,APAC

Here are the main challenges that could hinder RE integration 

Grid stability and commercial viability are key in the clean energy transition.

Issues on grid stability and commercial viability are expected to emerge in integrating renewable energy in the system, KPMG said. 

Considering that renewable energy generation has a tendency to be intermittent, system storage solutions—such as battery storage—is crucial to keep grid stability, said Sharad Somani, KPMG partner and head of Infrastructure, Asia Pacific.

“Whilst, currently, it has not yet become a problem as a share of intermittent renewable energy in the grid is well below 20% to 25% of the total network capacity,” Somani added.

“Once the threshold is crossed, the grid will need to be strengthened and storage solutions ramped up to stabilise the grid.”

Another challenge, Somani said, concerns commercial viability as some technologies are still not marketable. Countries, like Taiwan, Vietnam, and the Philippines, have gone to adopt wind, solar, and geothermal powers, respectively.

“The challenge remains for technologies that are not yet commercially viable, such as green hydrogen and battery storage, to be piloted in more use cases, with an intent to scale up production to drive costs down,” he said.

Somani said renewable energy has become a core part of the electricity system with most state utilities incorporating clean energy to the extent of 20%-25% of the total grid installed capacity.

“The regulatory framework and procurement of RE in the system are well developed, although the feed-in tariff regime is getting diluted in favour of competitively procured tariffs,” he said.

The integration will need a strong commitment from the government to ensure that the necessary infrastructure will be “bankable.” Green hydrogen, for instance, will need an effective policy as it is introduced into the energy mix to provide offtake certainty.

Join Asian Power community
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!

The contract is in line with Keppel's Vision 2030 for sustainability.
Advanced digital solutions can cut China’s LCoE by up to 12%, reports said.
Under the bill, the Singapore regulator will be allowed to be a market player.
The NFE project is the only significant LNG investment recorded amidst the clean energy transition.
The deadline for submission of proposals is on 1 April 2022.
Grid stability and commercial viability are key in the clean energy transition.
Currently, renewables comprise 21% of India’s total power generation.
Analysts said the sector will face risks in the next 1-2 years of decarbonisation.
Following the launch of SolarShare, the company faced contractor issues in Singapore.
The Grid Digital Twin is being developed in anticipation of the increasing electrification complexities.
With such a price, the 36.4 Gt of carbon emissions in 2019 would amount to about 4% of the world GDP.
SG's membership in the PPCA reflects its efforts to phase out unabated coal.
The ETM Southeast Asia partnership is the first of its kind in Asia and the Pacific.
Over 50 companies were awarded in this year’s Oscars of the power industry.