Renewable Energy Sector.
Emerging with high development potential
Overview.
Offshore and aquatic‑based renewable energy is becoming an increasingly important pillar of ASEAN’s energy transition as countries seek cleaner, more sustainable power sources to complement existing systems. Hydropower, floating solar, and emerging ocean‑energy technologies offer opportunities for low‑carbon development, but the sector faces mounting pressures tied to spatial competition, ecological impacts, governance complexity, and persistent constraints around funding, research and development, and technical capacity. As Southeast Asia moves toward more ambitious climate and energy commitments, the expansion of renewable energy must balance innovation with environmental stewardship and community considerations in shared coastal and marine spaces.
Across the region, the potential for offshore wind, floating photovoltaic systems, and other marine renewables is substantial, yet development remains uneven. Viet Nam and the Philippines are advancing rapidly in offshore wind planning and deployment, while Indonesia leads the region in floating solar capacity. New marine energy technologies such as tidal, wave, and Ocean Thermal Energy Conversion (OTEC) show promise, but progress is limited by high capital costs, early‑stage development, and varying levels of national readiness. Policy interest and regional cooperation are growing, including cross‑border initiatives and long‑term power system planning, but constraints around financing, technical expertise, and regulatory clarity continue to slow the pace of deployment and integration into national energy mixes.
Within this wider sustainability and governance landscape, offshore renewable energy intersects with fisheries, shipping, conservation areas, coastal communities, and regional planning systems because it competes for ocean space, requires port and grid infrastructure, and depends on stable marine conditions and social licence for deployment. These cross‑sector dynamics shape environmental impacts, investment pathways, and community engagement while reinforcing circular‑economy and climate‑mitigation objectives through recyclable turbine and foundation components, opportunities to repurpose offshore infrastructure, improved material efficiency, and the adoption of long‑term sustainable design practices that minimise emissions, reduce waste, and support resilient marine‑based energy systems across ASEAN.
Explore how Renewable Energy is positioned for each of the
Blue Economy Capitals.
Financial Capital.
Financial Capital.
Renewable-energy investment across ASEAN is increasing but remains below the level required to meet regional energy-transition and climate targets. The ASEAN Centre for Energy (ACE) reported that more than USD 11 billion was invested in energy infrastructure across ASEAN between 2021 and 2023, with approximately 46.3% directed towards renewable-energy projects (ACE, 2025). These investments include wind, solar photovoltaic (PV), hydro, geothermal and waste. Wind and solar PV accounted for the greater portion, comprising 39.3% of the total investment. ASEAN’s ambitious clean energy transition and carbon neutrality goals require substantial funding for technological advancements and infrastructure expansion. Annual power investment is projected to range from USD 20 billion to USD 56 billion from 2023 to 2030, and USD 28 billion to USD 371 billion from 2041 to 2050, mainly on solar and wind energy. The ASEAN Energy Investment 2024 estimated that renewables have been attracting only about USD 8 billion per year (2016–2021) against a required USD 27 billion per year, leaving a renewable-energy investment gap of about USD 95.5 billion for 2021–2030, within a much larger USD 3.7–6.7 trillion green-investment need across all sectors under ASEAN’s carbon-neutrality strategies (ACE, 2024).
Financing sources include public sector budgets, private sector participation through PPAs, feed-in tariffs, and tax incentives. International aid, blended finance schemes, green bonds, multilateral development banks, sovereign wealth funds, and philanthropic capital are used to mitigate the risks of high-cost projects like geothermal and large-scale renewable energy initiatives (ACE, 2024a). The International Energy Agency (IEA) reports that clean-energy investment in Southeast Asia reached approximately USD 47 billion in 2025, reflecting a continued increase in renewable and clean-energy financing flows across the region (International Energy Agency, 2025). Further, ASEAN Renewable Energy Long-Term Roadmap shows that the region would need to mobilize an average of USD 77 billion per year to support clean energy projects and other energy transition needs (ACE, 2025). Across ASEAN, the dedicated blue/green-finance mechanisms that are putting money into renewable energy are still modest compared to needs.
