Wind and Solar Capacity in Southeast Asia Surges by 20% in 2023, Reaching Over 28 GW

A new report from Global Energy Monitor (GEM) reveals that wind and solar capacity in the Association of Southeast Asian Nations (ASEAN) increased by 20% in 2023, reaching a total capacity of over 28 gigawatts (GW).

The report indicates that solar and wind technologies now constitute 9% of the electricity generating capacity in ASEAN countries, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

Combined with a substantial base of hydropower, the growth in wind and solar capacity brings the region close to its renewable energy capacity target of 35% by 2025, as set by GEM. The addition of 17 GW of utility-scale solar and wind projects within the next two years would be sufficient to achieve this goal.

According to GEM, the region is even on track to surpass its target, nearly doubling wind and solar capacity in the next two years with an additional 23 GW of new projects. The report also highlights a more extensive pipeline of new utility-scale wind and solar capacity, reaching 220 GW. However, only 6 GW of this pipeline is currently under construction.

Despite ambitious renewable energy goals, ASEAN countries, collectively boasting one of the world’s fastest-growing economies, have experienced rapid electricity demand growth, supporting continued reliance on gas and coal power. The report emphasizes that while renewables have the potential to curb fossil fuel demand, regulatory challenges and a lack of supportive policies hinder wind and solar expansion.

Key findings from the report include:

• ASEAN added 3 GW of solar capacity in 2023, representing a 17% increase over 2022 levels.
• Operational wind capacity saw a larger comparative rise, growing by 29%, or 2 GW, since January 2023.
• Vietnam leads in utility-scale solar and wind capacity among ASEAN nations.
• The Philippines and Thailand hold the second and third highest utility-scale solar and wind capacity in the region, each with 3 GW of operating capacity.
• The Philippines has a streamlined project bidding system, contributing to an unencumbered pipeline of project development.
• A total of 222 GW of announced, pre-construction, and construction-stage utility-scale wind and solar capacity exists in ASEAN countries.
• Vietnam and the Philippines account for over 80% of prospective capacity in the region.
• Vietnam has 86 GW of prospective capacity, including 72 GW of offshore wind, although only 2% is currently under construction.
• Laos aims to “punch above its economic weight” in the development of utility-scale solar and wind capacity, with over 3 GW of prospective capacity.
• The target for renewables to make up 35% of electricity generating capacity by 2025 is deemed “easily attainable and ultimately unambitious for ASEAN,” with renewables already constituting 32% of electricity capacity in the region.

The report acknowledges progress in renewable energy, it underscores the ongoing challenges posed by fossil fuel reliance, low construction rates for solar and wind, and inadequate grid infrastructure investment. The findings suggest that despite a clear effort to ramp up renewable energy, it continues to be complicated by the simultaneous buildout of fossil fuels and slow construction rates for solar and wind.

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