End-of-life management for a circular economy: Solar PV panels

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.

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.

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 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 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.