Wind, solar expected to gain momentum in 2010

Renewable energy sectors in several countries in the Asia Pacific region hold considerable growth potential this 2010, as the effects of an unprecedented rush to develop the sector in the past year begin to be felt. In a new report, market analyst Frost & Sullivan expects that there would not only be large-scale adoption of clean energy technologies this year in some countries; there will also be considerable investment in research, development and manufacturing capacity.

Another trend Frost & Sullivan sees is increased activity not only from private developers, but also from utilities keen on diversifying their energy portfolio. Frost & Sullivan based this assertion on several developments in 2009, when governments rushed to stimulate their economies to counteract the global economic recession. Frost & Sullivan said the payback for those efforts will be reaped this year.

Citing countries such as South Korea and Malaysia, Frost & Sullivan said financial stimulus packages introduced in the first half of 2009 were largely meant for the renewable energy industry. Governments subsequently introduced new policies to promote the sector.

Malaysia will introduce its feed-in tariff in early 2010 that would likely promote grid-connected solar photovoltaic systems. South Korea will provide tax incentives to alternative energy companies.

"Countries like Japan that is offering zero-interest loans to green energy companies plan to generate 20 percent of its electricity from [renewable energy] by 2020 while Australia with its new legislation passed in 2009 aims to achieve 12,500 gigawatt-hours of power generation from [renewable energy] in 2010 from the existing 9,500 GWh," said Suchitra Sriram, Frost & Sullivan’s energy analyst for the region.

Japan, South Korea, Australia, Taiwan, Malaysia and Thailand are expected to see solar growth potential in 2010. Meanwhile, there is likely to be “pockets of interest” in Vietnam, Philippines, Taiwan, Thailand, Japan and Australia for wind. "Growth opportunities in these two sectors are likely to attract new entrants, such as small and medium enterprises, supplying components as well as companies that undertake system integration and installation," said Ms. Sriram.

Frost & Sullivan cited other countries where renewable energy adoption is likely to boom – Indonesia with the government's flagship geothermal power projects; Taiwan with the passage of the Renewable Energy Development Act; and Thailand where the National Plan for solar energy aims to increase 36-megawatt installed solar photovoltaic capacity in 2008 to 550 MW by 2022.