Funding and affordability challenge Asia's clean energy shift

High costs and resource reliance slow Asia’s energy transition efforts.

Asia’s clean energy transition is grappling with affordability and funding challenges, with annual investment needs estimated at $2.5 trillion to reduce reliance on fossil fuels, according to Eka Satria, President Director and CEO of Medco Power Indonesia.

“The big question is, where is the money coming from?” Satria remarked, emphasising that securing sufficient financial resources is essential for regional progress.

Satria also pointed out the economic dilemma facing many Asian countries, where affordability is often prioritised over sustainability and security. “Asia will rely more on affordability, rather than security and sustainability…Asia needs to grow,” he explained, noting that coal and fossil fuels remain primary resources due to their accessibility.

Despite these barriers, Satria highlights positive trends, including rising public demand for cleaner energy and emerging cross-border trade opportunities, such as Indonesia’s renewable energy exports to Singapore. Additionally, he sees potential in Asia’s growing electric vehicle and battery production, led by China and India.