Industry Report

Power sector report – Steadily stepping into a new development phase

Posted: Jul 15, 2025

Power consumption grew by only 2.7% yoy in 1H25, reflecting a lack of strong demand momentum to boost power plant dispatch. Nonetheless, hydropower remained a bright spot, rebounding from a low base. Looking ahead, electricity demand is projected to grow at a robust 10–12% annually during 2026–2030 to support economic growth targets. This will continue to be a key driver for the sector.
A series of important policies introduced in 1H25—most notably the implementation plan for the Revised Power Development Plan VIII (PDP8) and new electricity pricing frameworks—have helped resolve many structural bottlenecks faced in recent years. Notably, the government maintains a clear focus on accelerating renewable energy development while incorporating new sources such as nuclear power, biomass, pumped-storage hydropower, and BESS to mitigate delays in gas-fired power projects.
As a new investment cycle in renewable energy gains momentum, construction companies—particularly those involved in transmission lines and power plant EPC—are expected to benefit first. With competitive bidding mechanisms set to shape the market going forward, investors with proven experience and strong project execution capabilities will be best positioned. We favor PC1, HDG, and GEG as top investment picks in the sector.