“Energy Transition: A Roadmap for Asia and the Pacific”

Overview

Asia is home to two of the world’s most developing countries – China and India. Also, Asia has 93% of the most polluted cities worldwide and six out of ten countries at risk from climate change. The economies of many Asian countries are developing, and as a result, the region faces high energy demand. Fossil fuels are the main source for energy demand because it is the obvious cheap option for Asian countries. In recent years, there has been an increase in efforts to support the energy transition process towards renewable resources.

This article explores the dynamic shift from traditional fossil fuels to renewable energy sources within this diverse region. It also delves into the strategies and technologies driving the energy transition, highlighting the unique challenges and opportunities faced by countries in Asia and the Pacific. It examines the pivotal role of policy, innovation, and cooperation in accelerating the energy transition towards a sustainable energy future.

By embracing renewable energy, these nations are not only enhancing their energy security but also contributing to global environmental goals. Join us as we navigate through the transformative journey of energy transition in one of the world’s most vibrant and rapidly developing regions.

Challenges

Asian developing countries are facing greater challenges in changing their energy mix from fossil fuels to renewable sources. Political and economic concerns, along with the impact of COVID, have emphasized these challenges. Recent geo-political events have complicated the need to develop robust resilient systems to ensure smooth transition to renewable sources.

Energy Mix

According to Global Data’s recent report, thermal generation currently represents 70% of Asia’s energy mix, from coal. Thermal generation is expected to drop to 55% of Asia’s energy mix by 2035. This will be a direct result of using more renewable sources. Asia’s overall generation will continue to see an increase in renewable sources. This increase is expected to be 63% in 2035 compared to 40% in 2022.

Thermal generation is expected to decline by 2035, where oil will decline by 15% while gas will increase by 44%. This is because of the rising demand for lower-carbon fuels, favoring natural gas rather than oil. Coal has not dropped as much as expected due to the lack of clear coal-phase-out policies within Asian countries.

Transition

A lack of varied energy sources creates enormous risks and huge volatility to energy supply and prices. An important tradeoff needs further attention during the transition to renewable sources. Fossil fuels are currently the main source for a stable base load power, needed for economic growth. This base load power must be carefully balanced against the long-term need to switch to renewable sources. For a successful transition, Asian developing countries need to cooperate with their partners to address many challenges. These include geopolitical issues and technological and financial constraints, which will require: