Policy Restricts the Development of Renewable Energy in Southeast Asia

According to reports, the International Renewable Energy Agency (IRENA) said that Southeast Asia is a hot spot for renewable energy development, but the actual development of the region has not met expectations due to lack of policies to encourage investment.

Globally, renewable energy development generally has certain policy support, such as price subsidies and grid construction commitments. In Southeast Asia, except for Thailand and other countries, other countries have insufficient support for renewable energy. Therefore, although renewable energy development in Southeast Asia has great potential, production is far behind other countries, especially solar energy, geothermal energy and wind energy. One of the factors limiting the development of renewable energy is the abundant thermal coal resources in Southeast Asia, of which Indonesia is the world's largest exporter of thermal coal.

Adnan Amin, the director of the International Renewable Energy Agency, said in an interview last week that some leaders in Southeast Asia believe that coal is one of the cheaper alternatives.

Glencore, the world's largest exporter of thermal coal, said on November 1 that Southeast Asia will be the engine of future economic growth, driving demand for coal. Glencore also said that by 2040, although Southeast Asia produces renewable energy, coal will still account for 40% of the region's energy demand growth.

However, Southeast Asian countries are also working hard: ASEAN plans to increase the share of renewable energy in its primary energy mix from just over 10% to 23% by 2025.

To achieve this goal, ASEAN and the International Renewable Energy Agency formally signed an agreement last week to promote the investment and deployment of renewable energy. In attending the Singapore International Energy Week (SIEW), Amin said that in order to achieve this goal, Southeast Asia needs to receive $290 billion in investment over the next 10 years, which is 10 times the current investment.