Floating solar on the rise in ASEAN: IEEFA

Floating solar power plants are poised to play an increasingly important role in meeting the ASEAN region's growing energy requirements. This is according to a new report by the Institute of Energy Economics and Financial Analysis (IEEFA), examining the market potential for the deployment of floating photovoltaics (FPVs) in ASEAN countries.

IEEFA estimates that up until 2019, the total installed capacity of FPVs in most ASEAN countries was below 1MW—except in Vietnam, which managed to install 47MW of FPV. However this outlook has changed dramatically with recent announcements of large-scale floating solar projects in at least five countries in the region.

According to IEEFA, clean energy sources such as floating solar power can help insulate coal-importing ASEAN countries from the risks of fuel price volatility and expensive supply logistics associated with the fossil fuels market. The report notes that ASEAN’s energy outlook could be significantly improved by investing in renewables and grid-level solutions such as hybridised FPVs with existing hydro plants. 

IEEFA further examines why ASEAN presents a distinctive opportunity for FPVs, due to the region’s unique geography, demographics and factors such as land scarcity. Reasons include:

1. Potential: Many ASEAN countries already have hydro infrastructure in place. A key advantage of FPVs is its ability to be installed on these existing infrastructure, reducing development time, site costs, and environmental risks, while increasing power output. 
2. Cost: Solar PV costs have fallen by more than 80% since 2009. At the same time, ASEAN’s solar capacity grew to 4.21GW in 2007-2017. In some countries, combining FPVs with existing hydropower may be more cost-effective than adding more inflexible coal-powered plants. 
3. Resilience: FPVs and hydropower could provide greater resilience as compared with multiple baseload coal-powered plants, especially during emergencies. FPVs are able to withstand powerful waves and winds of up to 170 km/hour, which is crucial for typhoon-prone ASEAN countries. 

Discover more in the full IEEFA report, “Volts from the Blue—Is Combined Floating Solar and Hydro the Energy Solution for ASEAN?”.