REPORT

Building the Asia Pacific Wind Energy Supply Chain for a 1.5°C World

A Community Engagement Paper

Building the Asia Pacific Wind Energy Supply Chain for a 1.5°C World

OVERVIEW

The Asia Pacific (APAC) region possesses some of the most attractive onshore and offshore wind resource globally and could play a pivotal role in the global energy transition. Within the decade, onshore wind capacity could more than double to 1,084 GW. For offshore wind, more than 122 GW of new capacity could come online by 2030, with the cumulative regional total reaching 162 GW by 2030.

To support the substantial new additions of onshore and offshore wind capacity, urgent scale up of a robust, resilient supply chain is paramount to enabling country and region-wide renewables targets to be met.

This study shows that APAC’s current supply chain setup is not sufficient to build out wind projects to the levels required to meet net zero targets. A collaborative, cross-border approach to scaling industries in APAC countries shows the region’s supply chain could be grown to meet increased regional and global demands while becoming more competitive, diversified, and resilient.

KEY INSIGHTS

The report outlines four challenges that need to be address:

Volatile policy and market demand are preventing industry from adjusting and scaling production capacity.
Lack of coordinated investments in large infrastructure such as grids, ports, and roads as well as major equipment like vessels are impeding regional connectivity and trade.
Political pressure around supply chain security and inflexible local content targets have driven up the cost and caused the delay of delivery.
Race for larger wind turbines continues in APAC region, especially in China, which makes standardisation and industrialisation an unachievable task.

The report outlines seven recommendations to solve these challenges:

Regional supply chain scale up is needed urgently if APAC is to meet 2030 targeted wind installations.
Existing trade agreements can be leveraged to scale up supply chains.
Credible markets and committed pipelines are needed to trigger supply chain investments.
Public support for supply chain capacity building outside of auctions could boost resilience and sustainability while reducing price pressure on developers, especially for near term projects.
Transition industries could be encouraged to expand or pivot operations to fill wind industry.
International collaboration to scale up the floating wind supply chain could start already now.
The wind industry must continue to standardise and industrialise.

REPORT