Category: Mega Trends & Analysis Asia

State of Solar PV and Grid Infrastructure in Southeast Asia

State of Solar PV and Grid Infrastructure in Southeast Asia

October 27, 2025 | , ,

The solar energy potential in Southeast Asia far exceeds its current deployment. The region boasts an estimated 16 TW of solar energy potential, yet as of 2023, only about 26 GW have been installed. To meet net zero targets, it is estimated that annual renewable energy capacity additions must increase sevenfold for solar energy, from an average of 5 GW per year between 2018 and 2021 to about 36 GW annually from 2030 to 2050. According to the AIMS III, 18 priority interconnection projects have been identified, aiming to increase the existing transmission capacity of 7.7 GW to 17.6 GW by 2040.

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Electricity Generation Trends in China and India in 2025

Electricity Generation Trends in China and India in 2025

October 13, 2025 | ,

China, India, the EU and the US accounted for 63% of global electricity demand and 64% of CO2 emissions in the first half of 2025. Development in these countries therefore has a major influence on the global power sector. In H1-2025, fossil fuel generation and related emissions fell in China and India – a reversal of trends seen in the first half of 2024, as clean sources in both countries grew faster than electricity demand.  Meanwhile, fossil generation and emissions rose in the US as clean generation did not keep pace with demand growth.

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The ‘Why’ and ‘How’ of China’s Clean Energy Transition

The ‘Why’ and ‘How’ of China’s Clean Energy Transition

September 17, 2025 | ,

For China, the clean electricity transition involves more than decarbonisation – it is a strategic pivot to reimagine development. As the fossil-fuelled growth model – once central to China’s economic rise – reaches its limits, the country is pioneering a pragmatic, phased path to “green growth,” where environmental and economic goals reinforce each other. This dynamic is creating self-sustaining momentum, towards China’s broader ambition to build an “ecological civilisation” – aligning long-term prosperity with sustainability.

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Renewable Energy Development in the Hindu Kush Himalaya Region

Renewable Energy Development in the Hindu Kush Himalaya Region

September 8, 2025 | ,

The HKH region has the potential for nearly 2,200 GW and 750 GW of electricity generation, respectively, from  solar and wind sources. The HKH areas of China have the highest potential for electricity production from solar (1,772 GW) and wind (741 GW) sources. The HKH areas of India have the potential for 224 GW from solar energy. The HKH parts of Afghanistan have a solar energy potential of 80 GW and around 6 GW of wind energy potential. Pakistan and Nepal have, respectively, a solar energy potential of 56 GW and 24 GW. Myanmar and Bhutan also have significant potential for solar energy of 12.7 GW and 12 GW, respectively.

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Status of Renewable Energy Development in Japan

Status of Renewable Energy Development in Japan

September 1, 2025 | ,

Every three to four years, the Japanese government updates its Strategic Energy Plan, a key policy document that guides the long-term development of the country’s energy sector. The latest plan, the 7th SEP, was finalized in February 2025. It aims for a power generation mix in 2040 that consists of 40%–50% renewable energy. Solar power remains the primary driver of Japan’s renewable expansion. In 2023, solar PV generated nearly 30 times more electricity than in 2010, accounting for 9.8% of the total electricity output. Wind power generation rose from 4,016 GWh in FY2010 to 10,492 GWh in FY2023.

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Unlocking Regional Power Trade: Policy Pathways for the ASEAN Power Grid

Unlocking Regional Power Trade: Policy Pathways for the ASEAN Power Grid

August 11, 2025 | ,

Southeast Asia has made incremental progress: a few multi-country links are now operational, many bilateral arrangements exist, and multiple projects are planned. However, truly multilateral grid integration remains at an early stage. ASEAN’s goal of a unified grid by 2045 will require sustained political commitment, heavy investment and continued expansion of cross-border projects. The LTMS-PIP shows the way forward, but the coming decades will need further “building block” projects and regulatory harmonization to bring all ASEAN grids into one cooperative network.

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India’s CBG sector gains momentum, but challenges remain

India’s CBG sector gains momentum, but challenges remain

July 28, 2025 | , ,

India’s CBG sector is gaining traction, backed by abundant biomass availability, supportive policy interventions, the need for sustainable waste management and a growing emphasis on domestic energy security. The sector is seen as a critical enabler of crude oil import reduction, soil health restoration, mitigation of pollution caused by biomass burning and advancement of India’s energy self-reliance goals. India possesses a vast and diverse biomass base that can support a distributed and robust CBG production model. The sector has been on a long learning curve; now, it seems set to leverage these learnings for larger overall gains.

