Renewable energy challenges in APAC, from Amazon’s perspective – Tech Wire Asia

The sun sets behind wind turbines near the small village of Briesensee in Brandenburg, eastern Germany, at the end of a warm summer day on August 14, 2021. (Photo by Christof STACHE / AFP)

The solar units at the back of wind generators close to the small village of Briesensee in Brandenburg, japanese Germany, on the finish of a heat summer time day on August 14, 2021. (Picture by way of Christof STACHE / AFP)

  • It is a multi-part sequence on renewable power and cloud computing

Renewable power has been presupposed to be some of the saviors of humanity’s dastardly trampling of the Earth. The heavy usage of generation calls for power to energy processes — in nice quantities. Previous to the Covid-19 pandemic, many organizations remained immune to virtual transformation, believing it will wait, with many nonetheless the use of on-premise information facilities. 

Then again, this prolong has resulted in a flurry of unplanned and perhaps, under-informed efforts to cater to the rising wishes of a far flung body of workers suffering from pandemic-fuelled motion restrictions.

In keeping with a file by way of 451 Analysis (by way of S&P International Marketplace Intelligence; commissioned by way of AWS), organizations that transfer their trade programs from on-premises information facilities to cloud infrastructure in APAC can be expecting to reduce their energy use and associated carbon footprint by up to 78%.

Cloud computing wishes renewable power

If native power markets enabled the sourcing of 100% renewable power to energy their operations in APAC, cloud suppliers would be capable of scale back the emissions of workloads run within the cloud by way of every other 15%. 

Then again environment friendly and earth-friendly renewable power is, it’s nonetheless a problem to procure, particularly inside the APAC area. 

Even though cloud suppliers have extra competitive renewable power targets, vital limitations nonetheless stay — essentially surrounding the low selection of company renewable energy acquire agreements (PPAs) carried out right here.

Within the first of this multi-part sequence on cloud computing and renewable power, Tech Twine Asia reached out to Ken Haig, Head of Power Coverage for Asia Pacific & Japan at AWS, to determine extra in regards to the demanding situations that APAC nations face with renewable power. 

APAC’s demanding situations

In keeping with Haig, APAC power markets remain among the most challenging in the world for companies in quest of to supply 100% renewable power. 

As of December 2020, in step with BNEF, there have simplest been 75 off-site company energy acquire agreements (PPA) within the APAC area so far, totaling 4,475 megawatts (MW). 

That is in stark distinction to the 233 PPAs in Europe (14,087 MW) and 959 in the USA (43,170 MW), the place marketplace prerequisites are extra favorable.

In response to an IRENA report, company renewable power investments are usually damaged out into purchases of a number of parts.

Those come with power characteristic certificate (EACs), energy acquire agreements (PPAs), inexperienced price lists, and manufacturing for self-consumption. 

Nations in APAC the place all these choices are to be had are small these days. They’re these days restricted to Australia, Singapore, Japan, and South Korea (quickly). 

Amazon’s procurement technique

In the case of buying renewable power at Amazon, Haig shared that they observe particular tenets, and assembly those is likely one of the number one demanding situations that the corporate is focused on in APAC.

“On the most sensible of the record comes our center of attention on additionality, which refers to our dedication to (the place imaginable) acquire simplest renewable power past the prevailing grid combine. 

“We do that no longer simplest to make stronger the advance and development of latest renewable power – this is, the use of the size of our purchases to verify better renewable power is to be had for our shoppers and companions as neatly, leaving a large wake for others to observe.

“(however that is) additionally to make sure that we’re ready obviously to characteristic the carbon relief price of those renewable power purchases to Amazon”, shared Haig.

Haig added that Amazon’s renewable purchases are “in the long run going against our dedication below the Local weather Pledge to measure and file greenhouse gasoline emissions regularly”. 

Traceability may be vital to them, to verify transparent carbon accounting and reporting in keeping with Scope 2 Emissions Steerage below the International Greenhouse Gasoline (GHG) Protocol. As such, company renewable power choices that meet each their additionality and traceability tenets can also be exhausting to return by way of in APAC. 

One of the most demanding situations recognized by way of Amazon’s companions within the Asia Pacific area—together with the Japan Local weather Leaders’ Partnership (JCLP) in Japan, and the company Renewable Power Call for Enhancement (REDE) initiative in India—come with following restricted availability, regulatory complexity, and prime prices. 

In the second one a part of this sequence, Tech Twine Asia will discover how Amazon has approached those limitations to buying renewable power for his or her services and products.

Author: Jamilah Lim