Favorable government policies and technological innovations are among the key trends anticipated to lead South Asia’s goal of developing renewable energy in the future.
The report published by KPMG, which is a global auditing firm with the title ‘The Renewable Energy Transition,’ noted that more than 70 million ASEAN citizens do not have access to constant electricity. There is a high potential for renewable energy in Southeast Asia, and a broad market and their government are currently turning to wind and solar power to deal with the issue.
Energy consumers are at the forefront to push the agenda, and the inclusion of new funds in the ASEAN renewable energy markets are the two new trends recognized in the report.
Each of the ten members of the Southeastern country has set targets for renewable energy, and the innovations in technology such as the development of efficient solar power and floating solar panels mean that renewable energy is highly accessible than in the previous years.
In the year2014, RE100 established in a collaborative global initiative that brings together more than 100 influential business that had to emphasize on 100 percent use of renewable energy. The above is a significant example of how the consumers help the government to increase demand for renewable energy because commerce and industries are using more than two-thirds of the electricity in the world. The companies in the group include Microsoft, Coca Cola, and IKEA who have strong affiliations in ASEAN.
In the ASEAN region, the World Bank, Asian Development Bank (ADB) and Japan Bank for International Cooperation are the one on the forefront of investing in renewable energy; this has helped in lowering the price. The price of renewable energy was a significant issue, but currently, due to the fall of costs, the demand for renewable energy has increased, thus pushing the industry forward.
According to Executive Director and Asia Pacific Head of Power and Utilities at KMPG, Sharad Somani, in the past five years, the price for renewable energy has dropped immensely and id projected to reach the cost of electrical power in the coming five years. If the set goal is achieved, there will be more investors in the sector.
The report released in August 2018 by the Institution for Energy Economic and Financial Analysis (IEEFA) showed that the Philippines has 20 million people without a constant flow of electricity supply, and 12 million have no access to electricity at all. Through the above-initiated electric-power will be highly reduced to 2.50 Philippine peso, which is $0.05 0er kilowatt (kWh) through installing rooftop solar panels.