CEADIR Series: Accelerating Private Sector Investment for Clean Energy in Southeast Asia

As their economic growth rates soar, South and Southeast Asia account for a third of global greenhouse gas (GHG) emissions, the world’s largest share. Governments  in the region are working to meet increasing rising demands while mitigating the effects of climate change, promoting sustainable development, and reducing high levels of air pollution that cause premature deaths. Leading corporations have also embraced the business case for clean energy and ambitious climate action. More than 100 global companies have joined RE100, pledging to transition their operations to 100-percent renewable energy. However, many companies operating in Asia face financing, policy and regulatory challenges to increasing renewable energy use. As a result, the region is missing cost-effective opportunities to meet national clean energy targets, reduce climate change and air pollution risks, and secure cheaper or more reliable electricity sources while expanding employment.

On September 14, 2017, the CEADIR Series hosted “Accelerating Private Sector Financing for Clean Energy in Southeast Asia.” The webinar featured:

• Mikell O’Mealy, CEADIR’s Asia Activity Manager, who presented learnings from a 2017 USAID workshop on regional and country-specific recommendations to improve clean energy financing in Cambodia, Indonesia, Thailand and Vietnam.
• MK Balaji, Chief of Party, USAID-funded Private Finance Advisory Network for Asia (PFAN-Asia), who explained his project’s services to mobilize private sector funding for clean energy projects in 12 Asian countries.  
• Boonrod Yaowapruek, Investment Mobilization Lead for USAID-funded Clean Power Asia, who explained how his project helps reduces risks for private investors to scale up solar and wind power throughout Southeast Asia.

Key takeaways from the event:

• Governments want clearer signals from the private sector on what is needed to enable private sector investment and finance at scale, while private sector participants see value in conveying recommendations in a unified voice (e.g.,  the Vietnam Business Forum’s Made in Vietnam Energy Plan)
• To attract private sector investment in grid-connected RE, risk-reward project profiles must be well-balanced for sufficient risk-adjusted return to investors
• The public sector should consider structured finance (reducing cost) and risk mitigation instruments (reducing risks), which are likely cheaper than price premium policy (increasing revenue).

Download the presentation: https://ceadirseries.adobeconnect.com/pjvzvek85eop/source/CEADIR_SEPTEM…

Access other webinars from the CEADIR Series.