Southeast Asia’s Coming Solar Boom

2018 is the year that “Solar Energy” hits its stride. And this is clearly understood from the 35th ASEAN (Association of Southeast Asian Nations) Ministers on Energy Meeting: “ASEAN calls for energy investment.”

At the opening of the ASEAN Ministers on Energy Meeting (AMEM) at the end of last year, Philippine Energy Secretary Alfonso Cusi called on energy investors and policy officials to search new ways to meet the region’s increasing energy needs.

“It is now imperative on us to draw in more investments and expertise to ensure that we are prepared for this new future."

How great is the need?

According to the Institute for Energy Economics and the International Energy Association, ASEAN nations are projected to see a growth of 80 percent to 2040 in energy needs — the third biggest jump in the world, after China and India. This is because the region’s economy more than triples in size, and its population rises by almost a quarter to 760 million.

ASEAN nations include:

·        Indonesia — the 4th most populous country in the world

·        Philippines

·        Vietnam

·        Thailand.

Electricity demand in particular is set to triple by 2040. Together, total demand growth will be equal to 14 percent of all global energy demand to 2040.

But not just any energy source will suffice, stressing the importance of clean energy in new outlays.

"ASEAN is committed to a future of renewables. From reduced carbon footprints to lower emissions to cleaner air, it is important to invest in the future of renewable energy sources.

In Pakistan, companies, like Reon Energy, have been committed to developing projects in South Asia.  They understand how to leverage technology innovations, incorporate balance-of-system (BOS) cost reductions, and improve system design in order simultaneously to achieve competitive clean electricity.

South and Southeast Asia need solar solutions, as they seek to expand access to electricity. There is particularly increasing demand for solar-plus-storage. As battery technology improves, these systems are proven to be more reliable than traditional generators, as the fuel supply is the first thing that gets disrupted in an emergency.

With solar and utility-scale batteries, no such disruption need be planned for. This helps to reduce costs, incorporate renewable energy, and enhance energy security.

There are several Southeast and South Asian nations that are planning to increase solar investment — with each taking a unique path.

There is no financial investment to fund coal in the Indian market because they’re simply not competitive against solar energy prices right now. It’s clear the future is bright for solar in Southeast Asia.