Indonesia has lagged behind its neighbours in developing renewable energy. The deficit between power demand and production has led to increasing blackouts, triggering protests. The government is now ratifying feed-in-tariffs (FITs) for renewables, ranging from $0.142/kWh in Sulawesi to $0.259/kWh in the Eastern Islands.
The first round of four projects to be allocated the FIT totals 250MW. Asia Green Capital Partners is developing three of them. Power purchase agreements (PPAs) should be signed by the end of the year, with construction expected to start in early 2016 and grid connection by mid-2017. First to be developed will be the Jenoponto 1 project in Sulawesi, of 60-70MW capacity.
The Philippines added 285MW in 2014 to its existing 33MW. Projects include the 54MW San Lorenzo wind farm in Guimaras, developed by the Phinma-owned Trans-Asia Oil & Energy Development Corporation, with Gamesa turbines. The country has a healthy pipeline, but investment conditions favour big domestic developers that can use balance-sheet equity to finance projects.
When Thailand introduced a FIT for renewables several years ago, companies - many with little experience - flocked to the market winning PPAs to develop projects, which have stalled. The government is planning to introduce a stipulation that developers must start building within six months or lose their PPA. This has been implemented in the solar sector and the country's wind association is working with the government to clean up the wind pipeline in a similar fashion. No capacity was added in 2014.
Vietnam looked promising in 2013 when it installed 16MW to bring its total to 63MW, but has added nothing since. The country has a decent pipeline but the market is still immature, with many projects at nascent stages. Growth has been hindered by lack of investment in upgrading the grid.
Taiwan and South Korea
Onshore wind in Taiwan and South Korea has faced vociferous public opposition, pushing both towards offshore development. South Korea's progress in this area has stalled, but Taiwan is quietly moving ahead. The government has adjusted the FIT for offshore wind, which now stands at NTD 7.109/kWh ($0.22/kWh) for the first ten years of operation, and NTD 3.459/kWh for the next ten years. Taiwan has set a target of 1.2GW of wind capacity by 2020, and 3GW by 2030. The 10MW Changhua offshore pilot project, developed by Taiwan Generations Corporation, will start construction in the second quarter of 2015 to come online in 2016.