Renewables Development for Energy Transition in ASEAN: Status quo, Gaps and the Prospect

Focusing on Indonesia, Vietnam, Thailand and the Philippines (with a share of around 75% of ASEAN’s total emissions), this presentation outlines the current status, and identifies the gaps and the prospect to achieve a high penetration of renewables for energy transition in ASEAN. Overall, the development of renewables is still at an early stage in these countries, especially for solar PV and wind power. Investment in renewables is far from the level needed for achieving energy transition in ASEAN. The basic barrier hindering renewables development is the economic order. Financial access is the most important for capital-intensive renewables projects. ASEAN countries (i.e., Indonesia and Vietnam) are lack of expertise for the risk assessment of renewables investment. Another critical obstacle is the bureaucracy in power sector of ASEAN. Nevertheless, many opportunities remain for ASEAN to expand renewables by establishing a level playing field. Short-term affordability perspective in energy planning should be avoided. Energy transition should be recognized as a business chance with a focus on leapfrogging by building renewables infrastructure. Meanwhile, phase out of fossil fuel power should be promoted. The development of local micro-grid and off-grid facilities, and the acceleration of regional power connectivity enable renewables development in ASEAN.