Southeast Asia’s wind power sector requires at least US$14 billion of investments by 2030, says Wood Mackenzie. This is to support the 8.9 GW of new wind power capacity that Wood Mackenzie expects to be added between 2020 and 2029. With a population exceeding 650 million and average annual power demand growing at 8% until 2030, Southeast Asia is one of the world’s fastest growing power markets. To support this growth, the region’s governments are setting renewable energy targets to diversify their energy mix to be more energy self-sufficient. Wood Mackenzie Principal Analyst Robert Liew said: “Currently there are about 20.7 GW of planned wind power capacity in the pipeline, but we think less than half or 8.9 GW will be realised by 2030.
The future of the country’s power sources: How renewable and clean energy can sustain the next generations
The future of energy is headed in the direction of a cleaner, more efficient, and sustainable sources. The world’s largest economies, led by Germany, Japan, and the United Kingdom, are rolling out plans to transition from coal to more sustainable energy sources, such as solar, hydro, geothermal, and wind energy… But while infinite and free, these resources are not always available to make wind farms and solar panels generate electricity at maximum potential. Issues like this take primary consideration, particularly in developing countries like the Philippines, which suffer from an unreliable supply of electricity and whose people are the first to suffer frequent and severe weather changes caused by climate change.
The year 2020 marks a major turning point in the energy industry of Vietnam, with clean energy strengthening its solid position and establishing itself as a profitable sector with significant potential for development, while coal-fired thermal power no longer holding the position as a favoured energy source in the country. The information was shared in the Vietnam Energy Update Report 2020 recently released by the Centre of Media and Development Initiatives (MDI) under the Vietnam Union of Science and Technology Associations. The report examines key features of the development of Vietnam’s energy sector from August 2019 to August 2020, with a focus on major power generation sources.
From 2020 to 2025, global renewable energy capacity is projected to grow by 50%, likely led by solar photovoltaic and onshore wind. It would be a mistake, however, for developers and insurers to overlook the prospects for offshore wind. Offshore wind power has seen strong growth in recent years and presents significant untapped potential. Around the world, the sector has seen average annual growth of 30% from 2000 to 2018. Total capacity is projected to increase threefold by 2025. Notably, momentum in offshore wind has shifted from Europe to Asia. Of the 17 GW of offshore turbines ordered globally last year, China alone accounted for 76% of those orders; as a region, Asia accounted for 88%. In recent years, Asian countries have considered ramping up investment in offshore wind power due to its high economic efficiency and support for the low-carbon transition.
In Southeast Asia, Covid-19 has worsened the already grim economic growth in 2019 that resulted from US-China trade tensions and Brexit uncertainties. The latest figure from Asian Development Bank (ADB) has forecasted that the economic growth of Asean Member States (AMS) will contract by 2.7 per cent in 2020, a notable cut from 1 per cent growth projection in April 2020. Realising the fuller extent of Covid-19, International Monetary Fund (IMF) and World Bank have also adjusted their outlooks to more relaxed recovery scenarios in June 2020. The sharp decline in international trade and tourism that flow through Asean has considerably slowed down economic activity, dragging Asean to the face of a deep recession.
The Asian Development Bank (ADB) has approved a $127.8 million loan to support the construction of transmission lines and substations to help provide Phnom Penh and three other Cambodian provinces with stable and reliable electricity supply. The project will also pilot the first utility-scale battery energy storage system in Cambodia, which will be funded by a $6.7 million grant. The amount includes $4.7 million from the Strategic Climate Fund under the Scaling Up Renewable Energy Program in Low-Income Countries and $2 million from the Clean Energy Fund under the Clean Energy Financing Partnership Facility. Both funds are administered by ADB.
National electricity demand is expected to increase by 8.5 percent a year until 2025 and 7 percent until 2030, making Vietnam an attractive market for foreign energy investors. The economy is expected to grow at 6.5-7.5 percent annually until 2030, and would require 90,000MW of power by 2025 and 130,000MW by 2030. At the 2020 Vietnam Energy Summit in July in Hanoi a number of deals for investment in energy projects were signed, including the memorandum of understanding by the Copenhagen Infrastructure Partners, Asiapetro and Novasia Energy with the Binh Thuan Provincial People’s Committee to develop the 3.5GW La Gan offshore wind power project at a cost of 10 billion USD. Many investors said Resolution No 55-NQ/TW for strategic orientations for national energy development through 2030 has created a favourable environment to invest in the country’s power sector.
On September 11, the United States and the five lower Mekong nations launched a new framework for multilateral cooperation amid rising concerns about China’s expanding influence in mainland Southeast Asia. In announcing the new Mekong-U.S. Partnership at a meeting in Hanoi, the U.S. State Department pledged at least $153 million to Thailand, Myanmar, Cambodia, Vietnam and Laos for a variety of collaborative projects. These include grants for hydrological data-sharing, disaster management, and efforts to fight the region’s endemic levels of crossborder crime… In a statement dated September 11, Secretary of State Mike Pompeo made the U.S. aims in mainland Southeast Asia more explicit: “We stand for transparency and respect in the Mekong region, where the CCP [Chinese Communist Party] has abetted arms and narcotics trafficking and unilaterally manipulated upstream dams, exacerbating an historic drought,” he said in the statement.