A microgrid refers to small-scale power production, which consists of distributed generation facilities that are co-located with their respective loads. A microgrid has the ability to connect and disconnect from the grid, thereby enabling it to work in off-grid and grid-connected mode. The microgrids are mainly for optimal utilization of renewable energy resources such as energy generation resources and storage systems. It also acts as a backup for grids in emergency cases. They are controlled through a microgrid controller and are usually located at or near to the consumption sites.

The major factors responsible for driving the growth of the India Microgrid market include the growing demand for clean energy, rising instances of cyberattacks on the energy infrastructures, and the rising domestic deployment of microgrids for rural electrification. The Indian government has successfully launched numerous initiatives, including Solar Rooftop Scheme, development of solar parks projects across 21 states, the 175 GW renewable energy project, and the 30 GW renewable energy project in Gujarat, to encourage the adoption of renewable energy resources, especially in the rural areas of India, which in turn, will drive the demand for microgrid in the Indian market. Moreover, the solar-powered microgrid initiatives targets to deliver reliable electricity access to 25 million people in India and establish 10,000 microgrids by 2026, especially in the rural areas, which will drastically increase the demand for the Microgrid market over the coming years. In 2016, India’s Ministry of New and Renewable Energy (MNRE) launched a program to install 10,00 microgrids and mini grids, with a cumulative capacity of 500MW by 2021. In addition to this, the other programs such as SAUBHAGYA (Pradhan Mantri Sahaj Bijli Har Ghar Yojana) and DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana), will further accelerate the demand of microgrids across the country. On the other hand, the high cost involved in the installation and maintenance process will hamper the growth of the market during the forecast period.

Based on type, the grid-connected segment is expected to grow at a higher CAGR during the forecast period owing to the expansion in the utility-based grid networks followed by the increasing usage of renewable energy resources, such as offshore wind. The grid-connected microgrids support renewable energy sources penetration and help in achieving a substantial reduction in carbon emissions. It is often used in smaller areas such as a bunch of few houses and in military camps.

Based on offering, the hardware segment is anticipated to lead the market during the forecast period owing to the increasing adoption of microgrids by the end-users in order to enhance the reliability of electricity, lower carbon emissions, and minimize the electricity cost. The microgrids are usually used in the electricity generation process from different energy sources, including renewable energy sources: Solar energy & wind energy and non-renewable energy sources: fuel cells, diesel generators, CHP, and microturbines.

Based on the End-Use, the remote segment is expected to grow at a higher CAGR during the forecast period owing to the growing adoption of microgrids, specifically in the rural areas of India. The Indian government is heavily investing in the development of electricity infrastructure across India to provide electricity supply around urban and rural areas at a lower cost.

Various notable players operating in the India Microgrid market include ABB India Limited, GE Power India Limited, Siemens Ltd, Schneider Electric India Private Limited, Eaton Corporation, Honeywell International India Pvt Ltd, S&C Electric Company, Caterpillar Inc., TP Renewable Microgrid Ltd., Panasonic India, Exelon Corporation, HOMER Energy LLC among others.

Key Development:

  • In Nov 2019, TP Renewable Microgrid Ltd., collaborated with the Rockefeller Foundation to reduce carbon emission by 1 million tonnes per year. The partnership will facilitate setting up of 10,000 microgrids by 2026 to provide power to more than 1 million people around the country.
  • In Jul 2019, Panasonic India launched urban microgrid, Hybrid Energy Storage Systems (ESS) with end to end solutions for the Indian market. The integrated solar power microgrids are efficient, reliable, and intelligent power storage solutions to provide electricity to urban residential and commercial areas.

The India Microgrid market has been segmented based on connectivity, Type, Pattern, Offering, and End Use. Based on connectivity, the market is segmented into Grid Connected and Remote/Island/Off-Grid. Based on type, the market is segmented into AC Microgrids, DC Microgrids, and Hybrid. Based on pattern, the market is segmented into Urban/ Metropolitan, Semiurban, and Rural/Island. Based on offering, the market is segmented into hardware, software, and services. The hardware segment is further segmented into Power Generators, Energy Storage Systems, and Controllers. The services segment is further segmented into Engineering and Design, Monitoring and Control, and Operations, and Maintenance. Based on the End Use, the market is segmented into Commercial & Industrial, Remote, Institutes & Campuses, Government, Utilities, Military, and Healthcare.

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