, Vietnam
98 views

Renewable energy capacity to nearly double in ASEAN by 2025: HSBC

Technological advancement and lower costs of renewables will drive this expected growth.

Renewable energy capacity will nearly double in the ASEAN region by 2025, with Vietnam leading the way, according to a report by HSBC Global Research.

The report said that the key six countries in ASEAN – Vietnam, the Philippines, Thailand, Singapore, Malaysia and Indonesia – added around 24GW of renewable capacity over the last five years.

“These capacity additions happened mainly in Vietnam as the government rolled out attractive feed-in tariffs and other favourable policies related to renewables to attract capital for investment. A high proportion of these investments in Vietnam happened in Q4, 2020, given the end of 2020 was the deadline to finish these projects and benefit from the favourable tariffs.” HSBC said.

HSBC predicts that renewable capacity will grow to 65 GW in 2025 from 2020’s 36 GW, and will reach 89 GW by 2030.

Vietnam stands as Number One in ASEAN in terms of current regulation and current project returns on renewables. The country also stands as the leading investment destination for renewables.

The doubling of the energy capacity is also boosted by technological advancements that continue to lower the costs of renewables. Global wind turbine price has dropped by
22% and 41% compared to 2015 and 2010; while solar module costs has fallen by 52% and 89% vs 2015 and 2010.

HSBC said that return of new renewables projects should improve against 2020 in general, because it believes that the declining cost is a more sustainable factor.

“In 2025, we estimate the equity IRR for solar and wind in the region to range from 11.9-15.8% and 9.4-14.6% respectively. Overall, the returns range from low to mid double digits and look very close between countries. Assuming a more favourable tariff policy, renewables in Indonesia also look viable in terms of returns,” HSBC said.
 

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Asian Power in your inbox

Danish energy company Ørsted launches expansion in Vietnam

This comes on the back of Vietnam increasing renewable energy to 30% by 2030

South Korea launches its largest 2 GW solar capacity tender

The country is expected to allocate 4 GW of solar capacity in 2021 across two tenders.

ACWA to build largest wind power plant in Central Asia

The company will construct the 1500 MW wind power project in Uzbekistan.

India’s Tata Power contemplating $473m IPO for renewable energy business

It initially planned to seek a partner to invest in its green assets.

China’s solar capacity installation crashes by 82% QoQ in Q1 2021

But increased by 35% YoY compared to Q1 2020.

India’s JSPL sells coal-fired power business for $400m to Worldone

This move aims to reduce the company’s debt and carbon footprint by almost half.

Japan authorizes operations of three ageing nuclear reactors

This is the first time reactors older than 40 years are approved to restart.

India’s NTPC launches tender for 600MW of wind and solar projects

Developers can compete for at least 50 MW to 600 MW in 10 MW multiples.

Here’s why the last dirty fuel project in Japan was scrapped 

The country recently pledged to cut down greenhouse gas emissions by 46% before 2030.

Singapore's Sunseap eyes expansion in Japan after latest Series E funding

The company earned an undisclosed amount from several new Japanese investors.