Asia Pacific Renewable Energy Market: Industry Analysis and Forecast (2024-2030)

Asia Pacific Renewable Energy Market Overview:

The Asia Pacific region accounts for 60% of the world's population and has the world's fastest-growing regional energy demand. The region has surpassed North America and Europe in terms of renewable energy output. For example, Australia, China, India, and Japan, have all increased their investments in their respective renewable energy sectors. With an average of roughly 140 gigawatts of extra capacity added yearly in Solar and Wind, China, Japan, India, South Korea, and Taiwan are among the major contributors to renewable investments in the Asia Pacific.

 

According to the United Nations research, modern renewables, such as wind and solar, accounted for just around 6.8% of the region's overall energy consumption during 2020. More than half of world energy consumption is consumed in the region, with fossil fuels accounting for 85% of that consumption. Even still, one-tenth of the population in this huge area lacks access to electricity, and many more rely on traditional biomass cooking and heating methods (such as wood combustion). Energy demand is rising as a result of rapid urbanization and industrialization, and there are significant changes to prevent long-term reliance on carbon-based energy technology.

 

 

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Asia Pacific Renewable Energy Market Dynamics:

Growing Environmental Awareness:

 The Asia Pacific renewable energy market is benefiting from a growing public awareness of environmental pollution and the suffering caused by harmful emissions. Oil, natural gas, and coal are wreaking havoc on the environment, necessitating a greater move towards renewable energy sources. More countries are adopting sustainable development strategies and policies as a result of escalating environmental damage. Growing economies like India and China are encouraging countries to invest more in renewable energy growth in order to conserve resources such as electricity and reduce environmental damage.

 

In the Asia Pacific region, securing clean, affordable, and sustainable energy is critical to its economic and social development. Even though some APAC countries have been slower to invest in and install clean energy than others, SMR expected that the region will become a leader in renewable energy deployment in the next decade, with 500 GW of non-hydro capacity installed.

 

Regional Present and future Scenario of Renewable Energy:

According to Southeast Asia market analysis by the International Renewable Energy Agency (IRENA), the region’s energy consumption is expected to more than double by 2040.  For example, Southeast Asia is home to nearly 1 in 10 of the world’s population and some of the fastest-growing economies. According to the International Energy Agency, millions of people have gained access to electricity over the past 20 years, with 45 million still to be connected. According to IRENA, the region’s population is expected to grow by another 25% by 2050, accelerating demand for affordable and reliable energy. Renewable energy could meet a large portion of this potential development.

 

ASEAN has set an ambitious goal for renewable energy: by 2025, renewables are expected to account for 23% of the region's total primary energy supply. Regional leaders and governments have extended their efforts to take advantage of renewable energy opportunities in order to offer a future that is "energy secure, accessible, affordable, and sustainable for everybody."

 

SMR report expected that the Asia Pacific will continue to outperform other regions as a market for renewable energy investment and development over the next decade, with capacity expected to rise to 2 terawatts by 2031 and the Levelized Cost of energy for renewables falling below fossil fuel alternatives over the same time period. This forecast reflects a fundamental shift in the regional energy mix, which is expected to result in substantial and irreversible changes in the way energy is created, transmitted, and consumed in the Asia Pacific region.

 

Cost insights of Regional Renewable Energy:

Renewable energy costs in the Asia Pacific are currently on average 16% higher than fossil fuel power costs during the project lifetime, despite the fact that renewable energy is between 12 and 29% cheaper than coal, the lowest-cost fossil fuel, in India, China, and Australia. In the past year, the average Levelized cost of electricity (LCOE) for new solar projects in the region is increased by 9% to US$ 86 per MWh. It increased by 2% to USD 103 per MWh for onshore wind projects.

According to SMR analysis, Renewable energy, mostly utility solar, is expected to be 27.8% cheaper than coal in the region by 2030. Choosing choices to lower the fossil fuel contribution of the Asia Pacific power system, which now stands at more than 68%, is a crucial factor in economics. Although the costs of wind and solar are decreasing, choices for reliable and dispatchable power to aid decarbonization remain prohibitively expensive.

 

Renewables Energy Targets Commitment by Regional Countries:

The three major Northeast Asian markets, China, Japan, and South Korea, announced net-zero carbon targets in the second half of 2020. Renewable Energy is expected to play a key role in achieving the market-driven net-zero goal. Several nations in the Asia Pacific have power development plans that are set to be released during the forecast period. For example, the Philippines plans to update its power development plan in 2021, which would include the most recent draught National Renewable Energy Program (NREP) 2020-2040, which aims to achieve 30 GW of installed renewable capacity by 2040.

