With net-zero goals committed to and on the horizon, Southeast Asian countries are now doing the work of figuring out how to achieve them. Renewable energy no doubt has a large part to play in this transformation, and Southeast Asian economies will have to drastically accelerate their renewables capacity to reach their net-zero targets. With this comes an opportunity for developers as well as other players, and understanding the current Southeast Asian landscape could be critical to their success. Being cognizant of the fundamental differences between each Southeast Asian market and between the region and more developed economies such as the United States’ and Europe’s is key, as well as recognizing that each economy could benefit from locally tailored solutions. Unique dynamics exist in Southeast Asia and the more familiar one is with them, the better.
McKinsey authors Vishal Agarwal, Antonio Castellano, Rahul Gupta and Ricardo Reina provided the knowledge and insights for an article published by Singapore Economic Development Board (EDB) highlighting much of this and that also shares lessons learnt from renewable energy developers who have already entered the region. Anyone interested in this space, project developers in particular, could find this a useful guide to the renewable energy sector in this distinct region where on the ground experience is invaluable.
Launched at an event in Singapore on April 4, speakers openly talked about the state of the sector in Southeast Asia and what could be critical to unlock it. EDB’s Executive Vice President of Green Economy Lim Wey-Len and McKinsey’s Senior Partner Vishal Agarwal opened the proceedings. An animated conversation followed at a panel discussion led by McKinsey Partner Antonio Castellano, and comprising Yoon Young Kim, Cluster President for Singapore and Brunei, Schneider Electric; Thomas Baudlot, CEO, ENGIE Southeast Asia, Gayle Tan, Project Director, Infrastructure Asia; Jasper Wong, Managing Director, Head of Real Estate & Hospitality and Construction & Infrastructure, UOB; and Kai Ngian, Head, Origination & Restructuring, Clifford Capital. The panel very much took a ‘glass half full’ view of renewable energy in the region and encapsulated this sector with carefully chosen words: ‘partnerships’, ‘collaboration’, ‘ecosystem’, ‘energy transition’ and stressed that the time to act is now.
With decarbonization being a question of ‘when’ and not ‘if’, such conversations are much needed and collectively feed into and help build the wider energy transition so many are working towards.
Read the article here.