24/7 Carbon-Free Electricity Could Propel APAC's Energy Transition, Says BloombergNEF

The procurement of 24/7 carbon-free electricity (CFE) could become a critical enabler for the energy transition in the Asia-Pacific (APAC) region, according to a new report by BloombergNEF (BNEF) titled, '24/7 Carbon-Free Energy Procurement in APAC: Pathways for Companies and Countries'.

The report, published in collaboration with the Global Renewables Alliance (GRA), highlights how corporate clean energy procurement will be an essential source of funding for the decarbonisation of APAC’s energy systems.

The report further says that APAC's share of global emissions has nearly doubled from 25 percent in 1990 to 47 percent in 2021, largely driven by the growth of emissions from the region's power sector. To curb this rising emissions trajectory, the region will need substantial investment in renewable energy deployment, including solar, wind, and storage, along with the expansion of grid infrastructure. The report argues that accelerating investment in these areas is the most economically sustainable pathway to meeting the Paris Agreement’s global climate goals.

The report emphasises that clean energy procurement is already a key funding mechanism driving the deployment of clean electricity and helping corporations reduce their emissions. However, the ability to procure 24/7 carbon-free electricity is currently hindered by regulatory barriers and market constraints, limiting access to affordable, clean energy. As a result, many companies struggle to fully match their electricity demand with renewable energy, often relying on grid power that is not emission-free.

Ali Izadi, BNEF’s Head of Asia Pacific and the lead author of the report, stresses the urgency of addressing these regulatory barriers, as he says,  “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. 24/7 CFE would, in turn, enable timely coordination between corporate electricity consumers, renewable independent power producers (IPPs), grid operators, and regulators, leading to lower power system decarbonization costs.”

Corporate leaders have an important role to play in driving this transition. Julia Souder, CEO of the Long Duration Energy Storage (LDES) Council, underscores the potential of long-duration energy storage technologies in supporting the 24/7 clean electricity transition: “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.”

To support APAC’s transition to 24/7 carbon-free electricity, the report outlines six key recommendations for policymakers, including improving electricity data transparency and access, reforming grid planning and operations, and introducing new auction designs like those seen in India. By facilitating these changes, governments can accelerate the deployment of renewable and energy storage technologies, unlocking the investments needed to decarbonize power systems.

Trigya Singh, Senior Coordinator for Corporate Sourcing at the Global Renewables Alliance, argues that overhauling outdated regulatory frameworks is crucial for the region's leadership in 24/7 CFE, as he points put, “We must overhaul outdated regulatory frameworks, harmonize standards for emerging technologies, and establish granular attribute certificates. The flexibility opportunity needs to be exploited—current power purchase agreements (PPAs), green electricity tariffs, and tariff structures are not yet focused on flexibility, which is essential for integrating variable renewable energy.”

BNEF’s report also reviews current decarbonization plans and corporate clean power procurement frameworks in 11 key APAC markets, including Bangladesh, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam. It highlights how 24/7 CFE procurement can contribute to meeting national decarbonisation targets.

In summary, the report stresses that moving towards 24/7 carbon-free electricity procurement in APAC is not only vital for meeting global climate goals but also crucial for attracting the investment needed to scale clean energy and decarbonise the region’s power sector. As corporate energy buyers continue to make ambitious clean energy commitments, it is essential that policymakers act now to create an enabling environment for the rapid expansion of 24/7 CFE in the region.