While coal will continue to dominate the fuel mix across most of the Asia Pacific region, a steady shift toward renewables, particularly in developed economies, is set to create competitive pressures for some coal-based power projects, according to Fitch Ratings. The share of renewables is rising, and will be boosted further by falling technology costs and greater availability of cheaper finance for renewables issuers, the credit ratings agency said in a report published today. “Government policy will generally remain supportive of renewables, but improving economics in the sector will allow the gradual withdrawal of subsidies, favourable feed-in-tariffs, and generous tax and accounting treatment. Offshore wind is likely to be the major addition to non-hydro renewable generation capacity in the near term,” the report said. Renewable energy companies – particularly in the wind and solar sector – are likely to tap the bond market increasingly over the next few years, with their access supported by longer operating histories, larger scale and improved credit profiles. Also, the success of Asian thermal power issuers in raising project finance has laid the groundwork for renewable issuance.