Southeast Asia is becoming one of the most active regions in the world for clean energy growth. Investments in renewable energy across ASEAN countries have reached new heights, showing strong momentum.
The region’s cross-border renewable energy projects grew by an average of 15% each year from 2013 to 2023, according to a Zero Carbon Analytics report. This steady growth highlights the rising confidence of investors in Southeast Asia’s transition to clean energy.
Rising Investment and Key Players
In 2022, renewable energy investment across Southeast Asia hit USD 43 billion. By 2025, clean energy deals in the region have surpassed USD 20 billion, showing how projects are multiplying in scale and scope.
Indonesia leads the region, securing USD 3.536 billion in renewable energy cooperation projects. Thailand follows with USD 1.3 billion, while Vietnam attracted USD 694 million. These numbers position the three countries as major players in Southeast Asia Renewable Investment.
Foreign capital also plays a crucial role. Between 2013 and 2023, China invested over USD 2.7 billion in renewable energy projects across Indonesia, the Philippines, Thailand, Malaysia, and Vietnam. This influx underscores Southeast Asia’s status as a magnet for global investors seeking clean energy opportunities.
Shifting Energy Mix
The renewable energy mix in the region shows diverse funding patterns. Hydropower received the largest share with USD 2.26 billion, followed by geothermal at USD 1.58 billion and wind at USD 1.43 billion. Solar, despite being the cheapest source of power in markets like Malaysia, attracted only USD 264 million in funding.
This imbalance reflects both challenges and opportunities. While hydropower and wind continue to attract large-scale investment, solar is expected to rise quickly as costs fall and governments push for wider adoption. With solar energy emerging as the most affordable option, countries that scale up investment could capture long-term economic and environmental benefits.
Looking Ahead
Southeast Asia’s renewable momentum is supported by both domestic ambitions and regional cooperation. ASEAN has set a goal for 23% of primary energy to come from renewables by 2025. The steady 15% annual growth in renewable projects signals that the region is moving closer to this target.
Read also: Southeast Asia Energy Transition Heats Up: 2025 Outlook
Indonesia’s leadership, Thailand and Vietnam’s growing roles, and China’s continued investment highlight the scale of transformation underway. The mix of hydropower dominance, geothermal and wind expansion, and untapped solar growth offers a balanced yet dynamic pathway for the future.
The surge in Southeast Asia Renewable Investment shows not just financial growth but also a broader shift in how the region powers its economy. By embracing clean energy, Southeast Asia is positioning itself as a global hub for renewable development, attracting capital, technology, and innovation.