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EVN’s Efforts to Integrate Renewables into Vietnam’s Grid

EVN’s Efforts to Integrate Renewables into Vietnam’s Grid

July 21, 2025 | ,

Viet Nam’s electricity market is dominated by the state-owned utility, EVN, which is tasked by the government with the production, buying, selling, importing, and exporting of electricity, as well as investing in electricity projects and managing the national grid. EVN holds a direct monopoly on transmission and distribution, making the integration of new renewable energy capacity a major responsibility for EVN and its subsidiaries. EVN’s effort to upgrade the grid to accommodate renewable energy will need to be increased as Viet Nam has set ambitious climate and energy goals.

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Market trends and outlook for the Indian wind power sector

Market trends and outlook for the Indian wind power sector

July 14, 2025 | , ,

India’s wind energy sector is gaining momentum, underpinned by strong policy backing, a rising demand for clean energy and an ambition to meet global climate commitments. In 2024-25, the country added 4.1 GW of new wind capacity. As of May 2025, the cumulative installed wind power capacity has reached nearly 50 GW, as per the Ministry of New and Renewable Energy (MNRE). Much of this recent capacity addition has been concentrated in the leading wind-rich states such as Gujarat, Karnataka and Tamil Nadu.

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Key Trends for Power Market Players in China

Key Trends for Power Market Players in China

July 4, 2025 | ,

Twenty-nine provincial grids are (trial) operating power spot markets, with spot prices falling due to lower coal price, more renewables, and looser supply-demand balance. Buyers now have greater flexibility in allocating shares across M2L transactions, whose prices closely follow thermal coal and spot market trends. Capacity pricing restructures the revenue stream of conventional power plants; a new capacity tariff adjustment could further lower thermal power’s capacity factor.

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Towards Net Zero: ADB report assesses Asia’s energy transition readiness

Towards Net Zero: ADB report assesses Asia’s energy transition readiness

June 23, 2025 | ,

Given the economic and climatic challen­ges of many Asian countries, the transition to clean energy is a long and challenging road. While developed nations have had a head start towards clean energy transitions, poor infrastructure and regulatory inefficiencies, among other factors, make the transition even more challen­ging. Macroeconomic challenges such as high inflation, currency fluctuations and lower sovereign credit ratings raise capital costs, making clean energy projects in many developing Asian countries riskier and more expensive, compared to those in advanced economies. Additionally, underdeveloped financial markets and rising public debt limit both private and public funding availability. Moving forward, strengthening local capital markets, issuing sustainable bonds and implementing transparent policies and regulations will be critical.

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Philippines’ Grid Expansion: NGCP focuses on renewables’ integration

Philippines’ Grid Expansion: NGCP focuses on renewables’ integration

May 26, 2025 | ,

Although it is the only ASEAN country (of 10 nations) that has not set a net zero target, the Philippines aims to increase the share of renewable energy sources (RES) in its electricity mix to 35 per cent by 2030 and 50 per cent by 2040 (from over 16 per cent currently). It also plans to interconnect its islands through a unified electricity grid to enhance power sharing and optimise generation. This requires substantial investment in the transmission infrastructure, which is managed and operated by the National Grid Corporation of the Philippines (NGCP). On its part, the NGCP has maintained its commitment to improving and expanding the country’s network. Between 2009 and 2024, the NGCP added 5,475 ckt km of transmission lines and 40,495 MVA of substation capacity. In March 2025, the NGCP outlined its future plans for further investment in the grid in its latest Transmission Development Plan (TDP) 2025-50, which revises the previous 2024 version with new data and strategies, aligning with the government’s RES targets.

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Grid is the key to unlock ASEAN energy investment: EMBER

Grid is the key to unlock ASEAN energy investment: EMBER

May 19, 2025 | , ,

With the rise of clean energy technologies, renewables in the region are set to grow exponentially to meet increasing demand. There is no better time than now for ASEAN member countries to focus on stronger grids to keep pace with competition for foreign investments with requirements for clean energy, namely modernisation, expansion, adoption of flexibility options, regional integration, market reforms, and mobilisation of finance. Additionally, ASEAN’s commitment to ensure all member countries grow together means market-level development in the renewable energy sector is fuelling larger demand for interconnections. Sharing of renewable energy resources will happen at a more rapid pace in the future. Grids and interconnections, as enablers of these evolving dynamics, will bring cost reduction potential, faster net-zero emission vision, enhance energy security, attract more investment and create more jobs.

