Renewable energy investment leads, but the share of fossil fuels has actually increased. What is the solution to Asia's energy paradox? | Boao Asia Forum

Question to AI · How can grid interconnection accelerate shared clean energy?

Interface News reporter｜Jiang Xi

“We’re investing heavily in the clean energy sector, but our dependence on fossil fuels keeps increasing day by day.”

On March 27, during the 2026 annual meeting of the Boao Forum for Asia, Yang Lin, Deputy Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific, said at the “Asia New Energy Cooperation” forum that Asia is facing this energy paradox.

Photo taken at the “Asia New Energy Cooperation” forum｜Jiang Xi

According to the data she provided, Asia has become the world’s largest region for renewable energy investment. In 2025 alone, this region accounted for 65% of global solar energy investment and 64% of wind energy investment.

Meanwhile, the share of fossil fuels in Asia’s primary energy supply continues to rise, increasing from 78% in 2000 to 83% today.

“The absolute scale of renewable energy has expanded, but the growth in fossil fuel use is even faster.” she said.

Liu Zehong, Vice Chairman of the Development and Cooperation Organization for the Global Energy Interconnection, and former Deputy General Manager of State Grid Corporation of China, also pointed out at the meeting the extreme importance and urgency of Asia’s energy transition and clean development.

He said that Asia accounts for 60% of the world’s population, 50% of its economic size, over 50% of its carbon emissions, and its economy is still growing rapidly.

Liu Zehong noted that Asia’s energy is still highly dependent on fossil fuels; renewables make up only 15%. Coal, oil, and natural gas account for 18%, 25%, and 11%, respectively—coexisting are both the non-sustainability of resources and the uncertainty of supply.

At the meeting, Alishahbana, Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific, said that China’s deployment of clean energy has promoted economic development and lowered the cost of renewable energy. But in other Asia-Pacific countries, they are still at different stages of development, with different resource endowments and geographic locations. Many countries—especially smaller developing countries—still face difficulties in energy transition, such as limited fiscal space and technological capacity, as well as fragmented energy systems that are costly.

This discussion comes as the U.S.-Iran conflict enters its fourth week.

Steiner, an Oxford University scholar and former Administrator of the United Nations Development Programme, said in his remarks that, looking back at the 19th and 20th centuries, energy security is essentially a manifestation of geopolitical hegemony—control over fossil fuel resources. In most of the wars, political games, and economic contests of the 20th century, the core of the matter is inseparable from the struggle for fossil fuel resources.

“The situation in the Middle East will make energy diversification even more necessary. This will provide stronger momentum for large energy investments in both the short and long term, including electrification of renewables, cross-border power transmission, and more—opening the door to a range of new opportunities.” Alishahbana said at the meeting.

She said that from this perspective, the crisis can be viewed as a strategic opportunity and a development opportunity that can be seized for the Asia-Pacific region.

Steiner said that under the current geopolitical environment, countries generally trend toward “de-risking and decoupling.” Mutual dependence certainly creates reliance, but at the same time it will open up enormous opportunities.

“If the Asia-Pacific region can successfully use regional cooperation as a driving force for the new energy economy, its impact will not only benefit the Asia-Pacific, but also extend to the global economy,” Steiner said.

Under a framework of regional cooperation, how can the process of energy transition be accelerated? Infrastructure—especially grid construction—is key.

Liu Zehong believes that the most effective way to develop new energy through cooperation is for countries to build and improve their internal power grids, and, through interconnection with neighboring countries and regional interconnection, form intelligent power grids with strong scale.

He said that through grid interconnection, it becomes possible to realize optimized allocation of differences in seasonal demand between north and south, differences in time between east and west, differences in cross-basin hydrological characteristics, differences in local resource endowments, and differences in energy prices.

Taking China as an example, Liu Zehong pointed out that through ultra-high-voltage direct current (UHVDC) and alternating current (UHVAC) transmission technologies, China has interconnected the entire country into a large unified grid, supporting the development of 1.9 billion kilowatts of new energy capacity. Last year, electricity generation reached 10.3 trillion kWh, ensuring that power needs for economic and social development and for people’s daily life are met at acceptable prices.

Europe, meanwhile, has made full use of adjustable resources across regions by balancing with hydropower in Northern Europe, offshore wind power in the North Sea, and solar power in Southern Europe.

In the process of grid interconnection, Liu Zehong believes there are five key technologies.

First is the development and coordination technologies for large-scale clean energy; he believes this field has already reached a high level. Second are long-distance large-scale power transmission technologies, including both alternating current transmission and direct current transmission.

Third, it also includes optimization and utilization technologies for regulating resources within regionally interconnected power grids, as well as rules and requirements that ensure safe and stable operation across regions and countries, which all parties jointly follow.

In addition, it also requires technologies such as grid simulation, forecasting, and security and stability analysis. He said that currently, the United States, Europe, and China have gradually entered a mature stage in these technology areas.

Liu Zehong also mentioned another important model of cooperation: “far-reaching cooperation,” covering technology cooperation and joint development, industrial interdependence and smooth supply chains, as well as the formulation and implementation of common standards, and so on.

But currently, the cooperation mechanisms still need to be broken through.

At the meeting, Dr. La Kameera, Director-General of the International Renewable Energy Agency, said that a large amount of cooperation still remains at the sub-regional level. This increases transaction costs and also limits the optimized allocation of resources across national borders.

Kameera believes that advancing the energy transition needs to rely on four pillars of regional cooperation: strengthening interconnection to achieve optimized resource allocation; unlocking affordable financing capital; enhancing the resilience and localization level of supply chains; and placing capacity building and digital transformation at the top priority.

In addition, in interviews with media outlets such as Interface News, Kameera said that China’s most important contribution to global renewable energy is that it provides solar panels and wind turbines at extremely low cost.

“The economic competitiveness of the next few decades will, to a large extent, depend on whether energy systems can supply electricity to the economy at as low a cost as possible. That’s the contribution China is making.” Kameera said.