From pv magazine Global
Solar in Southeast Asia is set for a rebound, following a two-year market contraction triggered by Vietnam’s abrupt suspension of its generous feed-in-tariff regime in 2020, the Asian Photovoltaic Industry Association (APVIA) and the Global Solar Council (GSC) say in a new report, published in collaboration with SolarPower Europe.
Annual capacity additions are expected to hit 3.8 GW in 2023, up 13% from the previous year. In 2021, the market contracted by 68% to 4.2 GW of annual additions. But now, favourable policy frameworks, declining technology costs, and increasing electricity demand now point to growth opportunities in Southeast Asia.
“New capacity is well distributed across different countries and the regional market no longer depends on one single contributor, [i.e. Vietnam],” said the APVIA and the GSC.
However, uncertainty remains, as several countries are now at a turning point in their solar stories. The report said it remains to be seen just how quickly they can deploy solar. The region also faces challenges related to grid infrastructure, access to financing, land availability, and lack of a skilled workforce. According to the report’s “high” scenario, regional installations could hit 5.7 GW in 2023, or contract to 2.5 GW under a “low” scenario.
“Starting from 2024, a high pace of growth is expected across the region,” the APVIA and the GSC said. Annual installations are forecasted to grow 32% to reach 5.1 GW in 2024, 59% to 8.1 GW in 2025, 28% to 10.4 GW in 2026, finally hitting 13.3 GW of new additions in 2027, according to the report.
The region’s top five markets are Vietnam, Thailand, Malaysia, Philippines, and Indonesia.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.