August 30, 2020 Read More →

Post-subsidy era in Asia still holds promise for renewables

Wall Street Journal ($):

Renewable-energy operators are planning for further growth in Asia despite a falloff in subsidies, betting energy demand will keep rising.

In China, government support has driven a rapid buildup and turned the country into the world’s largest producer of renewable energy. That stimulus is drying up, putting the industry at risk. Solar-energy subsidies were halved this year, while offshore wind subsidies will end in 2020, to be followed by onshore next year.

Over the past decade, the price of solar panels and wind turbines has plummeted as cheap Chinese products flood the market. The cost of solar modules has fallen 90% since 2010, according to the Institute for Energy Economics and Financial Analysis.

As a result, more countries are calling on renewable-energy projects in the 2020s to stand on their own. Vietnam is allowing high-efficiency solar projects that reach commercial operation by the end of 2020 to receive a guaranteed price for their output, but the subsidies are set to expire after that.

[River Davis]

More: Renewables Are Primed for Growth in Asia

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