Southeast Asian countries are committed to decarbonising their economies and reaching net zero in the coming decades. Between them, they aim to achieve net-zero emissions between 2050 and 2060. This transformation will, by necessity, include a strong deployment of renewables. However, the boldness of these goals does not yet reflect in annual capacity additions. The region, therefore, is on the cusp of an important step change and significant efforts can bring about this transformation. Multiple factors, such as regulatory support mechanisms, grid investments, innovative service offerings, or technology developments, could go a long way to unlock the acceleration of renewable energy capacity additions.
In this report “Powering progress in Southeast Asia’s renewables development” by McKinsey & Company and EDB Singapore, both the immense potential of renewables in Southeast Asia as well as various fundamental differences between its economies and others that are already further along the journey is highlighted. Second, some insights and lessons learned from the experiences of developers that have played a role in accelerating and expanding the use of renewable energy in the region so far have been assessed. It is concluded by describing how renewable energy developers in Southeast Asia can further apply these lessons so their strategies are adapted to unique local needs, and so they can unlock opportunities and ultimately contribute to achieving the region’s net-zero aspirations.
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