*5.4. Required Power Generation Investment to Meet Rising Demand in the Mekong Subregion*

To satisfy growing energy demand in the Mekong Subregion, huge power generation infrastructure investment is necessary from 2017 to 2050, as indicated in Figure 4. This study estimates that USD 191 billion–217 billion will be needed for cumulative investment in power generation in coal, gas, and hydropower. The investment in natural gas combined cycle power generation will require USD 55 billion–67 billion for the BAU scenario and APS from 2017 to 2050. Coal-fired power generation will require around USD 59 billion in the BAU scenario. However, coal-fired power plant (CPP) capacity may be reduced in the APS, depending on the Mekong Subregion's energy policy. In this case, the estimate for coal-fired power investment could drop to about USD 8 billion from 2017 to 2050. For renewables such as solar photovoltaic (PV), wind, and biomass, the required investment is expected to increase from USD 37 billion in the BAU scenario to USD 76 billion in the APS. More broadly, at the ASEAN level, the *Energy Outlook* projects that USD 2.1 trillion will be required for oil, gas, coal, and power supply [76]. More than 60% of investment goes to the power sector, with transmission and distribution accounting for more than half.

Thus, the huge potential for energy infrastructure related investment will need to be guided by the appropriate policy to promote quality infrastructure and resilience in the Mekong Subregion for growth and sustainability.
