South Korea, 26 November 2024: Enabling 24/7 carbon-free electricity (24/7 CFE) procurement in Asia Pacific (APAC) could unlock the private investment needed for the region’s energy transition, according to 24/7 Carbon-Free Energy Procurement in APAC: Pathways for Companies and Countries, a report from BloombergNEF (BNEF) published in collaboration with the Global Renewables Alliance. BNEF’s analysis indicates that corporate clean energy procurement will be a critical source of funding to meet the increased power capacity and grids investment required for decarbonization.
APAC’s share of global emissions has almost doubled from 25% in 1990 to 47% in 2021, driven by the growth of emissions from the power sector. The report finds that its decarbonization would require an acceleration of investment in deployment of solar, wind and storage along with grid expansion. As a result of the falling cost of renewables, this would be the most economically sustainable pathway to fulfilling the Paris Agreement goal. Under BNEF’s New Energy Outlook’s Net Zero Scenario, renewables, would enable almost three quarters of emissions abatement needed by 2050.
Figure 1: Global carbon dioxide emissions reductions from fuel combustion – historical and Net Zero Scenario versus ‘no transition’ scenario
More investment is also needed to scale dispatchable clean energy such as geothermal, as well as long-duration energy storage technologies. Enabling clean power procurement has already become a key source of funding to accelerate deployment of clean electricity and reducing corporations’ emissions.
Figure 2: Global corporate clean power purchase agreement volumes
Currently, when a company considers clean power procurement, the most common strategy is to match its annual electricity consumption with purchases of renewable energy. This means that a company may not fully match its electricity consumption in many hours of the year with clean electricity supply, instead relying on electricity supplied by its local grid, which in many cases is not emission free at all hours.
To ensure 100% of emissions associated with companies’ electricity consumption is reduced, companies need hourly and locational matching of their electricity demand with carbon-free electricity supply. While clean power procurement has grown across APAC in recent years, existing policies and market regulations continue to restrict access to affordable clean energy and constrain expansion of renewable energy supply.
Ali Izadi, BNEF’s Head of Asia Pacific and the lead author of the report, said, “Demand for clean power procurement in APAC already far outstrips available supply. APAC regulators need to address regulatory barriers to increase clean electricity supply and enable 24/7 CFE corporate procurement options. 24/7CFE would in turn enable timely coordination between corporate electricity consumers, renewable IPPs, grid operators and regulators leading to lower power system decarbonization costs.”
Julia Souder, Chief Executive Officer – Long Duration Energy Storage (LDES) Council, said, “24/7 carbon free energy procurement provides corporate leaders with a powerful lever to drive the energy transition in the APAC region and globally. Long duration energy storage technologies are a highly effective way of delivering true 24/7 clean electricity, capturing renewably generated electricity for use across days, weeks and seasons. Corporates should recognise these strategies as a key asset to support their sustainability plans and deliver impact against these targets.”
Trigya Singh, Senior Coordinator, Corporate Sourcing – Global Renewables Alliance (GRA), said, “To truly position the Asia-Pacific region as a global leader in 24/7 carbon-free energy, we must overhaul outdated regulatory frameworks, harmonize standards for emerging technologies, and establish granular attribute certificates. Moreover, the flexibility opportunity needs to be exploited—current PPA markets, green electricity tariffs, and tariff structures are not yet focused on flexibility, which is essential for integrating variable renewable energy. PPAs not only provide better hedging against electricity price volatility but also unlock long-term consumer benefits. Policymakers must drive the development of robust PPA markets and tailor green electricity tariffs to elevate 24/7 CFE. The time for action is now.”
Shailesh Telang, Head of Asia Pacific – EnergyTag, said, “The APAC region holds immense potential to lead the global clean energy transition, and 24/7 carbon-free electricity (CFE) procurement is a pivotal enabler. By aligning corporate electricity demand with clean energy supply on an hourly basis, consumers can see when renewable energy is abundant or scarce incentivizing them to adjust demand based on cost and carbon intensity. It can drive targeted investments in renewables, and storage, unlocking private capital for decarbonization at scale. Granular electricity accounting ensures precise matching of clean energy consumption with generation, providing the transparency and accountability needed to achieve 24/7 CFE goals effectively.”
Divya Kottadiel, Principal Specialist, Energy – Sustainable Energy for All (SEforALL), said, “Corporate procurement of 24/7 Carbon-Free Energy in APAC is crucial for advancing a just and equitable clean energy transition. While large corporate consumers are leading the way, addressing the barriers faced by small consumers, particularly in emerging markets, is equally important. Harmonizing regulations, improving access to granular certificates, and fostering regional collaboration is timely. Governments and regulators must create frameworks that support voluntary carbon-free energy procurement and enable broader participation in the clean energy transition.”
Sam Kimmins, Director, Energy – Climate Group, said, “Electricity powered by carbon-free sources is increasing year on year, but we need to move faster. Corporate energy buyers globally are already making ambitious commitments and are ready to act, so it is vital to ensure the right environment to drive 24/7 carbon-free electricity transition in APAC and speed up grid decarbonisation. The rapid growth in energy demand across the APAC region highlights the urgency – we need to act now.”
The report reviews current decarbonization plans and corporate clean power procurement frameworks of 11 APAC markets: Bangladesh, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam. The report also analyzes how 24/7 CFE procurement can support national decarbonization objectives.
Table 2: Recommendations for enabling 24/7 carbon-free electricity procurement
Policymakers in the APAC region can support the ability of companies to advance national-level electricity decarbonization by adopting the six recommendations outlined in the report. Improving electricity data transparency and access will enable renewable electricity providers and corporate buyers to develop better strategies for 24/7 CFE. It will also lead to the creation of options such as hourly RECs. A wide menu of high-impact, cost-effective procurement options such as hourly RECs, is critical to attract higher level of support for power sector decarbonization from small and medium local enterprises to large multi-nationals.
New auction designs such as those pioneered by India can accelerate deployment of mature renewable and energy storage technologies. Reforming grid planning and operation is necessary to accelerate investment in grid expansion needed to support growth of clean power capacity. Government can also play a critical role in de-risking corporate investment in emerging technologies such as long-duration energy storage needed for 24/7 CFE.
Media Contact:
Oktavia Catsaros
Communications Director, Research, BloombergNEF
ocatsaros@bloomberg.net
+1 212 617 9209
Saga Henriksdotter
Communications Officer, Global Renewables Alliance
saga@globalrenewablesalliance.org
+46 70 916 5417
BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.
The Global Renewables Alliance ( GRA) represents the leading international industry players and provides a unified renewable energy voice. Comprised of founding members the Global Wind Energy Council, the Global Solar Council, the International Hydropower Association, the International Geothermal Association, the Long Duration Energy Storage Council and the Green Hydrogen Organisation, the Alliance aims to increase ambition and accelerate the uptake of renewable energy across the world. #3xRenewables.
