Technological innovations and favourable government policies are among the four trends expected to drive Southeast Asia’s transition to renewable energy in the coming years.
A report published by global auditing firm KPMG titled The Renewable Energy Transition noted that while there are still 70 million ASEAN citizens without access to reliable electricity, the potential for renewable energy was huge in those markets and governments are increasingly turning to solar and wind energy to address the issue.
Consumers driving the green agenda forward and the entry of new funds into the ASEAN renewable energy market were two other trends identified in the report.
Each of ASEAN’s 10 members have set targets for renewable energy, and technological innovations, such as better solar power efficiency and floating solar panels, mean that renewable energy is now more accessible than ever before.
The establishment of RE100 in 2014, a collaborative, global initiative uniting more than 100 influential businesses committed to 100 per cent renewable energy, was a prime example of how consumers were helping to boost demand for renewable energy, especially since commerce and industry use up two thirds of the world’s electricity.
Among the companies in the group include Google, Microsoft, Coca Cola and IKEA, all of which have a strong presence in ASEAN.
The World Bank, Asian Development Bank (ADB) and Japan Bank for International Cooperation are leading the way in renewable energy investment in the region, which has helped to bring prices down.
While prices have often been a key concern, falling costs and rising demand are now helping to push the industry forward.
The Institute for Energy Economics and Financial Analysis (IEEFA) released a report in August 2018 which showed that the Philippines, where an estimated 20 million people lack constant electricity supply and 12 million have none at all. can reduce its electricity costs to just US$0.05 per kilowatt-hour (kWh) by installing rooftop solar. By comparison, diesel costs US$0.28 per kWh and coal costs US$0.07 per kWh.
“Solar, wind, run-of-river hydro, geothermal, biogas, and storage are competitive, viable domestic options that can be combined to create a cheaper, more diverse and secure energy system,” said Sara Jane Ahmed, an IEEFA energy finance analyst and the author of the report.
With its huge potential in renewable energy, ASEAN can be the new hub for renewable energy deployment, innovation and investments.
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Stop exporting Australian coal as Australia supplies almost 20% of the worlds coal. This would result in a substantial price rise making it totally nor viable. The coat of climate change to Australia is forecast to be over $4 trillion more that any royalty received in the entire history of Australian coal that anyhow has almost no royalty attached . The correct rate is 75%. Or Charge a further climate change tax of 100% or more.