Southeast Asia outdoor power supply customization

Wind and solar power in Southeast Asia contribute less than five percent of total power generation in most of the region's countries today – with the notable exception of Viet Nam, where this share surpassed 13 percent in 2023.

Electricity sectors in Southeast Asia need conducive market and policy arrangements that enable the large-scale entry of variable renew-ables and empower countries to capitalise on their cost competitiveness.

A new security of supply pivot towards renewables, flexibility sources and network devel-opment in long-term adequacy assessments and procurement will be critical in enabling Southeast Asian countries to decarbonise power sectors while ensuring afordable electricity. Realistic de-mand projections should underpin this.

Southeast Asian power systems have been expanded significantly over the past decades to meet rapid increases in electricity demand and provide reliable services to growing customer bases. Despite the notable successes in system expansion, the rollout of variable renewables has fallen behind other regions and remains below potential.

In Viet Nam, the EPTC and generators who directly bid on the wholesale market are parties to stan-dardised power purchase agreements (SPPAs), which are in efect contracts for diference (CfDs) that mitigate the parties' exposure to price volatility in the spot market.

While deployment has been limited to date, the outlook for renewables in Southeast Asia is shifting. Re-newables, driven by wind and solar, account for most of the planned capacity additions in all four countries of focus. Their share is slated to increase further as system planners continue to update power supply plans.