The ASEAN Power Grid Financing (APGF) Initiative will mobilise large‑scale capital for cross‑border interconnections, domestic grid upgrades, and subsea cables, using grants, concessional and regular loans, guarantees, political risk coverage, PPP advisory services, and equity financing. ADB has committed up to USD 10 billion over the next decade, while the World Bank is providing USD 2.5 billion under Accelerating Sustainable Energy Transition (ASET) Program, including a USD 12.7 million seed grant to ACE to prepare bankable projects. Together, they aim to build a strong pipeline of APG projects and catalyse additional public and private financing across the region (ASEAN, 2025; World Bank, 2025).
While there is limited information on specific blue financing mechanisms dedicated to renewable energy, recent developments in clean energy financing in Southeast Asia reveal diverse mechanisms across member states and indicate a reliance on green financing instruments (e.g. ASEAN Catalytic Green Finance Facility [ACGF]). Cambodia secured a USD 124 million solar refinancing agreement in November 2025 to expand solar projects (PVknowhow.com, 2025). Indonesia advanced green financing through a partnership between FUJI-Energy and Absolute in November, alongside a national ESCO and OBF consultation in October promoting efficient cooling adoption (Sephiawardhani, 2025). The Philippines received USD 55 million financing for solar and battery storage from Pentagreen Capital in October 2025 (Pentagreen, 2025). Regionally, ASEAN launched major initiatives to accelerate partnerships and green financing schemes. These efforts collectively aim to strengthen renewable energy deployment, enhance energy efficiency and mobilise international climate finance across the region.
The presence of a blended finance model in the financing of renewable energy projects across ASEAN countries is increasingly evident. Data obtained from Convergence’s Historical Deals Database (HDD) indicates that a total of USD 10.3 billion blended finance transactions have been recorded, reflecting a significant trend in the mobilisation of capital for sustainable energy initiatives. These transactions often involve a combination of public and private funding sources, designed to mitigate risks and enhance the financial viability of renewable energy projects (Imperial College London & IEA, 2023). However, the majority of investments in renewable energy sources remain limited in their diversity of technologies and geographical reach. Over the past decade, financial resources have predominantly been directed towards solar photovoltaic (PV) and wind energy projects, which account for a substantial portion of global renewable energy financing. Notably, these investments have been primarily concentrated in Viet Nam, where government policies and incentives have fostered a conducive environment for the development of these technologies (Imperial College London & IEA, 2023). In the future, ASEAN needs to expand the renewable energy scale, particularly from its aquatic system and achieve a more balanced and resilient energy portfolio across different alternative renewable energy solutions, such as hydropower, OTEC, and tidal energy.
Southeast Asia’s energy demand is set to rise sharply as its population and economies grow, yet current investment levels and clean energy spending fall far short of the region’s climate and energy security goals. Although most countries have announced carbon neutrality targets, clean energy accounts for only about 2 percent of global investment, and annual spending would need to nearly double from USD 72 billion to more than USD 130 billion to align with the Announced Pledges Scenario. Progress is uneven: Viet Nam’s new power plan signals a shift toward renewables but still includes significant coal capacity, while uncertainties in remuneration mechanisms continue to raise investor risk perceptions. International finance remains essential, with initiatives such as Just Energy Transition Partnerships (JETPs), Japan’s Asia Zero Emission Community, and ASEAN’s taxonomy framework helping mobilise capital and improve transparency for the region’s transition (IEA, 2024).
Physical Capital.
Physical Capital.
In Southeast Asia, detailed information on aquatic-based renewable energy infrastructure, including hydropower, solar PV, offshore wind, tidal, wave, and ocean thermal systems, is difficult to isolate because it is typically embedded within broader renewable energy datasets. This aggregation makes it challenging to obtain specific data on the physical capital dedicated to aquatic energy systems.
