Philippines Microgrid Market Regional Analysis/Insights

The Philippines microgrid market is analysed and market size insights and trends are provided by connectivity, source, grid type, application and pattern as referenced above. Data points such as power generation by coal, hydro and solar are some of the major pointers used to forecast the market scenario for Philippines. Also, presence and availability of global brands using microgrid to generate power and impact of source and pattern of microgrid are considered while providing forecast analysis of the country data.

Competitive Landscape and Philippines Microgrid Market Share Analysis

The Philippines microgrid market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to microgrid market.

Some of the major players operating in the Philippines microgrid market ABB, Rolls-Royce plc, Schneider Electric, Cummins Inc., Siemens, General Electric, Black & Veatch Holding Company, Honeywell International Inc., Eaton, and Hitachi Energy Ltd among others.

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