Asia Pacific solar boom brings peak of power sector carbon emissions in sight

Over the past year, solar module prices have halved and deployments of solar in Asia Pacific have more than doubled. The impact of this systemic shock is immense. On one hand, it has reined in one of the largest sources of carbon emissions growth globally, Asia Pacific’s power sector. On the other, the growth in intermittent solar capacity is adding instability to grid networks, and increasing risks for power asset investors. This has led to major uncertainty about the future of power markets across the region. Despite uncertainties, low costs are accelerating solar deployments. Expectations of the amount of solar to be installed in coming years have been revised upwards by over 60% since early 2023. The rate of change is forcing power utilities and regulators to evolve rapidly. This report reviews the scale and updated outlook for solar installations and key future trends.