The region’s offshore wind potential is estimated at approximately 124 GW, nearly double the current global operating offshore wind capacity (Global Energy Monitor, 2024). Viet Nam and the Philippines lead the offshore wind development in the region. Viet Nam has advanced significantly compared to other AMS by installing a 109 MW offshore wind platform in 2019 and developing a long-term plan to 2050 (up to 70–91.5 GW) (VnTPA, 2023). The Philippines also demonstrates high offshore wind potential, with the government awarding 92 offshore wind energy service contracts totalling over 65 GW of capacity (Norton Rose Fulbright, 2024). Recently, the Philippines launched its first-ever offshore wind-only Green Energy Auction (GEA‑5), offering 3.3 GW of fixed-bottom offshore wind capacity for delivery between 2028 and 2030. This marks a significant step in transitioning offshore wind from early studies to bankable projects (Power Technology, 2025).
Meanwhile, Southeast Asia’s reservoirs of floating solar and other marine renewables are being tapped, as Indonesia inaugurated a 192 MW floating solar plant in late 2023, the largest in Southeast Asia to date (Sekretariat Kabinet Indonesia, 2023). A recent report highlights the promise of wave, tidal and OTEC in Southeast Asia, especially in countries with warm tropical waters and favourable bathymetry (PEMSEA, 2023). Although many of these technologies are still at pilot or early deployment phases, increasing policy attention, investment interest and regional cooperation (such as cross-border offshore wind trading between Singapore and
Viet Nam) are signalling that aquatic-based renewables could play a significant role in ASEAN’s energy transition and climate resilience strategies (Economic Development Board Singapore, 2025).
The total installed renewable-power capacity within the ASEAN region reached 112.76 GW in 2024, with hydropower and solar PV being the dominant sources (IRENA, 2022, 2025; see also IRENA SharePoint). At the top, Viet Nam’s renewable energy capacity accounted for more than 49.01 GW, primarily from hydropower, solar PV and onshore wind (23.66 GW, 18.66 GW and 5.08 GW respectively). This was followed by Indonesia, Thailand, Lao PDR, Malaysia and the Philippines, with capacities ranging from 14.44 GW to 9.30 GW. Other countries generated less than 4 GW, with Timor-Leste at the lowest, generating below 1 MW.
Complementing this, the ASEAN Centre for Energy (ACE) reports that renewables accounted for 33.6% of ASEAN’s total installed power capacity in 2022, placing the region close to its shared target of 35% by 2025 (ACE, 2025). With only a less than 2% renewable capacity increase necessary to meet this target, ASEAN countries are expected to not only achieve this goal but also exceed it (Smith et al., 2024). Enabling this system is an expanding grid backbone across the region. By 2024, 9 of the 18 priority ASEAN Power Grid (APG) interconnection projects were fully operational, delivering 7.7 GW of cross-border transmission capacity with additional 1.245 GW undergoing projects, supporting the regional flow of renewable electricity (ASEAN, 2025; CASE for Southeast Asia, 2025). The APG is advancing slowly toward its 2045 goal of a fully integrated regional network, with most exchanges still bilateral and only limited multilateral links like the LTMS-PIP in operation. Integration levels vary: Lao PDR, Thailand, Malaysia, and Singapore lead with existing interconnections, while Viet Nam and Cambodia show moderate readiness; Myanmar, Indonesia, Brunei Darussalam, and the Philippines remain largely isolated. Progress is hampered by political fragmentation, regulatory and technical disparities, financing challenges, and complex legal frameworks, though initiatives like the 2025 ASEAN Power Grid Financing Facility aim to accelerate investment and harmonisation (Weno et al., 2025).
Overall, as of 2024, ASEAN’s renewable-energy physical capital stands at nearly 113 GW of installed capacity (IRENA, 2025), roughly one-third of the region’s total power capacity and one-quarter of its electricity generation, supported by tens of gigawatts of utility-scale solar and wind and supported by 7.7 GW of cross-border grid infrastructure (ASEAN, 2025).
Human Capital.
Human Capital.
According to IRENA’s 2024 jobs review, Asia accounted for 64 percent of the world’s 13.7 million renewable energy jobs in 2023. More than 7 million of these positions were in solar photovoltaic energy, with approximately 200,000 solar photovoltaic roles in ASEAN alone (IRENA, 2024). This highlights that ASEAN’s renewable energy workforce already numbers in the hundreds of thousands, even before accounting for employment in bioenergy, hydropower, and wind energy. IRENA’s 2023 report on the Socio-economic Footprint of the Energy Transition in Southeast Asia provides refined projections, estimating approximately 1.7 million renewable energy jobs by 2030 under current national policies (Planned Energy Scenario). Under a transition aligned with the 1.5°C target, this figure could reach about 3.9 million jobs by 2030 and further increase to around 5.1 million by 2050 (IRENA, 2023).
