Growth of the renewable energy sector in the Asia-Pacific region of the world

In a speech that resonated across the global renewable energy sector, Sam Kimmins, Chief Energy Officer at The Climate Group, highlighted the remarkable progress and ambitious goals of RE100. While nuclear power remains outside the scope of RE100, the focus on diverse renewable solutions and technological advances promises a sustainable energy future.

Kimmins highlighted the rapid growth of RE100, now in its tenth year, as a demonstration of the initiative’s broad reach. More than 430 companies have committed to 100 percent renewable electricity, and RE100’s total demand has grown to 565 terawatt-hours (TWh) per year, surpassing Germany’s electricity consumption and approaching South Korea’s. This is making RE100 a formidable force in the energy sector, becoming the eighth-largest “country” in terms of electricity demand.

The Asia-Pacific region has emerged as a dominant player in the renewable energy landscape, a shift from the RE100’s previous dominance in North America and Europe. Taiwan in particular has made significant progress, with 34 companies, including tech giant Foxconn, joining the RE100 ranks. Together, these companies account for more than 10% of Taiwan’s electricity demand, all committed to 100% renewable energy.

Source: Foxconn

Despite the progress, Kimmins highlighted the challenges facing Taiwan’s renewable energy sector. The high cost of renewable energy, driven by nascent scale of installations, remains a hurdle. However, Kimmins pointed to promising trends in other markets where increased scale has led to significant price reductions. Taiwan is well on its way to achieving similar economies of scale, with significant investment in wind and solar expected to drive down costs.

One of the key strategies discussed was the use of power purchase agreements (PPAs). These agreements allow companies to purchase renewable energy directly, providing transparency and long-term price stability. Although currently limited to a few large players such as TSMC, aggregated PPAs, where multiple companies come together, offer a promising solution to broaden access and drive corporate investment in renewables.

Nuclear energy debate gains momentum as renewable energy sources grow

A common question is where nuclear energy will fit into RE100. The short answer is no — nuclear energy will not be part of RE100. Kimmins explained that RE100 does not include nuclear energy in its definition of renewable energy because the initiative is focused solely on accelerating corporate investment in renewable energy infrastructure.

He noted that from a climate perspective, keeping existing nuclear plants running while closing fossil-fuel plants is better. But for new nuclear projects, Kimmins pointed to the long development times — typically about 15 years from planning to completion — that mean they won’t contribute to meeting climate goals before 2040.

Source: AFP

As for small-scale nuclear and carbon capture and storage (CCS), Kimmins expressed skepticism. He described small-scale nuclear as currently unproven and uneconomical, citing the recent collapse of NuScale Power, a leading company in the field, as a setback for the industry. CCS, he said, is still in the pilot phase and lacks standardization to assess its effectiveness. He warned that current CCS designs are highly volatile and susceptible to greenwashing claims.

Land use is a major challenge to renewable energy deployment, especially in densely populated regions like the UK. Innovative solutions include rooftop solar panels, which Taiwan wants to introduce to new buildings, and agrivoltaics, where agriculture and solar power coexist beneficially. In addition, floating solar panels on tanks, as seen in Singapore, offer a feasible solution.

Kimmins advocated for a diversified approach to renewable energy, advocating exploration of geothermal energy, bioenergy and ocean energy to provide a stable and reliable energy supply. Given Taiwan’s unique geographic and climatic conditions, these sources could play a key role in achieving 24/7 renewable energy supply.

With the urgent need for sustainable energy solutions around the world, RE100 stands as a model of commitment and innovation, driving the transformation to renewable energy on an unprecedented scale.