Research on Asian Renewable  
Energy Development and  
Investment  
( B r i e f
 
V
e r s i o n )  
Global Energy Interconnection  
Development and Cooperation Organization  
(GEIDCO)  
关键技术研究  
Research on Asian Renewable Energy Development and Investment  
PREFACE  
Energy is an important foundation for economic and social  
development. Mankind uses energy, historically we have converted  
energy sources from firewood to fossil such as coal, oil, and natural  
gas, to renewable energy such as hydro, wind and solar energy, every  
change is accompanied by a huge leap in productivity and major  
progress in human civilization. Energy, as the driving force for the  
development of modern society, contributes to the nation’s economy  
and its citizens’ interactive dynamic, as well as to their welfare. The  
massive development and use of traditional fossil energy has led to  
increasingly prominent problems such as resource shortages,  
environmental pollution, and climate change, which seriously  
threaten human survival and sustainable development. In essence, the  
core of sustainable development is clean development. The key is to  
promote renewable energy, and replace fossil energy with renewable  
energy such as solar, wind, and hydropower.  
Scientific and accurate quantitative assessment of resources is the  
critical foundation for large-scale development and utilization of  
renewable energy. At present, the globally installed capacity of  
hydro, wind and solar power has exceeded 30% of the installed  
capacity of power sources. Although some achievements have been  
made in the development of renewable energy, there is still potential  
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for it to expand. Therefore, it is of great importance to conduct a fine  
assessment on resource reserves. On the basis of establishing and  
improving the global renewable energy resources database, the  
Global Energy Interconnection Development and Cooperation  
Organization (GEIDCO) has established an assessment system and  
digital fine assessment models for renewable energy resources. These  
models carry out systematic calculation and quantitative assessment  
of theoretical potential, technical potential installed capacity and  
economic potential installed capacity of hydro, wind and solar  
energies from a global perspective. An achievement of the Global  
Renewable-energy Exploitation ANalysis (GREAN) platform has  
been made, thereby the accuracy and timeliness of global renewable  
energy resources assessment will be effectively improved,  
subsequently providing an important support for large-scale  
development and utilization of renewable energy in relevant  
countries and regions.  
Systematic and efficient macro site selection of power bases is an  
important prerequisite for large-scale development and  
utilization of renewable energy. The site selection of renewable  
energy power bases is related to the cost-effectiveness of power  
station development, which crucially contributes to economic  
development and the efficient utilization of renewable energy. There  
are many factors affecting the site selection of power bases, hence the  
site selection analyses and decision-making process are convoluted.  
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The desk top study of site selection is often limited by the integrity  
and accuracy of data. Site selection must rely on  
site surveys,  
which requires a huge amount of manpower, financial resources and  
time. By taking into account factors such as global topography and  
terrain elevation, land covers, water systems, natural reserves,  
geology and historical seismic activity frequency, power supply and  
power grid, population and economy, GEIDCO has developed a set  
of basic database, models and tools for macro site selection for  
renewable energy power bases which significantly increase the  
breadth and depth of data collection and analysis processes, thereby,  
greatly improving the accuracy, economy and effectiveness of the  
desk top study of site selection, and achieving systematic  
achievements in promoting the development of global renewable  
energy resources. The data collected and analyzed by such models  
and tools are referred as “Reference Book” and “Data Manual” and  
used during the world’s energy strategy research and policy  
formulation.  
Focusing on the world’s resource assessment and base  
development of all continents, GEIDCO has prepared a series of  
scientific reports on renewable energy development and  
investment globally, specifically in continents such as Asia,  
Europe, Africa, North America, Central and South America and  
Oceania. This report is one of the renewable energy research series  
focusing on Asia, which fully shows the achievements in the  
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assessment of renewable energy resources and the site selection of  
large-scale power bases in Asia. In Chapters 1, 2 and 3, the  
resource assessment and base development research of  
hydropower, wind power and photovoltaic power in Asia were  
completed by digital methods. Firstly, the methods, models and data  
of resource assessment and site selection are introduced respectively.  
In terms of hydropower, the theoretical potential of hydroenergy  
resources in major river basins of Asia is calculated, and cascade  
hydropower stations development schemes of major reaches are  
proposed. In terms of wind power and photovoltaic power, on the  
basis of comprehensive calculation and analysis of the main factors  
affecting centralized development, the theoretical potential, technical  
potential installed capacity and economic potential installed capacity  
of wind power and photovoltaic power in all countries and regions of  
Asia have been calculated. Using the GREAN platform, the site  
selection and layout of large-scale onshore wind power bases and  
large-scale solar photovoltaic power bases in Asia are proposed, and  
the assessment of development conditions, development scale and the  
calculation of technical and economic indicators are completed. In  
Chapter 4, based on the development trend of energy and electricity  
supply and demand in Asia, the power transmission direction and  
mode of large-scale renewable energy bases are studied and analyzed  
by coordinating the regional, trans-regional and trans-continental  
power consumption markets. Chapter 5 reviews the energy policies  
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and investment status of major countries in Asia, analyzes the typical  
investment modes of renewable energy exploitation projects,  
conducts case studies in the development schemes of large-scale  
hydro, wind and solar power bases in Asia, and proposes suggestions  
on policies and investment modes to speed up clean development in  
Asia.  
The Global Renewable Energy Development and Investment series  
of reports made by the GEIDCO are committed to providing guidance  
and reference for the large-scale development and utilization of  
renewable energy around the world and accelerating the  
implementation of clean alternatives on the energy supply side. This  
report provides guidelines and acts as a reference guide for  
government departments, international organizations, energy  
enterprises, financial institutions, universities and relevant  
individuals who take part in renewable energy resource assessment,  
strategic research, project development, international cooperation,  
etc. However, due to the time constraints for data collection and  
report research writing timeframe, the contents may be incomplete.  
Comments and suggestions are welcome for further improvements.  
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CONTENTS  
1. Hydroenergy Resources Assessment and Development....................3  
1.1 Analysis on Restrictive Factors...................................................4  
1.2 Resource Assessment ..................................................................6  
1.3 Base Development ......................................................................8  
2. Wind Energy Resources Assessment and Development..................10  
2.1 Analysis on Restrictive Factors.................................................11  
2.2 Resource Assessment ................................................................13  
2.3 Power Bases Development........................................................19  
3. Solar Energy Resources Assessment and Development ..................22  
3.1 Analysis on Restrictive Factors.................................................22  
3.2 Resource Assessment ................................................................24  
3.3 Power Bases Development........................................................29  
4. Outbound Transmission of Large-scale Renewable Energy Bases33  
4.1 East Asia....................................................................................33  
4.2 Southeast Asia...........................................................................35  
4.3 South Asia .................................................................................36  
4.4 Central Asia...............................................................................37  
4.5 West Asia...................................................................................38  
5. Policy Environment and Investment and Financing Suggestions..41  
5.1 Overview of Policy Environment in Asia.................................41  
5.2 Investment and Financing Proposal..........................................47  
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1. Hydroenergy Resources Assessment and  
Development  
Asia is rich in hydroenergy resources, with the total amount is  
among the highest in the world with great development potential.  
