Powering progress: ASEAN’s clean energy momentum and aluminium sector’s low-carbon shift

ASEAN’s shift to renewable energy is being slowed not by technology or cost. Although solar PV prices have plunged 80 per cent and battery costs by 70 per cent over the past decade, the region lacks unified policy frameworks like harmonised renewable energy certificates, emissions accounting, and coherent regional regulations.

Southeast Asia is positioned at a critical juncture in its energy transition, with electricity demand across the ASEAN bloc expected to rise by 30 per cent by 2030, driven by urban expansion, higher income levels and accelerating digitalisation. Moreover, the government is underway to demonstrate rapid clean energy deployment, which is significantly possible under promising conditions.

Vietnam & Indonesia’s energy collaboration

Vietnam, in 2020, became the third-largest solar market in the world, where they have successfully installed a capacity of 17GW, which surpassed the target set to be achieved by 2025. This growth was witnessed owing to government subsidies, clear timelines, an open posture toward private capital and supplemented by a coherent feed-in tariff policy.

This region leads the ASEAN region in terms of regulatory readiness and returns on current renewable energy projects, positioning itself as the top investment destination for renewables across Southeast Asia.

Indonesia and Vietnam have secured multibillion-dollar Just Energy Transition Partnerships (JETPs) with G7 countries and multilateral financial institutions. These agreements are designed to fast-track coal phase-out initiatives and enable large-scale renewable energy development through concessional financing and targeted capacity-building support.

Singapore’s energy policy framework

Despite its limitations in land and natural resources, Singapore has strategically established itself as a regional green finance and technology hub. By implementing official taxonomies and disclosure frameworks that define sustainable economic activities, Singapore aims to attract both domestic and international capital into climate-aligned investments across ASEAN.