Frost & Sullivan: Government-dependent Southeast Asian Renewable Energy Market Looks to Lower Reliance on Subsidies

Frost & Sullivan: Government-dependentFrost & Sullivan: Government-dependent Southeast Asian Renewable Energy Market Looks to Lower Reliance on Subsidies PR Newswire KUALA LUMPUR, Malaysia, March 27, 2014 - RE is ideal to address the high demand for energy security The renewable energy (RE) market in all countries in Southeast Asia is riding high on government support in the form of concrete policies regarding targets and incentives for most RE technologies. The clear policy framework is encouraging RE adoption at the grass-root level. This is attracting investments from RE-focused North American and European companies, including OEM suppliers, engineering, procurement, construction (EPC) developers, consultants and carbon-based traders. New analysis from Frost & Sullivan, Southeast Asia Renewable Energy Market, finds that the market had an estimated annual CAPEX addition of US$3.15 billion in 2013 and this is expected to reach US$3.31 billion in 2018. Governments are encouraging domestic investments in renewable power generation sites as well as in RE equipment manufacture, with the intention of achieving grid parity through affordable RE. This heavy involvement of the government has ensured that nearly 70 percent of the RE market growth is dependent on governmental policies. The high installation cost of some RE technologies have made it necessary to have policies for tax benefits, rebates, feed-in-tariff schemes, and other funding programs.