In this report, the digital assessment and calculation of  
hydroenergy resources in basins of such 14 rivers as Lena River,  
Yenisey River, Ob River, Brahmaputra River, Ganges River,  
Indus River, Amu River, Syr River, Mekong River, Ayeyarwady  
River, Salween River, Mahakam River, Rajang River and  
Malinau River are carried out, and the theoretical potential of  
hydroenergy resources of major rivers in China are calculated by  
citing public data, and the theoretical potential of hydroenergy is  
about 16,801 TWh/a. Considering resource characteristics and  
development conditions, and using the digital platform, the report  
further carried out the research on the development scheme of 10  
large-scale hydropower bases along basins of such rivers as  
Ganges, Brahmaputra, Mahakam, Rajang, Malinau, Ayeyarwady,  
Salween, Mekong, Syr and Lena, and the layout scheme of 88  
cascade hydropower stations and the development scheme of  
large- scale hydroenergy projects are proposed for the reaches to  
be developed with rich hydroenergy resources, with the total  
installed capacity of 92.01 GW and the annual power generation  
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of 431.85 TWh. The research results will strongly promote Asia  
to accelerate the formation of a renewable energy-led and  
interconnected energy pattern, promote the steady growth of  
energy production and energy consumption in Asia, ensure safe  
and reliable energy supply, and achieve sustainable development  
in Asia.  
1.1 Analysis on Restrictive Factors  
In terms of distribution of water systems, there are many water  
systems in Asia, including such world-famous rivers as Lena,  
Mekong and Ganges, which are mainly distributed in the north,  
southeast and south. According to the analysis, there are 42 first-  
class rivers with a basin area of more than 8×104 km2, totally  
with a basin area of 2,480×104 km2, accounting for about 56% of  
the total area of Asia. The distribution of major river systems in  
the whole continent is shown in Figure 1-1.  
In terms of hydrological data, the Asian continent studied  
in the report, based on the basic data of the Global Runoff Data  
Center which contains the observation data from more than 800  
hydrological stations, also covers some river basins along the  
Pacific coast and islands and the Middle East in addition to the  
above 42 river basins.  
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Figure 1-1 Distribution of Major Rivers in Asia  
In terms of distribution of land covers, the development and  
construction of large-scale hydropower bases should avoid  
flooding large areas of cultivated lands and densely populated  
urban areas and villages to protect the ecological environment.  
Thus cultivated lands and urban areas are the main restrictive  
factors of land covers affecting the development of hydropower  
resources, with their distribution shown in Figure 1-2. Asia has a  
high rate of coverage of cultivated land. The cultivated land in  
Asia is mainly distributed in eastern, southern and southeastern  
Asia, and the urban areas are mainly distributed in the coastal  
areas of East Asia. Distribution of cities and urban areas reflects  
the population aggregation to a certain extent, and the distribution  
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of cities and cultivated land tends to have better convergence in  
wide-area space.  
Figure 1-2 Distribution of Cultivated Lands and Urban Areas in Asia  
1.2 Resource Assessment  
Overview of Hydroenergy Resources. There are a total of 21756  
rivers in Asia with a theoretical hydroenergy potential of 50 GWh  
and above. The theoretical potential of hydroenergy resources is  
21782 TWh/a, accounting for 47.2% of global total. Hydroenergy  
development potential in Asia is mainly distributed in the Ganges,  
Brahmaputra, Ayeyarwady, Salween, Lena, Mahakam Rivers and  
other basins. Digital assessment and calculation of hydro-energy  
resources in 14 river basins in Asia, including Lena, Yenisey, Ob,  
Brahmaputra, Ganges, Indus, Amu, Syr, Mekong, Ayeyarwady,  
Salween, Mahakam, Rajang, and Malinau rivers is carried out as  
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shown in the report and the distribution of which is shown in  
Figure 1-3, covering an area of 14.38 million km2, or 58% of  
Asia’s primary rivers, and covering major hydro-energy  
resources to be developed. The report cites public data to  
calculate the theoretical potential of hydroenergy resources of  
major rivers in China.A The Yangtze, Yellow, and Huai rivers are  
domestic rivers in China with a high proportion of hydroenergy  
resource development, and hydroenergy resources in the  
upstream areas have been included in China’s hydropower  
development and construction schemes, and therefore are not the  
focus of the report’s research.  
According to the calculation of the digital platform, the total  
theoretical potential of major river basins in Asia are about 16,801  
TWh/a. According to the national statistical assessment carried  
out by the countries involved in the basin, the theoretical  
hydroenergy potential in Asia is mainly distributed in 21  
countries such as China, India, Myanmar, Afghanistan, Nepal and  
Tajikistan, among which the theoretical hydroenergy potential in  
China is the highest, at 7268.92 TWh/a.  
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Figure 1-3 Distribution of Major River Basins in Asia  
1.3 Base Development  
Considering the resource characteristics and development  
conditions comprehensively, 10 basins of such rivers as Ganges,  
Brahmaputra, Mahakam, Rajang, Malinau, Ayeyarwady, Salween,  
Mekong, Syr and Lena will be mainly developed in Asia in the  
future. Based on the digital platform, the base development  
scheme of basins has been studied, and the cascade layout scheme  
of the river reaches to be developed with rich hydroenergy  
resources has been studied, and the site selection of main large-  
scale hydroenergy projects has been completed. Basins such as the  
Yarlung Zangbo River, the Nu River, the Lancang River, the  
Jinsha River, the Dadu River and the Yalong River in Southwest  
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China will be mainly developed in China in the future. According  
to the long-term scheme, the total development scale of  
hydropower bases in Southwest China in the future is expected to  
exceed 200 GW.  
Measurement and calculation show that 10 hydropower bases in  
Asia except China involve a total of 88 cascade hydropower  
stations to be developed, with a total installed capacity of 92.01  
GW and an annual power generation of 431.85 TWh. According  
to the long- term scheme, the total development scale of 10 large-  
scale hydropower bases in the future is expected to exceed 130  
GW. The layout of the hydropower bases in Asia is shown in  
Figure 1-4.  
Figure 1-4 General Layout of Large-scale Hydropower Bases in Asia  
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2. Wind Energy Resources Assessment and  
Development  
Asia is rich in wind energy resources and holds great  
development potential. The report assessed 48 countries and  
regions in Asia, and calculated that the theoretical potential of  
wind energy resources in Asia is up to 595.0 PWh/a, and the  
installed capacity suitable for centralized development is about  
37,316.9 GW, which is mainly distributed in countries such as  
China and Mongolia in East Asia, Kazakhstan in Central Asia,  
Afghanistan, Iran, Saudi Arabia and Oman in West Asia, with  
93.9 PWh of annual power generation. However, the current  
development scale is still less than 1% of the technical potential  
installed capacity. Considering the characteristics and  
development conditions of resources, the site selection and  
development schemes of such 39 large-scale wind power bases as  
Wakkanai in Japan and Choybalsan in Mongolia, were studied  
and the main technical and economic indicators were proposed  
by using the digital platform, with a total installed capacity  
expected to be 288.4 GW. The research results will help the  
development and utilization of wind energy resources in Asia,  
boost the investment confidence in wind power generation  
infrastructure, and promote the process of renewable energy  
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development in Asia.  
2.1 Analysis on Restrictive Factors  
In terms of distribution of wind speeds, Asia holds great  
potential for wind energy development. The distribution of wind  
speeds is as shown in Figure 2-5. Mongolia and China in East Asia,  
India and Pakistan in South Asia, Kazakhstan in Central Asia,  
Afghanistan, Iran, Oman and other countries in West Asia are rich  
wind resources and have an annual average wind speed of more  
than 6 m/s in some areas, which are conducive to the development  
of large-scale wind power bases.  
Figure 2-1 Distribution of Wind Speeds in Asia  
In terms of grid facilities, the better the grid infrastructure  
conditions are, the lower the grid integration cost of large-scale  
wind power bases are, and the more conducive to the centralized  
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wind power development. When carrying out the economic  
assessment of wind energy resources development in Asia, the  
influence of grid integration conditions is taken into account, and  
the grid integration cost is added in the LCOE calculation.  
According to statistics, the total length of the high-voltage power  
grid lines in Asia is about 107.6×104 km, of which the length of  
AC transmission lines above 300 kV exceeds 71.8×104 km, and  
that of ±500 kV and above DC transmission lines is about 5.9×104  
km. The thermal distribution of infrastructure of 110 kV and  
above grid in Asia is shown in Figure 2-2. In general, the grid  
infrastructure in Asia is relatively complete, but there is no high-  
voltage power grid coverage in northern Siberia, some areas of  
Qinghai-Tibet Plateau and some areas of southeast Arabian  
Peninsula in Asia. The above area has no high-voltage power grid  
within 300 km (gray area in the figure), and the grid integration  
conditions for large-scale wind power base development are  
relatively poor. Most wind power resources can only be collected  
nearby and then transmitted and absorbed from a long distance.  
New large- capacity and long-distance transmission channels need  
to be built.  
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Figure 2-2 Distribution of Wind Speeds in Asia  
2.2 Resource Assessment  
In terms of theoretical potential, according to the wind speed  
data at the height of 100 m, the theoretical potential of wind  
energy resources in Asia is 595.0 PWh/a, accounting for 30% of  
the global total. Some areas in Northeast Asia, Central Asia and  
West Asia are among the regions with the greatest potential  
development for wind energy resources in the world.  
In terms of technical potential installed capacity, after  
comprehensive consideration of resources and various technical  
constraints, the technical potential installed capacity of wind  
power suitable for centralized development in Asia is about  
37,316.9 GW, and the annual power generation is about 93.9 PWh.  
In terms of distribution, the technically exploitable wind energy  
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resources in Asia are mainly distributed in China and Mongolia  
in East Asia, Kazakhstan in CentralAsia, Afghanistan, Iran, Saudi  
Arabia and Oman in West Asia, accounting for more than 70% of  
the continent’s total. The above-mentioned areas are basically  
below 2000 m above sea level, mainly with herbaceous  
vegetation, bare ground and a small amount of shrubs. Except for  
the conservation areas in Mongolia and Iran, most of the areas are  
very suitable for the construction of large-scale wind power bases.  
Most areas in eastern and southern China, Japan, Korean  
Peninsula, India and Bangladesh are densely populated, with  
developed agriculture and widely distributed cultivated land,  
which basically do not have the conditions for centralized  
construction of large-scale wind power bases. The Qinghai-Tibet  
Plateau in western China, Kyrgyzstan, Tajikistan and other  
countries located in the Pamir Plateau in Central Asia with high  
altitude and large topographic relief have poor conditions for  
centralized development of wind power. Myanmar, Thailand,  
Laos, Indonesia and other countries in Southeast Asia are rich in  
wind resources in some areas, but most of them are covered with  
dense tropical rain forest, so most countries are not suitable for  
the construction of centralized wind power bases. On the whole,  
due to the influence of land cover, topography and other factors,  
only 20% of onshore areas in Asia have the conditions for  
centralized development and construction of wind power bases,  
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and some countries such as Japan, India and Myanmar are more  
suitable to develop wind power resources by using distributed  
development mode and idle land around villages, forest and in  
fields.  
The wind power installed capacity per unit land area and its  
annual power generation are important indicators to characterize  
the technically exploitable resource conditions of wind power in  
a region. However, the installed capacity is greatly affected by the  
terrain slope. In comparison, the ratio of annual power generation  
to installed capacity, that is, the number of installed capacity full-  
load hours (capacity factor), can better reflect the advantages and  
disadvantages of regional wind power resources, development  
conditions and technology. Please refer to Figure 2-3 for the  
distribution of technical available areas for wind power  
generation in Asia and their full-load hours.  
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Figure 2-3 Distribution of Wind Power Technical Available Areas in Asia  
and Their Full-load Hours  
According to the distribution of wind power technical indicators  
in Asia, the average full-load hours for the technical potential  
installed capacity of continent-wide wind power are about 2517  
hours (with an average capacity factor of about 0.29). Among  
them, the full-load hours of wind power are above 3000 in  
southern Mongolia, northern China, southern Kazakhstan, the  
border between Iran and Afghanistan, the Indian Ocean coast in  
Oman and the Red Sea coast in southwestern Yemen. The  
development conditions are favorable, with the maximum value  
occurring in Herat, the border between Afghanistan and Iran,  
exceeding 4500 hours.  
In terms of development cost, according to the estimation of the  
cost level of onshore wind power technology and equipment by  
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2035, considering the transportation and grid infrastructure  
conditions, the average cost for centralized wind power  
development in Asia is 3.57 cents, and that in countries of Asia is  
between 2.65 and 6.99 cents. According to the current global  
average tariff level of about 8 cents, approximately 92% of the  
technical potential installed capacity in Asia meets the cost-  
effectiveness requirements, excluding areas of Siberia in the Far  
East that are far away from roads and power grids and the areas  
with relatively poor wind resources, large topographic relief and  
poor construction conditions. Under the condition of global wind  
power average development cost of about 5 cents, the calculation  
shows that the economic potential installed capacity of wind  
power in Asia is expected to be is expected to be 31.5 TW  
according to the cost level by 2035, accounting for 84% of  
technical potential installed capacity.  
See Figure 2-4 for the distribution of development costs for wind  
power resources in Asia. Southern Mongolia and northern China  
in East Asia and parts of Central Asia and West Asia have lower  
development cost.  
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Figure 2-4 Distribution of Wind Power Development Costs in Asia  
In terms of economic indicators by country of wind power  
generation in Asia, countries and regions with excellent resource  
conditions and relatively good transportation and grid  
infrastructure have low cost and better cost-effectiveness for wind  
power development. On the whole, most of the wind power  
resources that can be developed in Asia have good cost-  
effectiveness, but the cost for wind power development in 13  
countries including India, Japan, Uzbekistan and Indonesia is  
higher than 8 cents, which indicates that these countries have  
areas where development is restricted due to cost. From the  
perspective of the most economical development regions, the  
lowest cost for wind power development in China, Japan, South  
Korea, Mongolia, Laos, Vietnam, Philippines, Kazakhstan,  
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Turkmenistan, Uzbekistan, Pakistan, Sri Lanka, Afghanistan, Iran,  
Iraq, Kuwait, Oman, Saudi Arabia, Yemen, Syria, Turkey and  
other countries is less than 2.5 cents, with good cost-effectiveness  
for development, and the lowest development cost occurring in  
the coastal area of Ta’izz in southwest Yemen, which is 1.71 cents.  
From the perspective of the average economic level of wind  
power development, the average development cost in Kuwait is  
the lowest, at 2.65 cents, ranging from 2.32 to 3.24 cents.  
2.3 Power Bases Development  
According to the assessment results of wind energy resources in  
Asia, considering the characteristics of resources and  
development conditions, large-scale wind power bases in Asia  
should be laid out in regions with high technical indicators and  
low development cost. According to the overall local electricity  
demand and the layout of the main strategic power transmission  
channels of energy interconnection in Asia, in the future, wind  
power bases such as Wakkanai and Suzu in Japan, Kilchu in North  
Korea, Pohang in South Korea, Choybalsan, Mandalgovi,  
Omnodelger, Choyr and Tavan Tolgoi in Mongolia will be  
developed in East Asia, with a development scale of 45.00 GW  
by 2035. Wind power bases such as Quang Ngai, Binh Thuan and  
Ninh Thuan in Vietnam and Bangui and Southern Tagalog in  
Philippines will be developed in Southeast Asia, with a  
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development scale of 19.00 GW by 2035. Wind power bases such  
as Jaisalmer, Bhachau, Rajkot, Bhuj, Solapur, Chennai and  
Tuticorin in India, Mannar and Jaffna in Sri Lanka, and Gharo,  
Khairpur and Baluchistan in Pakistan will be developed in South  
Asia, with a development scale of 150.30 GW by 2035. Wind  
power bases such as Atyrau, Mangghystau, Qaraghandy,  
Zhambyl and Turkistan wind power bases in Kazakhstan will be  
developed in Central Asia, with a development scale of 23.00 GW  
by 2035. The wind power bases such as Ad Dammam Base in  
Saudi Arabia, Lakabi and Ras Madrakah in Oman, Al  
Ghuwariyah in Qatar, Ta’izz in Yemen, Aleppo in Syria, Birjand  
in Iran and Herat in Afghanistan will be developed in West Asia,  
with a development scale of 51.10 GW by 2035. Total 21 wind  
power bases such as Altay Base in Xinjiang, Jiuquan Base in  
Gansu, Alashan Base in Nei Mongol, Baicheng in Base Jilin and  
Bashang Base in Hebei will be developed in China, with a  
development scale of 577 GW by 2035.  
Based on the digital site selection model and software, the above  
39 wind power bases except China are studied with regard to the  
development conditions, installation scale, engineering  
assumption, power generation characteristics and investment  
level, and a preliminary development scheme was put forward.  
The total installed capacity of the above 39 wind power bases is  
about 288.40 GW and the annual power generation will be 874.45  
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TWh/a. According to the long-term scheme, the total  
development scale is expected to exceed 600 GW in the future.  
According to the forecast results of cost for onshore and offshore  
wind power in Asia by 2035 and investment estimation based on  
the basic situation of the project, the total investment of wind  
power bases in Asia is about 286.234 billion USD, and the LCOE  
range of onshore wind power bases is 1.98-3.85 cents/kWh, while  
that of offshore wind power bases is 4.01-7.40 cents/kWh. See  
Figure 2-5 for the overall layout of large-scale wind power bases  
in Asia.  
Figure 2-5 Layout of Large-scale Wind Power Bases in Asia  
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3. Solar Energy Resources Assessment and  
Development  
Asia is rich in solar energy resources and has great development  
potential. Total 48 countries and regions in Asia are evaluated in  
the report, and the total theoretical potential of solar photovoltaic  
resources in Asia is estimated to be about 59,099.6 PWh/a. The  
installed capacity suitable for centralized development is about  
606.0 TW, mainly distributed in Mongolia and northern and  
western China in East Asia, Pakistan in South Asia, and Central  
Asia and West Asia, with an annual power generation of 1100.3  
PWh. Considering resource characteristics and development  
conditions, site selection planning research is carried out for 38  
large-scale photovoltaic power bases in Choyr of Mongolia,  
Jaisalmer of India, etc., and the main technical and economic  
indicators were proposed by using the digital platform, with a total  
installed capacity of 687.8 GW. The research results will assist the  
development and utilization of solar energy resources in Asia,  
enhance the confidence in infrastructure investment of  
photovoltaic power generation in Asia, and promote the clean  
development process of energy resources in Asia.  
3.1 Analysis on Restrictive Factors  
In terms of distribution of global horizontal irradiance, Asia  
holds great potential for solar energy development, and the  
distribution of global horizontal irradiance of solar energy is  
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shown in Figure 3-1.  
Figure 3-1 Distribution of Global Horizontal Irradiance of Solar Energy in  
Asia  
The mean annual GHI of Pakistan in South Asia, Afghanistan,  
Iran, Iraq, Syria, Jordan, Saudi Arabia, United Arab Emirates,  
Oman, Yemen and other countries in West Asia, with good solar  
energy resources, is above 1900 kWh/m2, beneficial to  
developing large-scale photovoltaic power bases.  
In terms of distribution of terrains, terrain conditions have  
great influence on the development of renewable energy  
resources such as photovoltaic resource, mainly including altitude  
and terrain slope. In terms of altitude, the weakening of  
atmospheric scattering in high altitude areas is conducive to  
photovoltaic power generation, but glaciers and permafrost are  
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mostly distributed in plateau areas over 4500 m, which affects the  
construction of projects. At the same time, the plateau ecology is  
fragile and it is difficult to restore the surface vegetation after the  
construction of large-scale projects. The high altitude of the  
Qinghai-Tibet Plateau area in Asia makes it difficult to construct  
large-scale photovoltaic power projects. The elevation  
distribution in Asia is shown in Figure 3-2.  
Figure 3-2 Distribution of Altitudes in Asia  
3.2 Resource Assessment  
In terms of theoretical potential, according to measurement and  
calculation of the solar GHI data, the theoretical potential of solar  
photovoltaic resources in Asia is 59,099.6 PWh/a, accounting for  
28% of the global total. West Asia is one of the regions with the  
most development potential for photovoltaic resources in the  
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world.  
In terms of technical potential installed capacity, after  
comprehensive consideration of resources and various technical  
constraints, it is estimated that the scale suitable for centralized  
development of solar photovoltaic resources in Asia is 606.0 TW,  
and the annual power generation is up to 1100.3 PWh.  
In terms of distribution, photovoltaic resources in Asia are mainly  
concentrated in Mongolia and northern and western China in East  
Asia, Pakistan in South Asia, and Central Asia and West Asia.  
