China, South Korea and Japan eyeing Asean's clean energy market

Number of investment projects in region has increased amid fewer US initiatives

- Chin Hui Shan

South-east Asia is a developing region with a huge appetite for energy, and investors in China, South Korea and Japan are now finding promise in investing in renewable energy projects in Asean.

A new report released on May 20 found that the number of international investment projects for renewable energy in Asean has increased by an average of about 15 per cent per year since 2020, with investments reaching US$43 billion (S$55.8 billion) in 2022.

This growth rate is higher than the global average of 11 per cent, according to the report by climate and energy research group Zero Carbon Analytics.

In terms of public financing, China was the largest investor in Asean clean energy with over US$2.7 billion between 2013 and 2023, followed by Japan with US$2.45 billion.

Meanwhile, South Korea invested US$583 million and Australia put in US$51 million.

The five Asean recipient countries in the report are Indonesia, Malaysia, the Philippines, Thailand and Vietnam.

Asean's electricity demand is expected to grow 41 per cent by the end of the decade, said the report.

However, the developing region, which is still heavily reliant on coal for its energy needs, needs foreign investment for the energy transition, with major financing gaps in renewables and grid development.

The report comes amid the scale-back in climate initiatives and spending by the US.