The ASEAN countries have recognized the importance of renewable energy in meeting their various energy and developmental goals, and each country has developed specific renewable energy policy framework or have integrated renewable energy concerns in the overall energy and development policy framework.  Each country framework reflects current government priorities, developmental concerns, status of renewable energy development, level of liberalization in energy markets, etc.

Cambodia, Indonesia, Malaysia, the Philippines and Thailand have elaborated specific renewable energy policy frameworks.  Energy security goals are very prominent in the policy goals of Indonesia, Malaysia, the Philippines and Thailand though environmental protection, energy access and investment promotion goals are also considered important.  These policy goals reflect the concerns of growing dependence on imported energy as well as environmental issues related to power generation in the Philippines and Thailand.  Malaysia, despite being a net energy exporting country, also recognizes the increased depletion of its mineral energy resources and has pursued a balanced development of renewable and depletable resources.  Singapore, being a small country with very limited renewable energy resource but with high per capita energy consumption, encouraged the use of renewable energy in the context of energy conservation.

In Cambodia, Lao PDR and Vietnam, renewable energy development is pursued within the context of improving energy access (rural electrification) in rural communities to promote economic development.  This relates to the low electrification levels in Cambodia, Indonesia and Lao PDR.  Vietnam has also recognized the relevance of renewable energy resources development as a least-cost option to increase electricity access in remote and isolated regions of the country.

ASEAN countries which have effectively promoted private investments in renewable energy have developed national policy strategies and targets that set out the country’s approach and commitment to promote renewable energy development. These strategies and targets provide long-term direction and send correct signals to market actors.

The differences in priorities, resources, goals and market structures result in diversity of strategies in promoting renewable energy development in each ASEAN member country.  Thailand, which has a record of successfully stimulating private investments in grid-connected renewables in the recent years through Small Power Producers (SPP) Programme and subsidies to renewable energy power producers, has moved forward by developing a new national strategy, the Strategic Plan for Renewable Energy Development in 2003.  The strategic plan aims to increase the share of renewable energy in the primary energy consumption from 0.5% at present to 8% in 2011.  To achieve this, the government of Thailand passed the Renewable Portfolio Standards setting 4% share of renewable energy generation for new power plants in 2011.  It is also currently developing incentive measures and other support mechanisms.

Malaysia’s Five Fuel Diversification Policy provides the renewable energy policy guidance while the current grid-based renewable energy programmes embodies national renewable energy strategy.  The Small Renewable Energy Power (SREP) Programme allows small power generators connection to the grid at selling rates defined by the Renewable Energy Power Purchase Agreement (REPPA).  The SREP programme sets a target capacity of 500 MW to be integrated into the grid by the end of 2005.  To accelerate investments in the palm-oil industry, the government launched the Biomass-Based Power Generation and Cogeneration (BioGen) Programme.  Furthermore, the government established a National Steering Committee to identify priorities for research and development of new energy sources from solar, hydrogen and fuel cells.

The Philippines’ Renewable Energy Policy Framework issued in 2002 aims to double the renewable power capacity by 2013 and non-power contribution to energy mix by 100 million barrels of fuel oil equivalent.  The government programs aim to achieve this through existing laws and orders regulating the development of geothermal (Act to Promote the Exploration and Development of Geothermal Resources), hydro (the Mini-Hydro Law) and wind energy resources (Executive Order 232 encouraging private participation in the development of ocean, solar and wind resource for power generation).  To further accelerate deployment of renewable energies, the government hopes that the Philippine Congress will pass into law the long pending Renewable Energy Bill.  The Bill aims for comprehensive renewable energy development and specifies measures such as renewable portfolio standard, renewable energy trust fund, fiscal and financial incentives, etc.

Indonesia’s National Energy Policy issued in 2004 sets a 5% target of renewable energy in power generation by 2020.  The National Energy Policy, Electricity Law, Geothermal Law and Green Energy Policy provides overall policy guidance particularly on the use of renewable energies as a means to promote economic development in remote communities.  The only concrete measure being implemented is the power purchase programme for small scale power generation using renewable energy (PSK Tersebar).  Moreover, the newly elected government of Indonesia has recently introduced a new law (Government Rule No. 3, 2005) granting the state utility PLN to select renewable energy developers directly without undertaking a competitive tender process.

Vietnam’s draft Energy Policy has also specified targets for renewable energies but the current overall renewable energy strategy is embodied in the Rural Electrification Policy, which explicitly encourages renewable energy development by foreign or local investors for off-grid supply in remote areas where grid extension is not feasible.  To complement this policy, the Ministry of Industry prepared the Renewable Action Plan as a framework to scale up renewable electricity development for rural electrification and grid supply.  The Action Plan also sets renewable energy development targets during its 10-year implementation phase.  The first phase (5 years) aims to achieve 25-51 MW additional capacity while the second phase targets 175-251 MW.

Cambodia’s strategy to promote renewable energy development is also embodied in the National Policy for Rural Electrification, which specifies the use of renewable electricity systems for rural applications, as part of the national portfolio of grid and off-grid technologies, provided they are least-cost option to the communities.  More recently the Ministry of Industry, Mines and Energy launched the Renewable Energy Action Plan (REAP) as a framework to increase awareness, mobilize international funding and create favourable environment for market development and private participation.  REAP defines renewable energy target (5% of new generation capacity) and sets up funding mechanisms for rural electrification projects using renewable energy.

Lao PDR’s Power Sector Policy recognizes the role of renewable energy in meeting its goal of maintaining and expanding sustainable electricity supply particularly in rural areas.  Renewable energies are promoted to expand and improve off-grid supplies, increase energy self-sufficiency and security, and maximize long-term environmental sustainability.