Harnessing Solar Power: Driving Savings and Sustainability Across Asia

India saved $4.2 billion in fuel costs through solar generation in the first half of 2022, avoiding the need for 19.4 million tonnes of coal that would have further strained the domestic supply, according to a new report released on Thursday.

The report, by energy think tank Ember, the Centre for Research on Energy and Clean Air, and the Institute for Energy Economics and Financial Analysis, also analyzed the growth of solar power over the last decade. It found that five of the top 10 economies with solar capacity are now in Asia, including China, Japan, India, South Korea, and Vietnam.

The report stated that solar generation in seven key Asian countries – China, India, Japan, South Korea, Vietnam, the Philippines, and Thailand – avoided potential fossil fuel costs of approximately $34 billion from January to June 2022. This is equivalent to 9% of total fossil fuel costs during that period.

In India, solar generation saved $4.2 billion in fuel costs in the first half of the year and avoided the need for 19.4 million tonnes of coal, according to the report.

The majority of the estimated $34 billion savings are in China, where solar met 5% of the total electricity demand and avoided around $21 billion in additional coal and gas imports during the period. Japan saw the second-highest impact, with $5.6 billion in avoided fuel costs thanks to solar power generation alone.

Vietnam’s solar power avoided $1.7 billion in additional fossil fuel costs, a significant growth from nearly zero terawatt hours of solar generation in 2018. In 2022, solar accounted for 11% (14 TWh) of the electricity demand from January to June.

In Thailand and the Philippines, where solar growth has been slower, the avoided fuel cost is still notable. While solar only accounted for 2% of Thailand’s electricity in the first six months of 2022, an estimated $209 million of potential fossil fuel costs were avoided. The Philippines avoided $78 million in fossil fuel spending, despite solar accounting for only 1% of generation.

In South Korea, solar power generated 5% of the country’s electricity in the first half of the year, avoiding potential fossil fuel use costing $1.5 billion, as per the report.

Isabella Suarez, CREA’s Southeast Asia Analyst, said, “Asian countries need to tap into their massive solar potential to rapidly transition away from costly and highly-polluting fossil fuels. The potential savings from existing solar alone are enormous, and expediting their deployment alongside other clean energy sources such as wind will be crucial for energy security in the region. While ambitious targets are important, follow-through will be the key thing to watch moving forward.”