Asia Pacific is at a critical point in its green transformation journey. Countries across the region have set clear and ambitious renewable energy targets, but meeting them requires bold and decisive action to open the path to progress.
Our Ørsted paper identifies the barriers to progress for Asia Pacific’s green transition, and how we can take them down together through close collaboration with governments, industry and communities.
1. Scale up to secure investment
The industry’s ability to deliver is strengthened with a firm and visible pipeline of projects, and by unlocking market volumes which maximise economies of scale.
This de-risked environment enables offshore wind developers to place orders, make supply chain investments and help meet Asia Pacific’s green energy targets.
- Establish comprehensive and open marine spatial planning mechanisms which identify new go-to areas for renewable energy including offshore wind (fixed-bottom and floating).
- Front load and tender as much as possible, as soon as possible, to provide clarity for industry and incentivise large scale supply chain investment.
- A credible pipeline of large-scale, ideally gigawatt-class, opportunities make it attractive for the industry and developers to invest locally
2. Speed up and streamline processes
Policymakers can significantly reduce development risks – and thereby cost – of projects, by adopting best practices for planning and permitting.
- Increase speed by tendering multiple sites simultaneously.
- Simplify permitting procedures with a ‘one stop shop’ authority to streamline processes, help manage stakeholder issues and promote efficient operations.
3. Award for societal value, not just cost
Price is often the only factor considered when awarding renewable energy projects.
A societal value approach with non-price criteria incentivises our industry to deliver benefits for climate, nature and society.
- Design tenders for renewable energy projects that incentivise developers to deliver on non-price factors.
- Introduce strict minimum criteria to ensure deliverability of projects and create a level playing field for the industry.
- Integrate a societal value approach through non-price criteria to incentivise industry to deliver benefits for society and nature such as socio-economic development, sustainable supply chains and a positive impact on biodiversity and the environment.
4. Collaborate for a competitive regional supply chain
Recognising the inherent strengths that each market brings, regional collaboration across the APAC supply chain ensures the industry builds on the specific capabilities and track record of individual markets.
- Capability assessments should be based on credible analysis of market conditions and coordination of regional supply chain strengths.
- Activate the ‘low-hanging fruit’ by growing existing local capabilities to promote long-term success.
- Allow as much flexibility as possible on local content to promote a healthy investment environment and encourage free market competition.