Ways to Achieve a Sustainable Electricity Market in Southeast Asia

Southeast Asian countries have defined their 2030 target for universal electricity access. Although achieving universal access and increasing efficiency is a key to economic growth, these goals need to be achieved via power market sustainability. This chapter proposes multi-dimensionally dependent variables, namely, the Green Power Index. We estimate the impacts of different variables by applying the Pooled Mean Group in the Autoregressive Distributed Lag panel framework for annual data over 2000–2019 for nine Southeast Asian countries. The findings revealed that economic growth, improved foreign direct investment, increased research and development, governance quality, and privatisation could be considered by Southeast Asian nations as an appropriate accelerator to reach power market sustainability. In contrast, any increase in electricity price may reduce the pace of power market sustainability in these countries in both the short and long runs.