Renewable Energy Investments and Feed-in Tariffs: Firm-Level Evidence from Southeast Asia
The implementation of a feed-in tariff has a significant and positive effect on firms’ investments in renewable energy projects.
Energy
What's New
4th GMS Energy Transition Task Force Meeting
The 4th GMS Energy Transition Task Force Meeting (ETTF-4) was held on 11 December 2024 in Jakarta, Indonesia. Held on the sidelines of back-to-back events on the ASEAN Power Grid (APG), the 4th ETTF Meeting discussed GMS country and regional updates related to energy transition, plans on regional power trade and demand side management, ETTF work streams, and development partner support for the GMS energy program.
Greater Mekong Subregion countries are in varying stages of economic development but share common goals concerning energy security and environmental protection. Progress have been made in promoting renewable energy, clean fuels, and energy efficiency, but new energy solutions remain crucial to the subregion’s advancement.
The GMS Economic Cooperation Program Strategic Framework 2030 (GMS-2030) emphasizes cross-border power trade, establishment of regional grid codes, development of regional markets, and expanding clean energy investments with a greater role for the private sector.
The Regional Power Trade Coordination Committee (RPTCC) managed regional power trade in the subregion from 2004–2022. In July 2022, at the 29th RPTCC meeting, the committee formally transitioned to the GMS Energy Transition Taskforce (ETTF). Among other things, the transition to ETTF ushers in closer energy cooperation with the Association of Southeast Asian Nations (ASEAN) and its initiatives, such as the ASEAN Power Grid.
New Energy Solutions Needed for the GMS
Energy consumption in the GMS countries has grown intensively as their economies develop, driven mostly by residential and industrial sectors. Demand is forecasted to increase materially over the medium term.
GMS countries have used different approaches to increase access to reliable, affordable, and low-carbon energy.
- Power generation. Coal and gas remain prominent in installed capacity, but there is a diverse, complementary, and growing mix of renewables across GMS countries. Focus on specific types of renewables varies based on each country’s natural resource endowment but hydropower is fundamental to the subregion. In July 2021, ADB approved a technical assistance to support countries in Southeast Asia to accelerate transition to clean energy.
- Power sector planning. Key themes that have emerged in the recent power development plans of GMS countries include the following: (i) development of grid infrastructure, battery energy storage system (BESS) and pumped storage hydropower; (ii) resource-oriented supply build-out; (iii) renewable-enabling policies and (iv) electric vehicle targets and planning.
- Regional cooperation.Through the GMS platform, cooperation with ASEAN and other avenues for energy cooperation, GMS countries are working together to meet the subregion’s demand for new energy solutions. They share knowledge, experiences and lessons learned, and pursue initiatives that enhance and overcome challenges to cross-border electricity trade.
See initiatives of the GMS Energy Transition Task Force to promote energy security in the subregion in a sustainable manner.
Related
Key Energy Resources
- Agreements and MOUs
- Facilitating Power Trade in the Greater Mekong Subregion
- GMS Road Map for Expanded Energy Cooperation
- Update of the GMS Regional Master Plan
- Study: Building a Sustainable Energy Future - The Greater Mekong Subregion
Contact Persons
Focal Persons at the Asian Development Bank
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Hyunjung Lee (lead)
Energy Sector Office
Sectors Group -
Atsumasa Sakai
Energy Sector Office
Sectors Group
Other Concerned Staff & Consultants
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Joao Aleluia
Energy Sector Office
Sectors Group -
Architrandi Priambodo
Energy Sector Office
Sectors Group -
Jeffrey Almera
Energy Sector Office
Sectors Group -
Rafaelita Jamon
Regional Cooperation and Integration Unit
Southeast Asia Department/GMS Secretariat
Send inquiries to GMS Secretariat.
ADB will support the development and operation of solar photovoltaic systems located on the rooftops of commercial and industrial businesses across Viet Nam. Photo courtesy of GreenYellow.
