Solar power is helping seven Asian countries avoid spending $34 billion on fossil fuels in the first half of 2022 amid soaring gas prices, according to a new study.
China, India, Japan, South Korea, Vietnam, the Philippines and Thailand saved fossil fuel costs equivalent to 9 percent of these countries' total fossil fuel costs between January and June, according to a joint report from the London-based think tank Ember. Center for Energy and Clean Air Research and Institute for Energy Economics and Financial Analysis.
d said Ahmed Shahram Idianto, Electrical Analyst at Ember Asia. “With solar energy and storage prices falling and potential cost savings starting to become apparent, it appears that the dominance of solar power in Asia will come sooner than previously thought.”
China, which has the largest solar capacity in the world, saw the biggest savings at about $21 billion, with solar power accounting for 5% of total electricity demand.
Japan is the second largest contributor, with $5.6 billion in fuel costs saved from solar power alone, a record for the country in May.
As solar and storage prices fall and potential cost savings begin to emerge, it looks like solar dominance in Asia will arrive sooner than previously thought.
Dr. Ahmed Shahram Idianto, Electrical Analyst, Ember Asia
In India, where rising coal prices are a major factor in the ongoing energy crisis, solar has helped avoid $4.2 billion in fuel spending and the need for an additional 19.4 million tons of coal, which will be the focus. in addition to. Limited local supply.
South Korea, which owns 5% of solar energy production, saved $1.5 billion.
On the other hand, Vietnam had almost zero kilowatt-hours of solar power production in 2018, but it has reached a point where solar power accounts for 11 percent of electricity demand, which is equivalent to 14 TWh. This allowed the country to avoid an additional $1.7 billion cost from fossil fuels.
Even in Thailand and the Philippines, where solar energy growth has been slower, there have been real savings in total energy costs. Although solar power will account for just 2 percent of Thailand's electricity in the first six months of 2022, producing it means the country can do so without spending $209 million on fossil fuels. Similarly, the Philippines avoided spending $78 million on coal, oil and gas, even though solar power only accounts for 1.7 percent of total electricity generation.
Philippines and Thailand. New solar ambitions
The report states that the Philippines now has a more favorable policy towards solar energy under the recently revised Energy Plan.
New rules now require utilities to increase their renewable energy mix, in line with the government's target to use 35 percent clean energy by the end of the decade and 50 percent clean energy by 2040.
The Philippines also has net metering provisions whereby corporate customers can use electricity from on-site renewable energy generators, thus reducing the amount of electricity they have to buy from vendors. PPAs can now be concluded directly between major consumers and solar generators.
Solar Philippines and ACEN Ayala, two of the country's leading renewable energy companies, have significant solar capacity permitted or under construction.
But challenges in obtaining financing for solar installations remain.
Earth seems to be setting a new tone, and efforts to expand solar energy could be a game-changer, says a study. But its energy policy is often fragile ».
The study added that limited surface area and challenges in obtaining financing were additional barriers.
Thailand is a pioneer in investing in solar energy in Southeast Asia, particularly with the recent installation of a floating solar power plant in the north of the country that can be easily connected to existing high-voltage transmission lines.
The Sirindhorn Floating Solar Farm could reduce carbon emissions in the Kingdom by 47,000 tons annually as part of its ongoing commitment to achieving carbon neutrality by 2050.
But without a favorable political environment, the progress of the installation in the kingdom was slow.
Thailand once had one of the most installed solar capacities in Asia, but while neighbors like Vietnam and China introduced subsidies and import tariffs that spurred solar deployment, the country has lagged behind in implementing focused policies or financial incentives to build it. . Solid foundation for the development of solar energy over the past decades. Early leaders in this field, such as B. Grimm and Ty Solar, shifted their focus from the domestic market to look for regional opportunities.
The report is optimistic that solar energy in Thailand will continue to grow, but adds that a "focused decarbonization transition" is needed for renewable energy to replace gas in the country's energy mix.
