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What is in store for Southeast Asia’s clean energy sector in 2021?
(Eco Business, 18 Feb 2021) Southeast Asia’s power sector is set to strike out in a new direction this year, driven by energy security needs and new opportunities for collaboration as some of the world’s biggest polluters step up climate action.
The world took an unexpected turn last year. The Covid-19 pandemic has pushed a number of countries into recession, and Southeast Asia is no different. The region’s GDP shrunk by 2 per cent in 2020, and although its economy is forecast to grow 5.2 per cent in 2021 and its GDP to nearly triple by 2040, a bumpy road to recovery lies ahead.
The coronavirus has heavily impacted Southeast Asia’s energy sector, putting the bloc’s energy resilience to the test. Mobility restrictions and lockdowns caused energy demand to plunge and many projects to come to a standstill. The oil and gas sectors were hit particularly hard, with the price of oil nosediving, stalling explorations and hurting production. To some degree, the renewable energy sector has also been impacted amid disruptions to supply chains and within the workforce, but it has not been dealt as severe a blow as other energy sectors.
This year could be a significant turning point for renewables in Southeast Asia. Here are three predictions of what 2021 has to offer for the region’s clean energy sector as countries lift their economies back onto their feet.
Vaccine distribution will push Southeast Asia to pursue a green recovery
With close to two million people infected and new Covid-19 cases still increasing in Southeast Asia, a vaccine is the last resort to end the pandemic. Southeast Asian nations began rolling out vaccines earlier this year. This mammoth effort comes with complex challenges, but the distribution of medical supplies is also set to increase economic activity, which in turn will send the region’s energy demand rising.
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Eco Business, 18 Feb 2021: What is in store for Southeast Asia’s clean energy sector in 2021?
