Meeting Southeast Asia’s energy needs and policy priorities will depend on mobilising much higher levels of capital for renewables, energy efficiency and flexible infrastructure. In recent years, energy investment in Southeast Asia has trended downward, even as a greater share of spending has gone to support rising demand in the power sector. State-backed capital has played an important role, but further mobilising investment requires broader participation from the private sector, enhanced by the targeted use of public funds.
Attracting adequate capital at an affordable cost of finance will be contingent on addressing the risks that impact the bankability of projects. To this end, the level of policy commitment and implementation towards meeting long-term goals and strategies is critical. IEA and Singapore Energy Market Authority have supported these efforts by developing a Capacity Building Roadmap on Clean Energy Investment and Financing, which was endorsed by ASEAN energy ministers in 2018.
Building on insights from the IEA Southeast Asia Outlook and World Energy Investment reports, this Roundtable will explore key issues in enhancing regional capabilities to attract investment in clean energy and develop sustainable financing models.
Potential discussion topics may include:
- How can the financial sustainability of power systems in the region be enhanced?
- What are the principal risks affecting the bankability of renewables projects and how can better procurement frameworks and well-designed instruments address these risks?
- What are the priorities for improving the availability of financing in the region and reducing the cost of capital?
- How can Southeast Asia markets promote integrated approaches to investment that better take into account the role of efficiency, distributed solutions and flexible infrastructure?