Does Southeast Asia rely on coal & fossil fuel subsidies?

Southeast Asia’s energy demand is rising, but its reliance on coal and fossil fuel subsidies threatens sustainability. Can ASEAN accelerate clean energy adoption?

Is Southeast Asia a good place to invest in energy storage?

Image: ACEN. There has been an uptick in energy storage investment in Southeast Asia, a region still largely powered by coal and experiencing high growth in population and energy demand. Andy Colthorpe speaks with companies working to establish a framework of opportunities in the region.

How much money does Southeast Asia Invest in energy?

However, fossil fuel investment decreased from USD 70 billion in 2015 to USD 50 billion in 2025 while clean energy investment reached USD 47 billion, up from 30 billion in 2015. Given the challenges of accessing international capital markets, Southeast Asia’s capital markets have relied on domestic commercial lending.

Does Southeast Asia have a coal-fired power system?

Concurrently, coal-fired power has remained a significant component of Southeast Asia’s energy mix. Investment in coal plants has risen steadily throughout the past 20 years, reaching 121 GW of installed capacity in 2025.

How can Southeast Asia reduce coal dependency?

Strategies such as biofuel and ammonia co-firing, plant efficiency improvements, and early retirements could reduce coal dependency, but these require significant financial backing. Despite making up 9% of the global population, Southeast Asia received just 2% of global clean energy investments in 2023.

Why do Southeast Asia's capital markets rely on domestic commercial lending?

Given the challenges of accessing international capital markets, Southeast Asia’s capital markets have relied on domestic commercial lending. Commercial finance in clean energy sits above 75%, reaching over 85% in clean power, clean fuels and battery storage.