The transition of the Association of Southeast Asian Nations (ASEAN) towards renewable energy is marked by strategic ambitions, shifting policies and complex geopolitics. As the world leans towards a greener future, member countries of ASEAN are amplifying their focus on renewable energy sources to reduce dependence on fossil fuels and fortify energy security. Their commitment to advancing the clean energy transition is underscored by comprehensive policy integration efforts.
Through the ASEAN Plan of Action for Energy Cooperation and with the support of the ASEAN Centre for Energy, member states have agreed on regional initiatives such as the ASEAN Power Grid and ambitious renewable energy targets. As ASEAN prepares the next phase of the ASEAN Plan of Action for Energy Cooperation (2026-2030), it is reaffirming its commitment to an increasingly integrated, secure and sustainable energy transition that will define its energy landscape in the decades ahead.
The region is at a pivotal crossroads: shifting global power, the rapid energy transition and closer co-operation within the region are re-defining its strategic course. As one of the world’s most dynamic and diverse regions, ASEAN needs to balance the imperatives of geo-economics, a just and secure energy transition, and enhanced regional integration (including through power inter-connection). These interlinked dimensions not only define the present challenges the region faces, but also are key to unlocking a more resilient, inclusive and sustainable future.
Under the 1.5°C Scenario, ASEAN’s GDP in 2023-2050 is expected to increase by a yearly average of 2.6% beyond the growth already anticipated in the Planned Energy Scenario (PES). The energy sector is expected to have roughly 14.3 million jobs in 2050 under the 1.5°C Scenario. This is well above the 11 million jobs under the PES and close to 2.5 times the jobs in 2021 (around 6.1 million jobs).
The report “Socio-economic footprint of the energy transition: Southeast Asia (2nd edition)” by IRENA summarises that to maximise socio-economic benefits, ASEAN would therefore need to harmonise regional policies, develop just transition strategies, improve grid inter-connection, develop critical minerals and launch targeted upskilling initiatives, while carefully balancing geopolitical influences from external actors and ensuring equitable and resilient development across all member states.
Access the report here