Renewables investment to top $1.3 trillion in APAC this decade

London (Quantum Commodity Intelligence) – Investment in renewable power generation in the Asia-Pacific could hit $1.3 trillion over the 10 years to 2030, double that of the prior decade and more than twice the investment made in fossil power over the same period, said a Wood Mackenzie report released Tuesday.

Total investment in power systems will be $2.4 trillion between 2021 and 2030, with fossil fuel investment worth $540 billion and power from hydro, nuclear and battery storage making up the remainder.

Carbon emissions from the Asia Pacific power sector would peak at 7.3 billion mt in 2025 as a result, less than the level of most developed countries, said the report.

However, subsidy-free renewable power is not expected to compete economically with coal power until at least 2025 and new coal-based generation will make up 55% of fossil fuel investments up to 2030.

"Although we expect a 47% drop in carbon emissions from the power sector from its peak of 7.3 billion tonnes in 2025, inertia in the coal power fleet will prevent Asia Pacific from reaching carbon-free power by 2050," said Alex Whitworth, research director.

"Adapting new emission reduction technologies such as carbon capture and storage and green fuels (hydrogen, ammonia, biomass etc.) into coal and gas generation will be key in reducing power sector emissions."

Investments in new coal capacity would fall to a 30% share of fossil fuel capex in the 2030's though, as natural gas increases its share of the market.

Hydrogen-based power generation was included within the renewables investment figure, but this was not expected to "take off" until the 2030's onwards, a company representative told Quantum.