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ASEAN Energy in 2026

This ASEAN Energy in 2026 is the latest edition of one of the flagship reports by ACE. Since 2022, the annual ASEAN Energy series analyses the key insights into Southeast Asia's energy landscape each year.

02-2026     |     ACE - ASEAN Centre for Energy
Energy Transition
Closing The Gap Between Projects and Capital: Sarah Love on What Needs to Change

Southeast Asia’s transition is moving into a more practical phase: not just targets and announcements, but the work of making projects investable and preparing power grids to be ready to absorb more clean power. For the UK Foreign, Commonwealth & Development Office (FCDO), that means combining policy and technical assistance with development finance tools—and partnering with regional institutions to help move capital into real-world projects. 

In this conversation, Peter du Pont of SIPET Connect speaks with Sarah Love, who leads FCDO’s Climate, Energy and Nature Network in Southeast Asia. Sarah shares her views on a few areas where she is seeing traction: growing momentum behind the ASEAN Power Grid, the role of blended finance platforms like FAST-P, and why project preparation and coordination still matter as much as concessional funding. 

*** 

SIPET Connect: To start, could you briefly describe what FCDO is doing in Southeast Asia on climate, energy and nature, and your role within this work? 

Sarah: FCDO is the UK’s foreign ministry, and it also leads on international development. So our mandate is about advancing UK interests overseas—and that includes our development work as well as our climate, energy and nature priorities. The Foreign Secretary sees climate and nature as central to our foreign policy objectives. We won’t be prosperous or secure without action on climate change, and that conviction underpins much of what we do across the region. 

In terms of priorities, our work spans three or four broad themes. Energy transition is one. Nature and nature-based solutions, particularly mobilizing finance for nature, are another. Then there’s adaptation and resilience, and finally, expanding access to sustainable finance. 

My role is to lead our climate, energy, and nature network in Southeast Asia. I manage a small team of experts based in Singapore and Indonesia, covering areas such as energy, industrial decarbonisation, green finance, carbon markets, nature, and marine biodiversity. We work closely with UK embassies and high commissions across Southeast Asia, alongside climate-focused colleagues in those posts, to deliver on these priorities with partners across the region.  

 

SIPET Connect:  If we zoom in on energy, could you share a couple of partnerships or initiatives you’ve been involved in, or are watching closely, that you think have been particularly effective in moving the needle on the energy transition in Southeast Asia? 

Sarah: On energy transition, our focus is really on scaling renewables, using our development finance instruments and technical assistance programmes to support that, and to mobilise private finance into the transition. 

But I also think grids and interconnectors are critical enablers. A lot of development partners are looking at the ASEAN Power Grid and how to get behind that initiative. The idea of extending and connecting the grid across the region has been around for a long time, since at least the early 1990s, but it genuinely feels like there’s real momentum behind it now. 

We’re doing a lot with the ASEAN Centre for Energy and with ADB to explore how we can mobilize UK expertise in support of that. The UK has a long track record of electricity trading with our neighbours, and deep expertise, particularly on the regulatory side. So, a key question is: how do you design the regulatory environment for the power grid in a way that incentivizes private investment into big, complex interconnector projects? 

We’ve been working with ADB on the design of a financing facility that could attract other partners and mobilize private capital. We’re also supporting a few front-runner projects—for example, working with ADB to support Sarawak Energy as it explores potential regional connections, including interest in a Singapore–Sarawak interconnector. 

Another example is FAST-P, where we’re working closely with Singapore. Last year, we committed £60 million to FAST-P through British International Investment (BII), the UK’s development finance institution1. FAST-P is Singapore’s blended finance facility, and BII invested in the pillar focused on marginally bankable projects, where catalytic and blended finance can help bring in more commercial investors. 

 

SIPET Connect: Staying with ASEAN Power Grid, why do you think the momentum has picked up so much in the past few years? 

Sarah: It’s a good question. There are a few angles. 

