In 2016, significant demand for renewable energy was already evident with a total of $241.6 billion invested in the market. In the Asia-Pacific region, governments and leading companies have treated renewable energy as a strategic asset to drive growth and minimize costs.
Renewable energy operators are looking at positive outlook in the region despite falloff in subsidies, heavily betting that energy demand will keep rising, and with it the need to be independent from traditional energy sources.
It’s projected that installed capacity of renewable energy in the Asia-Pacific region will jump from 517 GW in 2020 to 815 GW by 2025. This projected growth will be led by solar energy, whose regional capacity is expected to nearly double from about 215 GW to 382 GW in the same period.
High Solar Energy Capacity
Even before the Covid-19 pandemic, energy transition has already been on the rise in Asian countries. It’s said that solar energy capacity in the region has more than tripled in recent years. Renewable energy infrastructure investment in the region has been high in order to reduce carbon emissions with more affordable technology and economies of scale.
The following factors provides context on these positive developments.
Many governments are ramping up support for renewable energy, setting higher production targets for them. In the case of China, their government’s support has driven a rapid build up whicn in turn propelled the country to become the world’s largest producer of renewable energy. In the local setting, the Department of Energy has implemented R.A 11285 or the “Energy Efficiency And Conservation Act” that mandates companies to adopt energy efficiency practices, such as use of solar energy and te like.
Veering away from the traditional Feed-in-Tariff model, countries in the Asia pacific region are now more into the auction system, a more competitive selection process, for renewable energy gear procurements.
Renewable energy options, particularly solar energy or photovoltaics (PV) modules have been on a downward trend in recent years in terms of price, making them a more practical and compelling option over conventional energy sources.
Bright Future Ahead
Advancements in technology and high levels of support from both Government bodies and the private sector contribute to the growth of renewable energy in the Asia-Pacific region. With the cost of renewable energy options, particularly solar energy going down because of availability and competition, it wouldn’t be surprising to see buildings and residential homes armed with their own solar panels five to ten years from now, which would be delightful for people, the environment, and the economy.