Ageing grids drive Asia's push for smart energy - Asian Power
Published November 22, 2025
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Executive Summary
As Asia grapples with the challenges of ageing energy infrastructures, a notable shift towards smart energy solutions is gaining momentum. This transformation is driven by the necessity to enhance efficiency and reliability while integrating renewable energy sources. Governments and energy stakeholders are recognizing the imperative to modernize electricity grids, which are often outdated and unable to cope with the demands of contemporary energy systems. This article delves into the key insights from recent analyses, supplemented by vital data and expert opinions advocating for a robust renewable transition across the region.
Core Insights
The region’s energy grids are increasingly becoming a focal point for investment and innovation. Many countries in Asia, such as India, Indonesia, and the Philippines, are facing significant challenges due to their ageing electric grids, which hinder the efficient distribution of power and the integration of renewable energy sources. As these grids reach their operational limits, the urgency for modernization becomes apparent, prompting a strategic pivot towards smart energy solutions.
Smart grids, characterized by their digital technology capabilities, provide the flexibility required to manage the intermittent nature of renewable energy sources like solar and wind. By deploying advanced metering infrastructure, real-time data analytics, and automated control systems, smart grids enhance operational efficiency and resilience against outages. The International Energy Agency (IEA) estimates that investments in smart grid technologies could amount to $1 trillion by 2030, a substantial portion directed to Asian markets as they seek to revamp their energy infrastructures.
Moreover, the integration of energy storage systems is crucial in this transition. Technologies such as lithium-ion batteries and pumped hydro storage can mitigate the variability of renewables, ensuring a stable supply of electricity. Countries like China and Japan are at the forefront of this development, with China leading the world in battery production, expected to reach a capacity of over 300 GWh by 2025.
In addition to technological advancements, regulatory frameworks must evolve to support this transformation. Policy initiatives encouraging private sector investment and the adoption of renewable energy sources are essential. For instance, the Philippines has set a target of achieving 35% of its power generation from renewable sources by 2030, significantly increasing from the current share.
Supplementary Data and Context
According to the Asia Development Bank (ADB), the region requires approximately $3.8 trillion in energy investments from 2020 to 2030 to meet its growing energy demand and climate commitments. This figure underscores the urgency for Asian countries to not only repair but also innovate their energy systems. Furthermore, the Levelized Cost of Energy (LCOE) for solar power has plummeted from $0.40/kWh in 2010 to around $0.05/kWh in 2021, making renewable technologies more economically viable than traditional fossil fuels.
Additionally, the International Renewable Energy Agency (IRENA) reports that Asia accounted for over 50% of the global renewable energy capacity additions in 2021, with countries like India and China leading the charge. This trend is expected to continue as nations aim to fulfill their commitments under the Paris Agreement, pushing for a more sustainable energy future.
Expert Commentary and Opinion
The shift towards smarter, more resilient energy grids is not merely a technical upgrade; it represents a fundamental change in how energy is produced, distributed, and consumed. The investment logic for transitioning to renewable energy sources is compelling. With the rapid decline in costs associated with solar and wind technologies, coupled with the increasing demand for cleaner energy, the case for investing in renewables has never been stronger.
Moreover, as electric vehicles (EVs) become more prevalent, smart grids will play a pivotal role in managing increased electricity demand. Countries like South Korea are already investing in smart charging infrastructure to ensure that EV adoption does not overwhelm existing grids. The potential for job creation in the renewable sector further strengthens the argument for investment. A report by IRENA indicates that transitioning to renewable energy could create over 24 million jobs globally by 2030, a significant opportunity for Asian economies.
In conclusion, the transition to smart energy grids in Asia is both necessary and advantageous. By embracing technological advancements and fostering supportive policies, Asian countries can enhance energy security, promote economic growth, and contribute to global sustainability efforts.
Conclusion
The imperative for modernizing ageing energy grids in Asia is clear. As nations strive to integrate more renewable energy into their power systems, the adoption of smart grid technologies will be crucial. The combination of declining costs for renewable energy and the necessity for grid upgrades presents a unique opportunity for investment and innovation. Stakeholders across the region must act decisively to harness these opportunities, ensuring a sustainable and resilient energy future.
Sources
- International Energy Agency (IEA)
- International Renewable Energy Agency (IRENA)
- Asian Development Bank (ADB)
- National Renewable Energy Laboratory (NREL)
- Philippine Energy Regulatory Commission
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