Asia’s renewable energy landscape is rapidly evolving, pushed by surging energy demand, geopolitical shifts and an urgent need to combat climate change. Robust policy frameworks now play a central role in boosting investor confidence and mobilising capital for renewable projects across the region.
The Policy Catalyst for Asia’s Energy Transition
The narrative of Asia’s energy transition is inextricably linked to the efficacy of its policy frameworks. Asia has already demonstrated extraordinary momentum in this transition, with clean energy investment surging over 900% since 2013 to reach a record high for the region of USD729.4 billion in 2023, comprising approximately 45% of total global investment in this sector. Increasingly, this capital is being channelled into the expanding and modernising critical infrastructure and advanced technologies such as digitised power grids, large-scale renewable installations, advanced battery storage and low-carbon hydrogen production.
This robust investment landscape is underpinned by supportive government policies across the region. In Asia, governments have embraced a variety of measures to catalyse investments. For example, in Indonesia, Malaysia, the Philippines, Thailand and Vietnam, feed-in tariffs (FiTs) have secured long-term price stability and boosted renewable energy deployment. These FiT arrangements offer renewable energy producers stable, above-market prices for electricity supplied to the grid. In Malaysia, the FiT mechanism, administered by the Sustainable Energy Development Authority, guarantees a fixed premium rate, thereby providing investors with a predictable revenue stream. Similarly, Renewable Portfolio Standards (RPS) mandate that electricity suppliers gradually increase the share of energy generated from renewables. South Korea’s RPS, established in 2012, sets annual targets for major utilities, helping to de-risk investments and accelerate the integration of clean energy into the grid. These binding targets provide regulatory certainty, catalyse project financing and accelerate the integration of cleaner resources into the grid.
Other policy instruments include tax incentives, accelerated depreciation for renewable assets and government-backed power purchase agreements. These initiatives not only enhance investor confidence but also reduce investment risks and align public policies with private sector goals.
Policy in Action: Success Stories and Lessons from Asia
Policy initiatives have yielded significant results across Asia. In Vietnam, rooftop solar installations surged by more than 2,400% in 2020 compared to 2019, pushing the country into the top 10 global solar photovoltaic markets and enabling it to meet its 2025 solar target five years ahead of schedule. The expansion was helped by attractive FiTs, favourable foreign direct investment policies and robust domestic demand. In April 2025, Vietnam revised its Power Development Plan 8, significantly raising solar and onshore wind targets to align with robust economic growth and increasing energy needs.
Similarly, India is pursuing an ambitious renewable energy targets of 500 GW of renewable capacity by 2030. Stable policies such as priority dispatch for clean energy and transmission charge waivers have helped make India’s solar and wind energy among the most competitively priced globally.
The Laos-Thailand-Malaysia-Singapore Power Integration Project, a groundbreaking initiative in Southeast Asia, is the region’s first multilateral electricity trading framework. Under its first phase, Singapore has successfully imported up to 100 megawatts of hydropower from Laos, transmitted through Thailand and Malaysia. This project demonstrates how regional energy cooperation can effectively leverage diverse renewable resources for sustainable development and enhanced energy security across participating nations.
The Importance of Long-Term, Stable Policy
For capital-intensive renewable energy projects, regulatory consistency is as important as technological innovation. Long-term contracts, such as 15–21-year FiT agreements, provide the clarity investors need to commit to large-scale projects.
Malaysia’s National Energy Transition Roadmap (NETR), launched in 2023, exemplifies this approach. NETR not only aligns with Malaysia’s national ambition to achieve net-zero emissions by 2050, but it also outlines a clear, phased approach for transitioning from fossil fuels to renewable energy sources. Its first phase has already secured RM25 billion in committed investments and is expected to create approximately 23,000 skilled jobs. One flagship initiative under NETR is a one-gigawatt hybrid solar photovoltaic power plant within a Renewable Energy Industrial Park. This project alone accounts for RM6 billion in investment, drawing funds from both domestic and international stakeholders. In addition, NETR also charts clear targets to raise renewable energy’s share in Malaysia’s power mix from 40% in 2035 to 70% by 2050.
By establishing clear milestones and securing significant financial commitments, NETR has created a predictable investment environment. This encourages further public and private capital flows and reaffirms investor confidence in long-term energy transition energy.
Current State of Energy Investments in Asia
Asia continues to be a hotspot for renewable energy investment, with expectations to triple its capacity over the next decade. China remains to be the dominant force, accounting for USD818 billion of investment in 2024 (a 20% increase from 2023). This remarkable figure represents two-thirds of the total global increase for the year, surpassing the combined investments of the US, EU and UK. In parallel, India stands out as another key leader in the region. Driven by aggressive policy reforms and rapid expansion in solar and wind capacity, India’s renewable energy investments reached about USD13.3 billion in 2024, a 40% increase from the previous year.
In Southeast Asia, private green investments jumped by 43% from USD5.6 billion in 2023 to USD8 billion in 2024. This influx is not limited to one subsector; solar energy has experienced explosive growth, while sectors like waste management and energy storage are also gaining traction.
Governments across Asia have launched several funding programmes and public–private partnerships to catalyse the renewable energy transition. Malaysia has implemented the Net Energy Metering programme in 2016 and is now in its third iteration, while the Large-Scale Solar competitive-bidding programme has run since 2016, with the fifth tender round issued in 2024. The new Corporate Renewable Energy Supply Scheme, unveiled in July 2024, opens grid access for developers to supply green power directly to corporate off-takers.
Singapore, meanwhile, formalised Renewable Energy Certificates with the launch of the national SS 673 standard in October 2021, providing a mature, market-based mechanism to verify renewable consumption. These funding frameworks are bolstered by international organisations and multilateral agencies, which provide the technical expertise and financial backing needed to scale these initiatives across Asia.
Despite existing measures, substantial investment is still needed to meet climate targets. Analysts estimate that the region may need to unlock as much as USD1.5 trillion by 2030 to fully realise its energy transition goals.
Opportunities and Challenges in Mobilising Investment
Emerging technologies, such as advanced battery storage, low-carbon hydrogen and smart grid solutions, stand to benefit from supportive policies. Strong regional collaboration can unlock new financing channels, particularly through cross-border investments and public-private partnerships.
However, persistent challenges like market volatility, regulatory fragmentation and risks related to political instability continue to hinder progress. The lack of harmonised standards across Asia means companies must navigate diverse regulatory landscapes, which can increase transaction costs and deter cross-border investments. Despite increased green capital, many emerging markets in the region lack financing to scale up renewable projects and meet growing demand.
Looking Ahead: Shaping the Future of Investment
Asia is at a critical turning point in its energy transition. The region has demonstrated remarkable leadership in renewable energy investment and deployment. Its trajectory is critical for global climate goals, and its continued momentum is undeniable, particularly evident in China’s unprecedented scale and the ambitious targets set across ASEAN.
Effective policy goes beyond mere incentives; it must be dynamic, adapting to technological advancements and market realities and addressing both financial and non-financial barriers. Platforms like Energy Asia will play a key role in sharing successful policy frameworks and catalysing further investment. Energy Asia 2025 offers a unique platform to showcase successful policy frameworks and share forward-looking insights on investment mobilisation.
Be in Kuala Lumpur for Energy Asia 2025 and become part of the journey towards a fully decarbonised and sustainable energy future.
Register now at officialenergyasia.com.
