ASEAN’s clean power pathways: 2024 insights

This report by Ember analyzes the 2023 power sector landscape in ASEAN, highlighting that electricity demand growth was entirely met by fossil fuels. It examines the costs and reliability of various renewable energy sources, the potential for regional grid interconnection, and the role of carbon financing and policy reforms in accelerating the transition to clean energy.

• In 2023, ASEAN's electricity demand grew by 3.6% (45 TWh), and this entire increase was met by fossil fuel generation. Consequently, power sector emissions rose by 6.6% to 718 million tonnes of CO2, with the largest absolute annual increase since 2019.
• Hydropower generation in ASEAN decreased by 21 TWh in 2023 compared to 2022, despite an increase in installed capacity of 0.5 GW. This decline is attributed to climate change impacts, specifically persistent droughts, which undermine the reliability of hydro as a clean energy source.
• Solar, hydro, and geothermal are the most cost-effective new generation options in ASEAN. Bioenergy is the most expensive renewable source; for instance, its levelized cost of electricity (LCOE) in Indonesia, Malaysia, and Thailand ranges from $59-98 USD per MWh, whereas hydro in Lao PDR is approximately $25 USD per MWh.
• Various decarbonization pathways suggest that ASEAN must increase its renewable energy capacity by three to five times 2023 levels by 2035. Targets vary by scenario, with the Regional Aspiration Scenario aiming for a 72% renewable energy share (1 TW) by 2050.
• Several ASEAN countries are introducing mechanisms for direct renewable power purchases to meet industrial demand. Viet Nam has approved a Direct Power Purchase Agreement (DPPA) scheme, while Thailand and Malaysia are developing Third Party Access (TPA) frameworks.
• The Philippines has recently removed foreign ownership restrictions on renewable energy businesses, which has contributed to record-high investment levels this year.
• Battery Energy Storage System (BESS) projects are expanding to manage solar intermittency. Malaysia is developing its largest BESS in Sabah (400 MWh) for completion by June 2030, and the Philippines is planning a project combining 3.5 GWp of solar with 4.5 GWh of battery storage.
• Regional power interconnection is viewed as a critical lever for the energy transition. While 8 of 18 planned interconnections are complete, the Lao PDR-Thailand-Malaysia-Singapore (LTMS-PIP) project represents a significant multilateral milestone.
• Carbon pricing is emerging across the region to fund the transition. Singapore currently has a carbon tax, and Thailand plans to introduce one next year at 200 baht ($5.60 USD) per tonne of CO2 equivalent on oil products.
• The energy transition could create significant employment opportunities to offset fossil fuel job losses. In Indonesia, over 1 million new jobs could be created through renewables and rekilling, offsetting 31,000 losses in the coal sector.

APA

Setyawati, D., & Nadhila, S. (2024). ASEAN’s clean power pathways: 2024 insights. Ember. https://ember-energy.org/app/uploads/2024/10/Report-ASEANs-clean-power-pathways-2024.pdf

Chicago

Setyawati, Dinita, and Shabrina Nadhila. ASEAN’s clean power pathways: 2024 insights. Ember, 2024. https://ember-energy.org/app/uploads/2024/10/Report-ASEANs-clean-power-pathways-2024.pdf.

Wikipedia

{{cite report |last1=Setyawati |first1=Dinita |last2=Nadhila |first2=Shabrina |title=ASEAN’s clean power pathways: 2024 insights |publisher=Ember |date=22 October 2024 |url=https://ember-energy.org/app/uploads/2024/10/Report-ASEANs-clean-power-pathways-2024.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{setyawati2024aseans, author = {Setyawati, Dinita and Nadhila, Shabrina}, title = {{ASEAN’s clean power pathways: 2024 insights}}, institution = {Ember}, year = {2024}, month = oct, url = {https://ember-energy.org/app/uploads/2024/10/Report-ASEANs-clean-power-pathways-2024.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }