Asia sets renewable energy record, leading clean energy growth

Asia's renewable energy growth reaches record levels, reshaping global energy dynamics.

A technician inspects the operation of an automated cleaning brush installed on solar panels at the Khavda Renewable Energy Park, operated by Adani Green Energy Ltd (AGEL), in Khavda, India, on April 12, 2024. Photo by Amit Dave/Reuters

By Anna Fadiah and Clarisa Sendy

Asia has solidified its position as the global leader in renewable energy, adding an unprecedented 450,000 megawatts (MW) of new capacity in 2024, according to data from LSEG. This achievement overshadows the 109,000 MW added in Europe and the 93,000 MW in North America, further establishing Asia as the primary hub for clean energy generation. With a total installed capacity of approximately 2,500,000 MW, Asia now accounts for more than half of the world's renewable energy footprint, outpacing Europe’s 1,000,000 MW and North America’s 700,000 MW.

This growth trajectory shows no signs of slowing. Asia's commitment to renewable energy is bolstered by efforts to reduce reliance on imported fossil fuels and a strong push for energy independence. Political challenges in Europe and a climate-skeptic administration in the United States could hinder growth in those regions, further widening the gap.

China, which contributes nearly two-thirds of Asia's renewable capacity, plays a pivotal role in this expansion. As the world's largest producer of solar panels and other renewable energy components, China continues to drive the global energy transition. Ongoing trade disputes with the United States and Europe have prompted China to shift its focus to domestic and regional markets, fueling rapid growth in Asia’s renewable energy infrastructure.

Meanwhile, Europe and North America are grappling with higher energy costs and a dependence on natural gas. The loss of pipelined gas from Russia has forced Europe to rely on liquefied natural gas (LNG), which is more expensive and limits the pace of its renewable energy transition. Similarly, the United States, while a major producer of natural gas, faces challenges in maintaining affordable domestic supplies as it increases LNG exports. These dynamics make renewable energy adoption slower and more expensive in these regions compared to Asia.

Asia's renewable energy growth also brings significant economic benefits. The expansion of solar and wind power reduces electricity costs, boosts industrial development, and creates jobs. Emerging markets like Vietnam, Indonesia, and the Philippines are investing heavily in clean energy projects to meet growing demand while reducing pollution and energy costs. These countries benefit from the availability of affordable, China-made renewable energy components, enabling rapid deployment of green infrastructure.

The divergence in renewable energy trends is also evident in power prices. As Asia continues to increase its share of renewable energy, electricity prices are expected to decline due to the lower costs of solar and wind generation. In contrast, reliance on natural gas in Europe and North America is likely to drive up energy prices, exacerbating economic challenges.

Global manufacturing shifts are further accelerating Asia's energy transition. Many industries relocating from China are setting up operations in lower-cost Asian countries, contributing to the region's clean energy adoption. This movement strengthens Asia's renewable energy market, ensuring its leadership in the global transition to sustainable power systems.

Asia’s continued dominance in renewable energy reflects its strategic focus on economic growth and environmental sustainability. As the region accelerates its investments in clean energy, it is poised to reshape global energy markets, driving down costs and setting the pace for renewable energy adoption worldwide.

Share