The renewable energy market in East Asia is expected to grow at a CAGR of more than 5% during 2020 - 2025. Factors such as increasing power demand and investment in renewable energy in different countries of the region are expected to drive the market studied. With supportive government policies and initiatives and upcoming projects in China and Japan, the renewable energy market is expected to witness significant growth in the region. On the other hand, slow growth in countries like Mongolia and North Korea coupled with the impact of the COVID-19 outbreak act as the restraining factors for the growth of the renewable energy market in the region.
- Solar Energy is one of the fastest-growing and dominating renewable energy sources in East Asia. Large scale acceptance of solar in China, Japan, and South Korea is the major driving factor of solar energy.
- According to a report by China National Petroleum Corporation in 2018, the installed renewable capacity of China is expected to reach more than 1200 GW by 2035, creating several opportunities in the future.
- With more than 758 GW of installed renewable energy capacity as of 2019, China is expected to continue its dominance in the renewable energy market during the forecast period.
Key Market Trends
Solar Energy to Dominate the Market
- In 2019, the South Korean government announced to install solar panels on every public building and 1 million homes in Seoul by 2022. The country is aiming to generate 35% of its electricity from renewables by 2040.
- In 2019, South Korea’s Ministry of Trade, Industry, and Energy (MOTIE) announced for the development of a 2.1 GW of floating solar power projects. The project is expected to be completed in 2025, with an investment of USD 3.9 billion.
- In 2019, the Chinese government planned to construct a 2.5 GW solar project in North Korea with an investment of USD 2.5 billion near Pyongyang in North Korea. The plant is expected to drive the stagnant renewable market of North Korea significantly.
- Japan has shown robust growth in solar energy installed capacity. The country's solar energy installed capacity reached 61 GW in 2019 from 28 GW in 2015.
- With growing electricity generation from solar in countries like China and Japan, solar energy is expected to dominate the renewable energy market in the East Asia region in the forecast period.
China to Dominate the Market
- China has been driving the renewable energy market of East Asia with an installed capacity of 758 GW in 2019. With its upcoming projects, China is expected to dominate the market in the forecast period.
- In 2019, China Photovoltaic Industry Association announced to install 40 GW of solar energy capacity in 2020. Such ambitious targets are expected to drive the China renewable market significantly.
- China is growing in bioenergy with 16 GW of capacity in 2019. Further, China plans to increase the proportion of biomass energy up to 15% and the total installed capacity of biomass power generation to 30 GW by 2030.
- In 2020, China Energy Investment Corporation assigned the EDF group for the construction of a 502 MW wind project, with an investment of USD 1.13 billion. The project is expected to be commissioned in 2021, driving wind energy in China.
- With rapidly growing power demand and parallelly supporting energy policies, China is expected to dominate the renewable energy market in East Asia during the forecast period.
The East Asia renewable energy market is fragmented. Some of the major companies include Siemens Gamesa Renewable Energy SA, Jinko Solar Holding Co Ltd, Eurus Energy Holdings Corporation, Trina Solar Limited, and Xinjiang Goldwind Science & Technology Co., Ltd.
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