Decarbonizing Emissions in the Electricity Sector of the Mekong Subregion: Policy Implications

The Mekong subregion faces tremendous challenges regarding the future energy landscape and how the energy transition will embrace a new architecture. This includes sound policies and technologies to ensure energy access, affordability, energy security, and energy sustainability. Fossil fuels (oil, coal, and natural gas) comprise almost 80% of the region’s current energy mix. Moreover, the region will continue to rely on fossil fuels for economic growth in the foreseeable future. Thus, decarbonising emissions in the Mekong subregion is critically important to redirect the energy trajectory of fossil fuel–based energy system to low-carbon and green energy systems. This chapter discusses the energy landscape, including the rising electricity demand in the region, explores the potential of renewables in replacing fossil fuels in the electricity sector, and examines the possibility of carbon capture, utilisation, and storage for remaining emissions from coal and natural gas power generation. It also examines the power generation sector’s market structure and policy challenges to embrace electricity market liberalisation in the region. Finally, the chapter will provide policy recommendations to stakeholders, such as electricity authorities and business players in this market.