What is Southeast Asia's Energy Future?

Southeast Asia’s energy demand has surged over the past decade, driven by rapid urbanisation, economic development and population growth. The region stands at a pivotal moment for its energy future. With rapidly rising electricity demand, there is a narrow but vital window to shape a secure, affordable and sustainable energy future.

Which countries have the most solar power in Southeast Asia?

With abundant solar potential across the region, Southeast Asia has made initial progress in solar PV adoption, with over 35 GW installed at the end of 2024. Viet Nam has emerged as the regional leader in solar PV, representing 61% of the total regional capacity, followed by Thailand (11%) and the Philippines (10%).

Will solar PV expand in Southeast Asia?

Solar PV expansion will increasingly create flexibility challenges across Southeast Asia in the coming years. With abundant solar potential across the region, Southeast Asia has made initial progress in solar PV adoption, with over 35 GW installed at the end of 2024.

Why are solar and wind energy costs so high in Southeast Asia?

While renewable technology costs in Southeast Asia remain higher than international benchmarks due to smaller markets and higher financing costs, solar and wind are becoming increasingly cost-competitive with new coal and gas across the region (particularly in the absence of fuel price subsidies).

Will Southeast Asia install a PV system in 2022?

Moreover, it is forecasted that the Southeast Asia region is going to install another 27 GW of PV capacity between 2021 and 2025 . The development and government support toward PV system installation has been summarized the Table 1 below. Fig. 2. ASEAN market cumulative PV system installation in 2022 . Table 1.

What is the power sector structure in Southeast Asia?

Power sector structures in Southeast Asia range from vertically integrated utilities to liberalised markets, creating different implications for power system operation. Most ASEAN member states apply least-cost/merit order dispatch principles.