Electricity trading with neighbours can be beneficial for energy security. It gives you more options, and we’ve seen that in the UK. It can also help with affordability, because being able to buy cheaper electricity from neighbours can bring costs down. And from a climate perspective, grids are important for enabling more renewables to be integrated into the delivery of electricity. 

There’s also a demand-and-supply story across ASEAN. Some countries have more available clean energy resources, and others have higher demand. Singapore is a good example, so interconnection helps. 

And I do think the prioritization of the APG by the ASEAN Secretariat and ASEAN leaders has mattered. Having successive ASEAN chairs pick this up—Malaysia, the Philippines this year, and then Singapore looking ahead—creates continuity. This is long-term; it needs sustained political commitment. But you can see movement: a pipeline of interconnectors is being developed, land-based and subsea, for some of the more complex connections are moving through pre-feasibility and feasibility work. 

 

SIPET Connect: Can you explain a bit more, especially how partners are coordinating around APG projects? 

Sarah: Coordination and information sharing are a big part of it, because the space is fragmented. 

ADB has set up the Partnership for ASEAN Connectivity on Energy (or PACE), which is focused on the ASEAN Power Grid. It brings together a wide range of partners, including donors, MDBs, DFIs, commercial finance partners, and others, to look at specific projects and work through what’s needed to move them forward, The PACE platform helps to clarify who’s funding what, where support is available, and how to link efforts up more effectively. This kind of platform matters when the scale of the challenge is so big. We need to work together to use resources efficiently. 

 

SIPET Connect: There’s a lot of debate and discussion about blended finance. Many people say it’s promising, but it also is clearly slower than we need and appears to be hard to scale up. From your perspective, what needs to change to mobilise the amount of private capital that the energy transition requires in Southeast Asia? 

Sarah: I think the challenge is that there are lots of project ideas out there, and in theory there’s commercial capital looking for projects, but there’s a big gap in the middle where they’re not matching up. 

Concessional finance helps bring projects closer to commercial bankability. In Southeast Asia we’re still learning what works best, what structures are attractive to commercial partners, and what needs to be demonstrated. 

For me, it goes back to the full project development pipeline. It starts with the enabling environment, regulations and policy frameworks that make investment possible. Then you need support for project preparation, because there’s a real gap before you even get to concessional finance: the preparatory work to get projects ready for investors. 

And then you have early-stage finance, growth finance, and eventually commercial finance and public markets. From the UK side, we have instruments that target different stages. BII sits somewhere in the middle, but we also work through multi-donor platforms like PIDG (with tools like InfraCo and other facilities), as well as UK Export Finance, and initiatives like Mobilist, which operates in the public markets space, supporting companies that are close to listing but need a bit more support to get there. 

So, I agree, projects aren’t moving through the pipeline as quickly as we’d like. But there isn’t a single fix. It’s about putting support in place at multiple stages, across the whole project lifecycle. 

 

SIPET Connect: You touched on knowledge and coordination platforms earlier. What role do you think knowledge platforms like SIPET can play, especially as programmes evolve or end? 

Sarah: I completely agree there’s a need for strong knowledge platforms. 

SIPET’s project mapping work, understanding who is doing what across the region, is really valuable. The more we know about what others are doing, the easier it is to align efforts, collaborate, and draw out best practice, and also to understand where things haven’t worked, which is equally useful. 

Good, accessible data on policy changes, enabling environment challenges, investment trends, and examples of what’s going well can help build momentum. There’s also a role for sharing learning from initiatives like FAST-P, how these platforms are set up, what challenges they face, so it’s simpler for the next person trying to do something similar. 

Peer-to-peer learning matters too: connecting regulators and practitioners, and bringing in expertise, including private sector expertise, whether that’s on the ASEAN Power Grid, storage, or other parts of the transition. The UK’s transition away from coal over the last decade has been steep, and there are lessons there as well. 

 

SIPET Connect: Before we wrap, when you look ahead a few years, what would “success” look like for FCDO’s climate and energy work in Southeast Asia? 

