PÖYRY POINT OF VIEW REPORT / 8 Dec 2016
How competitive is solar PV in South-East Asia?
Renewable energy in Southeast Asia has seen a significant development in recent years, with capacity growing at record levels.
Governments have encouraged the technology through subsidies such as feed-in tariff schemes, which have often been significantly above wholesale prices to compensate for higher cost of renewable investment.
However, the solar PV industry is reaching a watershed moment where costs are decreasing towards the point that the levelised cost will be equal to or below the wholesale or retail price.
Using Pöyry’s state-of-the-art electricity market model BID3, a detailed analysis has been conducted to assess when solar will reach wholesale grid parity. The geographical scope of the analysis includes Indonesia, Malaysia, Vietnam, the Philippines and Thailand.