Renewable energy employment in Southeast Asia is concentrated in solar photovoltaic (PV) manufacturing, biofuels and hydropower, with significant variation across countries. As reported in the latest IRENA Renewable Energy and Jobs Annual Review, in 2023, Viet Nam leads in solar PV employment with approximately 105,000 positions, three-quarters of which are in manufacturing, plus 13,000 wind jobs and around 115,000 hydropower jobs, representing 5% of the global hydropower workforce. Malaysia employs approximately 43,000 people in solar PV manufacturing and 61,900 in biodiesel, continuing a decline from 2019 levels. Thailand has over 30,000 solar PV manufacturing jobs and 114,500 biofuel jobs, while the Philippines currently has limited PV employment but could create 7,000–10,000 jobs by 2030 through investments in module assembly. Indonesia dominates biofuels employment with 798,600 biodiesel jobs, driven by its expanded blending mandate and record production.
In Southeast Asia, the transition to low-carbon mobility and clean energy is poised to generate significant economic opportunities. By 2030, IRENA reported that these sectors could contribute an estimated USD 90 billion to USD 100 billion in annual revenues. Furthermore, the region is expected to see the creation of approximately 6 million jobs in renewable energy industries by 2050, underscoring the long-term potential for sustainable growth and employment (IRENA, 2020). Focusing on solar PV, onshore wind, hydropower and geothermal with three employment types (manufacturing, construction and installation [C&I], and operation and maintenance [O&M]), recent study highlights a significant job creation opportunity in ASEAN’s renewable energy sector. The sector is projected to create between 3.9–5.5 million jobs by 2050, with Viet Nam and Indonesia leading the share, primarily in manufacturing and construction during early years. Hydropower and solar PV will drive the strongest job growth across technologies, while ongoing improvements in data and methodology are essential for better workforce planning and policy alignment (Bilqis et al., 2023). Overall, the region’s renewable energy workforce is anchored by strong manufacturing hubs and biofuel policies but faces challenges in scaling deployment and sustaining job growth (IRENA, 2024).
ASEAN’s renewable energy workforce development is constrained by persistent skill gaps that arise from systemic challenges across education, industry, and policy ecosystems. These gaps are driven by limited labour market insight, uneven renewable energy deployment across countries, slow adaptation of curricula, and shortages of qualified instructors, particularly within technical and vocational education and training institutions. In addition, curriculum alignment remains a significant challenge, with a limited number of renewable energy-focused programs and uneven integration of industry-relevant skills across ASEAN. Skills development and industry collaboration are gaining traction through certifications, internships, and joint R&D, but disparities in standards, funding, and educator capacity persist. Government policies, public investment, and awareness campaigns are critical to scaling green skills and fostering societal engagement, as demonstrated by emerging regional and international best practices. While job creation projections exist, the region still lacks a coordinated approach to aligning education systems with evolving RE labour demands (Bilqis et al., 2024). In general, the renewable energy sector faces a growing skills gap, especially in developing countries where shortages of STEM-trained professionals and skilled technicians are most severe. Rapid industry growth outpaces workforce development, while weak systems for anticipating skills needs, limited policy coordination, and underinvestment in vocational training compound the challenge (IRENA, 2024). To address the workforce gap, ASEAN is starting to invest in skills development. The ASEAN Centre for Energy’s Guide to a Just and Inclusive Energy Transition in ASEAN highlights “Energy and Employment” and “Education, Capacity Development and Skills” as two of its five priority areas, ensuring that workforce development and reskilling are embedded in the upcoming APAEC 2026–2030 (ACE, 2025).
