Accelerating Clean Energy Transition in ASEAN: An Innovative Approach through Blended Finance and Project Preparation Facilities
5 September 2023
Highlights
Renewable energy investments in ASEAN countries are hindered by policy inconsistencies, financial barriers, and the lack of a robust project pipeline.
Project Preparation Facilities (PPFs) can help resolve various technical, financial, and legal challenges in preparing clean energy projects, but their effectiveness varies, and they tend to focus on later-stage processes, leaving early stages under-financed.
Combining enhanced PPFs with blended financing, including the creation of a financial intermediary fund, could reduce investment
costs and advance project pipeline by financing early-stage preparation.
A regional-level program that responds to the unique needs of each ASEAN member state could strengthen clean energy investments, particularly if it targets upstream aspects of project preparation and is supplemented with separate initiatives designed to provide support during the enabling phase.
