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The Asia Pacific region is playing a crucial role in the global transition to renewable energy, particularly in wind power. Following the COP28 pledge to triple global renewable energy capacity by 2030, the demand for wind energy has surged. The region already accounts for 51% of the world’s total wind power installations as of 2023, and this is expected to rise to 61% by 2030. However, despite this growth, the supply chain remains highly concentrated in China and India, creating potential risks and bottlenecks for the expansion of wind energy in other APAC countries.
The report highlights that while APAC has some of the best wind resources, many countries lack the necessary infrastructure and industrial capacity to scale up wind energy production independently. Countries like Australia, Vietnam, South Korea, and Japan have the potential to expand their wind energy supply chain, but they face challenges such as inconsistent policies, limited investment in large-scale infrastructure, and restrictive local content requirements. The lack of standardization in wind turbine technology also adds complexity to the industry, making it harder for suppliers to keep up with evolving designs.
One of the biggest challenges in the region is the dependency on China for key wind energy components such as nacelles, blades, gearboxes, and power converters. If supply from China is disrupted, major bottlenecks could emerge across APAC. While India also plays a key role in the onshore wind supply chain, the region as a whole still lacks a diversified supply base. Countries like Vietnam and Indonesia have industries that could transition to wind energy manufacturing, such as shipbuilding, automotive, and electrical component production. However, without strategic investments and policy support, these transitions may not happen quickly enough to meet the growing demand.
The report outlines several recommendations to address these challenges. Firstly, a regional supply chain strategy is necessary to ensure a stable and diversified production network. Governments should leverage existing trade agreements to enable cross-border collaboration and encourage investment in new manufacturing facilities. Establishing credible project pipelines with clear regulatory policies would also help boost investor confidence and accelerate supply chain development.
Another important recommendation is to provide public support for supply chain capacity building beyond auction-based procurement. This would help reduce price pressure on developers and create a more resilient and sustainable industry. Additionally, industries that are not currently part of the wind energy sector, such as shipbuilding and electronics manufacturing, could be encouraged to pivot their operations to support wind power production.
Floating offshore wind technology is another area where APAC needs to invest. As offshore wind projects expand, a dedicated supply chain for floating wind turbines will be essential. Governments and industry stakeholders should collaborate early to ensure that the necessary infrastructure and supply networks are in place. This includes investment in port facilities, vessel construction, and workforce training to support the next generation of offshore wind projects.
Standardization and industrialization of wind energy components will also be critical for APAC’s success. The current trend of rapidly increasing turbine sizes without standardized designs has led to higher costs and manufacturing inefficiencies. Aligning industry standards across the region could help reduce costs, improve collaboration, and create new export opportunities for APAC wind energy manufacturers.
In conclusion, while APAC has immense potential to lead the global wind energy transition, significant challenges remain. Without urgent action to scale up the supply chain, the region may struggle to meet its renewable energy targets. By fostering regional cooperation, investing in industrial capacity, and addressing supply chain vulnerabilities, APAC can build a more resilient and competitive wind energy sector that supports global climate goals.
