A Race to the Top Southeast Asia 2024: Operating solar and wind capacity in Southeast Asia grows by a fifth since last year, but only 3% of prospective projects are in construction - Global Energy Monitor
Published January 18, 2026
A Race to the Top Southeast Asia 2024: Growth in Solar and Wind Capacity
According to a recent report by Global Energy Monitor, the operational solar and wind capacity in Southeast Asia has experienced a significant increase, growing by 20% since the previous year. Despite this growth, the report highlights a concerning trend: only 3% of prospective renewable energy projects in the region are currently under construction.
As of the end of 2023, the total installed capacity of solar and wind energy in Southeast Asia reached approximately 36.3 gigawatts (GW). This represents a substantial rise from the 30.3 GW recorded in 2022. The report indicates that this increase is driven primarily by the expansion of solar energy projects, which accounted for the majority of the new installations.
In the realm of solar energy, the region has seen an impressive addition of around 5.5 GW of capacity over the past year, bringing the total solar capacity to approximately 30.3 GW. This growth can be attributed to various factors, including government incentives, decreasing costs of solar technology, and an increasing focus on renewable energy to combat climate change.
Wind energy has also made strides, with an increase of about 1.1 GW in capacity, resulting in a total of approximately 6.0 GW of installed wind energy. Countries such as Vietnam and Thailand have been at the forefront of this expansion, implementing policies that support the development of wind farms and encouraging investment in renewable energy infrastructure.
Prospective Projects and Construction Challenges
Despite the significant growth in operational capacity, the report raises alarms about the limited number of projects that are currently in the construction phase. Out of the nearly 58 GW of prospective solar and wind projects identified across Southeast Asia, only about 3% are actively being built. This discrepancy points to potential barriers that may hinder the rapid deployment of renewable energy technologies in the region.
The report notes that several factors contribute to the slow pace of project development. Regulatory challenges, financing issues, and land acquisition hurdles are among the primary obstacles faced by developers. Additionally, the ongoing global supply chain disruptions have further complicated the procurement of materials necessary for the construction of renewable energy facilities.
Countries such as Indonesia, Malaysia, and the Philippines have ambitious targets for renewable energy generation, yet the slow progress in moving projects from the planning stage to construction raises concerns about meeting these goals. The report emphasizes the need for governments to streamline regulatory processes and provide clearer pathways for project approvals to facilitate the transition to renewable energy.
Regional Highlights
Vietnam continues to lead the region in terms of installed solar capacity, boasting approximately 20.7 GW of operational solar power. The country has implemented a series of feed-in tariffs and incentives to attract investment in solar energy, resulting in a rapid increase in installations over the past few years.
Thailand follows closely with about 3.9 GW of solar capacity, benefiting from a well-established solar industry and supportive government policies. The Thai government has set a target of achieving 30% of its total energy generation from renewable sources by 2036, a goal that will require significant investment in both solar and wind projects.
In terms of wind energy, Vietnam has also emerged as a leader, with approximately 1.6 GW of installed capacity. The country has made substantial investments in offshore wind projects, indicating a strong commitment to diversifying its renewable energy portfolio. Thailand, on the other hand, has approximately 4.0 GW of wind energy capacity, with ongoing projects aimed at increasing this figure further.
Future Outlook
The future of renewable energy in Southeast Asia appears promising, with a vast potential for growth. The region is endowed with abundant natural resources, including sunlight and wind, which can be harnessed to meet the increasing energy demands of its growing population. However, realizing this potential will require concerted efforts from governments, private sector stakeholders, and international partners.
To accelerate the transition to renewable energy, the report suggests that Southeast Asian countries need to prioritize the development of supportive policies and regulatory frameworks. This includes creating incentives for private investment, simplifying the permitting process, and enhancing grid infrastructure to accommodate the influx of renewable energy sources.
Additionally, fostering regional cooperation can play a crucial role in sharing best practices and lessons learned from successful projects. Collaborative efforts can also help address common challenges, such as financing and technology transfer, which are vital for scaling up renewable energy initiatives across the region.
Conclusion
The findings from Global Energy Monitor underscore the significant progress made in expanding solar and wind capacity in Southeast Asia. While the growth of operational capacity is encouraging, the limited number of projects currently under construction raises important questions about the region's ability to meet its renewable energy targets. Moving forward, a focused approach to addressing regulatory and financial barriers will be essential in unlocking the full potential of renewable energy in Southeast Asia.
As the region continues to navigate the complexities of the energy transition, the commitment to renewable energy development will be crucial for achieving sustainable and resilient energy systems that can support economic growth and environmental sustainability.