Written by Azman Nasir, APAC Regional Director at EIC
We’re about four months away from the EIC’s flagship event, the Energy Exports Conference (EEC), which is a great opportunity to say a few words about the untapped opportunities in oil & gas and cleantech in the APAC region.
The latest OPEX report from the EIC on Asia's energy industry shows a surge in energy projects right across the region, from solar farms in India to offshore wind installations in Taiwan. But UK supply chain companies and other global players have yet to fully seize these growing opportunities. We know from our conversations with industry leaders over the years, as well as from the findings of our annual Survive & Thrive report, that this hesitancy is largely the result of limited market knowledge, lack of government support and initiatives and low appetite for risk.
There are plenty of opportunities in the region, especially in the wind, solar, and energy storage sectors. Excluding China, the region added 28.6 GW of new capacity between September 2023 and September 2024. Renewables comprised a fourth of that addition. Solar and onshore wind installations led the way, with 5.3 GW of solar and 2.5 GW of wind capacity added during this period, with India and Taiwan accounting for the majority of solar and wind installations, respectively.
Ambitious renewable energy targets, plus incentives from the government, have seen the greater India market for solar and onshore wind do quite well in the last year. The country has set out to install 500 GW of renewable energy by 2030, its mainstays being solar and wind. Turning to Taiwan, international investment into the country has taken place big-time in the way of offshore wind development, enticed by the country's lucrative FIT schemes (Feed-in Tariffs). Major developers such as Ørsted and Copenhagen Infrastructure Partners have been attracted to the country, while its offshore wind capacity is expected to reach 13 GW by 2030.
While countries like Vietnam and Malaysia are rapidly scaling up renewable investments owing to new policy initiatives and international investments, limitations of grid infrastructure and financial constraints are challenges that both countries are likely to face, which in turn offer a host of opportunities for international collaboration and investment.
UK companies are already working with APAC's leading players, such as Malaysia's Petronas, but their presence is far from commensurate with the region's potential. That becomes particularly stark when one considers that 2% of energy projects are in the UK and 98% are spread across the rest of the globe.
From the 145 MW Cirata Reservoir Floating Solar Plant in Indonesia to the 238 MW Hibikinada Wind Farm in Japan, we can see that there is very significant diversity across APAC which suggests that different strategies and relationships will be required. Sri Lanka and Southeast Asia are countries where floating solar plants are being developed due to the space constraints. Energy storage is fast becoming more important to address the variability of renewables. An example of this comes from South Korea, which in 2024 commissioned the long-duration energy storage facility Bubuk-Miryang Battery Energy Storage System with a capacity of 336 MW. This is amongst the largest in all of Asia.
It will be important for UK companies, and indeed companies from around the globe, to be less hesitant, to recognise that APAC is a key growth frontier, particularly within the energy transition space. The energy transition in this region is not limited to renewables; rather, it also encompasses upcoming technologies such as hydrogen and carbon capture and storage. For example, while South Korea commissioned the 30,000 TPA SK Incheon Petrochemical Hydrogen Liquefaction Plant in 2024, Japan is presently studying cross-border CCS projects in Southeast Asia to offset its carbon emissions.
It is here that the importance, and indeed relevance, of the EEC is strongly felt. The event brings together supply chain companies with global operators and policymakers in a truly unique offering. Companies from both Asia and the UK will be able to showcase APAC opportunities and meet directly with key stakeholders, from project developers to government bodies. The EEC thus provides a critical venue for forging partnerships that will accelerate the energy transition and unlock the full potential of the APAC region.
