According to the Bloomberg New Energy Finance (BNEF) 1H 2020 Corporate Energy Market Outlook, in 2019, corporates purchased 19.5GW of clean power through power purchase agreements (PPAs), a 40% increase from 2018 (13.6GW) and more than triple the 2017 figures. These numbers are expected to rise in 2020 as governments push to increase the proportion of power generated from Renewables.
In January, the Ministry of Industry and Trade in Vietnam proposed a direct PPA pilot program to be implemented between 2020 and June 2022 that would cover wind and solar power generation. It is pending approval from the Prime Minister and will likely have a national limited total size of 400-1000MW.
Corporates in Taiwan are waiting for the government to release the details of the amended ‘Renewable Energy Development Act’ expected in the first quarter of 2020. Aurex Group’s understanding is that the plan will require major users of electricity to build renewable power plants to provide 10% of the energy they consume. This will largely affect petrochemicals, steel, electronics manufacturing, and data centres. Separately, the Ministry of Economic Affairs in Taiwan will also release a new target to develop an additional 10GW of offshore wind power from 2026 to 2035.
From our conversations in the market, Aurex Group is hearing that there is a strong interest in the solar C&l sectors in Vietnam, Malaysia, Indonesia, and Myanmar with companies such as Canadian Solar, Scatec, Hexagon Peak, and Cleantech Solar committing additional resources to those countries. We have also seen players such as Sungrow set up new offices in the Philippines and Ditrolic Solar, headquartered in Malaysia, branch out to the Philippines and Bangladesh to provide C&l solar to shopping malls and airports.