Grid Modernization Shift
A shift towards modern power networks or smart grids due to growing demands of energy and its conservation and the need for creating green energy infrastructure facilities will drive the market towards sustainable electricity supply in the future.
Smart grid systems are technologically upgraded variant of conventional electric grids, which consume more energy. These systems are built on advanced metering infrastructure (AMI) enabling two-way communication between utilities and their customers thus enhancing operational efficiency.
Smart grids result in greater control over the production, transmission and distribution of electricity, as well as increased efficiency along with the reduced consumption and cost of energy.
The global smart grid market is expected to generate revenue of around $60.29 billion by 2024, growing at a CAGR of around 10.56% between 2018 and 2024.
The Middle East & North Africa (MENA) region witnesses huge growth in investments in smart grids and will have over $17.8 billion cumulative market in the coming decade.
The huge reservoirs of conventional energy, increasing renewable energy initiatives and grid interconnections alongwith adoption of solutions to minimize outages and revenue losses, has all together led to a wider demand for grid modernization and smart grid solutions in the region. Moreover, government policies and lucrative incentives are encouraging smart grid investments.
The deployment of smart grid technologies in the GCC is expected to save up to $10 billion by 2020. The UAE leads the region with its novel initiatives to build smart cities.
The experts say that for success of smart grid scheme it is imperative for utilities to address the specific goals and challenges faced by each organization prior to strategy formulation as smart grid is not a one-size-fits-all solution.
The current trend shows that the smart grid market is now gaining traction in the MENA region, which is critical to its future growth plans.