In Short : Enabling 24/7 carbon-free electricity procurement is crucial to accelerating the energy transition in the Asia-Pacific (APAC) region. This approach ensures that businesses and industries can access reliable, round-the-clock renewable energy, reducing dependence on fossil fuels. By integrating renewable sources like solar, wind, and storage systems, APAC can meet its climate targets, drive sustainable growth, and support decarbonization efforts.
In Detail : The Asia-Pacific (APAC) region could unlock significant private investment for its energy transition by ensuring 24/7 carbon-free electricity (CFE) procurement, according to a new report by BloombergNEF (BNEF) in collaboration with the Global Renewables Alliance.
The report — 24/7 Carbon-Free Energy Procurement in APAC: Pathways for Companies and Countries — emphasizes that corporate clean energy procurement will be a critical funding source to meet the region’s decarbonization goals.
Rising Emissions and the Need for Clean Energy Investment
APAC’s share of global emissions surged from 25 percent in 1990 to 47 percent in 2021, largely driven by its power sector. To decarbonize effectively, the report calls for accelerated investment in renewable energy sources such as solar, wind, and energy storage, alongside grid infrastructure upgrades.
According to BNEF’s New Energy Outlook, under the Net Zero Scenario, renewables could deliver nearly 75 percent of the emissions reductions required by 2050.
Falling renewable energy costs make this pathway not only environmentally necessary but also economically viable to achieve the Paris Agreement goals. However, additional funding is needed for dispatchable clean energy technologies, including geothermal and long-duration energy storage systems.
Transitioning to Hourly and Locational Carbon-Free Energy
Many companies in APAC currently procure clean energy by matching their annual electricity consumption with renewable energy purchases. However, this approach often falls short, as local grids may supply non-emission-free electricity during certain hours. To fully align with their sustainability goals, businesses must adopt strategies that match their electricity demand hourly and at specific locations with carbon-free energy supply.
Policy and Market Barriers
Despite recent growth in clean power procurement across APAC, restrictive policies and market regulations limit access to affordable renewable energy and hinder its expansion. Addressing these barriers will be essential to scaling clean power procurement, accelerating renewable deployment, and reducing corporate carbon footprints.
A Call for Action
The report highlights that enabling 24/7 CFE procurement could be transformative, mobilizing the private capital needed to drive APAC’s clean energy transition. This approach aligns with both corporate sustainability objectives and national decarbonization strategies, creating a sustainable path toward net-zero emissions.
