COVID-19 vs ASEAN Energy Sector: Renewables (Q2)

Key Points

• Renewable Energy projects continuously experience inevitable struggles during the COVID-19 pandemic. The grip of covid-19 pandemic on the energy sector including renewables, was still strong in the Q2 2020. However, currently, ASEAN governments see that RE could be an integral part of re-building energy resiliency of the region as the new normal begin. RE shall and will be the driver for ASEAN to look towards green recovery plan, ensuring the economy rise and sustainability are inline.  And although the pandemic brings ample uncertainties to the country RE targets and programs, several ASEAN countries choose to carry on with their plan.
• After half-year pandemic hit, there might be a silver lining that this COVID-19 outbreak is giving ASEAN a chance to re-orient its economy to be greener with renewables being the key solution. Post-pandemic spending and stimulus could be aimed towards capacity building of local content production and technical expertise. In relation to resiliency, renewable energy generation could provide better return during difficult times since they do not rely on fuel supply with higher level of price uncertainty. The Covid-19 pandemic will pass and accelerated economic recovery is required. Undoubtedly, focus should be given to the health sector and key public sectors towards job creation and protection of vulnerable communities.
• Projects were halted, and ambitious targets were postponed. It is not all bleak, though. Amid such challenging times, governments are pushing efforts of resiliency in promoting renewables. These should be leveraged to design renewables-centred green recovery, which can create jobs, boost economy, and build capacity domestically.