China, Mongolia, Kazakhstan, Turkmenistan, Uzbekistan,  
Pakistan, Afghanistan, Iran, Iraq, Syria, Jordan, Saudi Arabia,  
Yemen and Oman account for more than 85% of the total amount  
of the continent. Most of the above-mentioned areas are below  
2500 m above sea level and are mainly covered by bare ground,  
herbaceous vegetation and a small amount of shrubs. Except for  
the conservation areas in Mongolia, Iran and Saudi Arabia and the  
high-altitude Qinghai-Tibet Plateau, most of the areas  
are very  
suitable for the construction of large-scale photovoltaic power  
bases. The high altitudes of China’s Qinghai-Tibet Plateau, the  
Pamirs of Central Asia and other regions result in difficult project  
construction and poor conditions for centralized development of  
photovoltaic resources. Although part of the Indian Peninsula in  
South Asia and the Indochina Peninsula and the Malay  
Archipelago in Southeast Asia has good solar energy resource  
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conditions, most areas are cities and urban areas, cultivated lands  
or tropical rain forest, making it impossible to build centralized  
photovoltaic power bases. Generally speaking, affected by factors  
such as topography and land covers, only 35% of Asia has the  
conditions for centralized development and construction of  
photovoltaic power bases. Some countries, such as India, Thailand,  
and Indonesia, are more suitable to adopt the distributed  
development mode to develop photovoltaic resources using idle  
land in fields and roofs in cities and urban areas.  
Similar to the technical indicator of wind power, the ratio of  
annual power generation per unit land area to installed capacity,  
that is, the number of installed capacity full-load hours (capacity  
factor) is also a key parameter reflecting the advantages and  
disadvantages of regional photovoltaic resource technology  
development conditions. Please refer to Figure 3-3 for the  
distribution of technical available areas for photovoltaic power  
generation in Asia and their full-load hours.  
According to the technical indicators, the average full-load hours  
of technical potential installed capacity of photovoltaic power  
generation in the whole continent are about 1816 (the average  
capacity factor is about 0.21), among which, the full-load hours of  
photovoltaic technology are around 1900-2000 in Syria, Iraq,  
Jordan, Saudi Arabia, Yemen, Jordan and other countries,  
southern Pakistan, southern Afghanistan and southern Iran. The  
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development conditions are favorable, with the maximum value  
occurring near Tabuk in northwestern Saudi Arabia, exceeding  
2100 hours.  
Figure 3-3 Distribution of Technical Available Areas for Photovoltaic  
Generation in Asia and Their Full-load Hours  
In terms of development cost, according to the estimation of the  
cost level of photovoltaic technology and equipment by 2035,  
considering the transportation and grid infrastructure conditions,  
the average development cost of centralized solar photovoltaics in  
Asia is 2.48 cents, and the average development costs for each  
country are between 1.94 cents and 3.38 cents. According to the  
current global average tariff level of about 8 cents, nearly all of  
Asia’s technical potential installed capacity meets the economic  
requirements. Under the condition of global PV average  
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development cost level of about 3.5 cents, the calculation shows  
that the economic potential installed capacity of solar power in  
Asia is expected to be 545.2 TW according to the cost level by  
2035, accounting for 90% of technical potential installed capacity.  
See Figure 3-4 for the distribution of development costs for  
photovoltaic resources in Asia. Southern Mongolia and northern  
China in East Asia, Pakistan in South Asia, and parts of Central  
Asia and West Asia have lower development cost.  
In terms of economic indicators, countries and regions with  
excellent resource conditions and relatively good transportation  
and grid infrastructure have relatively low cost and better cost-  
effectiveness for photovoltaic power development. On the whole,  
the highest LCOE in most countries and regions is less than 8  
cents, which indicates that Asia as a whole has good conditions  
for large-scale development. Among them, Mongolia, Kazakhstan,  
Turkmenistan, Azerbaijan, Afghanistan and other countries have  
extremely high development costs in some areas, which are  
closely related to their poor local transportation and grid  
integration conditions. From the point of view of the most  
economical development regions, the lowest photovoltaic  
development cost in China, Mongolia, Pakistan, Yemen, Saudi  
Arabia, Jordan, Iran, Oman, Afghanistan, Syria, Israel, United  
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Arab Emirates, Lebanon, Palestine, Iraq, Qatar, Bahrain, Kuwait,  
Cyprus, Turkey, Sri Lanka and other 21 countries is less than 2.0  
cents and is cost-effective, with the lowest development cost  
occurring in Tabuk, Saudi Arabia, at 1.64 cents. On average, the  
United Arab Emirates has the lowest average development cost in  
countries, namely, 1.94 cents, and its lowest development cost is  
1.84 cents.  
Figure 3-4 Distribution of Development Costs for Photovoltaic Generation  
in Asia  
3.3 Power Bases Development  
Large-scale photovoltaic power bases should be laid out in regions  
with high technical indicators and low development cost.  
According to the overall local electricity demand and the layout  
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of the main strategic power transmission channels of energy  
interconnection in Asia, in the future, three photovoltaic power  
bases will be developed in East Asia, including Choyr, Gurvantes  
and Tavan Tolgoi in Mongolia, with a development scale of 11.00  
GW by 2035. Total 13 photovoltaic power bases will be developed  
in South Asia, including Jaisalmer, Korna, Patan, Bhuj, Rajkot,  
Dhulia, Aurangabad, Pavagada and Madurai in India, Quetta,  
Khuzdar and Matiari in Pakistan, and Kilinochchi in Sri Lanka,  
with a development scale of 354.40 GW by 2035. Seven  
photovoltaic power bases will be developed in Central Asia,  
including Turkistan and Kapchagay in Kazakhstan, Muynak and  
Kungrad in Uzbekistan, and Turkmenabat, Mary and Dushak in  
Turkmenistan, with a development scale of 43.40 GW by 2035.  
Total 15 photovoltaic power bases will be developed in West Asia,  
including Aflaji, Al Obadiah, Riyadh, Ha’il and Tabuk in Saudi  
Arabia, Shalim in Oman, Sweihan in United Arab Emirates,  
Ma’an in Jordan, Al Amarah and An Najaf in Iraq, Hims in Syria,  
Shiraz, Zahedan and Birjand in Iran, and Kandahar in Afghanistan,  
with a development scale of 277.00 GW by 2035. Total 18  
photovoltaic power bases such as Changji Base in Xinjiang,  
Hainan Base in Qinghai, Badain Jaran Desert Base in Nei Mongol  
and Hoh Xil Gobi Base in Xizang will be developed in China,  
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with a development scale of 510 GW by 2035.  
Based on the digital site selection model and software, the report  
presents the development conditions, installation scale,  
engineering assumption, power generation characteristics and  
investment level of the above 38 photovoltaic bases except China,  
and puts forward a preliminary development scheme. The total  
installed capacity of the 38 photovoltaic bases is about 687.80 GW  
and the annual power generation will be 1318.35 TWh/a.  
According to the long-term scheme, the total development scale  
is expected to exceed 1500 GW in the future. According to the  
forecast results of photovoltaic cost in Asia in 2035 and  
investment estimation based on the basic situation of the project,  
the total investment of photovoltaic power bases in Asia is about  
322.037 billion USD, and the LCOE range is 1.81 cents/kWh -  
3.28 cents/kWh. The layout of large-scale photovoltaic power  
bases in Asia is shown in Figure 3-5.  
