The power generation sector continues to
evolve, with increasing support policies propelling
increased renewable energy deployment, which
in turn leads to technological improvements as
well as continual cost reductions. Despite this
virtuous cycle, renewable energy deployment
and integration is not increasing rapidly enough
to meet the world’s ambitious goals for a truly
sustainable power system (IRENA, 2015).
As of 2012, renewable energy accounted for
approximately 17% of electricity production in
the Asia-Pacific region, down slightly from 18%
in 1990. In absolute terms, renewable energy
production increased from 666 TWh in 1990 to
1,869 TWh in 2012. Over this period, however,
generation from VRE sources increased from 38
GWh of electricity production in 1990 to nearly
164,000 GWh (164 TWh) in 2012, accounting
for 1.5% of total electricity production within the
region as of 2012. Total electricity production
nearly tripled from 3,743 TWh in 1990 to 10,739
TWh in 2012 (ESCAP, 2015).
Variable Renewable Energy
VRE sources include wind, solar PV and
concentrated solar power (CSP), wave and tidal
energies. Globally, shares of VRE sources within
the electricity mix have risen from 0.04% of
electricity production in 1990 to 2.8% in 2012,
significantly higher than the 1.5% share that
VRE accounts for in the Asia-Pacific region. The
emergence of VRE is due in part to the fact that
the cost-competitiveness of these technologies
has reached historic levels.
Three factors make VRE a critical theme
requiring in-depth examination within the context
of energy development in the Asia-Pacific region.
Firstly, the barriers to capturing VRE resources
are getting lower. Technology for capturing and
storing energy, stability of distribution systems,
capital costs and even physical space continues
to advance at unprecedented speeds, while
costs - particularly for solar PV - continue to fall
more rapidly than predicted just a few years ago.
Secondly, Governments, the private sector and
the general public are increasingly turning towards
VRE for power production. The Asia-Pacific region
has emerged in the past few years as a leader in
the production and adoption of VRE technologies.
Led largely by China, the region is driving
the global trend in production of solar and wind
power and shaping the global markets for these
technologies.
Increasingly, the benefits of generating
electricity from VRE rather than fossil fuels are
recognised. Recent developments in policy,
investment, generation and capacity additions
point strongly in the direction of a significant
increase in future VRE integration within the
region’s power systems.
Thirdly, the Asia-Pacific region has the
opportunity to transition to more flexible, stable,
cleaner and cost-effective future energy systems
that can better integrate the power resources of
both today and tomorrow. The region’s dynamic
power systems are leading the increase in global
electricity demand, yet many countries struggle
to generate base levels of electricity. Tremendous
investment is needed to expand and refurbish
the region’s electricity systems, and incentives
exist to turn to the cheapest and easiest fuel
and technology solutions to meet this need.
However, not planning for long-term economic,
social and environmental costs, or not developing
energy systems that can better integrate shifting
resources and emerging technologies, may result
in the inability to meet future demand in an
economically cost-effective manner.
Renewable Energy Outlook
According to the IEA World Energy Outlook
2014, cumulative power plant capacity additions
between 2014 and 2025 will be dominated by
renewables within the Asia-Pacific region with
777 GW of added capacity, followed by coal (506
GW), gas (303 GW), nuclear (125 GW) and oil (4
GW). In terms of generation shares within the
electricity mix, renewable energy within the AsiaPacific region will increase from 17.4% in 2012 to
28% in 2040 according to the IEA New Policies
Scenario (NPS). VRE will jump from 1.5 to 10%
over this same period, within the region.
In order for renewable energy supply to
reach these NPS targets by 2040, a cumulative
investment of US$7.8 trillion is needed, with
approximately 95% to be spent on power
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