Renewables Recap: 2024 APAC Clean Energy Policy Shifts

2024 witnessed significant policy shifts and initiatives in the Asia-Pacific (APAC) region aimed at enhancing clean energy procurement and infrastructure. Several countries within the region have taken decisive steps to reform their policy frameworks, creating a more conducive environment for renewable energy procurement, specifically for corporate offtakers. Here’s a comprehensive recap of the notable updates across China, Vietnam, Malaysia and Thailand in 2024:

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China

Onsite Solar Policy Overhaul
In October 2024, China’s National Energy Administration (NEA) released a draft policy redefining the framework for small-scale solar projects. Key updates include:some text

• Classifying projects into four groups based on investor type, property ownership and capacity.
• Mandating that onsite projects over 6 MW consume all generated power onsite, enforced by anti-reverse current devices.
• Allowing projects under 6 MW to remain grid-connected.

The retroactive application of these rules remains unclear, leaving room for interpretation by local authorities.

Shift to Domestic Green Energy Certificates (GECs)
China’s I-TRACK Foundation announced in September 2024 that it would cease verifying new International Renewable Energy Certificates (I-RECs) for the country by the year’s end. Starting 2025, China’s domestic GECs will serve as the primary proof of renewable energy consumption. Updates include:some text

• A two-year validity for GECs.
• Addressing double counting between GECs and the domestic carbon market.

These moves aim to align GECs with RE100 standards, enhancing their global recognition.

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Vietnam

Direct Power Purchase Agreements (DPPAs)
Vietnam introduced a DPPA mechanism (Decree No. 80/2024/ND-CP), allowing renewable energy producers to bypass the state utility, EVN, and sell directly to large consumers. Two models were introduced:some text

• Private Line Model (PLM): Direct connections between producers and consumers.
• Grid-Connected Model (GCM): Fixed-price grid-based forward contract between the Generator and Customer. This structure functions similarly to Virtual PPAs.

Eligible consumers must meet criteria, including monthly consumption exceeding 200,000 kWh and connection to supply lines of 22 kV or higher.

Regarding pricing, generators and consumers are generally free to negotiate terms. However, further pricing and implementation guidelines are expected from the Ministry of Industry and Trade (MOIT).

Onsite  Solar Policy Clarity
Decree No. 135/2024/ND-CP clarified rules for interconnection and system size of solar installations:some text

• Behind-the-meter self-consumption systems face no capacity limits or registration requirements.
• Grid-connected systems can sell up to 20% of output to the grid with minimal bureaucratic hurdles for systems under 100 kW.

The policy clearly prioritizes behind-the-meter systems by reducing bureaucratic requirements and removing size restrictions for off-grid installations.

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Malaysia

Corporate Renewable Energy Supply Scheme (CRESS)

Malaysia has taken a substantial step towards its renewable energy future with the recent introduction of its Corporate Renewable Energy Supply Scheme (CRESS). The Ministry of Energy and Natural Resources launched CRESS on September 20, 2024, allowing companies to purchase renewable energy directly from developers through the national power grid, which is predominantly owned by state-owned utility Tenaga Nasional Berhad (TNB). Key features:

• Third-Party Access (TPA): Independent enterprises can legally access grid facilities.
• No-quota policy: Operating under a no-quota policy, CRESS opens doors for gigawatt-scale renewable energy projects. Previous programs such as Corporate Green Power Program (CGPP) had a quota allotment of 800 MW.

Despite the positive reception of physical PPAs structure under CRESS, local industry developers noted high pricing and expressed concerns about attracting offtakers due to the tariff. Industry participants propose greater transparency in the cost structure.

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Thailand

Direct Power Purchase Agreements (DPPAs)

In 2024, “Direct PPAs” were introduced, allowing private companies to negotiate PPAs directly with renewable energy producers. This marks a shift from the previous Enhanced Single Buyer model that required all power purchases through electricity authorities and a uniform tariff policy. Yet, it's important to note that these “Direct PPAs” still utilize the state-owned grid system for physical energy delivery and involve state-owned utilities in the contracts, essentially making them Sleeved PPAs.

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Conclusion

2024 was a transformative year for renewable energy policies in APAC. Countries across the region showcased their commitment to fostering innovation, streamlining procurement mechanisms and creating opportunities for private sector involvement. However, challenges like pricing transparency, regulatory clarity and market adaptation remain critical for realizing the full potential of these policies.

These developments underscore the APAC region’s pivotal role in shaping the global clean energy landscape—paving the way for a greener, more sustainable future.

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