Jul 02
Southeast Asian Solar Power Set to Surge As Costs Drop Below Natural-Gas Generation
Southeast Asian Solar Power Set to Surge as Costs Drop Below Natural-Gas Generation By Andrew Burger-20, 2019 Southeast Asian nationsare stepping up plans to invest in and deploy solar power as the cost has dropped below that for gas-fired power plants, according to analysts and government officials. The region, where power demand is expected to double by 2040, is striving to expand the share of renewable sources as developing nations seek affordable electricity while battling climate change. ASEAN (Association of Southeast Asian Nations) members have forged themselves into leading industrial and export-driven manufacturing hubs in recent decades. They have been lagging behind when it comes to deploying solar and other emissions-free energy resources, however; that despite having committed to achieving UN renewable energy and climate change goals. Regionally, Southeast Asia’s cumulative solar photovoltaic (PV) capacity could nearl triple to 35.8 gigawatts (GW) in 2024 from an estimated 12.6 GW this year, according to consultancy Wood Mackenzie. Expected to have installed a cumulative solar power capacity of 5.5 GW by the end of this year, 44% of the total, region-wide capacity, highlighted Wood Mackenzie power and renewables analyst, Rishab Shrestha. That compares with 134 MW last year. Solar power progresses across Southeast Asia In addition, Malaysia recently completed a 500-megawatt (MW) solar power auction via which a bid for 365 MW of new solar capacity came in below the average cost of building natural gas-fired power plants, Minister of Energy, Science, Technology, Environment and Climate Change Yeo Bee Yin highlighted. The country intends to carry out at least one more-500 MW tender in next year’s second quarter, Yeo said. More broadly, Malaysia intends to increase its renewable energy for electricity generation from 6% at present to 20% by 2025. The majority is expected to be solar power. “For the first time in the history of Malaysia we have a large-scale solar energy costs that is less than gas,” Yeo said at Singapore International Energy Week. “We now finally have an alternative energy that is cheaper than gas to replace our peak energy demand at midday.” Another regional industrial and trading leader, Singapore set a goal of installing at least 2 GW of peak solar power capacity by 2030—more than 10% of current peak electricity. Natural-gas power generation supplies 95% of Singapore’s national generation capacity at present. Installing 2 GW of solar capacity could potentially replace that with emissions-free, solar power capacity, Wood Mackenzie Power & Renewables points out. “This being presented by the (Singaporean) authorities is very interesting as this points towards firm political determination to go towards a low-carbon economy in a constrained world,” added Francesco La Camera, Director-General of International Renewable Energy Agency (IRENA). Furthermore, “There need to be some good measures to ensure that investors feel ...
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