Vietnam accounts for nearly 70% of ASEAN's solar and wind power output.

Vietnam is the driving force behind ASEAN's renewable energy growth, accounting for 69% of total solar and wind power output by 2022.

Ember, a British non-profit and independent climate and energy consultancy, said in its latest report that total solar and wind power output in Southeast Asia reached more than 50 TWh last year (compared to 4.2 TWh in 2015).

Vietnam has been identified as a key driver of renewable energy growth in the region in recent years. Vietnam alone is expected to contribute 69% of total solar and wind power output in the region by 2022.

This organization assessed that the favorable policy environment is the reason for the boom in solar power in Vietnam in recent years. In 2017, Vietnam introduced a feed-in tariff (FIT, 6.67-10.87 cents per 1kWh) in 2017. This is considered an effective plan, making the market more attractive. The government also has land lease exemptions and tax exemptions for related equipment, helping to improve the competitiveness of renewable energy compared to traditional energy.

The phase-out of this tariff from 2021 to 2022 has led to an overall slowdown in the region’s solar growth, according to Ember. The bloc’s solar and wind growth is expected to slow to just 15% in 2022, down from an annual average of 43% since 2015.

Still, solar and wind power combined accounted for 13% of Vietnam’s total electricity output last year, the highest in Southeast Asia. According to Ember, the overall growth trend of the region does not necessarily reflect the growth trend of specific countries. For example, in Indonesia, the Philippines, Thailand, and Singapore, the growth rate of solar power in 2022 increased compared to 2021.

Solar and wind are among the most promising technologies that have the potential to create new markets, boost jobs, and help transform the energy transition, said report author Dinita Setyawati.

Besides Vietnam, Thailand also has the largest solar power potential and the third largest wind power capacity in the region. Last year, the country contributed 16% of total output to ASEAN.

In the Philippines, the growth of renewable energy offers an opportunity to decarbonize the country. The Philippines is the second-largest producer in Southeast Asia, so there is a huge demand for energy from industry. Last year, the archipelago contributed 5% of ASEAN’s total wind and solar power output.

The organization also forecasts that ASEAN clean electricity output will grow positively again in 2023 thanks to large projects coming into operation. Thailand also implemented a FIT mechanism for renewable energy last year. Vietnam is currently proposing an auction mechanism to develop renewable energy projects. Currently, more than 99% of ASEAN's potential is untapped.

Vnexpress.net