Emergence of Asia-Pacific Renewable Energy Sector

 Asia Pacific estimates for around 60 percent of the global population and has the fastest rising regional energy demand in the world, according to the UN.

The use of renewable power in the Asia Pacific has frequently outpaced that of the U.S. and Europe in recent years, mainly due to the notable growth of projects in India, China, and Australia.
 

 
Securing affordable, clean, and sustainable energy in this diverse region is essential to underpinning its social and economic growth.

Regional leaders
China and Australia emerge as world leaders in APAC renewable investment. In 2017, China invested $360 billion in renewable energy by 2020. In the same year, China accounted for a record 45% of the sector’s global investment, as stated by the report of Renewable Energy Policy Network of the 21st Century.

The Clean Energy Council in Australia stated 700 MW of renewable projects were finished and started generation in 2017; large-scale wind and solar projects accelerated investment in Australia up 150% to a record $9b that year.

Investment challenges
Around 420 million people across APAC still require access to electricity, as per the report of the UN Economic and Social Commission. It states that the expected annual investment required in the Asia Pacific to adhere to the “UN Sustainable Energy for ALL” aim of raising the percentage of renewables by 2030.

The increase of renewable energy in Asia Pacific growing nations have been delayed by incompetent grid systems and unsupportive management and regulations. Also, government funds are often inadequate to suffice the high cost of constructing and maintaining infrastructure in geographically challenging regions.

Typically, the least costly technology is considered to be hydropower and hence it is the most prevalent among these countries too. There has been adrift in recent times for decentralized, tiny hydropower projects to give electricity to remote areas in countries, like China, Indonesia, and Nepal.

Future growth
The utilization of renewable energy in the Asia Pacific is growing. A PwC study determined that "renewable energy remains to be viewed as a key area of growth in the future globally and chief economies of Asia-Pacific, with 64% of respondents having a positive outlook."

Within the region, the chief leaders will be Japan, China, India, Australia, Indonesia, and the Republic of Korea, as per ESCAP. Particularly China and India will be the chief drivers of renewable energy as per BMI Research, adding 430 MW of wind and solar by 2027.

Overall, the prospect of a renewable energy company in APAC is very positive. The potential and demand in these regions are significant, with more favorable government plans, policies, and coordination to build safer investment conditions, renewables will proceed to eat into necessary fossil fuel’s share of the region’s energy mix.