Asia faces the challenge and opportunities of the energy transition

  • Asia leads the growth of renewable energy worldwide, accounting for 71% of new installed capacity.
  • China and India face different challenges, but are driving major advances in solar, wind, and energy modernization.
  • Significant challenges of regional inequality, coal dependence, and financing difficulties for a just transition remain.

Renewable capacity in Asia energy transition

The energy transition in Asia has become a global phenomenon, setting the pace for renewable energy growth and decisively influencing the course of global decarbonization. In recent years, the Asian continent has not only led the way in adding new renewable capacity, but is also spearheading a transformation at all levels: from the implementation of sustainable technologies to the redefinition of energy policies and the promotion of international partnerships.

This trend is not accidental. Countries like China, India, and Japan are facing accelerated evolution due to their population size, rapid industrial development, and the urgent need to combat the environmental and economic challenges stemming from their dependence on fossil fuels. At the same time, the differences within the continent itself, coupled with global pressure to achieve climate goals, make Asia a region as diverse as it is crucial in the transition to cleaner, smarter, and more sustainable energy systems.

Asia: Global Engine of the Energy Transition

The latest data reveals that Asia accounts for the majority of global growth in renewable energy . In 2024, 71% of new renewable energy capacity installed globally was in Asia, placing the continent at the forefront of the energy revolution. This represents a stark contrast to other regions, as Europe and North America accounted for only 12,3% and 7,8%, respectively. Meanwhile, Africa, Eurasia, Central America, and the Caribbean, considered together, contributed a mere 2,8%. The gap between Asia and the rest of the world is becoming increasingly evident.

The International Renewable Energy Agency (IRENA) highlights that the volume of installed renewable energy capacity has reached unprecedented levels, registering an increase of 582 gigawatts in 2024 alone. Despite this historic record, IRENA warns that we are still far from the pace needed to meet the milestones set for 2030, such as tripling global renewable capacity to 11,2 terawatts. If the current trend continues, global capacity would fall short of the target at around 10,3 TW.

This Asian leadership responds to the need to meet the energy demands of growing populations , but it is also driven by the political will to leverage the energy transition as an engine for economic development, innovation, and employment . International organizations insist that, although progress is remarkable, significant disparities exist between regions and countries, requiring specific policies, partnerships, and large-scale investment mobilization to democratize the benefits of the green transition.

The unstoppable rise of solar and wind energy

Development of renewable energies in Asia

The growth of renewables in Asia has been dominated by two main technologies: solar photovoltaics and wind power . In 2024 alone, these sources together accounted for 97,5% of the net new renewable capacity added globally. Solar power led the way with 453 GW installed, confirming its position as the leading technology due to its economic competitiveness and speed of deployment, while wind power contributed 114 GW.

Currently, according to IRENA figures, the global renewable energy park comprises 1.866 GW of solar, 1.133 GW of wind, and 1.277 GW of hydropower , in addition to more modest volumes in bioenergy (151 GW), geothermal (15 GW), and marine energy (1 GW). The share of variable renewables such as wind and solar has increased from 1,1% in 2000 to 44% of total renewable energy production , demonstrating exponential growth over two decades.

The sustained progress in renewables is also reflected in the share of global electricity production: in 2023, almost 30% of electricity generated came from renewable sources. Production has doubled in just over two decades, rising from 15.556 TWh in 2000 to 29.867 TWh in 2023. Furthermore, 2025 is projected to mark the beginning of a cycle in which clean energy becomes the primary source of global electricity generation, with installed capacity already exceeding 46% compared to fossil fuels.

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China: Undisputed leader and paradigm of transformation

The case of China deserves in-depth analysis. In less than twenty years, the Asian giant has gone from being the epicenter of coal pollution to becoming a global leader in renewable energy. It not only leads in the addition of photovoltaic and wind power capacity, but also exports clean technology, setting trends in both its domestic and international markets.

By 2023, wind power accounted for more than 9% of the country's electricity generation, ranking second only to coal, while solar power accounts for around 5%. Beijing has outlined plans to increase its renewable energy portfolio fivefold by 2050, with the goal of wind and solar power together accounting for 38% of its energy mix.

However, dependence on coal and fossil fuels still poses challenges . Although their share of the energy mix has fallen from 60% to 53%, they remain essential for industrial processes and economic growth. The country also maintains high imports of oil and natural gas, although these levels are expected to decrease in the coming decades.

China aims to achieve carbon neutrality by 2060 and reduce its CO2 emissions by 70% by 2050. Although currently responsible for a third of global energy emissions, projections indicate that its share will decrease to approximately 20% by 2050. Total energy consumption is expected to peak in 2030 and decline by 20% by 2050, driven by electrification, efficiency improvements, and demographic shifts.

In recent years, China's emissions have declined: in the first quarter of 2025, they fell 1,6% year-on-year, with 89% of new capacity coming from renewables. However, the challenge remains significant due to the potential reactivation of coal plants if the economy requires it.

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India: High expectations amid structural obstacles

India is another major player undergoing a transformation. The country is investing heavily in renewables, driven by the need to meet growing demand and improve the quality of life for its more than 1.400 billion inhabitants . In 2022, its renewable capacity reached 175 GW, with goals of reaching 500 GW by 2030, solidifying its position as a key player in the global energy transition.

Landmark projects like the Rewa Ultra Mega Solar Park reflect dramatic solar growth in less than a decade. The integration of storage solutions and grid modernization are key to harnessing the potential of solar and wind energy, favored by their climatic and geographical diversity.

But significant obstacles remain. Energy infrastructure is still inadequate, especially in rural and remote areas , hindering the distribution of and access to clean electricity. Furthermore, reliance on coal, which generates over 70% of electricity, and pollution in major cities like New Delhi pose major structural challenges.

India maintains ambitious climate commitments: to reduce carbon intensity by 45% by 2030 compared to 2005 and achieve neutrality by 2070. However, a lack of financing and cutting-edge technology is hampering its progress to some extent, highlighting the importance of international cooperation to accelerate its transition and reduce existing energy inequalities.

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Japan and South Korea: An example of efficiency and gradual transition

Japan and South Korea are proven models in the Asian transition. Japan has made significant progress in energy efficiency , reducing emissions by 22% since 2013 and maintaining its lowest emissions level in twenty years. CO2 emissions per $1.000 of GDP are only 0,16 kg, a very low figure globally. Even so, the country still needs to make progress in reducing its per capita emissions, which remain above the world average.

South Korea , for its part, has high total and per capita emissions, but is making progress in decarbonization policies and the transition to cleaner energy. Although coal still predominates in its electricity generation, strategies to reduce dependence on it and the promotion of renewable energy are paving the way for a more sustainable economy.

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Southeast Asia: A key area at the climate crossroads

Batteries

The Southeast Asian region plays a strategic role. It contributes between 15% and 16% of Asian emissions , facing the challenge of maintaining rapid economic and population growth while reducing its dependence on fossil fuels.

Pioneering initiatives such as the closure of coal-fired power plants in the Philippines and Indonesia, financed by international funds, and the creation of the ASEAN Power Grid, which seeks efficient and sustainable regional integration of electricity markets, are leading the way. Projects such as the export of renewable energy via submarine cables from Laos to Vietnam or Singapore demonstrate the potential for cross-border cooperation to advance toward a cleaner and more resilient grid.

Inequalities and challenges in the Asian energy transition

The pace of the transition is not uniform across the continent. The relationships between development, access to financing, and the success of renewable energy adoption are clear . While Asia and Europe are making significant progress, regions such as Africa, Eurasia, Central America, and the Caribbean are only managing to capture 2,8% of new renewable capacity. Africa, for example, only increased its renewable energy capacity by 7,2% in 2024, despite its enormous opportunities, according to IRENA.

Another important disparity lies in the distribution of renewable electricity production: in South America, 76,8% of electricity is renewable, in Europe around 46%, but in Asia and North America only 27%. The Middle East accounts for the lowest percentage, at just 4%, maintaining its position as one of the world's last fossil fuel strongholds.

In the thermal sector, only 6% of global heat production comes from renewable sources, with bioenergy being the largest contributor at 90%. Transforming this sector is urgently needed to meet international climate commitments.

Sociopolitical and economic factors of the transition

The energy transition in Asia is deeply intertwined with political, economic, and social factors. The growth of renewable energy is driving market shifts, creating opportunities, and revitalizing economies. However, disparities in technological capabilities and stable regulatory frameworks pose significant obstacles.

Experts and international organizations emphasize the importance of aligning investment, financial support, and technology transfer with inclusive policies and strategic partnerships . Only through this coordination can the gap between countries and regions be reduced, making the transition an engine of development and climate resilience.

The climate challenge and Asia's opportunity

Solar record

According to the World Meteorological Organization, Asia is warming at twice the rate of the global average . This temperature increase already exceeds one degree Celsius above reference levels and is manifesting in extreme weather events that affect the economy, food security, and health of millions.

Asia's response is crucial to the global climate fight. The continent possesses the human, technological, and strategic resources to accelerate its transformation and become a leader in a just and sustainable energy transition. International collaboration, public-private partnerships, and robust regulatory frameworks will be essential to harnessing this potential.

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Asia's leadership in the use of renewable energy is already a reality, but it faces challenges. The speed with which it deploys clean technologies, closes investment gaps, improves access, and increases resilience will determine whether it can lead the global transition toward a greener and fairer energy model.

The planet's energy future will largely depend on the actions Asia takes in the coming years. With political determination, investment, and cooperation, it can advance toward sustainable, innovative, and beneficial systems for its inhabitants, inspiring essential global change.


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