Asia Pacific Leads in Solar and Wind Energy Investments

The Asia Pacific region is emerging as a leader in renewable energy, with solar photovoltaic and wind energy capacities reaching impressive levels in 2024. A recent report highlights that solar PV investments are set to outpace wind energy, with significant growth projected in the coming years. Factors such as declining costs and strong policy support are driving this trend, with India's solar market expected to see substantial growth as well. This article delves into the details of these developments and the future of renewable energy in the region.

By Narendra Chaudhary May 31, 2025, 14:13 IST

Significant Growth in Renewable Energy Sector

New Delhi, May 31: The Asia Pacific (APAC) region has established itself as the foremost market for solar photovoltaic (PV) and wind energy, with installed capacities reaching 1.18 TW and 0.67 TW in 2024, as highlighted in a recent report.

Solar PV systems are expected to lead the charge in attracting new investments, surpassing both onshore and offshore wind sectors.

In 2024, solar PV investments totaled $329.1 billion, while onshore wind attracted $151.2 billion, and offshore wind investments amounted to $69.6 billion, according to GlobalData, a prominent data and analytics firm.

Rehaan Shiledar, a power analyst at GlobalData, noted, “Looking forward, the onshore wind sector is projected to expand to $186.9 billion and the offshore wind sector to $150.4 billion by 2030. This translates to a compound annual growth rate (CAGR) of 4 percent for onshore wind and an impressive 14 percent for offshore wind, indicating strong growth potential for these renewable energy sources.”

Globally, renewable resources, especially solar PV and wind energy, are increasingly becoming a significant part of the energy mix.

Fueled by decreasing costs and robust policy backing, particularly for solar PV and wind energy, the global renewable power installed capacity is anticipated to rise from 3.42 TW in 2024 to 11.2 TW by 2035.

An additional industry report released earlier this month indicated that India's solar PV balance of system (BoS) market is on a strong growth path, expected to increase from around $3 billion in 2024 to approximately $7 billion by 2029, achieving a CAGR of 16 percent.

This growth is driven by several factors, including India's ambitious target of 500 GW of non-fossil fuel capacity by 2030 and the goal to source 50 percent of its electricity from renewable energy, as per the latest report from 1Lattice.

The report also emphasized that initiatives like PM-KUSUM, the Grid Connected Rooftop Solar Programme, and the Delhi Solar Energy Policy are facilitating solar adoption in both rural and urban settings, creating new avenues for innovation, manufacturing, and investment in the BoS sector.