The ASEAN region is poised to become a global leader in renewable energy, leveraging its vast natural resources and growing commitment to sustainability.
According to Prof. Dr. Tiong Sieh Kiong, Director of the Institute of Sustainable Energy at Universiti Tenaga Nasional (Uniten), countries such as Malaysia, Singapore, and Indonesia are well-positioned to harness solar energy due to their abundant sunlight. Meanwhile, Laos has established itself as a hydropower powerhouse, with 49 out of its 57 power plants dedicated to this renewable source.
In addition, the Philippines and Indonesia, both located along the Pacific Ring of Fire, have immense potential for geothermal energy development. Coastal regions in Vietnam and Thailand are also making significant strides in wind energy adoption, while Indonesia stands out in bioenergy innovation, particularly in converting agricultural waste into sustainable power solutions for rural areas.
Ambitious Targets and Key Challenges
ASEAN has set an ambitious target of increasing the renewable energy share in its energy mix to 23% by 2025, with a longer-term goal of achieving net-zero emissions between 2050 and 2060. However, Prof. Tiong notes that despite this positive momentum, several structural challenges remain.
One major hurdle is the high capital cost associated with renewable infrastructure, such as solar farms, wind turbines, and hydroelectric facilities. The transition from fossil fuels to renewable sources also requires significant and complex upgrades to existing energy grids. Moreover, ASEAN’s reliance on foreign technologies and limited local innovation has slowed progress, alongside fragmented energy policies across member states.
Policy inconsistency is another pressing issue. While some countries are making substantial progress, others remain dependent on coal and natural gas, creating disparities that hinder regional energy integration.
Regional Collaboration and Policy Advancements
To overcome these challenges, ASEAN has been actively pursuing collaborative energy initiatives. The ASEAN Power Grid (APG) and the Trans-ASEAN Gas Pipeline are two key projects designed to enhance cross-border energy sharing and bolster regional energy security.
The upcoming ASEAN Energy Sector meeting in 2025, themed “ASEAN Powering: Bridging Boundaries, Building Prosperity,” will focus on fostering unified strategies and integrating energy markets to accelerate the transition to renewable energy.
Financial and Policy Support Driving Change
Regional financing mechanisms such as green bonds and Renewable Energy Certificates (RECs) are also being explored to support renewable projects in less-developed markets. Prof. Tiong highlights the importance of pooling resources and harmonizing regulatory frameworks to expedite large-scale renewable energy deployment.
In Malaysia, government support for renewable energy is gaining momentum. The 2025 Budget has allocated RM300 million under the National Energy Transition Facilitation Fund to boost the country’s renewable energy share to at least 70% by 2050—up from the current 27%. Key initiatives include large-scale solar projects, net energy metering, hydroelectric expansion, and advancements in biomass, biogas, and hydrogen energy technologies.
Sarawak’s leadership in hydrogen energy development further demonstrates Malaysia’s broader diversification strategy in the renewable energy sector.
A Sustainable Future for ASEAN
Overall, ASEAN’s renewable energy future appears promising, backed by abundant natural resources, heightened awareness of climate change, and strong international commitments to sustainability. By investing in infrastructure, fostering technological innovation, and strengthening regional cooperation, ASEAN has the potential to emerge as a global leader in renewable energy.
“As ASEAN continues to advance its renewable energy ambitions, the region stands at the forefront of a cleaner and more sustainable future,” Prof. Tiong concluded.
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