The rapid economic growth and industrialization in Southeast Asia is characterized by a significant gap between energy supply and demand. The energy demand in the region is expected to grow rapidly in the coming years which will have a profound impact on the global energy market. In addition, the region has many locations with high population density, which makes public health vulnerable to the pollution caused by fossil fuels. Another important rationale for transition from fossil-fuel-based energy systems to renewable ones arises out of observed and projected impacts of climate change. Due to the rising share of greenhouse gas emissions from Asia, it is imperative on all Asian countries to promote sustainable energy to significantly reduce GHGs emissions and foster sustainable energy trends. Rising proportion of greenhouse gas emissions is causing large-scale ecological degradation, particularly in coastal and forest ecosystems, which may further deteriorate environmental sustainability in the region.

The reliance on conventional energy sources can be substantially reduced as the region is one of the leading producers of biomass resources in the world. The energy generating capacity of biomass-based CHP plants is comparatively much higher than other alternative energy technologies like solar, wind and geothermal energy. In addition, solar and wind projects are confined to remote rural electrification and community centres, where the required installed capacity is low. On the other hand, biomass-based cogeneration plants can generate higher capacities of electrical and heat energy that could benefit an entire township and industries in the immediate area.