Asean not likely to meet 2025 renewable energy supply target

The Association of South-East Asian Nations (Asean) is unlikely to meet its 2025 target of having renewable energy account for 23% of its total primary energy supply, as per the latest energy outlook report. Currently, renewable energy makes up only 15% of the region s total energy supply, posing a significant challenge to achieving the goal within three years. The report highlights obstacles in accelerating the transition from fossil fuels, balancing ambitious targets with feasibility, and addressing biomass reliability and infrastructure investments for emerging technologies. However, if each of the 10 Asean member states implement their energy transition policies, including power development plans, renewable energy deployment, and energy efficiency and conservation, the target could be reached by 2030. In this scenario, the share of renewables in Asean s primary energy supply would reach 38.1% by 2050. Asean has already achieved 33.6% in renewable energy s share in installed capacity in 2022, surpassing its 2025 target of 35%. The region is expected to reach 39.6% if it continues to implement its planned energy transition policies. The report identifies financing as a major impediment to scaling the share of renewable energy supply due to high upfront costs and low margins in the power sector. The annual power investment required between 2023 and 2030 is estimated to be between US$20 billion and US$56 billion, with a projected increase to between US$28 billion and US$371 billion for the years between 2041 and 2050. To drive a just and sustainable energy transition in Asean, the report suggests enhancing energy efficiency, diversifying renewable energy sources, and integrating advanced technologies such as smart grids and hybrid systems. Regional cooperation, supportive policies, and inclusive stakeholder engagement are also crucial to ensure energy security, affordability, and resilience. Key considerations for future energy planning include enhancing energy efficiency standards, investing in energy-efficient machinery

Source: businesstimes.com.sg
Published on 2024-09-29