Accelerating growth in Southeast Asia’s power market –
The Southeast Asian region has an installed capacity of more than 138,000 MW across the six countries of Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, with Indonesia and Thailand each having more than 30,000 MW.
Indonesia, Malaysia, and Thailand operate in a framework in which supply concessions are granted to independent power producers (IPPs). IPPs own more than half of the installed capacity in Malaysia and Thailand, and 15 per cent in Indonesia. Both Singapore and the Philippines have privatised the majority of their power generation assets, while the Vietnam government still has significant control of the industry.
Coal and natural gas have the largest share in the fuel mix in most of these countries, though there has been a conscious effort to move towards the increased use of renewable sources of energy. For instance,Malaysia passed the Renewable Energy Act in 2011 with the intent to increase the share of renewable energy in its power generation mix from less than 1 per cent currently to more than 5 per cent by 2015. Thailand is also placing a high priority on small-scale renewable energy resources and has designated its latest Power Development Plan (PDP) as a “Green PDP” with a focus on energy efficiency and a production target of nearly 165 MW……
