Asia’s clean energy transition: More than just a supply chain problem
29 Aug 202514 min read
Summary
- Asia is aiming high on clean energy, with many countries setting ambitious net-zero and renewable-energy targets, but supply-chain bottlenecks, geopolitical risk and infrastructure gaps are slowing progress.
- The article notes that the region needs massive investment — tens of billions of dollars each year — to scale renewable capacity, improve grids and streamline permitting, yet policy fragmentation and financial barriers remain.
- Despite the hurdles, countries such as Malaysia, Indonesia, Thailand and Singapore are building stronger, greener value chains by investing in areas like battery recycling, green finance and cross-border electricity integration.
Asia is stepping up its clean energy game. Countries across the region have set ambitious targets to reduce their use of fossil fuels and switch to renewables like solar, wind, and hydrogen. But turning those plans into reality is proving to be difficult—especially with supply chains under pressure.
Rising costs, limited infrastructure, and political tensions are just some of the challenges slowing things down. And unless these problems are addressed soon, Asia may fall short of its climate goals.
Big Goals, Slow Progress
Southeast Asia has been pushing for cleaner energy, but it’s behind schedule. This push is driven by rising energy demand, heavy reliance on fossil fuel imports, and growing pressure—both domestic and international—to cut emissions and reduce pollution. The region set a goal to get 23% of its total energy from renewable sources by 2025. As of 2022, it had only reached 15.5%, according to the ASEAN Centre for Energy. With less than a year left, that target seems out of reach.
Still, money remains a major roadblock. The ASEAN Centre for Energy estimates the region will need between $20 billion and $56 billion in renewable energy investments each year until 2030.
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Dimitri Pescia from Agora Energiewende said, “Rapidly scaling cheap and abundant solar and wind energy is key to meeting net-zero targets and ensuring sustainable economic growth for the region.”
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