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Figure 3-5 Layout of Large-scale Photovoltaic Power Bases in Asia  
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4. Outbound Transmission of Large-scale Renewable  
Energy Bases  
Based on the development trend of energy and power supply and  
demand in Asia, the report analyzes the power delivery direction  
and transmission mode of large- scale renewable energy bases in  
Asia by coordinating the regional, cross-regional and inter-  
continental power consumption markets, and fully considering  
such factors as power delivery capacity of base power, power  
transmission distance and power grid structure development. The  
research results are of great significance to realizing the effective  
connection and coordination between the development and power  
delivery of large-scale renewable energy bases and the power  
grids, and to promoting large-scale development and efficient  
utilization of renewable energy in Asia.  
4.1 East Asia  
East Asia is located at the starting point of the Asia-Europe  
passage and the “Silk Road Economic Belt”, bordering the  
Russian Far East energy resource base in the north, the Central  
Asia energy resource base in the west, and the load centers of  
South and Southeast Asia in the south, so it has significant  
geographic advantages. East Asia is an important global economic  
center and a highland of technological innovation, with strong  
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reserves of funds and talents and a large demand for energy and  
electricity. In the future, East Asia will focus on the development  
of wind power and solar energy resources in Mongolia, optimize  
the allocation of energy resources on a larger scale, and receive  
inter-regional renewable energy from Central Asia and the  
Russian Far East. Through mutual complementarity and support  
of water, wind and solar energy, East Asia fully plays its role as a  
regulating “reservoir” and transmits its power to South Asia and  
Southeast Asia, making itself an important power distribution  
platform in Asia. The long-run power transmission scheme for  
renewable energy bases in East Asia is shown in Figure 4-1.  
Figure 4-1 Schematic Diagram of Long-run Transmission Scheme for  
Renewable Energy Bases in East Asia  
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4.2 Southeast Asia  
Southeast Asia is rich in renewable energy and mineral resources  
and have outstanding demographic dividend and obvious port  
advantages, showing huge development potential. In the future,  
based on the characteristics of resource endowments, Southeast  
Asia can give full play to its geographical advantages, vigorously  
develop renewable energy such as hydroenergy, solar energy,  
wind energy, and geothermal energy, and form a renewable  
energy-led development mode. It can accelerate the construction  
of grid interconnection, and coordinate the utilization of both  
internal and external resources and markets to build a green, low-  
carbon, safe, reliable, flexible and mutually beneficial platform  
for large-scale allocation of renewable energy and promote  
regional multi-level integration. Besides, it can also promote the  
transformation of energy development pattern and economic and  
industrial development mode through the interconnected  
development  
mode  
of  
“electricity-mining-metallurgy-  
manufacturing-trade”, so as to realize the comprehensive and  
balanced development of the region. The long-run power  
transmission scheme for renewable energy bases in Southeast  
Asia is shown in Figure 4-2.  
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Figure 4-2 Schematic Diagram of Long-run Transmission Scheme for  
Renewable Energy Bases in Southeast Asia  
4.3 South Asia  
South Asia has huge potential for economic structure upgrading,  
population development, and exploitation and utilization of  
renewable energy resources. In the future, South Asia can make  
full use of the three potentials to create three economic belts of  
the Bay of Bengal, the China-Pakistan Economic Corridor and  
southern India. It will focus on the development of automobile  
manufacturing, communications, cement, textiles and other  
industries, and promote the rapid growth of energy and power  
demand. South Asia will become the growth point and  
consumption center of energy and power in Asia. The long-run  
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power transmission scheme for renewable energy bases in South  
Asia is shown in Figure 4-3.  
Figure 4-3 Schematic Diagram of Long-run Transmission Scheme for  
Renewable Energy Bases in South Asia  
4.4 Central Asia  
Central Asia is rich in energy resources and has obvious  
geographical advantages. It is connected with the Pacific and  
Atlantic coastal economic circles, and is the core area of “the Belt  
and Road” construction. In the future, through large-scale  
development of hydropower in the upper reaches of the Amu  
River and Syr River, wind power in Kazakhstan and solar power  
generation covering Central Asian countries, it can promote the  
development of clean and low-carbon power supply in countries  
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in the region, become an important renewable energy outbound  
transmission base connecting Eurasia, and realize the coordinated  
development of Central Asia and the Pacific and Atlantic coastal  
economic circles. The long-run power transmission scheme for  
renewable energy bases in Central Asia is shown in Figure 4-4.  
Figure 4-4 Schematic Diagram of Long-run Transmission Scheme for  
Renewable Energy Bases in Central Asia  
4.5 West Asia  
West Asia has obvious geographical advantages, sufficient labor  
force and abundant oil and gas resources. However, it faces severe  
environmental pressure and industrial upgrading and  
transformation pressure. By accelerating the realization of  
industrial structure optimization and promoting energy industry  
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transformation and other related policies, West Asian countries  
have embarked on a new diversified industrial development mode.  
In the future, West Asia will adjust its energy production pattern,  
reduce dependence on oil and gas resources, accelerate the  
exploitation of renewable energy, and focus on the development  
of large-scale solar energy and wind power bases so as to realize  
diversified and clean energy supply and sustainable energy  
development. At the same time, it will make full use of the  
geographical advantage of location whereAsia, Africa and Europe  
meet, as well as the abundant resource advantages of solar and  
wind energy, to transmit power to South Asia and Europe, forming  
an inter-regional and intercontinental “mutual radiation” pattern.  
The long-run power transmission scheme for renewable energy  
bases in West Asia is shown in Figure 4-10.  
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Figure 4-5 Schematic Diagram of Long-run Transmission Scheme for  
Renewable Energy Bases in West Asia  
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5. Policy Environment and Investment and Financing  
Suggestions  
Asian countries are rich in hydroenergy, solar energy and wind  
energy resources, and the development potential of renewable  
energy is huge. Most Asian countries have placed the renewable  
energy exploitation in an important strategic position and made  
clear strategic schemes, and the renewable energy will gradually  
replace the fossil energy. Through a comprehensive analysis  
of the overall renewable energy development environment and  
investment and financing policies in Asia, this report proposes  
investment and financing suggestions for renewable energy  
development in Asia, including building a cross-border and trans-  
regional clean energy power market that includes resources in  
Central Asia, West Asia and Southeast Asia, and markets in East  
Asia and South Asia, giving full play to the energy and financial  
advantages of “the Belt and Road Initiative”, expanding project  
investment based on the Asian Investment Bank, Silk Road Fund,  
Asian Development Bank and other regional financial institutions,  
developing renewable energy industrial parks, and gradually  
reducing fossil energy subsidies, to promote the implementation  
of renewable energy projects, protect the ecological environment  
in Asia and realize regional sustainable development.  
