Southeast Asia is set to see major growth in its renewable energy sector over the next decade. According to a report from the International Energy Agency (IEA), clean energy sources such as wind, solar, modern bioenergy, and geothermal are expected to meet more than one-third of the region’s energy demand by 2035.
Electricity demand in Southeast Asia is projected to increase by 4% annually. This growth will drive the need for more renewable energy solutions. The report states that while the use of clean energy is increasing, carbon dioxide (CO2) emissions from the region are still expected to rise by 35% by mid-century.
The IEA report emphasizes that to align with climate goals, Southeast Asia needs to significantly increase its investments in renewable energy. Currently, the region attracts only 2% of global clean energy investments, even though it accounts for 6% of global energy demand. To meet its energy and climate goals, the region must increase its renewable energy investments fivefold to $190 billion by 2035.
Countries in Southeast Asia are already making strides in renewable energy. Indonesia is a key player in the production of lithium-ion battery components, which are essential for clean energy technologies. Vietnam, Thailand, and Malaysia are among the largest manufacturers of solar photovoltaic (PV) systems after China.
To support this growth, the region needs to modernize its power grids and invest in infrastructure for renewable energy. This includes developing projects like the ASEAN Power Grid, which aims to connect countries and share renewable energy resources.
