Southeast Asia to account for 10 pct of Asia’s total solar capacity by 2030 - MIDA | Malaysian Investment Development Authority
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Southeast Asia to account for 10 pct of Asia’s total solar capacity by 2030

Southeast Asia to account for 10 pct of Asia’s total solar capacity by 2030

23 Jan 2024

Southeast Asia will account for 10 per cent of Asia’s total solar capacity by 2030, encompassing ground-mounted, rooftop and global floating photovoltaic (FPV) installations, mirroring the broader Asian region’s dominance of the global FPV market, according to research by Rystad Energy.

The Norwegian energy research and business intelligence company said countries such as the Philippines, Indonesia and Thailand are well-positioned to be at the forefront of this growing trend, using FPV to increase clean energy generation capacity.

Operational FPV projects in Southeast Asia currently amount to around 500 megawatts (MW) altogether, and an anticipated 300 MW of FPV capacity is expected to be added across Southeast Asia in early 2024 alone, according to Rystad Energy’s data.

Its head of Asia renewables and power research, Jun Yee Chew, said FPVs had emerged as a game-changer for Southeast Asia, catalysing the region’s push towards clean energy by maximising its abundant solar resources and overcoming limited land availability.

“Their modular design allows for integration with existing hydropower dams and unlocks tremendous opportunities for hydropower-rich nations like Laos, Thailand and Indonesia.

“Additionally, with land rights a major deterrent facing solar developers in Southeast Asia, as much of the land is used for agriculture, FPVs provide a solution for the coexistence of solar farms and agriculture,” he said.

Rystad Energy said solar photovoltaic capacity additions were poised to be a central pillar of Southeast Asia’s energy future, with floating installations primed to play a critical role.

However, it said addressing land rights was a pivotal challenge for solar developers in Southeast Asia due to the predominant use of available land for agricultural purposes.

“The region grapples with a scarcity of suitable sites for solar farms, intensifying the need for innovative solutions. In particular, FPVs have emerged as a viable option, leveraging bodies of water adjacent to agricultural areas. This approach not only circumvents land access tensions but also presents a potential blueprint for other countries grappling with similar issues,” it added.

Source: Bernama