Market trends & mechanisms

The report examines the different market mechanisms and regulatory paths Viet Nam, the Philippines, and Indonesia are using to attract private investment for clean energy while balancing energy security and affordability.

• Viet Nam is transitioning toward a liberalised power market through a three-step process and 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 leveraging the Green Energy Auction (GEA) and the Green Energy Option Program (GEOP) to scale renewable capacity. Recent auctions have focused on storage and offshore wind, including GEA-4's Integrated Renewable Energy and Energy Storage System (IRESS) for 1.1 GW and GEA-5's target of 3.3 GW of offshore wind for 2028–2030. To address 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 is implementing PPA reforms via Ministry of Energy and Mineral Resources (MEMR) No. 5/2025 to reduce investor risk by introducing currency exchange volatility risk-sharing and allowing Build-Own-Operate (BOO) mechanisms. The government is also establishing a carbon market through Presidential Regulation No. 110/2025. While the president aims for 100% homegrown renewable energy within ten years, solar is identified as the most viable near-term option, with a need for 350 GW by 2040 to meet growing demand, including a projected 1.5–2 GW increase from data centres by 2027.

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} }