Unlocking innovative finance tools is crucial to realising offshore wind’s potential in APAC markets
The Asia-Pacific region holds significant offshore wind potential, particularly in emerging markets and developing economies. However, the cost of capital remains high, and countries in Southeast Asia continue to face steep financing hurdles related to affordability, regulatory design, and enabling infrastructure.
Blended finance offers a pathway forward, with the potential to halve the cost of capital for offshore wind projects in countries such as Vietnam and the Philippines.
This GWEC paper outlines how concessional finance, guarantees, and other mechanisms available through development institutions, multilateral development banks, and export credit agencies can play a pivotal role in unlocking both local and international capital.
Key Findings
This paper provides a tailored strategy for financing gigawatt-scale offshore wind projects in emerging markets and developing economies in APAC, considering local risks, resources and institutional realities.
Our analysis shows that:
- When projects are commercially viable and risks are effectively managed, both domestic and international capital is ready to flow.
- Innovative financing solutions that can help unlock capital, lower costs, and accelerate project delivery include blended finance, guarantees, concessional loans, and risk-sharing mechanisms.
- Offshore wind can flourish if we combine strong macro-level enablers (infrastructure and clear policy frameworks) with deal-level features (long-term PPAs and credible developers)
- Public and private concessional finance is essential for moving projects from planning to delivery, reducing early-stage costs, improving affordability, lowering consumer tariffs, and expanding energy access.
Media Inquiries
Diana Sumanan
Communications Manager, APAC
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diana.sumanan@gwec.net