How China can help change the game for clean energy in Southeast Asia

Sustained and major investments are needed to help Southeast Asia’s energy sector provide renewable energy at affordable prices

An approach that supports rapid, off-grid deployment of renewable energy with project-specific support can lead to more investment

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Employees assemble a wind turbine blade at a factory in Yancheng, Jiangsu province on November 16 last year. Photo: EPA-EFE

Muyi YangandAlistair Ritchie

Published: 8:30pm, 8 Apr 2024

Southeast Asia and China are committed to closer cooperation in climate action and transitioning to clean energy, as reaffirmed at the 26th Asean-China summit last year. The question is how China can support the region’s transition towards such a future. For answers, one needs to first understand the Southeast Asia’s changing energy landscape.

With growing climate commitments, Southeast Asia’s energy sector is at a critical juncture, faced with the need to ensure the provision of sufficient and reliable clean energy at affordable prices while advancing the decarbonisation agenda.

Among the many essential factors required to achieve these goals, securing significant and sustained investments in renewable energy projects emerges as a crucial factor.

Although opinions vary on the scale and scope of the required investment, there is a wide consensus that the investment needed for the progress of the region’s energy transition is substantial, far exceeding what the public sector can provide, despite traditionally being the main source of funding.