5.1 Overview of Policy Environment in Asia  
The overall business environment in Asian countries is higher  
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than the global average, and the competitiveness of the  
business environment is continuously improving. According to  
the latest Doing Business 2020 issued by the World Bank, in the  
past year, the governments of 115 economies around the world  
initiated 294 reforms to improve the business convenience of the  
private sector. Among them, many Asian economies have made  
significant progress in improving the business environment, and  
the competitiveness of the business environment has been  
continuously improved. Specifically, among all the 190  
economies participating in the assessment, there are 3 Asian  
countries or regions among the 10 economies with the highest  
scores, namely Singapore ranked 2nd, Hong Kong, China ranked  
3rd and South Korea ranked 5th. Among the 10 economies with  
the greatest improvement in the business environment, 8  
economies are Asian countries, namely Saudi Arabia, Jordan,  
Bahrain, Tajikistan, Pakistan, Kuwait, China and India. From a  
regional perspective, the countries in Northeast Asia have a  
relatively high overall business environment, among them, Russia,  
Japan and China ranked 28th, 29th and 31st respectively. The oil  
countries in Western Asian ranked in the middle and upper reaches,  
for example, the United Arab Emirates, Saudi Arabia, Jordan and  
Qatar ranked 16th, 62nd, 75th and 77th respectively; while non-  
oil countries have weak competitiveness in business environment.  
Some countries in South Asia and Southeast Asia have poor  
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business environment, for example, Pakistan, Cambodia, Laos,  
Myanmar and Bangladesh ranked 108th, 144th, 154th, 165th and  
168th respectively.  
The renewable energy development has an important  
strategic position in Asia, with great development potential.  
Most Asian countries have formulated short-term and long-term  
development strategic schemes for renewable energy  
development to cope with the challenges posed by increasingly  
severe climate change and use an important means to alleviate  
power shortages. Most countries with better economic  
development in Asia plan to generate 20% of the national  
electricity from renewable energy by 2030. For example, Japan  
and South Korea plan to increase this proportion to 100% by 2050;  
Central Asian countries, Southeast Asian countries with better  
economic development and West Asian oil countries pay more  
attention to renewable energy development, such as Kazakhstan,  
Uzbekistan, Thailand, Indonesia and Saudi Arabia; some  
developing countries in Southeast Asia and South Asia, such as  
Myanmar, Laos, Pakistan, Bangladesh and India, have clear  
renewable energy development schemes, but the proportion is not  
high.  
Asian countries actively promote the reform of power system,  
but the level of marketization varies. Japan’s power operation  
is highly market-oriented, and the power retail and generation are  
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completely liberalized. In Russia, the private capital is the main  
capital in the wholesale market, while the state-owned capital is  
the main capital in the retail market. Kazakhstan has established a  
power trading market, and the power stations and distribution  
networks are gradually privatized. India and Saudi Arabia have a  
high level of power market liberalization, and 70% of generation  
assets will be privatized in 2020. The state-owned system is  
mainly used in the power industry in South Korea, Iran, Pakistan,  
Thailand, Uzbekistan, Bangladesh, Indonesia and Mongolia. It is  
supervised by government agencies and has a low level of market  
competition.  
Most Asian countries actively encourage foreign investors to  
enter the field of renewable energy development and strive to  
eliminate restrictions on investment in renewable energy.  
Russia, Japan, Iran, South Korea, Saudi Arabia, Bangladesh,  
Pakistan, Uzbekistan, India, Indonesia, Mongolia, Myanmar and  
Laos have relatively loose access conditions for foreign  
investment, allowing foreign companies, enterprises, natural  
persons and foreign government agencies to establish foreign-  
funded enterprises, joint ventures, branches or representative  
offices of foreign companies in their countries. The foreign  
investors can invest in renewable energy generation projects and  
get preferential development benefits, and can enjoy the national  
treatment in terms of business. Kazakhstan and Thailand have  
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slightly stricter investment access policies. For example,  
Kazakhstan’s Company Law stipulates that foreign- funded  
enterprises can be established in partnership companies, joint-  
stock companies and other forms permitted by Kazakhstan laws,  
but the shareholding proportion of foreign investors cannot  
exceed 49% of the total shares of enterprises.  
Asian countries have diversified operation modes for investing  
in renewable energy projects, and the bidding pricing has a  
high level of marketization. The operation modes of renewable  
energy projects in Asian countries include BOT (build-operate-  
transfer), BOO (build-own- operate), BTO (build-transfer-operate)  
and BOOT (build-own-operate-transfer) modes. For example,  
Russia stipulates that the BTO (build-transfer-operate) and DBFO  
(design-build- finance-operate) modes are used; the BTO and  
BTL (build-transfer-lease) modes are mainly used for private  
investment in South Korea; Japan mostly uses the BTO mode,  
while Indonesia uses the BOOT mode.  
Most Asian countries provide tax preference policies and  
other supportive fiscal policies for renewable energy  
investment. Most Asian countries provide long-term mortgage  
loan supports for manufacturers who install and use renewable  
energy equipment, including facility fund support (5-10 years),  
production fund support (5-10 years) and trading fund support (1-  
2 years). The companies or individuals investing in renewable  
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energy facilities can enjoy certain tax deductions. The legal  
persons engaged in renewable energy investment projects are  
exempted from import duties, and the land tax and property tax  
preferences are provided. When the investment is made in  
advanced renewable energy facilities and used for commercial  
purposes, 20% of special tax reduction can be enjoyed. Some  
countries can get preferential loans with an interest rate of 4%-8%  
from the Ministry of Finance according to renewable energy  
projects with different installed capacity scales. During the  
operation period of the project, the enterprises can get tax breaks  
and legal exemptions provided by the government.  
Most Asian countries have loose land use policies and  
tightening foreign labor policies, and implement strict  
environmental impact assessment review systems. To attract  
foreign investment, most Asian countries relax the land control  
and allow foreign-funded enterprises to obtain land ownership and  
use rights through purchase and lease in their own countries.  
Russia, Saudi Arabia, Japan, South Korea and Kazakhstan allow  
foreign investors to obtain land ownership. For renewable energy  
projects, the government of Kazakhstan will also provide  
temporary free land use rights with a value not exceeding 30% of  
the investment value. Thailand, Iran, Indonesia, Mongolia,  
Bangladesh, Myanmar and Laos do not allow foreign investors to  
have land ownership, but the renewable energy project developers  
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can submit an application to the land affairs management  
department for land lease. The countries with better economic  
development in Asia allow foreign workers to work in their  
countries, but the governments of some countries stipulate that if  
the enterprises want to get subsidies, they must hire some locals.  
Some Asian countries with relatively poor economy have  
implemented strict work permit examination system to restrict  
foreign workers from entering their labor market. In terms of  
environmental protection policies, almost all countries in Asia  
have implemented a strict environmental impact assessment  
review system for renewable energy investment, and the  
investment enterprises will be punished accordingly in case of  
failing to carry out an environmental assessment as required.  
5.2 Investment and Financing Proposal  
(1) Building a cross-border and trans-regional clean  
energy power market  
Most Asian countries are actively promoting power system  
reforms, but the degree of marketization is uneven. Power  
industries in South Korea, Iran, Pakistan, Thailand, Uzbekistan,  
Bangladesh, Indonesia, and Mongolia are mainly state-owned  
with relatively low market freedom. Constructing a multi-subject,  
competitive and orderly power trading pattern will reduce market  
monopoly, form an electricity price mechanism that adapts to  
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market requirements, stimulate the internal vitality of enterprises,  
improve the on-grid cost- effectiveness of renewable energy, and  
promote energy consumption.  
