A new International Energy Agency (IEA) report highlights Southeast Asia’s vast renewable energy potential, calculating around 20 TW of untapped solar and wind capacity—enough to power the region many times over. This is roughly 55 times its current total generation capacity.
“Harnessing even a fraction of the available renewable resources would enhance energy independence, reduce import costs, and increase sustainability,” claim the writers of the report titled Integrating Solar and Wind in Southeast Asia.
For Indonesia, the Philippines and Vietnam, coal dominates the power generation mix, whereas Thailand, Singapore and Brunei Darussalam depend on gas as their main source of electricity supply. For Lao PDR, hydropower accounts for more than 70% share, which is also a leading source in Cambodia, Myanmar and Vietnam.
Nevertheless, fuel price volatility and supply disruptions following the global energy crisis in the aftermath of COVID-19 underscored the importance of meeting the growing electricity demand with affordable and secure energy supply.
Solar PV is an attractive proposition—as opposed to expensive imported fossil fuel supply on which several nations in the region are heavily reliant on—as its costs have declined by 90% since 2010. Both solar and wind are now among the most cost-competitive options for new electricity generation across Southeast Asia, according to the IEA report.
Over the coming decade, analysts expect renewable energy to meet over 1/3rd of the region’s electricity demand growth. The momentum is building with 8 out of 10 member states of the Association of Southeast Asian Nations (ASEAN) having announced net zero emission targets. They also hail the role of policy instruments such as competitive auctions and direct power purchase agreements (PPA) that accelerate renewable energy adoption.
According to the report, Southeast Asia can manage near-term solar and wind integration challenges with low-cost, proven measures without major system overhauls. Most ASEAN countries are in early Variable Renewables Integration (VRE) phases, where impacts on the grid are minor to moderate, and are expected to remain so until 2030. Key measures include increasing flexibility of conventional power plants, improving forecasting, updating grid codes, and modernizing monitoring and control systems.
By 2035, some countries may face greater flexibility needs. Learning from the examples of their peers globally, like Japan and Australia, Southeast Asia can manage the situation through a combination of flexible resources, including thermal and hydropower, demand response, interconnections, and energy storage.
The IEA recommends modernizing national grids and linking power systems across Southeast Asia to ensure reliable, affordable electricity and easier integration of solar and wind. Countries should also work together regionally and nationally to meet rising demand, support clean energy goals, and improve energy access and grid resilience.
The complete IEA report is available for free download on its website.
