The renewable energy market in Southeast Asia is expected to grow at a CAGR of more than 5% in the forecast period of 2020-2025. The increasing power demand in different countries of the region coupled with renewable energy targets is likely to increase the demand for renewables. Additionally, with the commitments and plans of countries like Indonesia, Philippines, and others to increase the share of renewable and replace coal-fired plants, the share of renewables is expected to grow significantly. On the other hand, the installation of renewables is a cost-intensive task, and lack of investment is restraining the expected growth of renewables.

  • Solar Energy is one of the fastest-growing renewable energy sources in Southeast Asia. Large scale acceptance of solar in Vietnam and the Philippines is the major driving factor of solar energy.
  • According to IRENA, the energy demand of Southeast Asia is expected to reach more than 400 Mtoe by 2040, which is expected to create significant opportunities in the renewable energy sector also.
  • Vietnam, with more than 24 GW of installed renewable energy capacity in 2019, is expected to dominate the market in the forecast period also



Key Market Trends

Solar Energy to Witness Significant Growth

  • In March 2018, a 30 MW of solar PPA agreement was signed by B.Grimm Power for seven separate solar PV projects in Thailand, driving the ground-mounted solar energy in Thailand.
  • In February 2018, the Asian Development Bank (ADB) announced its plan to provide a loan of USD 235 million to B. Grimm Power, a Thai energy firm, to develop renewable energy projects, including solar energy, in Southeast Asia.
  • PT. Sumber Energi Sukses Makmur is planning to construct a 10 MW off-grid hybrid solar plant in South Sumatra. The plant is expected to be operational by 2022, driving the solar energy market of Indonesia in the forecast period.
  • In 2019, Solar Philippines activated 150 MW Tarlac solar farm, with energy capacity priced at PHP 2.9999 per kilowatt-hour (kWh), making it the lowest-cost power plant in Southeast Asia.
  • Countries like Vietnam, Philippines, Malaysia held solar capacity 5695 MW, 922 MW, and 882 MW in 2019. In the forecast period also, with new installations, Southeast Asia can witness considerable growth.



Vietnam to Dominate the Market

  • In September 2019, Vietnam inaugurated Southeast Asia’s largest solar power farm with a capacity of 420 MW, the project can feed electricity to 320,000 homes.
  • Vietnam is leading in Southeast Asia in installed renewable energy with a capacity of 24,519 MW in 2019. The significant share is contributed by hydro and solar power.
  • Vietnam installed capacity of 380 MW of bioenergy by 2019, which is expected to reach 500 MW by the end of 2020. The country is also aiming to increase it further to 2,000 MW by the end of 2030.
  • In 2016, the government revised the National Power Development Master Plan to increase the share of renewable energy to around seven percent by 2020 and above ten percent by 2030
  • Vietnam has a large population that is still no access to electricity. With the decreasing cost of renewables, Vietnam can continue the renewable energy in the forecast period.



Competitive Landscape

The Southeast Asia renewable energy market is moderately fragmented. Some of the major companies include Sindicatum Renewable Energy Company Pte Ltd, Trina Solar Limited, Jinko Solar Holding Co Ltd, B Grimm Power PCL, San Miguel Corporation and others

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