Viet Nam has achieved notable progress in renewable energy education and training through collaborative efforts. The “Reform of TVET in Viet Nam” programme, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), is a key driver of this progress. A notable achievement is the establishment of Viet Nam’s first Industry Advisory Board for Renewable Energy by Ninh Thuan Vocational College in partnership with six renewable energy companies. This board aims to enhance cooperation and deliver high-quality, industry-aligned vocational training through initiatives and plans such as joint curriculum development, in-company training, and trainer upskilling (TVET-Vietnam, 2024). Similarly, the RENEW Skills Development Programme has introduced new curricula and practical training focused on wind energy technology, including operations, maintenance, and grid integration (Windtech International, 2024). The programme targets over 4,000 students and technical workers by 2027, reinforcing Viet Nam’s commitment to building a skilled workforce for its growing renewable energy sector (IEA, 2025).
ASEAN’s energy transition is not only an environmental imperative but also a socioeconomic transformation that requires inclusivity and sustained investment in human capital development. From a gender equality perspective, a just and inclusive energy transition presents opportunities to expand access and empower women, yet they remain significantly underrepresented, accounting for less than 20 percent of the workforce (ACE, 2025). Persistent gender norms and socio-cultural barriers often confine women to roles perceived as less physically demanding. To address this gap, initiatives such as the ASEAN Gender Mainstreaming Strategic Framework and the ASEAN Renewable Energy–Gender Roadmap represent critical steps toward integrating gender perspectives and advancing women’s empowerment in the energy sector (ACE, 2024). Scholars emphasise that ASEAN’s transition toward carbon neutrality depends on substantial investment in human capital, particularly the development of skilled, educated, and healthy workers capable of driving change. With more than half of ASEAN’s 670 million people in their productive years, energy demand continues to rise, yet renewable energy sources are projected to meet only a fraction of this demand by 2035. As fossil fuel industries decline, millions of jobs will disappear, but renewable energy could generate up to 14.6 million new jobs by 2050. However, current education and training systems are not producing enough STEM graduates with skills relevant to clean energy. To avoid the middle-income trap and ensure a just, inclusive transition, ASEAN must strengthen educational cooperation, promote knowledge transfer, and encourage private investment in workforce training, making human capital development central to its energy strategy (Febriyanti et al., 2025). Large-scale renewable projects in countries such as Viet Nam, the Philippines, and Indonesia will drive significant job growth by 2050, particularly in construction, installation, and operations roles (ACE, 2024).
In the region, ORE remains underdeveloped and underexploited, presenting a significant opportunity for economic growth and future job creation. However, to fully realise this potential, proactive measures must be taken now. Education and workforce training programs tailored to ORE technologies and operations need to be established immediately. Building a skilled talent pipeline today will ensure that the region is prepared to meet industry demands and capitalise on this emerging sector in the coming years.
Social Capital.
Social Capital.
By 2030, AMS target a 30% renewable energy share in total primary energy supply (up from 14% in 2023) and 45% renewables in installed power capacity, alongside a 40% reduction in energy intensity from 2005 levels (ACE, 2025). To achieve this target, ASEAN’s renewable energy (RE) governance plays a central role. Currently, the renewable energy governance is progressing through regional frameworks that promote stakeholder engagement and harmonise sustainability standards. At the core is the ASEAN Centre for Energy (ACE), which coordinates platforms such as the Renewable Energy Sub-Sector Network (RE-SSN) (IRENA, 2022). In collaboration with the World Bank, ACE launched the multi-year Clean Energy and Power Trade Development in Southeast Asia program under the Accelerating Sustainable Energy Transition (ASET) framework (ACE, 2025). This initiative seeks to accelerate RE deployment and regional power trade through three pillars: (1) policy support and climate finance to unlock investments, (2) technical groundwork for cross-border electricity trade via ASEAN’s regional grid concept, and (3) enhanced knowledge sharing and capacity building. Importantly, in 2025, ACE developed the ASEAN Renewable Energy Long-Term Roadmap (RE LTRM) (ACE, 2025). This roadmap outlines a strategic plan to accelerate the region’s energy transition, guiding APAEC 2026–2030 and aligning economic growth with climate goals. It projects renewables surpassing fossil fuels by 2030 and a high-variable renewable grid by 2045, requiring major flexibility investments.
