IRENA Renewable Energy Market Analysis Series

All IRENA publications can be downloaded from www.irena.org/publications

3

Rising demand for energy with development

Energy consumption in Southeast Asia nearly doubled between 1995 and 2015

Based on IEA, 2017

• Indonesia, Malaysia,

Thailand and Viet Nam

account for majority of

final energy consumption

• Most rapid growth came

from Brunei Darussalam,

Cambodia and Viet Nam.

• Residential sector

dominant in CMV

countries, while

distribution more evenly

split for ASEAN-5.

4

Meeting energy demand and drivers for diversification

Fossil fuels, led by oil and natural gas, account for more than half of the region’s

energy supply.

• Energy security concerns, environmental impacts, combined with energy access challenges

in some countries, contributing to diversification efforts.

Share of renewable

energy in total primary

energy supply by 2025

23%

Based on IEA, 2017

5

Meeting energy demand and drivers for diversification

Renewables, coupled with energy efficiency, offer a viable option to expand the

energy system and also realise socio-economic and environmental benefits.

• Electricity from hydro,

geothermal and bioenergy

in range of fossil-fuel

costs. Solar PV and wind

seeing rapid reductions.

• Scaling-up renewables

would have a positive

impact on the region’s GDP

(up to +0.03% by 2030).

• Renewables sector

supported 611 000 jobs in

2016.

Source: IRENA

6

The gap between deployment and target

Based on current plans and policies, the share of renewables in TPES would

increase to just under 17% by 2025

Source: IRENA and ACE

7

Bridging the gap through enabling policy and investment frameworks

Strong correlation between policy and regulatory environment and investment

flows

Source: Based on BNEF investment data

• Most countries have introduced

feed-in tariffs. Also new

mechanisms such as the auctions.

• Adaptations need to be well-

managed to minimise uncertainty.

• USD 27 billion needed annually to

reach the 23% target, much in end-

use sectors.

• Focus on project readiness, access

to capital at the local level, and

investment risk mitigation.

• Between 2006 and 2016, over USD 27 billion has been invested in the (non-large hydro)

renewable power sector.

8

The way forward

Recognising the role for renewable

energy in the energy agenda

Establishing an enabling policy and

regulatory framework

Focusing on renewable energy

deployment across all end-use sectors

Catalysing investments in the

renewable energy sector

Building institutional and human

capacities

Planning for higher shares of variable

renewable energy

Supporting decentralised

renewable energy for livelihood impact

Leveraging cooperation to accelerate

renewable energy towards SDGs

Thank you!