Southeast Asia is emerging as a hotspot for global solar investment with over $10 billion invested just last year.
Vinutha Hosur, head of strategy for APAC at German-based renewable energy company BayWa, told the Wood Mackenzie summit that the region has become a hotspot partly because it has the sunniest belt in the world compared with any other developed market.
With the United Nations Climate Change conference approaching later this year, pressure will increase on countries in Asia to transition to cleaner energy systems and Hosur sees more growth ahead for renewables.
Sriram Madapura, head of onshore renewable power Asia at Shell, told the summit that the region remains in the early stages of the energy transition with many Southeast Asian countries still increasing coal-fired power.
Still, Hosur cautioned that while Indonesia and the Philippines have issued renewable energy policy, implantation has been poor and lags neighboring countries.
Significantly, investors need to see not just a long-term renewable energy target, but a clear implementation plan from governments, said Hosur.
Governments will have to listen to companies that have made carbon neutral pledges, otherwise the industries will be forced to look for alternative places to invest, he said.