Sarah: For me, success looks like accelerated deployment of renewables, real action on the ground at scale, and clear progress on the ASEAN Power Grid, particularly seeing some of the ambitious front-runner interconnector projects move forward. 

Then there’s mobilizing finance. This means seeing concessional instruments catalyze more commercial capital, with investors feeling more confident about backing climate-focused, nature-positive projects. 

And finally, stronger regional cooperation, donors, MDBs and others finding ways to work together more effectively. In the current climate, that’s what we all need to do. 

***

1. https://www.bii.co.uk/en/news-insight/news/british-international-investment-commits-60-million-to-green-investment-partnership-to-close-the-climate-finance-funding-gap-in-south-east-asia/  

 

02-2026     |     ACE Partners - Asia Clean Energy Partners
Energy Transition Climate Finance
Identifying where renewable-based hydrogen adds value: Strategic priorities for Thailand’s energy sector

This policy paper provides a comprehensive overview of no-regret uses of hydrogen in Thailand’s energy transition. It outlines global trends in hydrogen development, examines the role of climate-neutral hydrogen in achieving a net-zero future in Thailand, and identifies priority applications for the energy sector where hydrogen can deliver clear and strategic value. The paper also presents policy recommendations to guide Thailand’s hydrogen deployment in the energy sector (power generation, industrial, and transport) in a cost-effective, secure and competitive manner.

02-2026     |     Clean, Affordable and Secure Energy (CASE)
Energy Transition Hydrogen
SPARKing regional solutions: Adritha Subbiah on peer learning networks for Southeast Asia’s energy transition

In Southeast Asia’s fast-moving energy transition, many of the most difficult decisions are also the hardest to discuss openly, across borders, and with the right people in the room. That’s where ETP’s SPARK initiative comes in: a deliberately small, curated, closed-door format designed to give senior policymakers the space to speak candidly about complex issues.

Peter du Pont of SIPET Connect spoke with Adritha Subbiah, Senior Programme Manager (Regional Programmes) at the Southeast Asia Energy Transition Partnership (ETP), hosted by UNOPS, about why SPARK was launched, what emerged from the first dialogue, and what SPARK hopes to unlock next.

***

SIPET Connect: To start, could you briefly describe the role of ETP in the regional energy ecosystem, and what you’re personally working on at ETP?

Adritha: Thank you, I really welcome the opportunity to step back and reflect on why we’re doing what we’re doing.

So ETP, the Southeast Asia Energy Transition Partnership, is essentially a pooled fund of governments and philanthropies with a mandate to support the energy transition in the region. We focus on Vietnam, Indonesia, and the Philippines, and we also have a regional window of engagement. We work across four strategic outcome areas and provide technical assistance across these areas.

The first strategic outcome is aligning policy with climate commitments, so really looking at where countries are in terms of their NDCs and what they want to achieve through the energy transition and ensuring that the policy ecosystem supports that.

The second outcome is supporting investments coming in for renewables, energy efficiency, and increasingly coal phase-down, or fossil fuel phase-out.

The third is about grids: once you have more investments and more renewables, how do you ensure grids are future-proof? How do you modernise them, extend them, and look at interconnections?

And the fourth is just transition, recognising that for all of this to happen sustainably, people and the environment have to be central to decision-making around the energy transition.

That’s broadly the role we see ourselves playing in the region. We very much see ourselves as working in partnership with governments, being a trusted partner they can turn to for technical assistance around the energy transition.

 

SIPET Connect: SPARK stands for Sharing Perspectives to Advance Regional Knowledge, and as a metaphor, sparking new ideas and connections. What was the motivation for ETP to launch SPARK?

Adritha: A couple of things.

First, we have a regional window of engagement at ETP, and it’s slightly newer compared to our country programmes. We have in-depth country programmes in Vietnam, Indonesia, and the Philippines. But the deeper we got into those engagements, we started to realise there are real opportunities for sharing lessons. Countries are at different starting points, but many of the challenges are similar, and there may be opportunities to collectively arrive at solutions that can work across contexts. That’s one reason behind SPARK.

The other inspiration came from the Wilton Park[1] format. It’s a place where they regularly convene a group of people to have targeted discussions, and it creates a trusted space. We wanted to replicate something like that for the Southeast Asian context. We were also lucky to be in that dialogue with key stakeholders from the region who were keen to see something similar in Southeast Asia.

And I think a lot of opportunities for capacity building and lesson-sharing can still feel quite “North–to-South” and top down in a sense.  What we wanted to create instead was a South–to South peer learning network, where examples and solutions are more contextual and relevant.

And SPARK also helps us understand what’s required in the region. It creates space to build relationships among key policymakers and officials, understand pain points and sensitive topics, and then think through how we address them through our programming. That’s the intention behind SPARK.

 

SIPET Connect: You’ve chosen a very specific format, bringing together a small group of senior policymakers and experts in a confidential setting. Why this format, and how is it different from the many workshops and conferences in Southeast Asia?

Adritha: It was very intentionally designed.

We wanted to target policymakers, mid to senior-level people who have a clear sense of what’s needed and can shape things when they are back at their desks. It’s intentionally small and curated.

We also wanted to create an intimate, closed-door setting, a safe space, so we can have very open conversations. The idea is to tackle complex issues: topics that aren’t yet mainstream but really need to be discussed in the broader energy transition context.

Having a focused discussion helps in some elements of capacity building, but it also helps us come out with a clearer sense of where things stand, what needs to be done, and what ETP and others can do to support.

And another element we’re really keen on is building peer networks. Whether that’s a WhatsApp group or simply introductions across countries, we want policymakers to feel comfortable reaching out to each other. Ideally, a policymaker from the Philippines should be able to pick up the phone and call a counterpart in Indonesia about similar challenges. That’s the kind of environment we want to foster through SPARK.

 

SIPET Connect: The first SPARK dialogue focused on carbon markets and carbon pricing for the energy transition. What feedback did you get from participants from Vietnam, Indonesia, and the Philippines, and what insights stood out?

Adritha: It was quite surprising to hear how interested policymakers are in this topic, the level of interest and the momentum building around it.

The EU Carbon Border Adjustment Mechanism, emissions trading systems, these are very current issues that countries in Southeast Asia are trying to grapple with. What was really clear to us is that there’s an opportunity to ensure that the mechanisms being developed at the national level can “speak to each other,” because there’s more value you can unlock through that.

The timing of the dialogue also felt important. It was very topical, and there was a real need for the conversation. The way it was structured, with an element of capacity building, but also open discussion, worked well.

And maybe that’s the niche for SPARK: we can try to pick topics that have strong national ownership but also implications at the regional level.

 

SIPET Connect: A key output is the policy brief developed after each SPARK dialogue. Why is that important, and how do you see SPARK feeding into what ETP does next?

Adritha: The policy brief is our way of sharing the insights we gather through a closed-door convening. That’s a really important part of SPARK, because it puts learning into the public domain. And as a UN-hosted partnership, that’s incredibly important for us.

It also gives us an opportunity to continue working on areas that are identified for support. It informs our technical assistance programmes, and it can also help inform what our partners are doing or what we choose to do with our partners.

Just one example: following the last SPARK dialogue, we’ve continued conversations to explore the potential for ASEAN-level engagement on carbon markets and also looked at the Philippines’ ASEAN chairmanship this year and whether that creates a policy window. So that’s a very current example of how we try to take SPARK forward.

 

SIPET Connect: The second SPARK dialogue focused on financing the phase-down of coal. How do you view this problem and why is SPARK the right way to tackle it?

Adritha: The topic came from one of our regional projects, TRANSEND (Transition to End Coal), which looks at the asset-level coal phase-down. We were in discussions with a national utility in one of our focus countries that was keen to explore early retirement options. Our role was to provide technical assistance on what that could look like repurposing options, and critically, the financing of an early retirement.

We learned a lot from that engagement.  While it did not ultimately proceed to a transaction, the engagement generated critical insights into why early retirement remains so difficult to replicate in the region.          

What we also see is that there are many conversations happening around coal phase-down. Some policies have been put into the public domain, but there are also less visible conversations about how to keep commitments in place, how to ensure coal moratoriums hold, and how to explore early retirement without jeopardizing energy security     .

And I feel like policymakers don’t always have a safe space to have a very open discussion about this. That was the intention behind focusing SPARK on coal phase-down financing.

The financing aspect is also where things tend to get stuck. Policy is, of course, trickier to discuss across countries, and sometimes more sensitive. But I think everyone can agree that financing is a key bottleneck, and something we need to address if we want to advance energy transition in the region.

So, I’m really hoping we can create that safe space where policymakers are honest about the challenges, and we can think through solutions together.

 

SIPET Connect: Given SPARK is closed-door, how can knowledge platforms like SIPET complement the dialogues and help extend the impact?

Adritha: Because the dialogue is closed-door, it’s really important to think through how we disseminate what we can share publicly, like the policy brief that comes out of SPARK.

Since the discussions aren’t in the public domain, we need to ensure that what is in the public domain is widely circulated among policymakers, civil society, technology providers, and others.

At ETP, we’re not always the best at that, because our focus is really on government and policymakers. So, I think platforms like SIPET can help extend SPARK by disseminating those learnings, reaching the wider ecosystem, and hopefully bringing in partners who can continue to work on the issues that are crucial for the energy transition in this region.

 

SIPET Connect: Looking ahead two to three years, what would success look like for the SPARK initiative, and what message would you leave readers about why these convenings matter?

Adritha: Success for us is that SPARK is recognised as a safe space that convenes policymakers, so it becomes a well-used platform that policymakers can turn to for capacity building and for building peer networks around energy transition topics.

Another aspect of success is that SPARK continues to inform the work ETP does, but not only ETP. We see ourselves as part of a wider ecosystem, so ideally it also helps inform the work of others on the energy transition.

It’s a very curated, intimate convening, and for a busy policymaker, I think that’s exactly what they need. You need the headspace, a conducive environment, and a peer network to talk through these issues. Ideally, that’s what we’re creating through SPARK.

 

 

 

[1] Wilton Park is an executive agency sponsored by the UK Foreign, Commonwealth & Development Office (FCDO) that convenes small, high-level policy dialogues designed to enable candid exchange and build trust among decision-makers.

01-2026     |     ACE Partners - Asia Clean Energy Partners
Energy Transition
Industrial Transformation in ASEAN: A Cluster-Driven Model for Regional and Global Collaboration

The white paper Industrial Transformation in ASEAN: A Cluster-Driven Model for Regional and Global Collaboration examines South-East Asia’s rapid industrial growth while navigating rising energy demand and the energy transition. ASEAN is home to over 670 million people and is the world’s fifth-largest economy. As its economies expand, dependence on fossil fuels, fragmented policies and high financing costs risk undermining energy security, competitiveness and resilience.

01-2026     |     WEF - World Economic Forum
Carbon & Renewable Energy Decarbonization
Stabilising LNG Markets in ASEAN: Implications for Energy Security and the Energy Transition

This Policy Brief examines recent developments in global and regional LNG markets, with particular attention to Southeast Asia. It analyses the structural drivers of price volatility, including Europe’s increased reliance on LNG, China’s expanding and fluctuating gas demand, and the growing role of the United States as a major LNG supplier.

01-2026     |     Economic Research Institute for ASEAN and East Asia (ERIA)
Energy Transition
JETP Progress Report 2025

The JETP Progress Report 2025 outlines the key changes and developments since the CIPP
2023, including updates on JETP governance, investment focus areas, financing progress,

01-2026     |     NCI - NewClimate Institute
JETP Indonesia