, APAC
Chart from Rystad Energy.

Low-carbon projects spending to increase 10% YoY in 2023: Rystad

This is a slowdown compared to the average of around 20% increase in recent years.

Spending on low-carbon projects is expected to increase by 10% year-on-year (YoY) or by $60b in 2023 to reach $620b, led by developments in the wind sector and an increase in funding for hydrogen, and carbon capture, utilisation and storage (CCUS).

However, the total spending growth slowed compared to recent years which averaged around 20% annually due to cost-conscious developers tightening their expenditure following two years of price increases, according to a report by Rystad Energy.

In 2022, investments in low-carbon projects grew by 21%, overtaking related oil and gas spending for the first-time. Developers are expected to limit their spending growth this year due to inflation but it is expected to rebound as inflationary pressure eases.

READ MORE: Could current and planned renewables capacity offset coal

“The weaker-than-expected growth is not a reason to panic for those in the low-carbon sector. Rampant inflation typically triggers fiscal restraint across industries, and spending will likely bounce back in the coming years,” said Audu Martinsen, head of supply chain research at Rystad Energy. 

“The outlook for hydrogen and CCUS is especially rosy as technology advances, and the large-scale feasibility of these solutions improves,” Martinsen added.

Rystad Energy solar and onshore wind will contribute “the most sizeable margin” as solar investments are seen to total $250b, up by 6% YoY. 

The decline in the cost of polysilicon, however, will result in substantial capacity growth than dollar investments, increasing by around 25% to 1,250 gigawatts (GW).

Meanwhile, hydrogen and CCUS will see the most significant increase, with hydrogen spending expected to rise by 149% YoY to reach around $7.8b, and CCUS by 136% YoY to around $7.4b.

Onshore wind will increase by 12% to $230b, whilst the offshore wind is seen to increase by 20% to $48b. Spending on geothermal is also seen to grow by around 45% despite starting at a relatively low position.

Hydropower, on the other hand, will shrink and nuclear investments will be relatively flat. 

Follow the link for more news on

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!

Top News

India’s Rajasthan and Gujarat need policy reforms to fuel RE transition
Some steps they could take are implementing green tariffs and setting infrastructure funds.
Global clean energy tech market to hit $2t by 2035
This is fuelled by investments as countries aim to enhance energy security.The global clean energy technology market is projected to grow from $700b in 2023 to over $2t by 2035, nearing the scale of the crude oil market, according to the International Energy Agency (IEA).This growth is fuelled by significant investments in clean technology manufacturing as countries aim to enhance energy security, maintain economic competitiveness, and cut emissions. Investment is concentrated in regions with established positions in clean energy, particularly China, the European Union, the UK, and increasingly, India.Whilst the US, EU, and India have taken measures to support their clean energy sectors, China is expected to remain the world's manufacturing hub. By 2035, China's clean technology exports are forecasted to exceed $340b—comparable to projected oil export revenues from Saudi Arabia and the UAE.Southeast Asia, Latin America, and Africa contribute less than 5% of global cleantech production value, yet the IEA suggests that these areas still hold opportunities within the clean energy economy. Developing economies, for instance, could leverage competitive advantages to advance in the value chain beyond resource extraction.The IEA said Southeast Asia could become one of the most cost-effective regions for producing polysilicon and wafers for solar panels over the next decade.

Exclusives

Coal-dependent ASEAN told to scale up RE generation
A regional power grid could help governments in their renewable energy transition.
Indonesia told to tap communities in clean energy transition
Solar and wind power managed by villages could generate 96 million jobs over 25 years.
Indonesia to add 90 MW geothermal capacity
Three power plants in West and East Java and North Sumatra will start operating this year.