Investment Opportunities in Seven Asian Markets with Renewable Supply Chains Expected to Surpass US$1.1 Trillion by 2050

Unlocking the Trillion-Dollar Investment Potential in Solar and Offshore Wind Power Project Supply Chains in Asia-Pacific

The future of energy in the Asia Pacific region is looking bright, with a new report from the Institute for Energy Economics and Financial Analysis (IEEFA) highlighting the immense investment potential for solar and offshore wind power projects. With over US$1.1 trillion in investment opportunities through 2050, the capacity to generate 873 gigawatts of clean energy is within reach.

Grant Hauber, IEEFA’s Strategic Energy Finance Advisor for Asia, emphasizes the immediate benefits of investing in solar energy, as well as the long-term advantages of participating in the offshore wind supply chain. The report focuses on seven key markets in Asia, outlining the investment opportunities and potential for localized supply chains.

One key takeaway from the report is the significant value that can be derived from non-panel and non-turbine spending within the solar and offshore wind supply chains. With at least 75% of total investment through 2050 dedicated to these components, there is a $770 billion opportunity for domestic industries over the next 25 years.

China currently dominates the global supply chain for solar PV panel manufacturing, but countries outside of China can still benefit from investing in other project-level components. The concept of the balance of system (BOS) is highlighted, with BOS investments constituting the majority of PV farm costs.

In the offshore wind sector, Asia’s abundant resources and traditional maritime economies position the region well for large-scale projects. Shipbuilding for offshore wind presents a significant opportunity, with a potential investment value of up to US$97 billion. The report underscores the need for specialized wind turbine installation vessels to meet the growing demands of the offshore wind market.

Despite the immense potential outlined in the report, many Asia Pacific countries are currently underestimating the opportunity for renewable energy capacity additions. Policy alignment is crucial to realizing this potential, with a focus on maximizing low-cost capacity additions at scale to benefit domestic businesses, consumers, and governments alike.

As the transition to a sustainable energy economy accelerates, the Asia Pacific region stands to benefit from the trillion-dollar investment opportunities in solar and offshore wind power. With the right policies and investments in place, the future of clean energy in the region looks promising.

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