RECCESSARY’s “ASEAN Weekly” highlights Southeast Asia’s new energy and carbon market updates. (Image: RECCESSARY)
This week in ASEAN, rising AI power demand is accelerating nuclear energy plans in Thailand and Vietnam, with Thailand planning a 300 MW first SMR project and Vietnam outlining five measures to prepare for nuclear power. The Philippines is also stepping up energy diversification through waste-to-energy and geothermal development. Below are the key ASEAN stories from Sept. 7–13.
From waste to geothermal: Philippines steps up push for diverse energy sources
The Philippine government is stepping up efforts to diversify its energy mix, with recent progress in both waste-to-energy and geothermal development.
It has named 11 companies eligible to bid for waste-to-energy projects, including major conglomerates, infrastructure groups and energy companies. The government also plans to allocate PHP 10.07 billion (about USD 160.6 million) to reduce risks during the early exploration and development stages of geothermal projects, with the aim of accelerating investment. Read more here
Indonesia turns to private capital for hydropower expansion, but 5 investment risks loom
Recent severe flooding in Nepal has damaged hydropower facilities, highlighting the importance of assessing safety risks in hydropower development. The risks are equally relevant for Indonesia as it pushes ahead with plans to expand the sector. The country recently unveiled a new strategy aimed at attracting more private capital through bundled procurement as part of its broader energy transition.
However, expanding hydropower will first require state-owned utility PLN to convince private companies that the projects are worth investing in. RECCESSARY spoke with experts from Indonesian and international think tanks to examine the state of the country’s hydropower sector and identify five key issues companies should consider before investing. Read more here
AI power demand accelerates nuclear energy push in Thailand, Vietnam
The rapid growth of artificial intelligence (AI) is accelerating nuclear power development in Southeast Asia.
Thailand has recently approved a policy framework for small modular reactors (SMRs), with the Electricity Generating Authority of Thailand (EGAT) set to lead the country’s first project before private-sector participation is considered.
In Vietnam, state utility EVN has identified three major challenges and laid out five measures as it prepares to develop the Ninh Thuan 1 project, which is expected to become the country’s first nuclear power plant. Read more here
Thailand’s Energy Minister Akanat Promphan recently outlined the draft of the country’s new Power Development Plan (PDP). (Photo: Thailand's Ministry of Energy)
Philippines takes on more climate responsibility in new NDC, but funding gaps remain
The Philippines has submitted an updated Nationally Determined Contribution (NDC), raising its ambition by increasing the share of emissions reductions it plans to achieve with its own resources.
Under the new plan, the country has raised its unconditional target to 7%, meaning it pledges to achieve that portion of emissions reductions without relying on international support.
However, Aksyon Klima Pilipinas (AKP), one of the country’s largest climate advocacy groups, said the updated plan lacks a clear implementation roadmap and urged the government to take stronger domestic action rather than passively waiting for assistance from developed countries. Read more here
Singapore leads data center financing as investment spreads across Southeast Asia
Equity funding for Southeast Asia’s data center sector is heavily concentrated in Singapore, with five Singapore-headquartered companies accounting for 98% of the total raised. Yet much of their physical infrastructure is located elsewhere in the region, highlighting Singapore’s constraints in land and power supply.
Meanwhile, a recent survey by the Sustainable Energy Association of Singapore (SEAS) suggests that the rapid growth of data centers will put increasing pressure on the city-state’s energy system, driving greater demand for energy storage and grid upgrades. Read more here
Indonesia’s captive coal boom exposes the gaps in its $20 billion JETP plan
Indonesia’s commitment to the energy transition and move away from fossil fuels is being undermined by a critical loophole. The quiet surge of captive coal – private, off-grid plants dedicated to powering industrial facilities – threatens not just the country’s environmental targets, but also its market competitiveness.
Much of this captive coal goes towards powering its nickel industry. Indonesia is the world’s top exporter of nickel, and holds almost half of the world’s reserves. Read more here
Why China’s petrochemical push in Indonesia challenges its green ambitions
As China tightens environmental standards for its most carbon-intensive industries at home, thousands of kilometres away in Indonesia, Chinese companies are investing billions of dollars in petrochemical production.
Analysts say the long-term impact of investment from Chinese companies may depend less on the investment itself than on Indonesia’s ability to negotiate stronger safeguards, technology transfer and environmental standards. Expert said BRI projects often lack clear universal environmental standards and depend heavily on host-country regulation. Read more here
Can Southeast Asia make palm oil part of the nature-positive solution?
Indonesia and Malaysia, which produce about 85 per cent of the world’s palm oil, are piloting conservation plans that encompass broad landscapes, protecting rivers, peatlands, and habitats regardless of land ownership. These stewardship efforts must cohere with the reality that ecosystems and biodiversity transcend ownership boundaries.
Southeast Asia is in a strategic position. The region is not merely a participant in the shift to nature-positive palm oil, but can play a decisive role in mobilising and incentivising the sector to be a part of global conservation solutions. Realising these goals requires strong policy support in three areas. Read more here
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