Thursday, 21st September 2017

Regional connectivity should be enhanced to support renewable energy investment

13th July 2017 | 1.637 Views
Jakarta (ANTARA News) - Regional connectivity, such as ASEAN Economic Community, should be enhanced to support the growth of renewable energy investment in ASEAN.

"The removal of the existing barriers of intraregional trade and investment will lead to reduction in production costs, enabling investors competitiveness and strengthening regional production networks," Manager of ASEAN Plan of Action for Energy Programme, ASEAN Centre for Energy, Christoper Zamora said during a discussion on Investing in ASEANs Renewable Energy Resources" here on Wednesday.

Furthermore, ASEAN member countries should advance standardization and harmonization by setting the countrys reference and guidelines for policy making, such as APAEC and ASEAN RE Outlook.

"Fiscal package is dedicated to the promotion of Foreign Direct Investment to accelerate renewable energy investment," he remarked.

He pointed out that ASEAN will need to invest 1 percent of its Gross Domestic Products (GDP) annually into renewable energy capacity to reach its 23 percent target.

"The power sector will consume 75 percent of the investment volume needed to boost capacity," he revealed.

He noted that US$7.5 billion per year must be invested in solar PV and $6.3 billion in hydropower.

"The average annual investment to reach 23 percent renewable energy (RE) would total $27 billion.

A total amount of $13 billion is needed for references, whereas $9 billion and $5billion is needed for new investment on installed capacity and for re-directed fossil fuel, respectively, he remarked.