Renewables deployment will grow in South-east Asia

Subject

Near-term outlook for renewable energy in South-east Asia.

Significance

Renewable energy has been slow to develop in South-east Asia, where electricity provision is dominated by thermal power generation. However, the cost of onshore wind and photovoltaic (PV) solar energy is falling.

Impacts

• Renewables growth may prove a competitive threat to the development of liquefied natural gas projects in South-east Asia.
• A growing wind supply chain in Asia promises competitive pricing for South-east Asia’s nascent offshore wind sector.
• The growth of distributed solar PV could limit the need for major transmission investments.