Enabling Policies Can Unlock Renewable Energy Investments in ASEAN, IRENA Outlines

29 October 2018| Articles

In a presentation to Energy Ministers from the Association of Southeast Asian Nations (ASEAN) today, Mr. Adnan Z. Amin, the Director-General of the International Renewable Energy Agency (IRENA) reinforced the Agency’s support for the region’s aspirational target of 23 per cent renewables in total primary energy supply by 2025. It represents a firm commitment from Southeast Asian governments to an energy transformation based on renewables.

During the 36th Asian Ministers of Energy Meeting (AMEM) in Singapore, the Director-General outlined that the case for the rapid scale-up of renewable energy across the region is compelling, driven by strong political commitment, vast resource potential and an attractive business case.

Mr. Amin pointed out that meeting the goal of 23 per cent renewables would require an additional USD 27 billion of annual investment for the next eight years and the share of renewables would need to increase two-and-a-half fold by 2025. However, these additional investments would need to come largely from private sector capital, the Director-General said. Policy makers have a central role to play in creating the policy environment that unlocks these investments.

Technological innovation, falling costs, enabling frameworks and the imperative to meet climate objectives are fuelling global energy transformation and creating new opportunities for development and long-term prosperity, the Director-General went on to underline, highlighting that ASEAN holds a key role in this future.

Signalling a strengthening relationship with ASEAN, the Director-General said he was pleased that IRENA and ASEAN will sign a Memorandum of Understanding on working together to facilitate the scale up of renewable energy in the region. IRENA will engage with the region in five “priorities areas of cooperation:” including energy planning, development of regional renewable roadmaps, policy and regulatory frameworks to support deployment, capacity building technology and financing.