Study: Solid Infrastructure Is Key To Smart Grid Technology Development

The Asia Pacific, Australia and Singapore are the ideal destinations for smart grid companies because they have a well-developed infrastructure, high technology acceptance and advanced software, finds a new analysis from .

Countries such Singapore and Indonesia, which are densely populated, are investing significantly in smart grid technologies. Smart grids are also gaining traction in Southeast Asia, Australia and New Zealand, as environmental agencies are pressuring governments to conserve their resources.

This has created a huge market for telecom operators, equipment manufacturers and other services providers, according to Frost Sullivan.

In addition, there is a growing realization that several industries must grow in tandem to make the most of a smart grid system. This is prompting higher investments in software and IT services for the smart grid to aid with real-time data analysis.

«It is also felt that closed-loop systems will gain prominence in the monitoring and controlling of smart grids,» adds Krishnan Ramanathan, a research analyst with Frost Sullivan. «Hence, complete integration of systems will provide opportunities for automation manufacturers.»

Smart grids help to lighten the loads on conventional electricity grids, Ramanathan points out.

«Using a smart grid also eases the load on auxiliary power plants," Ramanathan notes. "For instance, an electric utility could draw power from several solar installations rather than operate on auxiliary power. Apart from reducing loads, smart grids enable countries to comply with emission norms, doing their market prospects no harm. «

However, smart grids do face some opposition, as some say the full potential of the technology can only be tapped when usage patterns are ascertained.

In addition, there are concerns that automated systems can cause the smart grid system to collapse, which compels companies to invest in security systems. However, this risk is inherent in all similar technologies.

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