Renewable energies are increasingly playing an important role in the energy mix in Southeast Asia, but many challenges remain before they can compete with fossil fuels. The paper examines the current development in the renewable energy in Association of South-East Asian Nations (ASEAN). The paper also analyses feed-in tariff policy to further support the development of the renewable energy sector in ASEAN. More investments in renewable energy could be attracted given the same level of feed-in tariff rates, contract length and capacity cap by improving feed-in tariff policy predictability. ASEAN countries could consider modification of their feed-in tariffs suggested by the literature.

JEL codes: Q31; Q48; Q53