 

India has set an aggressive renewable objective of 450 GW by 2030, other markets in South Asia, such as Pakistan and Sri Lanka, are upgrading their renewable targets as part of their integrated planning. The tentative targets announced include growing renewable energy contribution to 30% in Pakistan and 70% in Sri Lanka, respectively, with finalization due in 2021. As a result, these factors are expected to boost the regional renewable energy market growth throughout the forecast period.

 

Regional Outlook of Renewable Energy Sector:

Thanks to the enormous number of projects, China and India have the most capacity in the Asia Pacific area, accounting for three-quarters of the region's renewable energy capacity. These developing countries are increasing their investments in geothermal energy production as it is more efficient and cost-effective. Nearly 80% of the world's wind energy potential is concentrated in Asia. China and India have the world's largest photovoltaic (PV) capacity, which is likely to increase even more during the forecast period. Wind energy production capacity is expected to increase in rising Asian countries, particularly Thailand and Korea. In addition, continued focus on new and emerging technologies such as green hydrogen and utility-scale batteries are expected to accelerate the renewables storey and attract additional international investment. As a result, these factors are expected to boost the renewable energy market growth throughout the forecast period.

 

 

Asia Pacific Renewable Energy Market Segment Analysis:

By Type, the Renewable Energy Market is segmented into Hydroelectric Power, Wind Power, Bioenergy, Solar Energy, and Geothermal Energy. The Wind Power segment is expected to grow at a significant CAGR of 9.3% during the forecast period. The growing investment in the wind power sector by governments and regional key market players are expected to boost the segment growth throughout the forecast period. Approximately 18 GW of offshore wind capacity is now under construction, with approximately 9 GW scheduled to come online in 2022. Nearly 7 GW of the additional capacity will come from China in 2022. The other three markets where growth will be substantial, are Japan, South Korea, and Taiwan. These three markets currently have roughly 300 MW of installed offshore capacity, which is forecast to expand to 1.6 GW in 2020.

 

 

Important Factors to Consider when Producing Renewable Energy in Asia-Pacific:

In most Asia-Pacific countries, land acquisition is currently a major concern; nevertheless, regional governments are gradually taking land allocation risk for Renewable Energy projects.

 

Grid connectivity and stability have a significant impact on renewable energy projects in remote places that are not connected to the main grid. Stable grid networks are critical for future large-scale developments.

 

Many governments in Asia-Pacific have favorable regulatory and legal frameworks for renewable energy, as well as high Renewable Energy capacity targets.

 

As most off-takers in the region are in bad financial shape, Renewable Energy developers must ensure off-take security for PPAs to limit the possibility of a payment default.

 

In most Asia-Pacific countries, local debt, long-term loans, and dropping interest rates provide a good financing base for renewable energy projects.

 

The objective of the report is to present a comprehensive analysis of the Asia Pacific Renewable Energy Market to the stakeholders in the industry. The report provides trends that are most dominant in the Asia Pacific Renewable Energy Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Asia Pacific Renewable Energy Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Asia Pacific Renewable Energy Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Asia Pacific Renewable Energy Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Asia Pacific Renewable Energy Market.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Asia Pacific Renewable Energy Market. The report also analyses if the Asia Pacific Renewable Energy Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Asia Pacific Renewable Energy Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Asia Pacific Renewable Energy Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Asia Pacific Renewable Energy Market is aided by legal factors.

 

Asia Pacific Renewable Energy Market Scope:

Asia Pacific Renewable Energy Market Scope
Market Size in 2023	USD 488.85 Bn.
Market Size in 2030	USD 936.38 Bn.
CAGR (2024-2030)	9.73
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	by Type Hydroelectric Power Wind Power Bioenergy Solar Energy Geothermal Energy
	by Application Residential Commercial Industrial Others
Country Scope	China India  Japan  South Korea Australia  ASEAN Rest of APAC

 

Asia Pacific Renewable Energy Market Key Players:  

• TBEA Sunoasis Co., Ltd.
• BCG
• Mahindra EPC Irrigation Limited
• Tata Power Limited
• Suzhou Talesun Solar Technologies Co., Ltd.
• Windflow Technology Ltd.
• Zhejiang Chint New Energy Development Co Ltd
• Abengoa
• Vestas Wind Systems A/S