ADB, GreenYellow Sign Deal for Commercial and Industrial Rooftop Solar in Viet Nam
The Asian Development Bank (ADB) and GreenYellow Smart Solutions Vietnam Co., Ltd. (GreenYellow), have signed a loan agreement of up to $13.8 million for rooftop photovoltaic (PV) solar systems to help increase the supply of clean and affordable energy for commercial and industrial consumers in Viet Nam.
First GMS Energy Transition Task Force Meeting
The Greater Mekong Subregion (GMS) countries convened the first Meeting of the GMS Energy Transition Task Force (ETTF) in a hybrid format (with in-person attendance in Manila, Philippines and via web-based conferencing) on 13-14 June 2023.
The Lotus Wind Power Project deployed by the Asian Development Bank in Viet Nam. Photo by ADB.
Feasibility Studies for Wind Farm for the Subregion to be Conducted in Lao PDR’s Savannakhet
Agreements for feasibility studies for (i) a planned wind farm and (ii) a 500 kV substation for electricity transmission in Savannakhet, Lao People’s Democratic Republic (Lao PDR), was signed by representatives from Lao PDR Ministry of Planning and Investment, NASENG-WAYO Renewable Resource Development and Investment (a Lao PDR firm), and UPC Renewable Energy. UPC Renewable Energy and NASENG-WAYO Renewable Resource Development and Investment will cooperate on the feasibility study.
The Effect of Electrification on Socioeconomic Well-Being and Environmental Outcomes: Evidence for the Lao People’s Democratic Republic
This paper investigates the impact of electrification of households in the Lao People’s Democratic Republic using data from the Lao Expenditure and Consumption Survey.
29th Meeting of the GMS Regional Power Trade Coordination Committee (RPTCC-29)
The Greater Mekong Subregion (GMS) countries convened the 29th (the final) Meeting of the GMS Regional Power Trade Coordination Committee (RPTCC-29) in a hybrid format (with inperson in Siem Reap, Cambodia and via web-based conferencing) on 5-6 July 2022. RPTCC-29 was a landmark meeting signaling the evolution of RPTCC into the GMS Energy Transition Taskforce (ETTF).
Renewable Energy Manufacturing: Opportunities for Southeast Asia
This report presents an assessment of Southeast Asia to become a leader in renewable energy manufacturing. It also identifies key opportunities for intraregional collaboration.
Great strides were made in bringing power to the people by innovative policies, new technologies, and increased financing, but the region is unlikely to reach energy access targets by 2030. . Photo credit: ADB.
Post-Pandemic, Asia is Falling Short on Electricity Access and Switch to Renewables
Despite welcome progress on universal access to electricity, the transition to renewable energy is faltering at a time when multiple shocks are hitting Asia and the Pacific hard.
Engineer R. Akkachat Chatthong checks the condition of the solar panel surface. Photo from the "Thailand: Provincial Solar Power Project" by ADB.
GMS Energy Transition Task Force Meeting
Greater Mekong Subregion countries will meet on 13-14 June 2023, Manila, Philippines, for the first GMS Energy Transition Task Force Meeting (ETTF).
The Kim Thanh International Border Gate between Lao Cai (Viet Nam) and Yunnan Province (PRC) plays a vital role in the GMS northern corridor. Photo by ADB.
AEIR 2023 Highlights Deepening Integration, Continued Economic Growth in the GMS
The Asian Economic Integration Report 2023 highlights the continued growth of integration in subregional initiatives and programs in Southeast Asia, including both in the GMS and the ASEAN, from 2006 to 2020.
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A subregional cooperation program focused on its fundamental strengths of community, connectivity, and competitiveness while embracing the core principles of environmental sustainability and resilience, internal and external integration, and inclusivity, for building a GMS community with a bright shared future
Greater Mekong Subregion Secretariat
Regional Cooperation and Operations Coordination Division,
Southeast Asia Department, Asian Development Bank
Address: 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines
Telephone: +63 2 8632 4444 Fax: +63 2 8636 2226
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