Southeast Asia RE investments to exceed $76b in 2025
This is driven by national oil companies and traditional upstream players.
Renewable investments in Southeast Asia will exceed $76b from 2023 to 2025 as national oil companies (NOCs) and traditional upstream players set their sights on cleaner and environmentally friendly projects.
In a report, Rystad Energy said NOCs such as Indonesia’s Pertamina is ramping up its participation in the geothermal sector. Pertamina’s subsidiary is investing around $1.6b between 2023 and 2026.
Malaysia’s Petronas is also working with international operators Eni and Euglena to explore decarbonisation solutions along with its Kasawari carbon capture, utilisation and storage (CCUS) project.
“Southeast Asia has historically seen slower progress in the development of clean energy projects. Effective collaboration between private and public sectors becomes crucial to ensure the region's sustainable long-term growth,” said Afiqah Mohd Ali, senior supply chain analyst at Rystad Energy.
“Asia is currently making significant strides in prioritizing the shift towards greener energy sources, supported by the renewed focus of NOCs. This strategic approach will be pivotal in driving Southeast Asia's transition forward to sustainable energy,” Ali added.
Rystad added that Petronas is expected to spend $450m on CCUS projects and $330m on hydrogen projects between 2023 and 2026.
Meanwhile, Vietnamese NOC PetroVietnam is working with Danish firm Orsted and T&T Group to launch the country’s first offshore wind projects which could generate around 13.7 million megawatt-hours of electricity annually. The project is estimated to have an investment of between $11.9b and $13.6b.