Recently, the Greenfield Renewable Energy Platform, jointly established by three international financial institutions, plans to invest more than US$500 million in Southeast Asia to build power generation facilities with a total installed capacity of 500 megawatts (MW), with initial projects to be located in the Philippines and Vietnam.
The investment amount may reach US$700 million, which will be composed of about US$500 million in debt and US$150 million in equity. Mr. Anand, who is the head of infrastructure equity in Asia at BII, further explained that the project is expected to be completed within three years.
According to data provided by energy think tank Ember, in 2023, fossil fuels dominated the power generation structure in Vietnam and the Philippines, accounting for 58% and 78% respectively. In contrast, the proportion of renewable energy generation in the two countries was 42% and 22% respectively.
Vietnam has set a goal to increase the proportion of clean energy generation to 50% by 2050, while the Philippines plans to achieve the same goal by 2040.
In a report released in October 2024, the International Energy Agency pointed out that although Southeast Asia accounts for 6% of global GDP, it only attracts 2% of global clean energy investment. The report predicts that with eight countries in the region committing to achieving net zero emissions by 2050, investment levels must increase fivefold to $190 billion by 2035.