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Beyond Borders: CBET developments to enhance South Asian regional energy security

Beyond Borders: CBET developments to enhance South Asian regional energy security

May 12, 2025 | , , ,

Cross-border electricity trade (CBET) is emerging as a key driver of regional energy integration in South Asia. It is fuelled by low per capita electricity consumption, power shortages, poor access to electricity and uneven distribution of energy resources. By leveraging seasonal and resource complementarities across countries, CBET enables optimal utilisation of generation capacity, avoids power wastage and curtailment, and enhances energy security. At a time when global energy security concerns are rising and the clean energy transition is accelerating, CBET presents an opportunity to enhance renewable energy integration, improve grid stability and reduce dependence on imported fossil fuels.

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APAC Wind Energy Market Outlook

APAC Wind Energy Market Outlook

April 28, 2025 | , ,

2024 was a year of vigorous development for China’s wind power industry. India’s wind energy sector is witnessing strong growth, with 3.4 GW of new capacity added in 2024. Singapore is setting an example of regional collaboration within the APAC region. The upcoming Green Energy Auction Program 5 (GEAP 5), to be released by the third quarter of 2025, will mark a significant milestone with the inclusion of offshore wind for the first time in the Philippines. South Korea has significant wind energy potential, both onshore and offshore, with a target of achieving a total cumulative installed capacity of 18.3 GW.

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China has nearly 50% of the world’s solar capacity: IEA

China has nearly 50% of the world’s solar capacity: IEA

April 21, 2025 | , ,

In 2024, the global cumulative installed capacity reached 2.25 TW. It took more than 40 years to reach a cumulative capacity of 1.18 TW (in 2022), but just 2 years to double this. Growth in cumulative capacity remained over 35% — above average for the past 10 years. Within the Top Ten of total cumulative installed capacities, where last year the Chinese cumulative capacity was just over double that of Europe, this year it is triple. There is still a long gap before Japan, who slipping to 5th place and has a slowing market, will be overtaken in cumulative capacity.

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Electricity Generation Trends in China and the US

Electricity Generation Trends in China and the US

April 14, 2025 | , , , ,

China’s electricity demand continued to grow – by 6.6% in 2024 (+623 TWh), down only slightly from 6.9% in 2023. 81% of the demand growth was met with the rise in clean generation – wind, solar, hydro, nuclear and bioenergy generation all rose. Electricity demand in the United States grew by 3% (+128 TWh) in 2024, caused partly by heatwaves over the summer months and partly as a rebound from a milder summer in 2023 when demand decreased by 1.3% (-55 TWh). The demand rise was predominantly met with higher solar, wind and gas generation, which also made up for a fall in coal generation (-22 TWh).

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Indonesian Electric Vehicle Boom: A temporary trend or a long-term vision?

Indonesian Electric Vehicle Boom: A temporary trend or a long-term vision?

March 24, 2025 | , ,

Indonesia is pursuing policies to accelerate the adoption of electric vehicles (EVs) and build a thriving domestic industry. However, to maximize long-term benefits, the government must ensure foreign manufacturers do more than just sell cars—they need to invest in local jobs, supply chains, and technology transfer. While Indonesia’s EV incentive policies reflect a strong commitment to increase market adoption, there remain several risks to achieving the long-term goals of fostering investment, local job creation, and industrial development. The simultaneous application of potentially conflicting incentives—duty-free imports for CBU EVs and subsidies tied to local content—may create an uneven playing field.

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Southeast Asia’s Power Sector: Challenges and opportunities in a dynamic energy landscape

Southeast Asia’s Power Sector: Challenges and opportunities in a dynamic energy landscape

March 17, 2025 | ,

Southeast Asia is a rapidly growing economic powerhouse and a major player in the global energy sector. The region’s energy demand is set to rise significantly over the coming decades, second only to India. Since 2010, Southeast Asia has accounted for 11 per cent of the growth in the global demand for energy, and projections indicate it will contribute over 25 per cent to the total increase in demand by 2035 under the Stated Policies Scenario (STEPS). Southeast Asia stands at a crossroads in its energy transition. The region’s economic growth and industrialisation continue to drive energy demand, but its dependence on fossil fuels poses significant challenges for energy security, climate action and public health. While progress has been made in clean energy deployment, the pace remains insufficient to meet long-term climate goals.

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China’s Domination Over Global Solar PV Supply Chain

China’s Domination Over Global Solar PV Supply Chain

January 13, 2025 | , ,

China’s competitive edge in solar PV manufacturing over other countries comes from four key factors: economies of scale, supply chain vertical integration, technological innovation, and government support. In this list, economies of scale and supply chain vertical integration are the two most important factors. China managed better than any other country to reap these economies of scale. The recipe to maximize economies of scale is straightforward: the bigger, the better.

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