Market trends & mechanisms

The report examines the diverse strategies employed by three major ASEAN economies—Viet Nam, the Philippines, and Indonesia—to unlock clean energy investments. Viet Nam is focusing on gradual liberalisation and corporate power purchase agreements (DPPA) to potentially double its renewable energy share. The Philippines is leveraging a long-standing liberalised market, utilizing Green Energy Auctions (GEA) and 100% foreign ownership to attract capital. Indonesia is implementing PPA reforms to manage currency risk and integrating carbon market mechanisms to incentivise developers, with solar identified as the most viable near-term expansion option.

• Viet Nam is implementing a three-step process to liberalise its retail electricity market, highlighted by the introduction of the Direct Power Purchase Agreement (DPPA) under Decree No. 57/2025/ND-CP. This mechanism allows corporate consumers to purchase renewable energy directly from producers via private or national grids. Ember estimates that if processing sector manufacturers used the DPPA, Viet Nam's clean energy consumption could increase from 19% to 42%.
• The Philippines is using Green Energy Auctions (GEA) to address a supply bottleneck in renewable generation. Recent auctions have integrated energy storage, including the GEA-4 auction for 1.1 GW of solar paired with batteries and the GEA-5 auction targeting 3.3 GW of offshore wind for 2028–2030. To overcome domestic financing gaps, the country allowed 100% foreign ownership of public services in 2022, resulting in 20 GW of projects being awarded to overseas developers.
• Indonesia introduced Ministry of Energy and Mineral Resources (MEMR) No. 5/2025 to reduce investment risks by sharing currency exchange volatility between the state utility (PLN) and independent power producers. The regulation also introduces the Build-Own-Operate (BOO) mechanism and payments for 'Deemed Dispatch' to mitigate grid constraint risks. Additionally, Presidential Regulation No. 110/2025 establishes a framework for carbon trading, taxes, and offsets to further incentivise renewable developers.
• Due to physical constraints such as limited inter-island grid connectivity and long development timelines for geothermal and hydro projects, solar energy is identified as Indonesia's most practical near-term option for expansion, with a requirement of 350 GW by 2040 to meet growing demand.

APA

Ember (2025). Market trends & mechanisms. https://ember-energy.org/chapter/market-trends-mechanisms/

Chicago

Ember. Market trends & mechanisms. 2025. https://ember-energy.org/chapter/market-trends-mechanisms/.

Wikipedia

{{cite report |author=Ember |title=Market trends & mechanisms |date=2 December 2025 |url=https://ember-energy.org/chapter/market-trends-mechanisms/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025market, author = {{Ember}}, title = {{Market trends \& mechanisms}}, institution = {Ember}, year = {2025}, month = dec, url = {https://ember-energy.org/chapter/market-trends-mechanisms/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }