A. Assessment of Financing Trends in Utility-Scale Non-Fossil Energy Projects in ASEAN
This section evaluates financing patterns across 50 utility-scale non-fossil energy projects in the ASEAN region. The analysis identifies trends concerning project technology, installed capacity, investment value, financing structures, project sponsors, off-takers, and the role of various financial institutions. The data was collected from publicly available sources, including project announcements and regulatory filings.
B. Assessment of Solar Project Size, PPA Rate, and Interest Rate on Equity IRR
The Response Surface Methodology (RSM) was employed to assess how project scale, electricity tariff, and financing costs impact the financial viability of solar PV projects in ASEAN. RSM allows for the analysis of multiple variables simultaneously, requiring fewer simulations than traditional experimental designs.
Key parameters included:
- Project Capacity: 0.5–20 MWdc
- Power Purchase Agreement (PPA) Price: USD 0.060–0.090/kWh
- Financing Interest Rate: 5–9%
A discounted cash flow model was used to calculate Equity IRR under specific assumptions regarding project parameters, including technical specifications, financing ratios, and cost estimates. Capital costs were estimated using an economies-of-scale relationship, ensuring scalability in cost assessments for various project capacities.
C. Energy Storage Market Readiness Index (ESMRI) Calculation
To evaluate the market conditions for energy storage deployment, the Energy Storage Market Readiness Index (ESMRI) was developed. The index assesses four vital dimensions:
- Regulatory Recognition
- Revenue Mechanisms
- Procurement Pathways
- Investment Certainty
The assessment includes 13 indicators sourced from national legislation and government energy strategies in five ASEAN countries. Each indicator is scored on a 0-2 scale, and the overall ESMRI score is normalized to a 0–100 scale to indicate market maturity. The index serves as a comparative analytical tool rather than an absolute measure of market maturity, allowing stakeholders to gauge readiness for energy storage investments.
