RE adoption to accelerate due to gas market volatility

Asia is expected to generate 831TWh of gas-fired power over the decade.

Gas market price volatility will compel new regions to speed up their adoption of renewable energy, according to a report by Fitch Solutions.

“In contrast to our outlook for coal, we highlight that lower carbon-emitting alternatives will rise in prominence, however despite many markets showing growth in the gas sector volatility will place pressure on the sector,” it said.

Fitch Solutions expect non-hydropower renewable capacity in the near term to continue its surge with an average annual global addition of 230 gigawatts (GW) between 2020 and 2024, from 141GW between 2016 and 2020.

Despite this, Asia is still expected to see the largest growth in gas-fired power output between 2022 and 2031 at 831 terawatt-hours (TWh), followed by the Middle East and North Africa (MENA) at 367TWh.

Fitch, however, stated that they expect markets in MENA to strengthen their efforts to cut domestic oil and gas consumption in the power sector and boost hydrocarbon experts in the near-to-medium term.

It added that the increased demand for non-Russian hydrocarbons in Western Europe along with high energy commodity prices will likely reinforce many MENA markets’ initiatives to reduce consumption of oil and gas, “weighing on conventional thermal power growth whilst supporting investment in non-hydropower renewables.”

Many key markets in MENA which include Egypt and the United Arab Emirates were amongst the fastest growing solar sectors globally.

“In general, rising gas prices cast doubt on the view that the sector will be used globally as a bridging fuel from coal to renewables,” it said.

Follow the link for more news on

Fitch Solutions

APAC's renewable capacity

Also Read

High interest rates pose a threat to the energy transition

India directs gas-based power plants to maximise generation during summer

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit