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Renewables remain the most cost-competitive source of new electricity generation. More than 90% of utility-scale renewable projects commissioned in 2025 delivered power below the cost of the cheapest new fossil-fuel plant built in their market.
After more than a decade of steep declines, renewable power costs are stabilising. In 2025, Solar PV remained at its 2024 level of USD 44/MWh, while wind continued to improve, with onshore wind falling to USD 33/MWh and offshore wind to USD 78/MWh. In contrast, most dispatchable renewable technologies recorded higher costs, with hydropower, geothermal and concentrating solar power rising to USD 62/MWh, USD 89/MWh and USD 115/MWh, respectively. Bioenergy was the exception, declining to USD 86/MWh.
In 2025, renewables helped avoid an estimated USD 480 billion in fossil-fuel costs and about 8.4 gigatonnes of CO₂ emissions, confirming their role not only as the cheapest new power but as a pillar of energy security, economic stability and resilience.
he energy transition has accelerated the deployment of solar PV panels, which have a lifecycle of around 30 years, raising concerns about their end-of-life management. The annual volume of end-of-life solar PV panels globally is projected to exceed 3 million tonnes by 2035, increasing to over 25 million tonnes by 2050. Adopting a circular economy for end-of-life solar PV panels can prevent future waste streams and associated environmental impacts. It can also create socio-economic benefits for local communities and address challenges related to rising material demand.
The end-of-life solar PV panels require improved environmental regulations, dedicated infrastructure, innovations in technologies and business models, and stakeholder engagement. The circular economy principles, “reduce”, “reuse” and “recycle”, can play a key role in the sustainable management of end-of-life solar PV. ·
This report examines the net-zero transition pathways of Sweden, Japan, Indonesia, Viet Nam and Thailand. It explores the diverse strategies each country has adopted to reduce greenhouse gas emissions and compares their decarbonisation pathways to identify common opportunities, key challenges, and lessons learned. The analysis shows that achieving net-zero requires strong policy frameworks, sustained investment, technological innovation and institutional capacity.
This factsheet summarises the lessons learned from energy transition strategies and policy priorities of Viet Nam, Indonesia, Japan, and Sweden and recommendations for Thailand, drawing on the comparative analysis presented in Economies in Transition: A Comparative Macroeconomic Analysis of Decarbonisation in Five Nations.
The report highlights the increasing risk and impact of heat stress and disseminates information on key regulatory and technical solutions and their practical application by institutions, cities, and governments to reduce its adverse effects. Drawing on international good practices, the report showcases comprehensive technical, institutional, and financial innovations, and proposes a detailed road map for a Heat Action Plan for Thailand. This road map prioritizes protecting vulnerable populations, mobilizing public and private finance, and accelerating coordinated cross-sectoral solutions to build an inclusive, evidence-based, and sustainable response.
The report finds that Indonesia has a strong regulatory foundation for energy efficiency, including provisions for PPPs and green finance. However, investment remains limited by weak project pipelines, financing gaps, perceived risks, limited ESCO capacity, and poor market coordination. It recommends translating existing policies into bankable, scalable industrial energy-efficiency projects.
This review has been prepared in collaboration with the Department of Energy (DOE) of the Philippines, the Economic Research Institute for the Association of Southeast Asian Nations (ASEAN) and East Asia (ERIA), and Japan’s Ministry of Economy, Trade and Industry (METI). It examines trends, supply and demand dynamics and the evolving regulatory environment. It also highlights key risks and vulnerabilities for the power sector arising from factors such as rising demand, reliance on imported fuels, the need for grid modernisation, access and affordability constraints, financing challenges and growing exposure to extreme weather events.
In alignment with priorities set out by the DOE of the Philippines, the report provides a detailed analysis of three key areas: the potential for nuclear power, for energy resilience and for grid modernisation in the Philippines.
The Southeast Asia Energy Outlook 2026 is the seventh edition of this World Energy Outlook Special Report, making Southeast Asia by far the most regularly updated regional outlook compiled by the International Energy Agency (IEA). This reflects the dynamism of the region, as well as the importance of the IEA’s partnership with the eleven countries that make up the Association of Southeast Asian Nations (ASEAN) – Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic (Lao PDR), Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste (joined ASEAN in 2025) and Viet Nam.
As energy security concerns move ever higher on the policy agenda, this year’s report explores the trajectory that the region was on prior to the conflict in the Middle East, and discusses the potential implications of the energy crisis triggered by this conflict for policy priorities and investment strategies in the region.