Analyst Insight: Non-Wires Alternatives in Asia Pacific

Non-wires alternatives (NWAs) make use of non-traditional transmission and distribution (T&D) solutions such as distributed generation, energy storage, energy efficiency, demand response, and grid software and controls, to defer or avoid the need for traditional grid infrastructure upgrades by reducing load at a substation or circuit level. Globally, the US NWA market is the largest, due in part to the growing number of regulatory requirements at the state level. A larger push is underway worldwide, resulting from cooperation between all key stakeholders: regulators, legislators, utilities, and customers. Developing a business case for NWA projects can often be challenging because of existing market frameworks, technology regulations, and incentive structures. 

However, encouraging NWAs can lead to a cleaner, less congested grid, which is flexible enough to respond to changes in supply and demand. NWAs can be particularly useful in remote, rugged, isolated, or densely populated areas where traditional grid infrastructure may be limited. Additionally, a supportive regulatory environment must be designed to further encourage NWA development, and strong customer engagement strategies must be employed to take full advantage of demand-side resources. 

The Guidehouse Insights Non-Wires Alternatives Tracker provides a comprehensive and up-to-date database of global NWA projects. Information provided for projects tracked includes project name, utility, size, cost, included technologies, status, and more details when available. The most recent Tracker was published in 2Q 2023. This accompanying Analyst Insight focuses on the Asia Pacific region’s large population centers, rural areas, large landmass, and resilience and reliability needs. Three countries in Asia Pacific, Japan, South Korea, and India, are examined to understand how they may leverage NWAs to improve their power grids while deferring costly T&D upgrades.