The high demand for zero-emission electricity from the corporate sector is forcing governments to ease its stringent regulations on power purchase agreements to allow companies to venture this technology. Renewable energy is entering the global energy market, although the market penetration strategies are uneven in the Asia-Pacific region. This trend forces businesses to start venturing the renewables to prevent undue trouble when the transition to clean energy takes full effect. Studies by RE100 indicate that the global renewable energy initiative demonstrates that even though the renewables may be the most affordable source of power, they can still encounter limitations. Some of the limitations that the renewable energy industry can face include limited availability, especially due to its dependence on natural resources like sunlight and wind, regulatory measures and high cost. These may force the government to intervene and contribute.
Numerous companies, including mega enterprises, are anticipating the transition to full-scale renewable power to disengage from the emissions and motivate the small companies to join this novel course. Nevertheless, resolving the problem of companies purchasing clean energy would unravel mega untapped potential, according to RE100. The study conducted involved 261 mega businesses which have promised to shift to 100% renewable power and have procured clean power in over 120 international markets. Countries like South Korea, Australia, Japan, Taiwan, China, Indonesia and Singapore are the top challenging markets for the penetration of renewable energy according to RE100. Some major companies operating in these countries have reported this trend as the problem in switching to 100% renewable energy. For instance, in South Korea, the absence of renewables and stringent regulatory measures are the primary problems for the transition to take place. BloombergNEF recorded that is likely not to achieve the set mark of 42.7 GW of wind power and solar energy because of these issues.
Nevertheless, there’s is a glimmer of hope, especially when the government’s Green New Dealmaking its way into the system. The rollout of the plan will begin next year with the aim of motivating power purchase agreements for corporate entities and the Korea Renewable Energy Guarantees of Origin (K-REGOs) taking off after a half-a-year delay. On the other hand, in Taiwan, varying prices are the primary problem. For instance, the cost of solar photovoltaic(PV) panels is double the price that is quoted in the Chinese market. In other areas like Argentina, the renewables are inaccessible to the corporate sector due to its small scale. Elsewhere, the problem of unavailability of the renewables slots in forcing the corporate sector to start thinking of developing their sources in these countries.