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Southeast Asia (SEA) region has huge solar potential as it is
located near the equator. Meanwhile, the coastal areas in the
region have considerable potential to harness wind energy. The
development of solar and wind resources in the power sector was
relatively slow as renewables were not cost-competitive over
thermal power plants. Recently, the renewable expansion has been
accelerating, marked by more large grid-scale projects in the
region.
Vietnam, outpaced the rest of the SEA markets, has made
substantial efforts to promote renewable energy (RE) during the
last several years, with RE accounting for 31% (or 21.3 GW, in
which 80% contributed by solar) in the energy mix as of 2020
installed capacity. Until recently, solar and wind energy
deployment begin to spread evenly across more nations.
Philippines took off 631 MW renewables
Philippines has long been a solar and wind energy player owing
to its immense indigenous resources, but the nation appeared to be
not aggressive enough in RE deployment (as of 2020, the energy mix
contains 3% solar and 2% wind).
By the second quarter of 2021, the Philippines took off with
large-scale RE projects - 615 MW solar parks and a 16 MW wind farm.
The first solar project was announced on May 17, a 115 MW solar
project that will be co-develop between Japan's Mitsui & Co.
and the Philippines' IPP Global Business Power Corp. The US$63.8
million project is located in Rizal province; power generated will
be sold to Manila Electric over a 20-year contract upon completion
in March 2022.
It was followed by the first-phase construction of the country's
largest to date - 500 MW solar park in Nueva Ecijia province by
Solar Philippines on June 28. The unsubsidized power plant will
supply power to the Luzon grid once it is completed. However, Solar
Philippines is currently seeking off-takers for the project that
could also sell into the Wholesale Electricity Spot Market during
the highest demand.
Philippines also begun the construction of a 16 MW wind farm at
Ilocos Norte, which is set to be the country's largest wind farm to
date. The 11.4-billion peso project is co-developed between
Philippines's AC Energy and renewable energy developer UPC
Renewables. It is estimated to be complete by the fourth quarter of
2022 and will supply energy to Luzon.
Philippines's Luzon grid has long been threatened by thin power
reserves, make it vulnerable to hot weather season, especially from
the end of May to the beginning of June 2021. As a result,
Filipinos on Luzon grid were experiencing multiple rotating outages
due to the grid's low power reserve by early June. Hence, it was
believed that by relying on solar and wind energy, the issues of
thin power reserves would be resolved sooner.
Laos to have its first-build 600 MW onshore wind farm
project
Laos, which aspires to be "the battery in SEA", has been more
reliant on hydropower over the past few years. Following the severe
drought in Mekong River by 2019, Laos begins to reduce its
dependency on hydropower by diversifying its renewables energy
mix.
By June 2021, the Japan's Mitsubishi Corp. announced its
investment in SEA region—the first-built 600 MW onshore wind
farm project in Laos, which is co-invested by Thailand's Impact
Electrons Siam Co. Ltd. This project is one of the largest onshore
wind farm projects in the SEA, and the construction is expected to
start by 2022 with a scheduled operation by 2025. The power
produced will be exported to Vietnam Electricity (EVN) under a
signed 25-year PPA, through the 500 kV transmission line from Laos
to Quảng Nam province in Vietnam. This project is expected to
increase the cross-border power sharing in the SEA region.
Cambodia is set to develop 240 MW solar park
projects
Cambodia's 2020 Power Development Plan target to achieve 1.8 GW
of solar by 2030, and allowing 100% foreign ownership has boosted
the solar development in the nation.
Multiple solar projects with a total of 240 MW was announced in
Cambodia. The real estate developer Hong Lai Huat Group has signed
an MOU with the Chinese China Machinery Engineering Corp (CMEC) by
April 26, to co-develop a 200 MW solar project at the Aoral
Eco-City (the mega integrated agriculture eco-city project), Aoral
province. The collaboration will last 20 years, with a 20-year
renewal option, costing US$200 million.
Then by May 24, the Asian Development Bank (ADB) announced an
additional financing of US$7.64 million for the second-phase
construction of Cambodia's National Solar Park Project in Kampong
Chhnang province. This project was divided into two phases, where
the 18-month procurement plan for the second phase 40 MW solar park
was approved by April 27.
Upon completion, both solar parks will sell electricity to
state-owned Electricite du Cambodge (EDC). The massive 240 MW solar
projects, which witnessed more than 100% increment from 2020
operable capacity, could significantly increase the green energy
share of the country's power supply.
Singapore turns to 137 MWp large-scale offshore solar
projects
Singapore facing land scarcity and resource-constraint issues in
RE development, thus shifted its focus to building offshore solar
farms, with a total of 137 MWp large-scale projects announced.
The first offshore floating PV system was installed by
Singapore's solar energy provider—Sunseap Group—where the
construction of the 5 MWp offshore floating solar farm was
completed by March 25 in the Straits of Johor between Singapore and
Malaysia.
Singapore also innovates and uses technology extensively to
build its second floating solar system at Tengeh Reservoir through
a 25-year PPA between Singapore's National Water Agency PUB and
Sembcorp, in which Sembcorp will design, build, own, operate, and
maintain this project. The sprawling installation to support 60 MWp
floating solar system was completed by May 18 and covers 45 ha of
the water surface; it is recorded as the country's largest to
date.
Additionally, on June 17, an offshore solar farm with 72 MWp was
planned on the operational Semakau landfill. This project is
planned by Shell Singapore and JTC Corp under a non-binding MOU,
supported by the Energy Market Authority (EMA) and the National
Environment Agency (NEA).
