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    Southeast Asia’s Clean Energy Aspirations Challenged By Coal Dependence And Infrastructure Gaps – Report

    Update: 2024-8-9

    Southeast Asia faces substantial challenges in its pursuit of a clean energy future, according to a new report by the Hinrich Foundation titled “Southeast Asia’s pathway to clean energy is all but clean.” Despite the region’s abundant renewable energy potential, a complex interplay of factors is hindering progress.

    A heavy reliance on coal, particularly in countries like Indonesia, is a significant obstacle. The sector’s deep-rooted political connections and corruption have impeded the transition to cleaner energy sources. Moreover, the lack of supportive policies and a competitive electricity market has stifled private investment in renewables.

    Geopolitical tensions and supply chain vulnerabilities further complicate the region’s clean energy aspirations. The dominance of Chinese technology in the solar and wind power sectors has raised concerns among countries seeking to diversify their supply chains.

    Massive investments in grid infrastructure are essential to accommodate the integration of renewable energy sources. However, Southeast Asia lags behind in developing the necessary transmission lines, particularly extra-high voltage and ultra-high voltage lines. The lack of regional cooperation in grid development has also hampered progress.

    While the report acknowledges some positive developments, such as increasing renewable energy installations and growing investor interest, it underscores the need for concerted efforts to overcome these challenges.

    Key figures:

    Southeast Asia’s electricity generation mix: Coal (41%), gas (30%), oil (9%), hydro (12%), renewables (8%).

    Indonesia’s electricity generation relies heavily on coal, accounting for 62% of its total.

    China dominates the global solar PV panel market with nearly 80% of its production capacity.

    The report serves as a wake-up call for policymakers and investors in the region. Addressing these challenges requires a comprehensive approach that includes policy reforms, infrastructure development, and international cooperation.


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