In September 2025, the International Energy Agency (IEA) announced that Southeast Asia has an enormous but unused renewable energy potential.
Despite the challenges presented, this potential could be implemented and not using a serious system review and might satisfy the growing demand for electricity within the region.
How big is the potential?
Thanks to the strategic geographical position, South -East asia is in a position to develop variable sources of renewable energy (VRE) (VRE) and wind.
IEA has stated that the technical potential of those two sources is about 20 terawatts, over 50 times the present power within the region. This number exceeded the estimates of 17 Terawatts previously reported by the International Renewable Energy Agency (Irena) in 2022.
A fraction of this potential is already sufficient to satisfy the demand, reduce fuel imports and help countries to attain their goals of pure energy.
However, deeper VRE integration introduces several challenges. On a separate occasion of Fabby Tumiwa, CEO of Institute for Essential Services Reform (IESR), he said These are poor political framework, inconsistent recipes and huge fuel infrastructure made the region to renewable energy hindered.
The excellent news is that in line with IEA these problems could be mastered without requiring complete changes within the system.
The proposed solutions by IEA include modernization of existing power plants, modernization of mesh infrastructure and improvement of forecasts. Innovative funds, reminiscent of electric vehicles, may increase the mixing process.
Is Southeast Asia ready to vary energy?
The IEA report stated that in 2024 nine countries of Southeast Asia generated lower than 5% of electricity from renewable energy. However, Vietnam is the one country operating within the third vre integration frame. This signifies that solar and wind energy begins to have an influential contribution to the country’s power electricity system.
Other neighbors from Southeast Asia are currently operating at the primary or second stage of integration, where renewable energy sources don’t affect the national electricity system. It is anticipated that the majority of those countries will meet up with Vietnam until 2035.
Also read: 10 Asian countries with the very best renewable energy efficiency, 2024
The report also included an IEA advice about different levels of readiness in ASEAN countries, that are divided into early, medium stage and high freedom.
Countries at an early stage, including Brunei, Cambodia, Laos and Burma, should concentrate on regulations, network codes and government planning.
In the center of the stage there are Indonesia, Malaysia, Thailand and Vietnam. These 4 countries should perform more advanced tasks, reminiscent of investments in a wider range of flexibility resources.
It is believed that only the Philippines and Singapore are at the extent of freedom. IEA recommends to arrange road maps in the sector of implementation of flexibility, market reform and regulation, development of network services and inter -sectoral planning.
Why does Southeast Asia need more renewable energy sources?
SUM -NN TAN, head of the IEA Regional Cooperation Center, wrote in a report that VRE integration is each urgent and essential.
In 2024, the rise within the demand for electricity within the region increased by greater than 7%, almost twice as much than the worldwide average, and the doubles are planned by 2050. Fast urbanization, industrial growth and growing standards of life are aspects contributing to this huge number.
In addition, many ASEAN members still depend to a big extent on fossil fuels. It not only stops their decarbonization process, but in addition reveals the chance of fuel prices and provide disturbances.
For example, Vietnam stood within the face of coal deficiency in 2022. In the identical 12 months, the Philippines experienced a deficit of electricity supply because of falling domestic gas production and difficulties in obtaining additional coal.
The optimization of solar and wind resources will allow Southeast Asia to beat high energy consumption while reducing greenhouse gas emissions and maintaining energy security.
What has ASEAN has done to this point?
Southeast Asian countries have prepared regional initiatives regarding the implementation of renewable energy, reminiscent of ASEAN VISION 2045 and the upcoming renewal of the ASEAN motion plan for energy cooperation (APAEC).
According to initiatives, political instruments, reminiscent of contracts for the acquisition of direct power supply, are spreading in Southeast Asia, geared toward accelerating the transition to green energy.
Eight out of ten ASEAN countries have set net-zero emissions. At the UN General Assembly, on September 23, the President of Indonesia Prabowo Subianto expressed the knowledge that the country could achieve the goal before the schedule before 2060.
Recognizing the influence of Southeast Asia on global energy trends, IEA founded the primary office in front of the headquarters of Paris in Singapore. Having long -term relationships as a foundation, this office goals to support the region in solving energy challenges.
IEA is to present a report on the Asean Energy Business forum on October 15 at Kuala Lumpur, Malaysia.
Sources:
International Energy Agency. (2025). Sunny and wind integration in Southeast Asia: status and prospects for protected and efficient strategies. https://www.iea.org/reports/integrating-solar-and–wind-wind–pooutheast-asia
International Renewable Energy Agency. (2022). Renewable energy prospects for ASEAN: towards the regional energy transition (edition 2.. https://www.irena.org/publications/2022/sep/renewable-energy-utlook-for-asean-2nd-edtion
https://iesr.or.id/en/southeast-asia-needs-to-become-a-renewable-energy-manufuring-hub/
