Low-carbon transition of Southeast Asian power systems – A SWOT analysis

Abstract

Coal power is regarded as the most important pillar to realize the fast-growing power demand in Southeast Asia. While Southeast Asia is at the crossroads of the power systems transition, the low-carbon power infrastructure development has become a common concern. This study conducts a strengths, weaknesses, opportunities, and threats (SWOT) analysis to examine the factors that influence the Southeast Asian power systems' low-carbon transition. Results show that this transition faces many constraints, including the lack of ambitious renewable energy goals, abundant fossil fuels, underdeveloped grid infrastructure, an uncompetitive power regime, high fossil fuel subsidies, insufficient financial support, and low environmental standards for the power sector. Nevertheless, opportunities exist in excellent renewable energy endowments, declining renewable energy generation costs, local governments’ consideration for energy security and technical and financial support from the international community. To promote the low-carbon transition of power systems, it is necessary to integrate renewable energy as a vital component of the post-pandemic economic recovery policy. Coal power should be phased out systematically through clean utilization, flexible renovation, and subsidy reduction. Efforts should be made to advance institutional reform, improve investment and financing mechanisms, upgrade environmental standards, facilitate regional grid connectivity, and deepen international cooperation.