ASEAN renewables: opportunities and challenges

Renewable power investment in Southeast Asia has grown inconsistently and deployment remains far from harnessing the region’s strong resource potential. Average annual capital expenditures of USD10 billion in solar PV and wind power over the past five years are amongst the lowest globally and only exceed that of Sub-Saharan Africa. Most of these investments were mobilised in only one country –Vietnam. Private capital has accounted for only 60% of renewable power investment in Southeast Asia, compared to about 90% in advanced economies. Renewable power development in the region is lagging from inadequate policy and investment frameworks. Regulatory barriers, incumbent interests and inflexible commercial arrangements have enabled the continued prioritization of fossil generation over renewables.