Executive Summary
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Many countries in the Asia Pacific region
have placed emphasis on the development of renewable sources
of energy in order to reduce fossil fuel consumption and
dependence on fossil fuel imports. These countries also wish
to decrease pollution which results from combustion of
fossil fuels and to gain sustainability and self sufficiency
in power generation. In developing countries such as India
and China, there are large sections of the population living
in areas without access to power from a supply grid. Some of
these regions are moving toward solar energy since it is a
decentralized source of power. |
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In the Asia Pacific region, power consumption
is increasing in line with the growing population and expanding
industrialization. Fossil fuel consumption and imports have also
been increasing continuously since the 1990s. Hence solar energy
can be developed to meet the growing demand for power and reduce
pollution. Asia accounts for a major share of total solar energy
systems produced at the global level. Japan is one of the
largest solar cell manufacturers at the global level with
Japanese companies numbering among the top ten solar cell
manufacturers.
In Asia, OECD countries accounted for the largest solar energy
installed capacity during 2005. China had the largest solar
thermal installed capacity during 2005. In terms of investment
made in solar energy market China and Germany occupied the top
position at the global level in 2005. At the global level, Japan
occupies the second position behind Germany in solar energy
installed capacity. India has vast solar energy potential, which
is currently underutilized.
The high cost of solar cells remains a barrier in development of
solar energy market in Asia. Asian countries need to concentrate
on increasing performance efficiency and decreasing the cost of
solar cells. Solar cells are made from silicon which is very
expensive but has good performance efficiency. Research and
development to develop low cost substitutes to silicon with
similar performance efficiency is in progress.
To encourage renewable energy consumption, the Asia Pacific
countries are framing long term policies and are offering
subsidies, tax exemptions and financing facilities for
installation of renewable energy systems. India is inviting
foreign direct investments and is encouraging import of
technology for the development of the renewable energy sector.
The Asia Pacific market for renewable energy is estimated to
grow if supported by regulations (subsidies and exemptions),
until renewable energy generation becomes cost competitive with
conventional power.
In Asia, the renewable energy market is expanding and the region
is forecast to become the largest market for renewable energy in
the future. Because of the high growth potential for renewable
energy in the region, major international solar energy product
manufacturers are expanding their operations to cater to this
region. Asian solar cell manufacturing companies, mainly in
Japan and China are increasing their production capacities.
China is increasing its silicon production to reduce dependence
on imports for production of solar cells.
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