The roadmap emphasises multi sector decarbonisation, particularly in industry and transport, through electrification, bioenergy, and clean fuels. These efforts are supported by regional power grid expansion and biofuel trade. Only coordinated, market driven policies and deeper regional integration can deliver significant emissions reductions and long-term energy security.
Complementary efforts, such as the ASEAN Taxonomy for Sustainable Finance (ASEAN, 2024; OECD, 2023) and the Just and Inclusive Energy Transition (JIET) guide, incorporate social safeguards and promote inclusive governance. The page highlights ASEAN’s commitment to embedding JIET into its 2026–2030 energy agenda, ensuring that the shift to cleaner energy systems benefits all segments of society (ACE, 2025). It emphasises a people‑centred approach prioritising job creation, skills development, affordable energy access, and active stakeholder engagement, particularly for workers, communities, and vulnerable groups affected by the decline of fossil fuel industries or limited energy access. By integrating social considerations into energy planning and policy, ASEAN aims to advance decarbonisation while reducing inequalities and strengthening social resilience across the region. While these mechanisms mark significant progress, gaps remain in environmental and social risk management, public participation, and data systems, leaving ASEAN’s RE governance as an emerging rather than fully institutionalised model of coordinated regional action. Moreover, a scholarly commentary notes that ASEAN promotes just and inclusive energy transitions, yet flagship plans tend to prioritise technical expansion, particularly the ASEAN Power Grid, without concrete people-centred safeguards. This approach mirrors the limited specificity of COP30’s Just Transition Mechanism. With displacement and public protests already occurring in Malaysia, Thailand, and Indonesia, and likely to intensify as renewable energy rises to 42 to 47 percent of total capacity, the commentary calls for early and continuous stakeholder participation, mandated free prior and informed consent for Indigenous and minority groups, fair compensation and benefit sharing, and shared social and environmental safeguards for projects linked to the ASEAN Power Grid (Sembiring, 2025).
Ultimately, meeting ASEAN’s 2030 RE goals requires shifting from coordination to enforceable action: harmonised social and environmental safeguards for the regional power grid and large renewable projects, mandatory free, prior and informed consent, and fair compensation and benefit‑sharing. Equally vital are strong data systems and transparent public monitoring of energy intensity, renewable shares, and social outcomes, with periodic reviews to align national measures with regional targets. With early, equitable participation by member states, utilities, financiers, and communities, the region can scale clean energy while minimising harm and build a durable, people‑centred governance model that sustains the 2030 targets.
Natural Capital.
Natural Capital.
ASEAN’s energy mix remains dominated by fossil fuels and traditional biomass, yet the region is steadily pivoting toward renewables. Country profiles vary, with some relying more heavily on gas or oil and others on biomass, but across ASEAN there is growing recognition of substantial geothermal, wind, solar, and ocean energy potential. This transition is being supported by increasing private investment alongside government policies aimed at reducing emissions and improving energy efficiency (Quiparas et al., 2015).
Renewable energy derived from ocean and freshwater systems is becoming an increasingly important area of development in the ASEAN region as countries seek cleaner and more sustainable energy sources. The region’s renewable energy landscape includes several types: Hydropower, primarily located in inland water systems, currently has high potential and utilisation; Floating photovoltaic (PV) systems can be deployed on both inland and marine waters; Ocean-based renewable energy options include tidal, wave/current energy, Ocean Thermal Energy Conversion (OTEC), and offshore wind farms (Quirapas & Taeihagh, 2021).
