As more countries respond to climate change and announce their net zero commitments, supporting mechanisms and measures to meet these targets continue to bloom. Renewable energy, a key component to achieving decarbonisation targets, has started to become mainstream worldwide.

In the Asia Pacific region, many governments are already pushing for increased renewables to reduce greenhouse gas emissions and drive energy transformation. The result: an environment more open and optimal to the development of the renewable energy industry.

Corporations are now looking for ways to power their regional operations, supply chains and product life cycle with clean energy, identifying Asia Pacific markets such as China, Japan, South Korea, Taiwan, Singapore and Indonesia as the most challenging markets for achieving 100% renewable power.

This report aims to provide a clear view of the CPPA market in the region, including recent developments, renewable energy targets, and policies of key international corporations in different markets. It also shares executive strategies on green energy procurement in Asia Pacific for enterprises to use as a reference.

Highlights of Asia Pacific CPPA market

The Asia Pacific market is a challenging place for businesses to source renewable electricity in due to limited availability, regulatory complexity and high costs. Yet it also offers the biggest opportunities for clean energy investment and growth.

Taiwan, South Korea, the Philippines and Vietnam stand out for their regulatory reforms which enable CPPAs. In Taiwan, the liberalisation of the renewable energy market allows corporations to purchase green energy from generators. Over in the Philippines, the implementation of a green energy option programme offers large power users more choice to source their electricity from renewables.

In markets like Japan and Vietnam, renewable energy projects have previously benefitted from high FiT making CPPA a less attractive option. As FiT rates start to decline, however, markets are shifting to an auction mechanism which has led to CPPA being a more appealing alternative for developers.

The falling costs of rooftop solar provide corporate buyers with an avenue for cheap and clean power. In some markets, renewable energy developers are able to provide commercial and industrial users grid tariff discounts of 15% to 30%. Enabling policy such as on net metering can also reap fertile ground for rooftop solar growth.

The RE100 membership is growing and diversifying, with 42% of new members hailing from the Asia Pacific region. Multinational corporations with sustainability commitments, including in big tech, are also looking into greening their Asian supply chains.

Many countries have set decarbonisation targets to reduce their greenhouse gas emissions and transition from fossil fuels to low-carbon alternatives. Energy suppliers and generators are expected to continue developing renewable energy products and services that are suitable for all types of businesses.

Market analysis: Singapore

Market and regulatory framework

Electricity retail market structure

Singapore operates a liberalised power market, competitive in generation and retail.

CPPA regulation

Net metering is one of the key regulatory mechanisms supporting rooftop solar installation. Due to land shortage and renewable energy resource constraints in Singapore, most CPPAs involve rooftop solar projects.

REC market

Singapore has rolled out renewable energy certificates (RECs), which allow consumers to claim for renewable energy consumption.

National sustainability targets

  • Reducing greenhouse gas emissions intensity by 36% by 2030 
  • 2GWp of solar energy by 2030 by building more connections with neighbouring countries to tap into clean energy potential
  • The National Environment Agency Act and Carbon Pricing Act are examples of policies to reduce the country's emissions
wind energy

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