Grid-forming inverters seize control to stabilise Asia’s power

Electricity demand is rising faster than the physical networks that deliver it.

Grid-forming inverters, which help electricity systems maintain steady voltage and frequency, are becoming essential in Asia as demand for electricity outpaces grid upgrades.

Utilities across East, South, and Southeast Asia are turning to these inverters to support networks strained by growing renewable energy, large digital loads, and industrial expansion.

“We’re moving from converters that follow the grid to converters that can lead the grid,” Matthias Foehr, vice-president of product management for grid technologies at Siemens Energy AG, told Asian Power.

Electricity consumption in the region is rising rapidly due to artificial intelligence (AI) data centres, electric vehicles, and energy-intensive industries like semiconductor and battery manufacturing. At the same time, governments are expanding solar and wind power, which makes electricity supply less predictable. Traditional grids, built for steady demand from coal, gas, and hydropower, are struggling to handle these changes.

Investment in new transmission and distribution infrastructure has lagged behind demand growth for years, leaving utilities to manage concentrated loads with aging networks, according to S&P Global’s Horizons Top Trends 2026 report.

“Electricity demand is rising faster than the physical networks that deliver it,” Foehr said in an emailed reply to questions. “We are seeing more variable power generation, more sensitive industrial demand, and a need for much tighter system control.”

New transmission lines and substations can take a decade or more to build because of land constraints, regulatory hurdles, and financing challenges. As a result, utilities are focusing on strengthening existing systems rather than relying solely on physical expansion.

Grid-forming tech is already having an impact across transmission, distribution, and renewable integration, said Mike Bowman, chief technology officer at GE Vernova, Inc.

“In several regions, energy storage systems with grid-forming inverters are being connected to transmission networks to help stabilise the system,” he said in an emailed reply to questions.

Renewable projects are increasingly paired with grid-forming capability, whilst distribution networks benefit from improved stability and the ability to operate independently during disruptions, he added.

Grid-forming inverters differ from conventional inverters, which rely on a strong existing grid signal.

Instead, grid-forming inverters can establish voltage and frequency, allowing renewable energy and battery storage systems to stabilise the grid as conventional fossil fuel power plants retire.

They also let local energy systems run on their own during power failures, making the grid more resilient.

They can provide a stable reference for the grid, support black-start operations when the main grid is down, and help maintain system stability during spikes in electricity use from AI data centres and electrified industries.

Despite these advantages, integrating grid-forming inverters into existing grids remains challenging. Legacy infrastructure was not designed for inverter-based power sources, requiring upgrades to protection systems, operator training, and new modeling techniques, Bowman said.

The cost and complexity of grid-forming inverters are also higher than traditional systems, which can slow adoption, he pointed out.

Digital control systems are becoming more important to manage multiple inverters and local energy sources.

Advanced platforms allow near-real-time monitoring, automated responses to changing demand, and more accurate forecasting of electricity needs.

Whilst these technologies help utilities manage congestion and improve stability, they can’t fully replace physical grid expansion.

Analysts warn that without faster grid modernisation, Asia could face higher electricity prices, longer delays in connecting new industrial facilities, and greater risk of blackouts.

Utilities need to pursue both digital upgrades and physical expansion in parallel to keep pace with rising electricity demand.

“There is a significant learning curve,” Foehr said. “But as renewable use increases, these technologies move from optional to necessary.”

How quickly utilities adopt these technologies may determine whether the region’s electricity systems support economic growth or constrain it in the coming years.