Asia is committed to decarbonizing by 2050, and many countries in the region have published national energy transition frameworks. However, most Southeast Asian countries still rely on fossil fuels to meet their power demands, and coal and gas-fired power plants are the region’s main sources of electricity today. Achieving net-zero emissions between 2050 and 2065 will require great efforts for the region’s power sector to achieve these targets. Renewable energy policies are being implemented in Southeast Asia to reduce carbon emissions and promote sustainable development. In the Stated Policies Scenario, the share of renewables in power generation in Southeast Asia rises from 24% today to 30% by 2040.
- Thailand’s Ministry of Energy has unveiled plans to increase the renewable share to 50% by 2050, and the goal of achieving carbon neutrality and net-zero emissions.
- Other countries in Southeast Asia, such as Indonesia, Malaysia, Thailand, and Vietnam, have updated their expansion plans for renewables, and changes in power purchasing agreements (PPAs) have been made to support the deployment of solar photovoltaics (PV) and wind.
- India’s energy mix includes conventional energy such as oil, gas, coal, and biomass and non-conventional sources such as renewable energy (RE). India aims to have 275 GW of renewables by the end of the 13th FYP period (2027). One of India’s largest renewable energy firms, Renew Power, will be among the corporations big and small hoping for a piece of a $2.6 billion government scheme that encourages the domestic manufacturing of components required to produce solar energy.
- China aims to increase the renewable energy capacity by 45% in 2030 compared to 2015 levels, equaling 680 Gigawatt (GW) of installed capacities and investments of USD 361 billion in renewable energies. China leads the export of renewable energy technologies, and is the world’s largest producer of solar panels and wind turbines.
- Renewable energy consultants such as GBP INTERNATIONAL can help companies from Europe and the USA overcome the challenges of investing in renewable energy projects in Asia. Our consultants have expertise in solar, hydro, and onshore and offshore wind, and can provide both technical solutions and advisory support. We will assist to navigate the regulatory and policy landscape and identify investment opportunities in the renewable energy sector.
- However, as renewables have become the cheapest power option in much of Southeast Asia, renewable capacity additions can cost-effectively increase up to 40% of total power capacity by 2030 compared to one-quarter today.
- Significant investment is needed to boost renewables in the national energy mixes, but overall costs are balanced by substantial savings on supply and fuel costs.
- ASEAN’s investment in renewables must almost triple the current levels, and investment opportunities include renewable power, transmission, and distribution infrastructure
In conclusion, Southeast Asia is making progress towards a clean energy transition, but there are still challenges to overcome. Renewable energy policies are being implemented, and renewable energy consultants can help companies navigate the complex regulatory environment and ensure compliance with local laws and regulations. The affordability of infrastructure and technology required to harness renewable energy sources remains a significant obstacle, but as renewables become the cheapest power option in much of Southeast Asia, investment in renewables is becoming more cost-effective.
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