For over a decade ago, countries around the world declared their goals to generate and use electricity from renewable sources for 20% – 25% of total electricity generation of such country. This led to the issuance of renewable energy promotion policies, which came in similar schemes across countries, namely in the form of high Feed-in-Tariff (“FiT”) rates for a duration of 20 to 25 years as incentive to enhance research into renewable energy project investment up to the level as stipulated by each country.
From such policy, renewable energy project investment posed attractive returns, leading to a large number of investors placing interest in investment of such projects in different countries which announced the FiT policy, in the form of domestic and international investment.
Figures reported by each country on the increase in renewable energy project installed capacity indicates that in the next 20 years, to achieve the goals announced, 300,000 MW more is needed. Of that, 230,000 MW is from the goals of ASEAN nations plus Japan and South Korea.
Source: ASEAN Center for Energy