Asia to lead next decade’s global growth in renewable energy: Fitch Solutions

Asia will lead the world’s growth in renewable energy in the coming decade – with the region contributing to the bulk of all renewable capacity additions during this period, according to Global Renewables Report, which was out on Friday (Sep 23).

Much of this global renewable growth will come from a new surge In solar energy, it added.

Fitch Solutions Country Risk & Industry Research – a division of Fitch Group – said it expects 2 terawatts (TW) of new capacity to come online in the coming decade, which is an increase from its previous prediction of 1.8 TW.

This will be driven by new efforts to ensure regional energy security amid volatile energy markets and more aggressive renewable targets.

Of the renewal energy sources, Fitch Solutions expects the solar sector to add significantly more capacity than wind – 1.2 TW versus 0.8 TW – with a wider global appeal and increasing solar rooftop targets and mandates driving growth forward.

As for Asia, some two-thirds (66 per cent) of its power capacity growth in the next decade is set to come from non-hydropower renewables, amid increasing support for renewable energy as a means to diversify away from fossil fuels.

Fitch Solutions expects China to remain the main contributor to Asia’s non-hydropower renewables capacity growth, thanks to the mainland’s robust solar and wind equipment manufacturing industry, as well as its strong governmental commitments to the sector.

It pointed to China’s 2023 rooftop solar mandates for commercial buildings as the source for “vast new opportunities for growth” and the boost in its outlook for capacity growth.

However, Asia’s wind power generation outpaces solar’s, it added. Further technology developments in the wind power sector are expected to support greater generation growth in the years ahead.

Globally, Fitch Solutions expects the non-hydropower renewables sector to experience robust growth in the coming years, supported by government climate commitments. It also expects renewables growth to be bolstered by the expansion of the green hydrogen sector, rising power consumption and policy instruments, such as carbon pricing.

“The EU (European Union), China, India, Japan and the US, represent more than 77 per cent of the world’s non-hydropower renewables sector, setting the pace for the expansion of the global renewables sector with new targets. However, current project pipelines and supportive renewables policies need to be strengthened to reach set targets, with most major markets set to fall short,” it said.

Fitch Solutions added that it expects surging renewable growth in the near term to stabilise slightly over the coming decade, as the effects of Covid-19 delays and stimulated growth are eased.

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