Southeast Asia’s Growing Clean Energy Sector
Southeast Asia is a hotbed of clean energy investment involving government initiatives, public-private collaboration, and strong investment. It is being driven by the need to meet a demand for energy that is growing faster than anywhere else in the world, except China.
On 27 September 2025, the Global Energy Alliance for People and Planet (GEAPP) – a coalition of governments, businesses, and philanthropists – announced that it would provide USD 1.7 billion in funding to support Southeast Asia’s clean energy shift.
Since its inception at COP26 in 2021, GEAPP has helped unlock USD 7.8 billion in total investments covering 137 projects in over 30 countries. In the process, it has created 3.1 million jobs and reduced total carbon emissions by 296 million tonnes.
The investment announcement came in the same month as a new report from the International Energy Agency (IEA) stating Southeast Asia can potentially tap into abundant renewable resources. The IEA report estimated that the region has 20 terawatts of untapped solar and wind potential – approximately 55 times more than the region’s current production.[1] The successful exploitation of these resources will help address the region’s rising energy demand. In 2024, the region’s energy consumption jumped by 7 percent, nearly twice the global average at 4 percent, the report notes, projecting that Southeast Asia’s energy consumption will double by 2050.
In addition to the growing energy demand, the region’s abundant renewable resources will enable Southeast Asian countries to fulfill their climate change pledges. Eight of the ten members of the Association of Southeast Asian Nations (ASEAN) have set net-zero emissions targets and adopted policy instruments – including competitive auctions and direct power purchase agreements – to accelerate the adoption of clean energies and renewables.
The IEA report suggested that these ASEAN countries could achieve their climate change targets by enhancing flexibility in existing power plants, improving forecasting, and modernizing grid infrastructure. All of these can be done without the need for major system overhauls.
Due to Southeast Asia’s growing global influence in terms of energy demand, the IEA has established an IEA Regional Cooperation Center in Singapore, the first such office outside Paris, France.
Alternative to China?
China is the global leader in clean energy. In 2024, China invested UDS 625 billion in clean energy. By comparison, European investments totaled USD 426 billion, North American investments totaled USD 409 billion, and investments by other countries in the Asia-Pacific totaled USD 291 billion.
In 2024, China also filed approximately 75 percent of global clean energy patent applications, compared to just 5 percent in 2000.
According to a report from Ember, an energy think tank, clean energies – wind, solar, nuclear, and other renewables – met 84 percent of China’s electricity demand growth in 2024.[2] That year, solar and wind generated 18 percent of the country’s electricity requirement – twice as much as in 2020 (9 percent).
China is also leading the way in battery storge investment, which grew 69 percent between the first half of 2024 and the first half of 2025.
China’s dominance in clean energy technologies and production poses a significant risk to the global supply chain. Diversification is an obvious solution to this challenge. Southeast Asia has the potential to become an alternative supplier, but it will take time for the region to be in a competitive position vis-à-vis China.
Pamir Consulting has the expertise to help companies navigate the dynamic global energy landscape. To find out more how we can help you, contact us today.
[1] https://iea.blob.core.windows.net/assets/b0b39b60-8686-4043-b060-1f7655e7536c/IntegratingsolarandwindinSoutheastAsia.pdf
[2] https://ember-energy.org/app/uploads/2025/09/China-Energy-Transition-Review-2025.pdf
