Last year, Vietnam was responsible for a dominant 69% of solar and wind energy production within ASEAN, emerging as the key force in the bloc’s renewable energy expansion, according to a recent study. Leading ASEAN with a 13% contribution to the region’s renewable electricity, Vietnam was ahead of Cambodia, Thailand, and the Philippines, as per findings from a U.K.-based energy research organization, Ember, unveiled last week.
From 2015 to 2022, ASEAN saw an impressive 43% yearly increase in solar and wind power generation, largely propelled by Vietnam’s feed-in tariff policy introduced in 2017, the report indicated.
During this timeframe, Vietnam saw the highest surge in wind (+8 terawatt hours) and solar power generation (+26 terawatt hours) within ASEAN. The country’s success was attributed to competitive feed-in tariffs, exemptions on land leases, and tax breaks that spurred a boom in renewable projects, the analysis noted.
However, there was a deceleration in ASEAN’s renewable energy growth to 15% last year, down from 67% the previous year, which was linked to the gradual withdrawal of Vietnam’s feed-in tariff incentives.
Ember’s projections suggest that ASEAN has barely scratched the surface, with over 99% of its wind and solar potential still untapped. The report underscores that policy support, including appealing price mechanisms, could draw more investment into the sector.
The report also highlights several policy initiatives that could further stimulate growth across the region, such as Vietnam’s auction systems, Malaysia’s green electricity tariffs, and Thailand’s incentives for rooftop solar installations.
