1. ASEAN countries are heavily reliant on oil, natural gas, and coal for energy, with coal accounting for 40% of power generation in the region.
2. Vietnam and the Philippines are leading in utility-scale solar and wind projects in ASEAN countries.
3. Challenges for renewable energy development in the region include high energy demand growth, the need for increased funding, and the presence of coal-fueled power plants.
The Association of Southeast Asian Nations (ASEAN) is experiencing rapid economic growth fueled by oil, natural gas, and coal, with much of the power generation still coming from coal-fired plants. Despite efforts for clean energy development, concerns remain about reaching GHG emission reduction benchmarks. Solar and wind projects in the region are mostly concentrated in Vietnam and the Philippines. Vietnam has the largest market for utility-scale solar and wind projects, and it has outlined targets for renewable energy development in its Power Development Plan VIII. Investment in renewables in Southeast Asia also requires investing in natural gas as a bridge to reduce greenhouse gas emissions.
Indonesia, the region’s most populous country, aims for net zero by 2060 despite challenges from young coal-fueled plants. The country may transition to hydropower and geothermal sources first due to the high cost of solar energy. The Philippines and Thailand also have ambitious renewable energy targets but face financial and policy challenges. Increased funding and addressing energy demand growth are key obstacles to the development of renewable energy in the region. Countries in Southeast Asia need to invest more in renewables and implement new policies to reach their climate goals.