We are following closely the power markets in Vietnam, Indonesia and other Asian markets.
In Q3 2021, we worked with Asian Investor of Global Climate Change (AIGCC) on a topic of Accelerating Clean Energy in Vietnam and Indonesia.
The study finds that ASEAN can build much more solar and wind capacity economically, which can also help reducing annual total system cost and CO2 emission while meeting the demand growth.
- The study proposes a total value framework that considers the cost, sustainability and security elements respectively in this decision-making process.
- Even based on highly conservative assumptions, the modelling shows that
Economic solar and wind capacity addition is substantially higher than those under government plans and one should also try to push for the adoption of energy efficiency programs.
Indonesia and Vietnam can achieve peak CO2 emissions around 2025 without an increase in system cost.
The study shows that ASEAN nations has the opportunity to realise their renewables potential without compromising growth nor increasing cost. Instead, economic entry of solar and wind can help to reduce both total system cost and CO2 emissions from the power sector.
Whilst there are multiple barriers to achieve this, they can be addressed via power market reform, tightening of environmental regulation, innovative and local solutions to “re-align” benefit and cost and credit enhancement to “de-risk” solar and wind capacity investment.