, APAC

APAC to add almost 330 GW renewables capacity until 2026

India would account for almost 40% of the capacity expansion.

The Asia Pacific region, excluding China, is expected to add almost 330 gigawatts (GW) of renewable capacity from 2021 to 2026 with solar power leading in terms of capacity installations, according to the International Energy Agency (IEA). 

In its report, IEA said the expected capacity addition would represent almost 70% growth. It said that the main case forecast is 27% higher than last year, with the annual additions in 2026, that is 42% higher than in 2020.

Solar power leads the deployment, accounting for 68% share, followed by wind at 18%, and hydropower ay 11%, it said. 

The agency said India would account for almost 40% of the renewables capacity expansion during the forecast period in the main case due to continuous auctions and improving incentives for distributed solar photovoltaics.

“Continuous acceleration is expected in ASEAN countries, led by Viet Nam and with the Philippines and Indonesia both becoming increasing sources of growth thanks to implementation of new auction and [feed-in-tariff] FiT schemes,” it said.

However, Japan’s capacity additions were seen to slow after 2022 to 2023 due to smaller FiT project pipeline, as well as in Australia due to grid integration challenges, it said.

Meanwhile, in the accelerated case, the renewables growth in the region would be around 40% higher than the main case but it noted that to achieve higher growth, it would require faster and smoother implementation of new support policies.

It would also need increased investment in grid development, reducing the risks to investors by easing permitting rules, introducing more bankable power purchase agreements, and resolving land acquisition challenges, it said.

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