Vietnam played a pivotal role in ASEAN's renewable energy landscape, contributing 69% of the region's solar and wind generation last year and emerging as the primary growth driver in recent years, according to a report from U.K.-based energy thinktank Ember.
The report reveals that Vietnam led the 10-country bloc in renewable electricity generation, capturing a 13% share, with Cambodia, Thailand, and the Philippines following suit. ASEAN collectively experienced a 43% average annual growth in solar and wind generation between 2015 and 2022. The introduction of Vietnam's feed-in tariff policy in 2017 played a central role in propelling this growth.
During this period, Vietnam witnessed the most substantial growth in both wind power generation (+8 terawatt hours) and solar power generation (+26 terawatt hours). Competitive feed-in tariffs, land lease exemptions, and tax exemptions were identified as key policies that fueled the boom in renewable projects.
However, in 2022, ASEAN faced a growth slowdown in renewable generation, recording a 15% increase compared to the remarkable 67% growth in 2021. The decline was attributed to the phasing out of Vietnam's incentive feed-in tariff scheme.
Ember estimates that over 99% of the wind and solar power potential in ASEAN remains untapped. The report underscores the potential for attracting more investment with supportive policies, including attractive pricing mechanisms.
The study identifies several policies that could stimulate regional growth, including Vietnam's auction mechanisms, Malaysia's green electricity tariffs, and Thailand's rooftop solar incentives. Ember emphasizes the importance of implementing these policies to unlock the vast untapped potential in the ASEAN region.
