Asia-Pacific leads growth in renewable energy generation, but its ageing grids need a revamp to meet the demand of renewables in the built environment.

Key takeaways

• Asia Pacific (APAC) is leading global renewable energy growth, contributing about 60% of new capacity in recent years.
• Four in 10 occupiers say on-site renewable energy will become non-negotiable by 2030.
• Landlord-occupier collaboration is key to scaling up use of renewables in the built environment.

2023 was a year of alarming climate headlines, from the warmest year in recorded history to record-high greenhouse gas emission levels. Yet, it also marked pivotal wins: COP28 saw a landmark global agreement for a “transition away from fossil fuels”. Globally, there is an escalating commitment to embrace renewable energy, with 118 countries pledging to triple global renewable energy capacity by 2030.

Coupled with this commitment is a rising demand from corporates in APAC to access renewable energy options to meet their net-zero commitments. RE100, a membership-based initiative with a mandate to drive corporate renewable energy consumption globally, sees a majority of its corporate members operating in APAC.

Nearly 1,500 companies in the region have committed to the Science-Based Target Initiative (SBTi), ranking second only to Europe.

In a JLL study surveying 243 corporate real estate (CRE) leaders across APAC, three in four wants at least half of their office portfolio to be fuelled by renewable energy by 2030.

The APAC region is leading the green energy transition, contributing about 60% of new renewable energy capacity added globally in the last couple of years. At the forefront of this transition are several key Asian countries like Australia, China, Vietnam, and India.

China is poised to dominate global renewable energy growth, with more than half of the world’s renewable energy additions expected to come from it in the next five years.

Another notable powerhouse is Vietnam, generating nearly 70% of the region’s solar and wind power. While supportive policies and state incentives have accelerated growth, the rising corporate demand for renewable energy procurement and the price competitiveness of renewable electricity are the key drivers fuelling investment in the region’s green energy sector.

However, being at the forefront of global renewable energy expansion is not yet translating into ease of access and purchase of green power in APAC. The region is among the most challenging globally for businesses seeking to join the renewable transition, according to a RE100 survey.

Renewable energy country snapshots

Real estate asset owners and occupiers in the region have a chance to lead from the front by demanding renewable energy and a more active play with the electricity grid becoming a flexible demand centre.

By strategically choosing renewable energy sources and investing in buildings that are ready to actively engage with renewables-powered grids, they will be well-placed to reduce long-term energy costs , and achieve sustainability goals of their real estate portfolios.

Scaling up the use of renewables in a building requires a range of well-planned strategies and considerations. A combination of on-site generation such as solar photovoltaics (PV) installation, and/or off-site renewable energy procurement through renewable energy certificates (REC) and power purchasing agreements (PPA), could be the solution.