Understanding the Context of Southeast Asia’s Energy Transition Comprehensively

Putrajaya, February 20, 2025 – Southeast Asia is the region with the largest economic growth today. Economic growth goes hand in hand with the demand for energy to drive economic activities. With the ambition to pursue economic growth, energy needs in the ASEAN region will also increase significantly.

The fulfillment of these large energy needs needs to be planned comprehensively, taking into account the need for emission reductions and the maturity of available technology. Comprehensive energy policy planning must begin to be carried out for the Southeast Asia region, not limited to one country. Therefore, forums such as the ASEAN Chairmanship must promote a joint strategic agenda.

Norasikin Ahmad Ludin, Deputy Director of the Solar Energy Research Institute, Malaysia in his remarks at the National Seminar “Accelerating Energy Transition in Southeast Asia and The Role of ASEAN Chairmanship Malaysia” stated that this year Malaysia is promoting a number of priority issues related to energy in its leadership.

“Currently, ASEAN is in a crucial situation with very high energy needs. Malaysia encourages ASEAN to transform into a region with high economic growth and supported by clean energy sources,” he said.

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), recommended a number of steps so that ASEAN can transform to meet its energy needs with clean energy by relying on four main pillars.

First, accelerate the development and integration of clean energy, such as forming the ASEAN Just Energy Transition Partnership (ASEAN-JETP) to open up funding of up to USD 130 billion per year until 2030.

Second, make ASEAN a center for clean energy manufacturing and trading, for example by launching the ASEAN Clean Energy Industrial Strategy to attract more than USD 100 billion in investment in the solar cell, electric vehicle, battery, wind turbine, and green hydrogen sectors.

Third, strengthen green investment and financing mechanisms, by expanding the ASEAN green taxonomy and sustainable finance framework to attract global investors and issuance of green bonds.

Fourth, improving policy coordination and workforce development, such as establishing the ASEAN Clean Energy Workforce Initiative to create more than 3 million jobs in the manufacturing, engineering and digital innovation sectors, and establishing the ASEAN Clean Energy Research and Development Center to encourage research and innovation in clean energy technology.

 

Local Context and Situation

Energy is an inseparable part of human life. Transforming the energy system must involve the community and consider the local context and situation of the community. In terms of systematic renewable energy development, several countries in Southeast Asia have unique experiences that can be used as a reference for practice.

Roberto Emilio Hernandez, Director of Energy Policy at the Institute for Climate and Sustainable Cities (ICSC), shared about the situation and challenges of renewable energy development in the Philippines.

“Geographically, the Philippines is often hit by storm surges, making renewable energy development quite challenging. With a situation like this, we encourage decentralized power plants so that each power plant can be closer to the load location.”

Marlistya Citraningrum, Manager of the IESR Sustainable Energy Access Program, stated that in addition to knowledge and technology transfer, the readiness of the local workforce to work in emerging sectors also needs attention.

“We need to prepare the local workforce, which means we have to think about training or preparation programs that equip them with the skills and competencies needed in the renewable energy sector or industry,” he said.

Sokphalkun Out, Engagement Manager, EnergyLab Cambodia, hopes that the ASEAN power grid can improve energy access in areas that currently lack energy access.

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