Industry executives warned that Asia’s shift toward clean energy will face significant obstacles unless governments reduce fossil fuel subsidies, provide stable policies, and invest in modernizing energy grids. Speaking at the APPEC conference in Singapore, Lawrence Wu, CFO of EDP Renewables, emphasized that ongoing coal subsidies are a major hindrance to green investments, particularly as rising power demand from data centers adds pressure. Major economies like Indonesia and India continue to support coal usage, arguing it helps maintain affordable electricity rates, despite the environmental implications.
Nitin Apte, CEO of Vena Group, noted that while his company is ramping up renewable projects, policy unpredictability remains the primary barrier, with canceled auctions and unstable power purchase agreements complicating investments. Taiwan’s recent revocation of offshore wind licenses and India’s cancellation of 11.4 gigawatts of renewable tenders highlight this instability. Meanwhile, Malaysia is increasing coal-fired power generation to meet the energy demands of its growing data center sector, further entrenching fossil fuel reliance.
Both executives urged for more predictable long-term policies to lower financing costs, with Wu expressing confidence in investing in Japan and Australia, where the regulatory landscape is more reliable.