In Southeast Asia, new solar capacity additions are expected to rebound this year for the first time since 2020, according to the Asian Solar Industry Association. The market is expected to grow by 13% in 2023 with 3.8 GW of new installations.
Annual capacity additions are expected to reach 3.8 GW in 2023, up 13% from the previous year. In 2021, the market will shrink by 68% to 4.2 GW from the annual increase. But now, a favorable policy framework, falling technology costs and growing demand for electricity now point to growth opportunities in Southeast Asia.
“The new capacity is well distributed among different countries, and the regional market is no longer dependent on a single financier, namely Vietnam,” said APVIA and GSC.
Uncertainty still exists, however, as several countries are now at a turning point in their solar stories. According to the report, it remains to be seen how quickly they can adopt solar power. The region also faces challenges related to network infrastructure, access to finance, availability of land and lack of skilled labor. According to the report’s “high” scenario, regional installations could reach 5.7 GW in 2023 or shrink to 2.5 GW in the “low” scenario.
“Starting in 2024, rapid growth is expected across the region,” APVIA and GSC said. According to the report, annual installations are forecast to grow 32 percent to 5.1 GW in 2024, 59 percent to 8.1 GW in 2025, 28 percent to 10.4 GW in 2026 and finally 13.3 GW of new additions in 2027 .
The region’s five largest markets are Vietnam, Thailand, Malaysia, the Philippines and Indonesia.