Chinese clean-technology exports to Southeast Asia exceeded US$20 billion between January and July 2026, rising about 50 per cent from the same period last year, according to Ember’s analysis of Chinese customs data.
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The Association of Southeast Asian Nations became the largest regional market in Asia for Chinese clean-energy equipment during the period, the energy think tank’s data showed.
Chinese solar exports to ASEAN countries reached US$4.1 billion in the first seven months of the year, nearly 90 per cent more than in the corresponding period of 2025. ASEAN accounted for 57 per cent of the value of China’s solar exports to Asia.
China also exported nearly US$7 billion worth of batteries to Southeast Asia, alongside US$6.3 billion of electric vehicles, US$1.6 billion of grid equipment and US$1.2 billion of heating and cooling equipment.
The growth comes as Southeast Asian governments expand renewable energy and electric transport while seeking to limit their exposure to imported fossil fuels.
Investment in renewable energy, electrification and energy efficiency saved Southeast Asia about US$30 billion in fossil-fuel import costs in 2025 , according to the International Energy Agency’s Southeast Asia Energy Outlook 2026.
The Philippines became the second largest destination for Chinese solar exports in the first quarter of 2026, with imports approximately three times higher than during the corresponding period last year, the IEA said.
Renewable power capacity across Southeast Asia stood at about 120 gigawatts in 2024. It is expected to nearly triple by 2035 under existing policies and could increase fivefold if governments meet their announced targets.
Coal currently generates about half of the region’s electricity, while gas use in the power sector is projected to increase by more than 60 per cent under current policies. Domestic gas production is expected to decline by one-third by 2050, increasing the region’s reliance on imported liquefied natural gas, according to the IEA.
China expands clean-tech exports
Southeast Asia’s purchases form part of a broader increase in Chinese clean-technology exports.
China’s global exports of solar equipment, batteries and EVs reached record levels in March, rising 70 per cent from a year earlier, according to Ember.
Chinese clean technology exports exceeded US$220 billion in 2025, approaching the export value of the country’s garment, furniture and household-appliance industries, Ember said in its China Energy Transition Review 2026.
Exports to Southeast Asia have grown as the region’s electricity consumption, manufacturing activity and demand for electric vehicles increase.
Thailand and Indonesia have introduced policies linking EV adoption with domestic manufacturing. Indonesia has also sought investment in battery materials and production using its nickel resources, while Malaysia, the Philippines and Vietnam are developing different parts of the solar, battery and EV supply chains.
The IEA said Southeast Asia was becoming a significant producer of energy-intensive products, including aluminium, iron and steel. Regional output from those industries is projected to rise by 70 per cent by 2035.
Grid expansion needed
The increase in equipment imports is occurring alongside efforts to expand national and regional electricity networks.
Southeast Asia’s transmission and distribution networks will need to more than double in length by 2050 to keep pace with electricity demand and the expansion of variable renewable power, the IEA said.
Annual investment in grids and storage would need to increase from about US$13 billion currently to US$50 billion by 2050 if countries are to meet their announced energy and climate commitments.
Planned cross-border interconnections under the Asean Power Grid would require approximately US$27 billion through 2040, according to the IEA’s Financing the ASEAN Power Grid report.
Regional interconnections are intended to allow countries to trade electricity and balance variations in renewable power output. Most cross-border electricity trading in Southeast Asia remains based on bilateral agreements, with differences in national regulations, grid standards and market structures complicating wider trading.
The Asean Centre for Energy said the bloc entered a new phase of its regional energy programme this year, with the Asean Power Grid moving from strategic planning towards coordinated infrastructure development and operation.
Asean, the Asian Development Bank (ADB) and the World Bank launched the ASEAN Power Grid Financing Initiative in October 2025. The ADB committed up to US$10 billion over ten years, supported by an initial US$6 million in technical assistance, according to the Asean Secretariat.
The World Bank estimates that achieving the ASEAN Power Grid’s broader 2045 objectives could require around US$800 billion in power-generation and transmission investment.
Financing constraints
Total energy investment in Southeast Asia exceeded US$100 billion in 2025 after clean energy spending rose by 60 per cent over the previous decade, the IEA said.
The region nevertheless attracted about 3 per cent of global energy investment despite accounting for around 9 per cent of the global population.
The cost of capital in much of Southeast Asia can be around twice as high as in advanced economies and China, according to the IEA. Higher financing costs reduce returns from renewable power, storage and grid projects, which require substantial upfront expenditure.
The agency said regulatory reforms and international public financing would be needed to reduce financing costs and attract private investment.
Southeast Asian governments are also beginning to consider the management of batteries, solar panels and electric vehicles at the end of their useful lives as deployment increases. Recycling regulations and collection systems vary across the region, while domestic processing capacity remains at an early stage in several countries.
The IEA noted the region’s energy transition would be closely connected to its role in global industrial and clean-technology supply chains, with countries seeking both to expand deployment and develop domestic manufacturing capacity.
