About 2

Key highlights 2

Executive summary 3

Chapter 1: State of bankability of ASEAN’s renewable energy projects 9

  1.1 ASEAN has largely solved utility-scale project finance in several local markets 10

  1.2 Offtake risks, technical standards and tariffs remain challenges, and vary across markets 14

Chapter 2: Distributed renewable energy faces significant financing challenges 16

  2.1 Transaction costs continue to constrain distributed solar development 17

  2.2 Cheap finance can only partially close the gap to bankability, and larger projects gain more 18

Chapter 3: ASEAN's next investment challenge is monetising flexibility and grid network value 23

  3.1 Battery storage remains constrained by limited revenue capture 23

  3.2 Bankable grids need investment, financial guarantees and fewer tariff restrictions 27

Chapter 4: From financing renewable generation to financing the future of ASEAN energy systems 30

  4.1 Procurement and standards reform could improve utility-scale bankability across ASEAN 31

  4.2 Distributed solar projects call for financing beyond conventional tools and more inclusive policy support 32

  4.3 Revenue stacking is one of the highest-leverage policy reforms across ASEAN 34

Supporting materials 36

  Methodology 36

  Acknowledgement 39