31 March, 2020
Insights into the key regulatory and commercial challenges, and opportunities, across ten jurisdictions.
We continue to be surprised by the momentum in the energy transition we are witnessing globally and the continued emergence of the Asian renewables sector. In a decade, renewable power will be the cheapest option for new power supply investments in nearly all Asia-Pacific markets. APAC markets are currently averaging +4% growth in renewables in the past five years, compared with +0.5% in Europe
As countries across the region continue to move ahead with ambitious targets for the amount of energy to be generated from renewables and what appears to be no shortage of ‘dry powder’ available to deploy in the sector, we are continuing to see a significant upward trend in market activity. While this has been led by huge investment in China and India, it is not confined to those countries.
The past 12 months have seen a further increase in the number of renewable and other green energy transactions in the region. While traditional fuel sources, including gas and coal, will continue to be important for many years to come, several major transactions underline what we believe to be a fundamental shift in the outlook for the future energy mix in the region. These include:
- the ongoing growth of the offshore wind sector in Taiwan, with the successful closing of the Yunlin, Formosa 2 and CFXD project financings and launch of the financing process for the next wave of offshore wind projects in Taiwan;
- the continuing development of the offshore wind sector in Japan (including the closing of the first large-scale commercial offshore wind power project in that market), South Korea, Vietnam, Australia, India and elsewhere;
- the increase in fundraising activity in specialist funds and other platforms focused on Asia Pacific renewables; and
- the ongoing issuance of green bonds, including ICBC’s issuance of US$1.58bn of green bonds on the London Stock Exchange – the largest ever green bond listing on the LSE.
Linklaters is proud to have acted on many of the leading deals in the market, including those highlighted above and in the full report. We hope this jurisdictional overview which outlines some of the key regulatory and other challenges and opportunities in the key markets in Asia Pacific for renewables provides an informative and interesting reference. We look forward with enthusiasm to supporting our clients, whether developers, contractors, financiers, governments or others, to achieve their ambitions in the sector and would be delighted to talk to you about your activities in this area.
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For further information, please contact:
Nathalie Hobbs, Partner, Linklaters
nathalie.hobbs@linklaters.com