IRENA (2020) estimates that under the planned energy scenario to 2050 renewable-power potential account for about 25 %, implying that roughly three-quarters of technically usable renewable resources remain untapped. The total technical renewable energy potential across ASEAN is estimated at about 17,221.6 gigawatts, with solar photovoltaic energy alone accounting for approximately 15,602.7 gigawatts and offshore wind contributing around 1,152.2 gigawatts. Additional but smaller shares come from hydropower, biomass, and geothermal resources, indicating that the region’s natural energy endowment is overwhelmingly dominated by solar and coastal wind resources (ACE & IRENA, 2022; Zafira et al., 2025). Complementing this, the IEA’s 2024 study Integrating Solar and Wind in Southeast Asia estimates that the combined technical potential for utility-scale solar PV plus onshore and offshore wind in Southeast Asia exceeds 20 TW, i.e. around 55 times the region’s current total power-generation capacity from all sources, underscoring how under-exploited these natural flows still are (IEA, 2025). In the CLMV subregion comprising Cambodia, Lao PDR, Myanmar, and Viet Nam, renewable electricity generation remains largely dominated by hydropower. Viet Nam stands out in particular, as hydropower now supplies nearly 37 percent of the country’s total electricity (IRENA, 2025), well above the ASEAN regional average. Viet Nam and Lao PDR are the only two ASEAN nations whose hydropower shares exceed the global average for renewables in 2024 (Carnicelli et al., 2025), underscoring their unique reliance on this resource.
On ocean renewable energy (ORE), Quirapas & Taeihagh (2021) reported that ORE prospects in Southeast Asia centres on Indonesia (≈2 MW wave, 18 MW OTEC, 41 MW tidal), Malaysia (active RD&D for small islands and remote grids), the Philippines (≈170 GW total, including 40–60 GW tidal and wave energy of 33–35 kW/m/yr), Singapore (≈250 MW tidal in‑stream and ≥1 GWp floating solar), Viet Nam (≈200–500 MW tidal and 350 MW wave, with ongoing prototype work), and Brunei Darussalam (≈335 kW tidal and 0.66 GW wave), while other countries remain under assessment. In addition, ASEAN seeks other ocean-based renewables sources, for example a technical workshop is being proposed under the Sub‑Committee on Sustainable Energy Research (SCSER) to explore biofuel production from aquatic algae and seaweeds, and a parallel capacity-building initiative is being planned to support drug development from marine organisms (ASEAN, 2023). Across the region, ORE is emerging as a strategic pathway to expand clean energy access. Beyond laboratory trials, countries such as Indonesia and the Philippines are scaling projects that can deliver reliable power to off‑grid communities. ORE also provides onsite energy for offshore infrastructure, including oil platforms, meteorological stations, and aquaculture operations, thereby enhancing energy security and reducing operational costs.
Assessment of Capacity for Growth
Assessment of Capacity for Growth
HIGH
(high development potential)
ASEAN holds immense renewable energy potential, estimated at over 17 terawatts across solar, wind, hydropower, biomass, and geothermal resources (Asia Today, 2024), yet deployment remains modest. The region has installed approximately 113 gigawatts of renewable capacity, and renewables account for only about 26 percent of electricity generation (ACE, 2024; IRENA, 2025). Although large-scale expansion is technically feasible and economically attractive, progress is slowed by structural constraints. Key bottlenecks include grid congestion, limited cross-border interconnections with only 9 of the 18 ASEAN Power Grid links currently operational, uneven permitting processes, and fragmented regulatory frameworks among member states (ACE, 2024).
Simply adding capacity without addressing these systemic issues risks inefficiencies and stranded assets. Despite the current gap capacity, ASEAN’s power grid offers future growth potential by linking surplus renewables in Lao PDR, Myanmar, and Malaysia to high-demand economies like Viet Nam, Thailand, and Indonesia, with projects like LTMS-PIP proving feasibility. To realise a unified grid by 2045, ASEAN must expand financing, harmonise technical and regulatory standards, and replicate multilateral pathfinder projects across the region.
Moreover, significant opportunities lie in improving system efficiency and value creation in renewable energy sector. Priorities include modernising transmission infrastructure, deploying energy-storage solutions, and strengthening renewable-energy certification systems to enable cross-border green power trade. Harmonising technical standards and regulatory frameworks can attract premium investment and accelerate integration (ACE, 2024). Financial innovations such as regional green bonds, renewable-energy securitisation, and blended-finance facilities can de-risk projects and mobilise capital flows (ADB, 2023). Enhanced regional coordination on grid codes, power market integration, and just transition principles would strengthen system resilience and help create a high value, interconnected clean energy market, positioning ASEAN as a competitive and sustainable regional energy hub.
