ASEAN’s energy transition: how to attract more investment in renewable energy

Abstract The energy transition is progressing slowly in the ten member states of Association Southeast Asian Nations (ASEAN). To achieve ASEAN’s target 23% renewables primary supply by 2025, region would need to invest USD 27 billion renewable every year. However, ASEAN countries attracted no more than 8 annually from 2016 2021. Through a comparative review three key factors for attracting investment—renewable legislation, governance reform, and general conditions investors—this study examines why region’s sector has not capital. contribution article threefold. First, it develops new model assessing business climate any country. Second, offers an update on state deployment countries. Third, taking into account international best practices, identifies obstacles solutions investment Asia. finds that carbon lock-in pervasive, regulatory practices have been copy-pasted fossil-fuel sector, and, except Malaysia Vietnam, country implemented major pro-renewable reform. Certain advanced measures, such as auctions feed-in tariffs, adopted some states, but institutional capacity implement them limited. share system needs be increased.