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ASIA-PACIFIC: Additional annual wind power capacity in Asia Pacific excluding China (APEC) could reach 12.1GW by 2022, according to a new report — more than double the 5.5GW added in 2017.<\/p>\n
India\u2019s shift to an auction system and the government\u2019s ambition to tender 10GW annually will help drive this growth, according to analysts at Make Consulting, part of the Wood Group.<\/p>\n
In Australia, initiatives at state level will drive growth while the governing Liberal party feud with the opposition Labor party over the final design of the proposed national energy guarantee (NEG) scheme.<\/p>\n
The analysts also expect Japan to reduce the time spent on lengthy environmental impact assessments and overcome grid uncertainty.<\/p>\n
Meanwhile, Make anticipates Taiwan will hold further auctions post-2025, following the commissioning of projects tendered in 2018.<\/p>\n
The analysts predict cumulative capacity in the region will reach 141GW in its ten-year outlook period \u2014 up from just under 46GW today.<\/p>\n
In a research note, Make describes India as being “mostly reliant on large-scale auctions”, and links the shift to tenders as a potential driver of record growth.<\/p>\n
India held its\u00a0first auction<\/a>\u00a0in February 2017 and has since held further tenders at state level, as well as at national level.<\/p>\n The government now plans to tender at least 10GW per year, and to have\u00a060GW of wind power capacity<\/a>\u00a0installed by 2022.<\/p>\n The shift to a tendering system has also seen prices fall \u2014 from a pre-auction feed-in tariff (FiT) rate of INR 4-6kWh ($0.058-0.087\/kWh) to the\u00a0record-low<\/a>\u00a0rate of INR 2.43\/kWh ($0.037\/kWh) in the Gujarat state auction in December 2017.<\/p>\n India has just over 33GW installed, according to\u00a0Windpower Intelligence<\/em><\/a>, the research and data division of\u00a0Windpower Monthly<\/em>.<\/p>\n Political infighting over the final design of the country\u2019s National Energy Guarantee (NEG) scheme \u2014 a policy proposed to reduce emissions and ensure reliability by encouraging retailers to invest in dispatchable energy supply \u2014 prevents the national government from promoting growth, Make claimed.<\/p>\n There is also uncertainty over the replacement of the national renewable energy target (RET) in Australia, and this hinders potential growth, the analysts added.<\/p>\n Australia is set to surpass its 33TWh by 2020 RET\u00a0ahead of schedule<\/a>. However, this target was reduced from 41TWh in 2015.<\/p>\n Plans to replace the RET with a clean energy target, which required energy retailers to ensure the supply of dispatchable energy and lower emissions,\u00a0were scrapped<\/a>\u00a0in November 2017.<\/p>\n State governments, however, have been more successful in promoting wind power and enabling renewable investment, Make said.<\/p>\n South Australia, for example, leads the country with 1.65GW installed and met its own 50% renewable energy target in 2017 \u2014 eight years ahead of schedule.<\/p>\n Nationally, a record $9 billion (A$11.8 billion) was invested in wind and solar projects last year \u2014 an increase of 150% year-on-year, according to a\u00a0report by the country\u2019s Clean Energy Council<\/a>\u00a0in June.<\/p>\n Australia has just over 4.5GW installed, according to\u00a0Windpower Intelligence.<\/em><\/p>\n Make pointed to Japan\u2019s tough\u00a0environmental impact assessment<\/a>procedures, concerns about\u00a0grid accessibility<\/a>, and lack of mechanism for consumers to sign direct power purchase agreements with wind power producers, as potential obstacles to growth.<\/p>\n However, the analysts remain buoyant over the government “formalising new regulations<\/a>\u00a0to support more offshore wind development”.<\/p>\n Make expects the EIA time to be reduced, grid constraints to be eased, and the reforms to facilitate more choice for consumers.<\/p>\n Japan has just over 3.4GW installed, according to\u00a0Windpower Intelligence.<\/em><\/p>\n The analysts described Taiwan as an “outlier” for its wind power growth being reliant on offshore wind.<\/p>\n Taiwan\u2019s reputation as a future offshore wind hub has been growing with developers opening offices, forming joint ventures and securing financial backing for projects.<\/p>\n The government is\u00a0targeting 5.5GW<\/a>\u00a0of offshore wind by 2025, and between\u00a0April<\/a>\u00a0and\u00a0June 2018<\/a>\u00a0it awarded 5.4GW across 14 sites.<\/p>\n Make stated it expects further auctions to cater for growth post-2025 \u2014 by which stage all projects already awarded are due to be commissioned.<\/p>\n It also expects the emergence of a domestic supply chain to support other markets throughout Asia-Pacific.<\/p>\n Commercial lobbying group, the European Chamber of Commerce Taiwan, has\u00a0previously voiced concerns\u00a0<\/a>about projects\u2019 bankability, and the reliability of the grid.<\/p>\n Taiwan has under 700MW of operational capacity,\u00a0Windpower Intelligence<\/a>\u00a0<\/em>figures show.<\/p>\n In the rest of Asia-Pacific region, wind power prices are increasingly competitive, Make stated.<\/p>\n This is leading policy makers to reconsider the level of financial support for wind power and to move towards auction systems.<\/p>\n The Asia Pacific region (excluding China) has nearly 46GW installed,\u00a0Windpower Intelligence<\/a>\u00a0added<\/em>.<\/p>\n World leader China has more than 168GW installed.<\/p>\nAustralia<\/strong><\/h4>\n
Japan<\/strong><\/h4>\n
Taiwan<\/strong><\/h4>\n
Competition<\/strong><\/h4>\n