Portuguese energy multinational EDP SA has announced plans to invest up to $2 billion (RM8.26 billion) in renewable energy and battery projects in Asia by 2030.
Pedro Vasconcelos, EDP board member responsible for the Asia-Pacific region, said the move would allow EDP to focus more on countries such as Singapore, Australia and Japan.
While its presence in markets such as Indonesia, Thailand, Cambodia and South Korea has been reduced.
According to Miguel Fonseca, CEO of its Asia-Pacific operations, the decision was due to a lack of regulatory readiness and a strong framework for long-term investment in several Southeast Asian markets that are still dependent on coal-fired power sources.
The Southeast Asian region, which has a coal-heavy energy structure, is seen as a prime location for the transition to green energy.
But bureaucracy, a lack of supply chains and unclear policies in some countries are factors that have delayed investment.
Vasconcelos stressed that the market potential for renewable energy projects does exist, but companies need to be prepared to face challenges such as policy stability and the ability to finance long-term projects.
EDP's move reflects the growing interest of global energy companies in Asia as a major clean energy destination, and will be a driving force for the region's energy transformation as the new decade approaches.
