With incentives and policies showing a palpable positive effect in RE development, ASEAN countries are striking a balance between fine-tuning existing initiatives and new ones. When ASEAN countries ask which single renewable energy, or RE, incentive will prove most beneficial to their development plans, the question itself could be flawed as the region has seen the most effective results not from a single bullet solution but from a basket of measures. Countries with a combination of incentives have experienced the greatest growth in renewable power, said Supawan Saelim, renewable energy policy specialist at USAID Clean Power Asia, a 5-year program that aims to increase the deployment in grid-connected RE in Asia.
“Feed-in tariffs have been the key incentive, usually combined with soft loans and tax incentives,” said Saelim, but so far, only three ASEAN countries – Indonesia, Malaysia and Thailand – offer this optimal trio of incentives for grid-connected RE power. The Philippines and Vietnam have FiT and tax incentives in place, but do not provide lower-interest-rate loans. Myanmar, Singapore, Cambodia and Lao PDR only provide tax incentives. Meanwhile, Brunei has none of the three.