On the basis of improving the structure of the power market, Asian  
countries should actively develop green financial services for the  
renewable energy sector, formulate special green financial  
strategic targets and development schemes, innovate green  
financial instruments, and accelerate the flow of resources from  
high-polluting and high-energy-consuming industries to  
renewable energy related departments that are conducive to  
environmental improvement, respond to climate changes, save  
resources and use them efficiently. Green finance focuses on  
providing services such as investment and financing, project  
operations, and risk management for renewable energy projects,  
and uses green credit, green bonds and other asset securitization  
financial instruments to invest capital in the most needed green  
industries and promote the rapid development of renewable  
energy.  
(2) Establishing a clean energy cooperation mechanism at  
the cross-border and trans-regional level  
Countries in Asia and the whole world have jointly participated in  
international cooperation under the Clean Development  
Mechanism, and established renewable energy cooperation  
mechanisms, especially energy dialogue and coordination  
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mechanisms, through active diplomatic mediation. Take the  
development and cooperation of renewable energy as an  
important topic for joint consultation and discussion, strengthen  
high-level dialogue in the field of renewable energy, and establish  
and improve diplomatic mechanism for renewable energy.  
Government departments of Asian countries can learn from the  
cooperation mechanisms and successful experience of Sino-US,  
Sino-EU, Japan-EU, and actively promote deep cooperation in the  
field of renewable energy, promote the orderly development of  
renewable energy cooperation projects, and establish renewable  
energy capacity docking mechanism, investment and financing  
mechanism, technology exchange mechanism and risk prevention  
mechanism, etc. An operable renewable energy cooperation  
mechanism has been established from all aspects to provide  
institutional guarantees for renewable energy cooperation  
between Asia and the world, and achieve rapid development of  
cooperation in the field of renewable energy.  
Some Asian countries have begun to establish bilateral or  
multilateral energy policy dialogue mechanisms with other  
countries in the world. They should further expand the scope of  
cooperation, strengthen the cooperation with other regions in  
renewable energy, and jointly develop renewable energy. China  
and the United States have formed a “Sino-US Energy Policy  
Dialogue” mechanism. China and the European Union issued the  
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Sino-EU Leaders’ Joint Statement on Climate Change and  
Renewable Energy in 2018. The two sides will make extensive  
exchange and deep cooperation on renewable energy power  
generation, energy regulations, and market design and actively  
explore feasible solutions including interconnected energy  
networks to meet the global power demand for renewable and  
green alternative energy. Japan and other 35 OECD member states  
conduct discussions and cooperation in the field of renewable  
energy. Other Asian countries should also actively participate in  
international renewable energy cooperation and dialogue to  
jointly respond to global energy and climate challenges.  
(3) Leveraging the financial advantages of the “Belt and  
Road”  
There are more than 40 countries in Asia along the “Belt and  
Road”. It is necessary to speed up the identification of priority  
areas for high-quality energy cooperation, discuss and promote  
the roadmap for renewable energy cooperation in the “Belt and  
Road”, and fully leverage the financial advantages of funds, banks  
and insurances under the “Belt and Road” framework, helping  
renewable energy companies to make international investments.  
In terms of funds, leverage the resource allocation and investment  
guidance role of funds, such as the Silk Road Fund, China South-  
South Cooperation Fund on Climate Change, Russia-China Fund  
in Strategic Investment, China-ASEAN Fund, Green Silk Road  
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Fund and other funds, to promote the PPP (public-private  
partnership) mode for green investments in the areas along the  
Silk Road Economic Belt, respond to climate change, and develop  
a green economy. In terms of banks, leverage the role of policy  
banks, such as the Asian Development Bank, Asian Infrastructure  
Investment Bank, China Development Bank, Export-Import Bank  
of China, and Agricultural Development Bank of China, to  
provide financing support for the “Belt and Road” renewable  
energy companies to go global. In addition, the credit insurance  
business can build cooperation bridges for enterprises, host  
country governments, project owners and international financial  
institutions along the “Belt and Road” through products, such as  
medium and long-term export credit insurance, overseas  
investment insurance, and short-term export credit insurance, to  
escort the overseas expansion of “Belt and Road” renewable  
energy enterprises.  
(4) Leveraging the financial advantages of the “Belt and  
Road”  
Renewable energy development in some Asian countries is small  
in scale, unattractive to international capital investment, and  
complex in feasibility studies, and has generally long approval  
procedures and relatively high professional requirements for  
equipment operation and maintenance. Foreign labors have  
difficulties in employment. The threshold for participation in  
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investment, construction and operation of private and social  
capital is also relatively high. It is recommended that Asian  
countries expand the implementation space of preferential  
policies in the form of renewable energy industrial parks, attract  
international capital to participate in renewable energy investment  
with measures, such as lowering foreign investment entry  
threshold, reducing approval procedures, relaxing foreign labor  
requirements, and encouraging foreign investment in renewable  
energy power generation projects, to realize the accumulation of  
factors and economies of scale.  
(5) Reducing fossil energy subsidies  
West Asia, East Asia and other regions have a high degree of  
dependence on fossil energy, and provide large subsidies for fossil  
energy power generation, which inhibits the competitiveness of  
clean energy to a certain extent and restricts the development of  
clean energy. In order to reduce dependence on fossil energy,  
increase the diversification of energy supply, and improve the  
competitiveness of clean energy, subsidies for fossil energy  
should be reduced and a subsidy decline mechanism for fossil  
energy should be established. Set a roadmap for the reform of  
fossil energy in the short-, medium- and long-term, gradually  
reduce the subsidy for fossil energy, and gradually levy fossil  
energy taxes, forcing related industries and technologies that rely  
on fossil energy to upgrade and reduce pollution and improve  
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efficiency. At the same time, use more financial subsidies on  
developing clean energy, and provide tax relief, loan concessions  
and other supporting fiscal policies for clean energy development,  
so as to improve the competitiveness of the clean energy market,  
and attract foreign investment into the domestic clean energy  
market. By developing clean energy, Asian countries can reduce  
or even get rid of the dependence on fossil energy, effectively  
improve the domestic ecological environment, increase green and  
high-quality jobs, and achieve clean, green and sustainable  
development.  
Asian countries have relatively stable politics and vibrant  
economic development, making Asia one of the regions with the  
most development potential in the world. Asia is rich in  
hydropower, solar and wind energy resources, and has broad  
prospects for development of renewable energy economy. With  
the increasing demand for energy and the strengthening of  
environmental protection in the world, the promotion and  
application of renewable energy has become an inevitable trend.  
As Asia’s economic and trade ties with the rest of the world  
deepen, cooperation in the renewable energy sector can turn the  
climate, energy and financial crises into new opportunities for  
sustainable growth, providing new impetus for Asia’s economic  
development. This Chapter reviews the overall policy  
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Research on Asian Renewable Energy Development and Investment  
environment in Asia and the main policies of key countries, and  
proposes investment and financing suggestions for the  
development of renewable energy in Asia, including improving  
international cooperation mechanisms, taking advantage of the  
“Belt and Road” initiative in energy and finance, developing  
renewable energy industrial parks, and accelerating the  
improvement of marketization mechanism, enriching risk  
prevention methods, etc., to further promote the early  
implementation of large-scale renewable energy projects in Asian  
countries and achieve green development and mutual benefit for  
the Asian economy.  
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