(Image credit: Nguyeg Quang Ngọc Tonkin/Shutterstock)
According to a recent report by Global Energy Motor, solar and wind capacity in the Association of Southeast Asian Nation (ASEAN) region has increased by 20% to 28gw.
Solar and wind technologies now make up 9% of the total electricity generated across the countries.
Over the next two years, an extra 17gw worth of utility-scale wind and solar projects could be constructed if energy targets are kept to.
ASEAN regions are actually set to smash this target with 23gw expected to be constructed.
Collectively, ASEAN nations have one of the fastest growing economies in the world.
Electricity demand continued to grow by 22% between 2015 and 2021, which could either provide a massive opportunity for wind and solar or increase the use of fossil fuels.
The major successes around increasing renewable capacity have come from solar and wind technologies.
ASEAN nations have added 3% of solar capacity, increasing total solar capacity by 17% from 2022 levels.
Wind had a larger comparative rise, increasing by 29% from January 2023.
At its current stage, there are 222gw of utility-scale wind and solar projects in pre-construction or construction stage in the region.
Over 185gw of the projects are located in the Philippians Philippines and Vietnam, with both countries making up 80% of the total growth of wind and solar.
Vietnam is leading ASEAN nations in utility-scale solar and wind capacity.
Supportive environmental policy and a series of investment policies have contributed to this change since 2017.
12gw of utility-scale solar capacity has been added between 2019 and 2021.
57gw of planned offshore wind development is located in Vietnam with 72% of the nations 86% prospective capacity being generated from offshore wind.
Thailand registered the second highest utility-scale solar and wind capacity in the ASEAN region. The country has an operational capacity of 3gw and the second largest economy after Indonesia.
Limited barriers to investment have allowed the solar and wind industries to boom in the region.
The Philippines also registered an operational capacity of 3gw but are third in utility-scale solar and wind capacity in the region. Three quarters of their operational utility-scale capacity comes from solar power.
Their ‘Green Energy Auction Programme (GEAP)’ has helped facilitate the development of more than 116gw of renewable energy.
In March 2023, there were 300bids to develop 3gw of solar, onshore wind and bio energy.
Capacity did fall short of its target but a 75% increase from 2022’s auction did occur, showing a clear increase in interest for renewable generation.
52% of the Philippines’ total utility scale renewable capacity is from offshore wind, 5x more than onshore.
In addition to this, an executive order was issued in April 2023 that outlined the cooperation between private investors and government on the development of offshore wind.
Current contracts represent 61gw of capacity with planned projects in development equalling 52gw.
Laos is aiming for a huge rise in utility-scale solar and wind projects. Current development in the region has surpassed Malaysia by 150% with an economy that is 30x smaller.
Laos is set to build the regions largest onshore wind farm and is set to generate 600mw when completed.
ASEAN nations have showed a lot of success but the region only has approximately 6.3gw of solar and wind projects currently under construction.
A lack of policies in Vietnam have led to only 2% of projects being built and 40gw of solar and wind project to potentially be stalled.
To tackle this, Vietnam have developed the ‘just energy transition partnership’, the National Electrical Development plan (2021-2050) and the Power Development Plan 8 to action and speed up renewable deployment.
On the positive side, ASEAN nations are set to hit their 35% of renewable generation capacity target by 2025, already registering 32% capacity.
Only 17gw of new renewable capacity will need to be built by the deadline.
Meeting the 2025 target of 35% renewable capacity will mean installed capacity will have doubled and reduced the need for fossil fuel generation.
For more interviews from Solar&StorageXtra and to keep up to date with all NEW content, subscribe to the Solar&StorageXtra YouTube channel and Newsletter!
To enquire about interviews, submit news and press releases please contact our Editor, Regan Slaymaker, regan.slaymaker@terrapinn.com.For sponsorship and exhibition enquires please contact Bastiaan van der Heijden, bastiaan.heijden@terrapinn.com.
