New renewable energy laws, incentives and economic stimulus funding will result in rapid growth for the renewable energy (RE) sector in the Asia-Pacific region over the next year, according to research firm Frost & Sullivan.
Suchitra Sriram, Asia-Pacific industry analyst for the company's energy and power systems practice, predicted this week that the sector would enjoy rapid growth as a result of growing investor confidence and the increasingly favourable regulatory regime across the region.
"As a result of funding received through the stimulus packages, several projects across the RE spectrum like wind, solar, geothermal, and biomass, are expected to be commissioned in 2010," she said. "Besides expanding investments from the private sector, major utility companies in the region are keen to diversify from their conventional fuels so as to include RE in their energy portfolio."
Frost & Sullivan said that the next few months are likely to see a glut of renewable energy initiatives in the region, including the introduction of a feed-in tariff in Malaysia, the award of renewable energy tax credits in South Korea, the rollout of the government's geothermal energy plan in Indonesia, and the passage of Taiwan's Renewable Energy Development Act.
Sriram added that Japan's new zero-interest loans to green-energy companies would help to ensure 20 per cent of the country's electricity comes from renewable sources by 2020, while the new Australian legislation would result in the country's renewable energy capacity increasing by around a third in the next year.
Frost & Sullivan's prediction came as the Indian government announced that it had formally approved the first stage of its high-profile Solar Mission to install 22GW of solar capacity by 2022.
A statement from Gauri Singh, joint secretary to the government of India, confirmed that the target of delivering 1,000MW of grid-connected solar plants, 100MW of small-scale solar plants and 200MW of off-grid solar systems by 2013. Around $950m of investment has also been approved to help fund the new projects, although the Indian government is also seeking funding from the private sector and industrialised nations to help finance the plan.
In related news, the Indian and Japanese governments reportedly signed an agreement this week to co-operate on the development of a "solar city" which will aim to use 10 per cent less fossil-fuel energy cent over the next five years.
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