Price hike, supply issues to continue straining gas power in Asia: Fitch

This will particularly impact Japan, South Korea and Taiwan.

The increasing gas prices and the availability of natural gas amidst the Russian-Ukraine crisis could continue straining the generation of gas power in Asia, Fitch Solutions report.

This will particularly impact Japan, South Korea, and Taiwan as these markets are most exposed to imported gas.

“For markets that are dominated by state-owned enterprises, their governments will be strained by subsidising elevated electricity prices and import costs,” Fitch noted.

Meanwhile, consumers in markets that have a more liberalised power market with high independent power producers and less state support could be subjected to higher electricity prices.

Despite this, Fitch forecasts that Asia will still see growth in its gas power generation in the short term, driven largely by Mainland China and India as these markets continue purchasing gas from Russia.

“This unhindered import relation between Russia, Mainland China, and India will be a factor supporting Asia's overall gas power generation growth,” the report read in part.

Between 2022 and 2026, Fitch projected that gas power generation will grow an average of 4.8% annually.

Gas power generation will also remain a key contributor to Asia’s power mix, accounting for about 10.6% within the forecast period.