Southeast Asia can save up to $160 B through energy transition
Southeast Asian countries can meet their growing energy demand with renewable energy and cut 75 % of their energy-related CO2 emissions by 2050.
Released by the International Renewable Energy Agency (IRENA) during the ASEAN Energy Ministerial, the second edition of the Renewable Energy Outlook for ASEAN: Towards a regional energy transition shows that almost doubling renewable power by 2030 creates significant regional business and investment opportunities.
With its massive renewable potential, Southeast Asia stands at a historic crossroad between moving away from fossil fuels and towards a renewable energy transition
ASEAN (Association of Southeast Asian Nations) is home to one of the youngest coal power plant fleets in the world. Yet, an increasing number of ASEAN members have set net-zero emissions targets by around mid-century. Planning the transition must begin now if climate goals are to be met, with coal power substitution as a top priority, not least to avoid stranded assets.
IRENA’s Outlook identifies transition pathways focusing on renewables, electrification and emerging technologies such as hydrogen and batteries. It builds on the political momentum for change in the region.
Significant investment is needed to boost renewables in the national energy mixes, but overall costs are balanced by substantial savings on supply and fuel costs. ASEAN’s investment in renewables must almost triple the current levels. Investment opportunities include renewable power, transmission, biofuels, energy efficiency, hydrogen and electromobility and can amount to over $6 T cumulatively by 2050.
Countries can reduce their energy costs by as much as $160 B by 2050. Overall, the avoidance of costs related to health and environmental damage caused by fossil fuels can bring savings of up to $1.5 T cumulatively to 2050.
Source: ESI Africa