• Businesses looking to enter the region must understand what each one needs and if it is a good fit since opportunities for renewables in Asia Pacific vary from country to country
• Many Asia Pacific countries will have renewables contributing 30-50 percent of their respective power generation mix by the end of the decade
• There is no uniform policy in place regionally as countries find themselves at different stages of the green transition

Opportunities for renewables in Asia Pacific are as diverse as the region itself. Solar, wind, and offshore wind are leading the way, but there is a growing demand for technology and expertise across the clean energy supply chain. These include grid infrastructure, Smart Grid technologies, Battery Energy Storage Systems, and retail market development. Hydrogen, geothermal, and biomass power generation are options being explored as well. With short- and long-term climate targets on the horizon, Asian Insiders Managing Partner Jari Hietala offers an overview of the opportunities available for renewables in Asia Pacific.

The International Energy Agency has stated that investment in renewables throughout Asia Pacific between 2022 and 2030 could reach upwards of USD286 billion. Meanwhile, some analysts predict that many markets in the region will have renewables contributing 30-50 percent of their power generation mix by the end of the decade.

The most visible elements of this investment come in the form of solar PV panels and wind turbines. These can be found in many countries across the region, and while they are a step in the right direction, much more is required to ensure clean energy targets are met in the coming years and decades.

For companies looking at opportunities related to renewables in Asia Pacific, the paramount consideration is fit. Each country has different focus areas and is at a different stage of clean energy development. Understanding this is crucial to selecting the best market.

Finding the Opportunities for Renewables in Asia Pacific

Japan

Clean Energy Targets: Carbon neutrality by 2050 and a 46 percent reduction in greenhouse gases compared to 2013 levels by 2030.

A desire to reduce dependence on energy imports is a driving force for Japan’s renewable ambitions. A significant obstacle land scarcity which makes building large-scale projects difficult. Wind, and in particular offshore wind, are the sources with the greatest potential. The Japan Wind Power Association has noted the latter could eventually produce nearly twice as much electricity as Japan’s primary energy supply.

Rooftop solar is an interesting sector as well. Japan has nearly 3,000 square miles of available rooftop space for solar panels and launched a feed-in tariff (FIT) scheme to incentivise investment. Elsewhere, the country is exploring how best to deploy hydrogen.

Geothermal power generation is another possibility, although the country must work through issues. Notably, the rural sites are not connected to a reliable power transmission network, and work will need to be done with minimal impact to the surroundings.

Renewable opportunities in Japan involve the development of both the grid and Battery Energy Storage Systems (BESS).

Korea

Clean Energy Targets: Carbon neutrality by 2050 and renewables to comprise at least 30 percent of the country’s energy mix by 2036.

Given its current clean energy targets, Korea finds itself in a race against the clock. The country was the seventh-largest energy-consuming nation globally in 2022, yet renewables comprised only a small percentage of the power mix.

The issue has less to do with production, more renewable energy is set to come online over the next decade, and more to do with storage and transmission. There is hope the Korean Smart Grid Roadmap 2030 will improve the current situation. The country has outlined a series of goals that would lead to the completion of the world’s first national-level smart grid as part of the plan. Firms holding technologies and knowledge in this area have an opportunity to help the country overcome potential challenges.  

Meanwhile, South Korea is leading the way in the development of a hydrogen economy. However, assistance is needed in building up the necessary infrastructure and technology to increase existing mobility efforts and eventually allow for hydrogen power generation.

Thailand

Clean Energy Targets: Carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065.

Earlier this year, Thailand released the Power Development Plan which revealed 34,851 MW out of the 47,251 MW of new electricity to be sourced over the next 14 years will come from renewables. Solar makes up the lion’s share of green power produced in the Kingdom although some wind and floating solar projects are slated to come online.

The country may not have any issues generating electricity from renewable sources, but infrastructure currently lags behind these capabilities. The Thailand energy grid either lacks or requires assistance with Smart Systems, consumer products, and overall modernisation.

Another concern in Thailand is a lack of Battery Energy Storage Systems (BESS). Scaling these up is the only way to successfully navigate supply and demand challenges. This is something the Thai government has recognised, and the Energy Policy and Planning Office (EPPO) partnered with relevant agencies to create an action plan promoting Thailand’s battery energy storage industry to foreign investors.

Taiwan

Clean Energy Targets: Net Zero by 2050 and renewables to account for up to 27 percent of energy production by 2026.

At the start of the 2020s, Taiwan was seen as one of the most challenging markets to source renewable electricity due to high costs, low supply, and lack of market transparency. Progress has been made on that front, but much work remains to reach its climate goals.

Taiwan is looking at various clean energy opportunities with offshore wind, solar, hydropower, and geothermal each seen as a potential solution. Recently, the Taiwanese government released a renewable blueprint that promotes technology research and development as well as innovation in key areas.  

There are also feed-in tariffs, tax incentives, and subsidies to promote investments in wind, solar, and other renewable energy sources available in Taiwan.

Vietnam

Clean Energy Targets: Commitment to net zero by 2050. At least 32 percent of the country’s energy supply to come from renewable sources by 2030,

With the Power Development Plan VIII (PDP8) finally approved in 2023, Vietnam now has a roadmap and targets in place as it relates to renewable energy. However, the real driver of these efforts is going to be the demand for clean energy from international manufacturing firms operating in the country.

Vietnam has the resources needed to succeed as both sun and wind are in abundant supply. It is a matter of scaling up renewable power generation projects along with transmission and distribution grids and battery storage facilities. The government also needs to ensure renewable-energy projects are profitable, something that is not always the case at present.

Renewable opportunities are available in Vietnam, especially in the solar and offshore wind sectors, but those looking at the market will want to have a local partner on hand to navigate the situation which lacks clarity compared to elsewhere in Asia Pacific.

The Philippines

Clean Energy Targets: Renewables to consist of 35 percent of the energy mix by 2030 and 50 percent by 2040.

Like Vietnam, the Philippines has a wealth of renewable resources to tap into with offshore wind, solar, geothermal, and hydropower all possible. However, the country has hesitated to commit to major clean energy targets, instead placing the onus on the private sector to increase activities.

That was one of the reasons the government approved a policy allowing foreign investors to wholly own companies involved in the exploration, development, and utilisation of solar, wind, hydro, and ocean or tidal energy resources.

Additionally, tax holidays, enhanced deductions, and preferential tax rates are available for companies that focus on EV assembly, manufacturing of EV parts, renewable energy, and energy storage.

The downside is that some experts believe the scope of the green transition may be limited without more robust renewable energy targets in place.

Other opportunities for renewables in Asia Pacific

Opportunities for renewables in Asia Pacific are not limited to the above countries. In fact, most other markets are in need of foreign investment in one form or another. Cambodia has its Power Development plan outlining ambitious clean energy goals for 2040, Malaysia is making progress on renewables, and Indonesia is scaling up efforts as well.

Businesses looking to enter Asian markets should investigate the various opportunities on offer and decide which one best aligns with their skills, technologies, and expertise.  

To learn more about the renewable energy opportunities in Asia Pacific and assess your readiness to enter the market, schedule a no-obligation call with Jari Hietala, Managing Partner: jari.Hietala (at)asianinsiders.com