Renewable Energy in ASEAN: An Investment Guidebook

Overview of renewable energy sector in ASEAN
The deepening of integration amongst the Member States of the Association of Southeast Asian Nations (ASEAN) set a new landscape and architecture of the region’s energy market.1 Envisaged to be a single market and production base, a highly competitive economic region, a region of equitable development, and one that is fully integrated with the global economy, speculations abound over the ability of the ASEAN Economic Community (AEC) to transform the region to become one of the global economic powerhouses in the foreseeable future.2 This, along with the increasing number in the region’s population, requires ASEAN Member States (AMS) to identify and develop environmentally-friendly and, efficient energy solution in order to be sustainable.3 Indeed, with an estimated annual economic growth of 6.1 percent between 2013 and 2035 and population growth of 0.96 percent per annum, the energy demand of ASEAN can be expected to grow by up to 4.7 percent, from 619 Mtoe in 2013 to an estimated 1,685 Mtoe in 2035.4 Despite diverse energy needs across the region, ASEAN is set to become a more energy-intensive economy.