A recent report from Global Energy Monitor (GEM) reveals that wind and solar technologies now constitute 9% of the electricity generating capacity in ASEAN countries, which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
This growth brings the region close to its renewable energy capacity target of 35% by 2025.
Progress and Future Projections
The report highlights that adding 17GW of utility-scale solar and wind projects over the next two years would be enough to meet the 2025 target. The region is on track to exceed this goal, with a projected 23GW of new wind and solar projects anticipated by 2025.
Additionally, an extensive 220GW pipeline of new utility-scale wind and solar capacity has been announced or is in pre-construction stages, although only 6GW is currently under construction.
Economic and Energy Demand Growth
ASEAN countries have experienced rapid electricity demand growth of 22% per year between 2015 and 2021. Despite the slowing of demand growth, continued support for gas and coal power persists.
The expansion of renewables could temper this fossil fuel demand, though regulatory hurdles and a lack of supportive policies pose challenges.
National Achievements
In 2023, ASEAN added 3GW of solar capacity, a 17% increase over 2022. Wind capacity also saw a 29% rise, with offshore wind now accounting for 2GW of the region’s 9GW of utility-scale wind capacity.
Vietnam leads in utility-scale solar and wind capacity due to a supportive policy environment, though recent policy gaps have slowed progress. Thailand and the Philippines follow, with both countries benefiting from favorable investment conditions.
Prospective Capacity and Development
The report identifies a total of 222GW of announced, pre-construction, and construction-stage utility-scale wind and solar capacity in ASEAN.
The Philippines and Vietnam account for more than 80% of this prospective capacity, with significant planned offshore wind developments. However, only 3% of the prospective projects are currently under construction.
Challenges and Opportunities
Achieving the 35% renewable energy target by 2025 is attainable, but the region must address several hurdles, including the expansion of fossil fuels, insufficient grid infrastructure, and low solar and wind construction rates.
Coal and gas currently make up around 30% each of ASEAN’s installed capacity, with coal power capacity growing annually by 7% since 2017.
GEM emphasizes the need for ASEAN to focus on bringing the 220GW of prospective utility-scale solar and wind projects to fruition. This would not only meet regional renewable energy targets but also pave the way for a transition away from fossil fuels.
Conclusion
The report concludes that while South-East Asia is making significant strides in renewable energy, the region’s efforts are complicated by continued investment in fossil fuels and infrastructure challenges.
By prioritizing the development of renewable projects and improving policy frameworks, ASEAN can enhance its energy security, promote sustainability, and achieve a more integrated and resilient energy future.
