Lao PDR: How to Attract More Investment in Small-Scale Renewable Energy?
Lao PDR adopted the Renewable Energy Development Strategy in 2011 and set a target of 30% small-scale renewables in the energy mix by 2025. The country relies heavily on large hydropower in electricity production and is an attractive investment destination for hydropower. At the same time, Lao PDR has also significant small-scale hydro and solar power potential. We propose five actions that can improve the investment climate in Lao PDR for small-scale hydropower, solar and wind energy: establish an autonomous government agency for renewables; join IRENA and build capacity for renewable energy governance; adopt a feed-in tariff and build a robust regulatory framework; develop a roadmap for small-scale renewable energy; facilitate market entry for investors.
Indonesia: How to Boost Investment in Renewable Energy
Indonesia, the largest country in Southeast Asia, has considerable renewable energy potential. However, this potential remains largely underexploited. Fossil fuel subsidies are a major obstacle to the deployment of renewable energy on a large scale. Investment in renewable energy is limited compared to some regional peers. For instance, Vietnam attracted USD 5.2 billion of investment in renewables in 2018, while Indonesia drew only USD 0.8 billion. We propose six actions that could help Indonesia accelerate the expansion of renewables: remove subsidies for fossil fuels; establish a ministry of renewable energy; prioritise renewables in the regulatory framework; improve and streamline grid management; mobilise domestic banks to support renewable energy; prioritise market entry for investors.
Cambodia: Five Actions to Improve the Business Climate for Renewable Energy Investment
Cambodia has not attracted significant investment in renewable energy until mid-2020 and, unlike other ASEAN countries, has not set exact renewable energy targets. Despite this, the country is viewed as a model to learn from for other ASEAN countries implementing solar power auctions. In order to keep up this momentum and attract more investment, Cambodia needs to address a number of persistent gaps in its investment climate. We propose five actions that may have strong immediate benefits and make Cambodia’s business climate for renewable energy more attractive: prioritise renewables in the energy governance system; request support from IRENA for capacity building; adopt targets and develop a regulatory framework; enhance project bankability; improve market entry for foreign investors.
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