Asia Energy Review: Feb 26-March 3
This weekly column focuses on energy events in Asia and the Pacific, and all that impacts markets in the region.
Asia / Grid expansion
Asia will be at the forefront of grid expansion, with China accounting for nearly 30% of the predicted global grid investments of about $374 billion in 2024. According to Rystad Energy, by 2030 the world will need $3.1 trillion in grid infrastructure investment to support the energy transition and limit global warming to 1.8 C.
China / Coal power
In 2023, China accelerated coal permitting, approving 106 GW of coal power projects and began construction of 70 GW, possibly derailing the country’s climate targets for 2025. Global Energy Monitor said that in 2023 China also began operations of 47 GW of coal projects, and announced 108 GW more.
China / Solar power
In 2023, China boosted global shipments of solar modules by over a third from its 2022 total, according to Ember. In 2023, total Chinese exports, which account for about 80% of global solar exports, totalled about 220 GW of generation capacity, up by 55 GW from 2022.
India / Coal imports
This year, thermal coal imports are expected to fall for the first time since 2020 due to increasing domestic output and record high inventories. Experts predict that thermal coal imports could fall as much as 6%. In 2023, India imported 176 mln tons of thermal coal, driven mainly by demand from power plants.
India / Electricity
In 2023, electricity demand rose 7% over 2022’s figure of 149.7 TWh. The increase was due to greater consumer and industrial usage, said a report by the International Energy Agency.
Indonesia / Critical raw materials
Indonesia says its nickel production will be more than sufficient to meet demand and keep global prices low; the price of the EV battery metal will stay below $18,000 a ton, reported Bloomberg. Recent sharp drops in nickel prices have hit producers across the globe.
LNG demand
In 2024, global LNG demand will rise, with top buyer China leading the way, and EU consumption rising, said a TotalEnergies official. Last week, Asia spot LNG prices hit their lowest levels in nearly three years due to weak demand in Asia and Europe.
Qatar / Natural gas
Qatar will increase natural gas production despite a recent drop in global prices. The country is betting on rising demand in Europe and Asia. QatarEnergy chief Saad al-Kaabi said a new expansion of its LNG production will add 16 mtpa to its plans, bringing the total to 142 mtpa.
Southeast Asia / Renewable energy
While the region’s renewable energy capacity develops slowly, “renewable energy certificates” (RECs) are growing rapidly. From 2019 to 2023, solar and wind REC issuances in Southeast Asia rose almost 13-fold, according to data from international registries.
Vietnam / Wind power
Electric Wind Power, a subsidiary of Shanghai Electric, inked a deal to provide wind turbines to Hai Anh Wind Power for its wind farm in Quang Tri Province. The project will cover 855 ha, with a 40 MW capacity, and operate Electric Wind Power's WH5.25-172 wind turbine unit, to date the largest onshore wind turbine diameter in Vietnam.