Southeast Asia's Clean Energy Transition

As fossil-heavy nations race to expand solar and wind by 2030, weak environmental and social safeguards risk fuelling local pushback. Experts warn fast-tracked permitting must not come at the cost of proper spatial planning and public consultation.

A new analysis from the Lowy Institute shows that sharp Western aid cuts could undermine Southeast Asia’s clean energy goals, harm its most vulnerable countries, and tilt the region toward Asian powers such as China, South Korea and Japan.

Metro Manila and other key Philippine cities fall short of rooftop solar potential, with coverage rates below 1 per cent, AI tool shows.

The Southeast Asian bloc should give its energy think tank the mandate to analyse decarbonisation pathways for the Asean Power Grid, said experts, emphasising the importance of interconnections.

Small-scale hydropower systems, combined with solar panels to increase renewable energy supply, have been supporting efforts in Sabah to improve access to clean and stable electricity in underserved villages.

The bulk of funding will be used to address intermittency and variability of renewables in off-grid areas, says Asian Development Bank’s energy director Keiju Mitsuhashi. The Philippines alone will require $10 billion to improve its domestic grid.

Indonesia received the most funding from China over the last decade, according to a new report by Zero Carbon Analytics. But uncertainties caused by US-driven tariff plans could see Southeast Asian countries retract green investments, said an analyst.

Data centre hubs in the region can meet at least 30 per cent of their electricity demand by the end of the decade with wind and solar, without the need for battery storage, finds a new report by Ember.

Multilateral development banks can help derisk the costs of decarbonisation and interconnections, with tech companies like Google playing a key role as large offtakers of clean energy. But the Asean Centre of Energy needs the mandate of the region's leaders to develop feasibility studies and optimisation scenarios.

Before US tariffs, an AI-fuelled data centre boom had spurred tech giants to make big renewables bets in the region. Mounting uncertainty is prompting a "wait and see" approach, though the long game hinges on local policies, say experts.

As the United States sets unprecedented new import duties, pressure mounts on Asia to buy American natural gas to address trade imbalances. Experts urge tapping into solar and wind potential to counter economic uncertainty in the region.

Cambodia, Vietnam, Thailand and Malaysia's solar panel makers face varying tariff rates. Chinese manufacturers have already moved operations elsewhere, and smaller local players and workers will bear the brunt of the fallout.