RENEWABLE ENERGY in the ASIA PACIFIC a Legal Overview
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RENEWABLE ENERGY IN THE ASIA PACIFIC A Legal Overview 3RD EDITION www.dlapiper.com | 01 CONTENTS Introduction ......................................................................................................................................................................04 Australia .............................................................................................................................................................................07 China ...................................................................................................................................................................................15 East Timor.........................................................................................................................................................................21 India .....................................................................................................................................................................................26 Indonesia ............................................................................................................................................................................33 Japan ....................................................................................................................................................................................38 Malaysia ..............................................................................................................................................................................45 Mongolia ............................................................................................................................................................................51 Myanmar ............................................................................................................................................................................56 New Zealand ....................................................................................................................................................................63 Philippines ..........................................................................................................................................................................69 Republic of Korea ...........................................................................................................................................................75 Singapore...........................................................................................................................................................................80 Thailand ..............................................................................................................................................................................85 Vietnam..............................................................................................................................................................................91 Business environment explanatory note ..................................................................................................................96 Feed-in tariff rates comparison table (as at 24 June 2013) ...............................................................................97 Key contacts .....................................................................................................................................................................99 Our relationship firms .................................................................................................................................................100 Our global presence .....................................................................................................................................................101 INTRODUCTION Governments across the Asia Pacific region are continuing the push for greater renewable energy contributions to domestic electricity demand. While the deal flow has been lower than expected over the last six months, there have been positive signs in several countries that local developers are very active at the approval level. International developers are increasingly taking advantage of the many government and market incentives for renewable energy investment and investing along side locals. DLA Piper is proud to release the third edition of is a useful comparative tool to see which governments Renewable Energy in the Asia Pacific: A Legal Overview. are prepared to follow-up renewable energy targets with This edition provides a high-level but comprehensive generous feed-in tariffs, which are often essential for Renewable Energy Profile (Profile) for 15 countries convincing renewables investors to commit to a market across the region, namely: Australia, China, East in its initial stages. We have also included the rates Timor, India, Indonesia, Japan, Malaysia, Mongolia, for several European countries with more established Myanmar, New Zealand, the Philippines, the Republic renewable energy industries to draw comparisons and of Korea, Singapore, Thailand and Vietnam. In each highlight the likely longer term direction of tariffs. Profile, we look at the country’s business environment and electricity industry with particular emphasis on the Big movers current issues, laws, projects, players and trends within Policy directions and incentives for renewable energy the renewables industry, as well as foreign investment continue to strengthen across the region and there are considerations and on-going climate change negotiations increasingly positive indications from government post the first commitment period of the Kyoto Protocol. and private developers. The biggest mover of the What’s new in this edition? last few months has been Japan. Despite some initial regulatory uncertainty following the election of a Six months have passed since the second edition of new conservative government, and mixed messages Renewable Energy in the Asia Pacific was published. about Japan’s nuclear future, several large scale plans In this edition, we have added two more Profiles: one have been announced by both domestic and foreign for the geothermal powerhouse New Zealand and one investors. Fukushima prefecture is set to become a for Myanmar, which drew international attention after renewable energy hub with a number of large solar its Foreign Investment Law 2012 was passed alongside projects and the largest offshore wind farm in the the introduction of political and socioeconomic reforms world planned for its coastline. Goldman Sachs under President Thein Sein. As part of the Myanmar has committed JPY50 billion (US$487 million) for Profile, we have provided a detailed summary of this new renewables projects in Japan generally. While there foreign investment law. has been some reluctance by grid providers to connect Of course, we have comprehensively updated each of renewable-sourced energy to the grid, there continues the existing Profiles, particularly the current issues, to be strong interest from international developers for renewables overview, projects and companies as well renewable energy projects generally. as energy statistics for each industry where available. China remains dominant in the renewables sector We have also included each country’s rank in the globally, with only the United States’ renewables industry Global Competitiveness Index. and Germany’s solar industry at a similar level. China This edition also includes an updated feed-in tariff table, accounted for about one-quarter of global renewables which indicates the feed-in tariff rates (in local currency expenditure in 2012 (US$64.1 billion) as the Chinese and USD) across wind, solar, hydropower and geothermal Government looks for a secure, diversified and clean energy energy (where available) in each jurisdiction. The table mix to power the largest urbanisation in human history. 04 | Renewable Energy in the Asia Pacific Other movers over the past six months include, Vietnam, ■ governments seeking to promote renewable energy Thailand, the Philippines, Malaysia and Indonesia. development and adopting comparable incentives Vietnam, has furthered its hydropower credentials with to drive the level of investment required to meet the opening of the 2.4GW Son La plant in December 2012. renewable energy targets. The deal flow for renewable energy projects in South The main exception to these trends is New Zealand, East Asia, particularly for solar projects in Thailand, the which already sources more than 75% of its electricity Philippines and Malaysia, as well as geothermal projects needs from renewable energy mostly through hydropower in Indonesia, has also improved this calendar year. and geothermal energy. New Zealand’s renewable energy target is to have 90% of electricity needs met Other developments by renewable energy by 2025. By comparison, ‘20% In contrast, some countries in the Asia Pacific have been by 2020’ is the standard renewable energy target for less active over the past six months. The Australian most Asia Pacific countries, with renewables generally renewable energy industry has been in a state of flux, generating less than 15% of electricity in most countries. despite a record 13.14% of generation from renewable While New Zealand is not amongst the group of populous energy sources in 2012. The election of a new and developing Asian countries with pressing energy conservative government in September 2013 promises security needs, its renewables industry is