Unlocking Southeast Asia's renewable energy potential requires more than investment in generation capacity. At Singapore-IRENA High-Level Forum, speakers examined how predictable regulations, effective financing solutions and stronger regional connectivity can help bring projects to fruition.
In his Opening Address, Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), emphasised the need to advance renewable energy deployment across the region through coordinated policies, investment in interconnected grids and stronger partnerships.
Closing Southeast Asia's energy investment gap
As Southeast Asia's economies expand and electricity demand grows, greater investment will be needed to develop energy infrastructure that supports the region's energy security and decarbonisation priorities.
Christophe Inglin, Vice Chairman, Sustainable Energy Association of Singapore (SEAS), highlighted the gap between Southeast Asia's energy investment and its growing demand.
Mr Inglin said this disparity points to significant opportunities for investment in energy infrastructure, particularly as rising living standards, industrial development and digital infrastructure drive electricity demand.
However, investment must extend beyond renewable energy generation. Developing more secure and resilient energy systems will also require substantial capital for transmission infrastructure, interconnectors, storage and technologies that support grid flexibility.
Regional connectivity as an investment priority
The ASEAN Power Grid emerged as a key priority for strengthening regional energy cooperation and unlocking the region's renewable potential. Mr Inglin highlighted the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project as an example of how cross-border electricity trade can support greater regional integration.
He noted that Singapore's plans to import low-carbon electricity from neighbouring countries could also contribute to the development of regional energy markets, infrastructure and capabilities.
The scale of investment required remains significant. Citing IEA estimates, Mr Inglin noted that approximately US$2 billion had been invested in Southeast Asia's cross-border electricity interconnectors between the 1970s and 2024, while an estimated US$27 billion would be needed between 2025 and 2040 to deliver planned interconnector projects under the ASEAN Power Grid.
These investments, he emphasised, will depend on closer collaboration among governments, financial institutions and the private sector.
Creating the conditions for renewable energy investment
Both speakers stressed that renewable energy ambitions must be supported by policies and financing frameworks that enable projects to reach implementation.
Mr Inglin highlighted the importance of clear policies, predictable regulations and credible energy markets in attracting infrastructure investment. He noted that addressing project risks through stronger public-private collaboration would be essential to bringing viable projects to financial close.
Similarly, Mr La Camera said that renewable energy expansion and electrification must advance together, supported by investment in modern interconnected grids, energy storage, system flexibility and other enabling technologies.
He called for robust policy and regulatory frameworks, well-prepared projects, effective risk mitigation and appropriate financing solutions to help mobilise the capital required.
Beyond energy infrastructure, Mr La Camera also highlighted the importance of ensuring that investments create opportunities for local industries, skills development and employment.
He pointed to IRENA's Accelerated Partnership for Renewables in Southeast Asia as an important platform for strengthening regional collaboration, supporting renewable energy deployment and developing interconnected, flexible and resilient energy systems.
Follow @SIEW_sg on Telegram and X (formerly Twitter) for the latest insights and updates.
