Discussion: Capturing the Potential of Renewable Energy in Southeast Asia through Questions and Answers

In the realm of global energy transition, Southeast Asia is making significant strides, with countries like Vietnam, Indonesia, and Pakistan leading the charge.

Vietnam revised its Power Development Plan 8 in April 2025, marking a significant shift towards solar and onshore wind energy due to high electricity demand growth and the difficulty in adding fossil-based generation capacity. This move is part of a broader trend in the region, as countries grapple with the challenges posed by climate change and the need for sustainable energy solutions.

The solar sector in Vietnam is geographically diverse, employing a wide range of skills, from computer engineers to local people tending goats who maintain vegetation around solar farms. This distributed workforce is a testament to the sector's potential for job creation and local economic development.

Indonesia, with its attractive conditions for solar power, has not fully leveraged this potential. Planners are hesitant due to concerns about grid financial health, despite the potential for creating a domestic market for solar manufacturers. This is a missed opportunity, as countries like Thailand and Vietnam already host solar cell manufacturing plants and could further develop their own facilities.

Pakistan, on the other hand, is experiencing a organic rooftop solar revolution. This rapid shift towards renewable energy, while potentially beneficial for consumers, poses challenges for grid financial health. However, Pakistan's 19 GW of rooftop solar installations, mostly from individual homeowner or business owner investments, demonstrate the dynamic potential of renewable energy.

The world is heading towards an electrified state, with more Electric Vehicles (EVs), heat pumps, and industrial processes. It makes sense, then, to invest in the systems that supply the grid and make energy planning choices that avoid borrowing foreign currency.

Each country needs a 'tendering factory' to produce project after project reliably and consistently as part of a plan to diversify the national energy portfolio. This factory would streamline the process, making it easier for private capital to mobilize and invest in these projects.

Reducing red tape, securing land, right-of-way access to transmission lines, clear permitting processes, and standardized bidding procedures are crucial for this endeavour. Grid infrastructure is also crucial because it is the only way to deliver new energy to customers, and all countries need to modernize their grids to accommodate new energy sources.

In the race towards a sustainable future, China stands out. In 2024, the country added over 750 megawatts (MW) of solar power per day, a testament to the dynamic potential of renewable energy. China directs subsidized capital and costs along the supply and deployment chain for grid improvements, a step not yet seen systematically in other countries.

As Southeast Asia navigates this transition, it is clear that the region has much to gain from embracing renewable energy. The challenges are significant, but with the right policies, investments, and infrastructure, the benefits could far outweigh the costs.