RECCESSARY’s “ASEAN Weekly” highlights Southeast Asia’s new energy and carbon market updates. (Image: RECCESSARY)
This week in ASEAN, key developments highlighted both breakthroughs in power market liberalization and the rapid rise of distributed renewable energy. Samsung Electronics became the first company in Vietnam to sign a direct power purchase agreement (DPPA) under a wheeling model. Meanwhile, rooftop solar in the Philippines is accelerating amid high electricity prices and falling installation costs. Below are ASEAN’s key stories from June 1–7.
Thai energy firms exit thermal assets, pivot to clean energy on AI demand
Thailand’s major energy companies are accelerating their shift away from fossil fuel power generation, selling thermal assets and redirecting capital into renewable energy, battery storage, and energy trading as demand for clean electricity grows across Asia.
Over the past year, companies including Banpu Power, Electricity Generating Plc (Egco), and BCPG have either completed or advanced significant fossil fuel asset sales, with proceeds earmarked for low-carbon investments. Read more here
Renewables surge slashes Keppel's emissions, but Scope 3 shadows progress
Singapore-based conglomerate Keppel has stepped up its decarbonization efforts, boosting its renewable electricity usage by 20 percentage points within a year. The company is now on track to achieve net-zero targets for Scope 1 and Scope 2 emissions ahead of schedule. However, rising natural gas sales have driven up its Scope 3 emissions.
Keppel expects that as Singapore’s power grid continues to decarbonize, its Scope 3 emissions could gradually decline. At the same time, the company will focus on strengthening management of three key sources of Scope 3 emissions. Read more here
Malaysia pushes ASEAN power grid as AI demand strains regional energy systems
Malaysia is renewing its push for the ASEAN Power Grid, arguing that rising electricity demand from AI infrastructure and growing geopolitical risks are exposing the limits of national energy systems.
Speaking at the Energy Transition Conference 2026 on Thursday, Malaysian Prime Minister Anwar Ibrahim said Southeast Asia can no longer rely solely on domestic grids to guarantee energy security as electricity demand accelerates and global energy supply chains become increasingly vulnerable to disruption. Read more here
Vietnam’s first grid-based DPPA signed by Samsung Electronics, marking milestone for power market
Samsung Electronics’ Vietnam Thai Nguyen Co. (SEVT) announced on June 1 that it has become the first company in Vietnam to complete negotiations and sign a direct power purchase agreement (DPPA) via the national grid—setting a new milestone for the country’s power market liberalization.
As Samsung continues to expand investment in semiconductor facilities in Vietnam, demand for renewable electricity is also expected to rise further. Read more here
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Samsung Electronics signed a DPPA in Vietnam, sourcing renewable power via the national grid and marking a market milestone. (Photo: Samsung Electronics)
Philippines rooftop solar nearly doubles as power price rises cut payback periods
Rooftop solar is scaling up rapidly in the Philippines. Supported by favorable policies, the country’s rooftop solar generation has nearly doubled over the past 12 months. A large stockpile of imported solar panels is also expected to translate into actual installations.
At the same time, rising electricity prices and falling installation costs are significantly improving project economics. Payback periods for residential rooftop systems have dropped sharply to around three years, boosting investor appeal. Read more here
Taiwanese textile makers in Vietnam: New Wide Group cuts emissions with biomass, but Scope 3 pressures rise
Vietnam’s textile industry has expanded rapidly in recent years, attracting global brands to shift more of their supply chains into Southeast Asia. But with around 85% of Vietnam’s textile output exported, buyers are also raising requirements around renewable energy sourcing, carbon management, and broader sustainability standards across the supply chain, pushing Taiwanese textile manufacturers in Vietnam to rethink factory energy systems, material sourcing, and emissions tracking.
One example is New Wide Group, one of Taiwan’s largest vertically integrated knitted fabric manufacturers and a supplier to brands including Adidas and ZARA. At its Phu Dong dyeing and finishing plant in Tay Ninh Province, the company has spent recent years restructuring both its energy systems and supply chain management approach. Read more here
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