Renewable energy mix target for ASEAN countries to rocket to 23% by 2025

Find out which are the growth hotspots.

According to BMI Research, Asia region is becoming an increasingly attractive destination for renewable energy investment, on account of the strengthening commitment from governments towards renewables and the implementation of regulatory frameworks across the region. In particular, we highlight the South East Asian countries - notably Thailand, Indonesia, Malaysia and the Philippines as having significant potential for growth, as policies such as feed-in tariffs, renewable energy bills and public financing encourage investors into the markets.

In light of the improving investment environment and the growing project pipeline, their renewables capacity forecasts for the South East Asia region are constructive.

Here's more from BMI Research:

We expect the region's largest markets, in terms of capacity - Thailand, Philippines and Indonesia - to expand 160%, 82% and 132% respectively over our forecast period between 2015 and 2024.

This view was supported by the announcement in October 2015 that member states of the Association of Southeast Asian Nations (ASEAN) have set a collective Renewable Energy Target (RET) for the region. The RET is to increase the share of renewable energy into the region's fuel mix to 23% by 2025.

ASEAN states include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. In addition to this, ASEAN has adopted a target to reduce greenhouse gas emissions by 20% over a decade timeframe, aligning with our view the Asia region as a whole is beginning to play a greater role in climate negotiations.