As Southeast Asia witnesses a rapid acceleration of industrial growth, the need for more reliable, scalable, and sustainable sources of power is more eminent than ever. The increasing clean energy access mandates and emissions reduction targets prompt governments, utilities, and industry to pursue ambitious decarbonisation strategies.

Yet despite this momentum, progress remains uneven.

Clear, Consistent and Predictable Policies Needed

According to Raghuram Natarajan, CEO of Blueleaf Energy, one of the greatest barriers to unlocking clean energy at scale is inconsistent policy.

“Simplification of convoluted permitting processes is fundamental to attracting the significant private capital needed to build the gigawatts of clean energy capacity demanded by ASEAN,” he explains. “In a region of disparate energy markets and regulatory frameworks, the absence of harmonisation poses a fundamental risk to deployment and investment.”

Collaboration is a central pillar of regional progress

As more stakeholders look to accelerate their clean energy plans, it has become clear that no organisation can do it alone.

“Partnership is in our DNA,” says Natarajan, pointing to how joint ventures and co-development models can overcome regulatory complexity, facilitate risk sharing, and speed up project timelines. These partnerships also allow for the deployment of tailored solutions suited to local grid limitations, land constraints, and customer needs.

Across the region, examples of this approach are already emerging. Blueleaf, for example, in Malaysia has partnered with UEM Group (a wholly owned subsidiary of Khazanah Nasional) to co-develop a 500MW hybrid project, with the potential to scale up to 1 GW. Further, in India, via a joint venture with Jakson Green, they are targeting 1 GW of solar energy capacity. The company has also formed several project-level joint ventures focused on solar and battery energy storage systems (BESS) in Japan.

This collaborative model enables scale while preserving flexibility, a crucial advantage in Southeast Asia, where each country is charting a unique path toward decarbonisation.

Building Flexible and Bankable Models

While partnerships lay the foundation, innovation, both technological and commercial, will define the pace and durability of the transition.

A compelling example is the Pachora Hybrid Power Project in India. Designed to deliver firm, dispatchable renewable energy, the project integrates wind and solar generation and has potential for battery energy storage integration. But its true innovation lies in its commercial structure.

“By disaggregating energy and environmental attributes with an effective hedge to de, risk investment returns,” explains Natarajan, “the project provides a benchmark for managing merchant risk in maturing markets.” This kind of hybrid, flexible model can be highly relevant in Southeast Asia, where pricing mechanisms, market rules, and offtake arrangements are still evolving.

Industrial Decarbonisation: Urgency and Opportunity

As AI and digital infrastructure proliferate across Southeast Asia, so too does the energy footprint of the supporting ecosystem. From hyperscale data centres to semiconductor fabs, with this growth comes mounting pressure to decarbonise operations and supply chains.

“The core challenge for much of this growth is simply access to adequate, reliable energy supply, let alone clean energy,” says Natarajan.

To address this, clean energy providers are working with industrial clients in increasingly flexible ways. Corporate power purchase agreements (PPAs) offer long-term pricing certainty and direct access to renewable generation. In markets where PPAs are constrained by regulation or grid limitations, Renewable Energy Certificates (RECs) and International RECs (iRECs) offer an alternative path to obtaining the environmental attributes needed to meet Scope 2 emissions targets.

This flexibility is especially valuable for industrial players operating across multiple geographies or within grid environments where infrastructure lags behind demand. It allows companies to act now, rather than wait for ideal conditions to materialise.

The Role of Grid Interconnectivity in Scaling Renewables

Southeast Asia’s fragmented geography and energy diversity also present a unique opportunity. Regional grid interconnectivity, such as through the ASEAN Power Grid (APG), could dramatically improve system flexibility, reduce redundancy, and unlock untapped renewable resources.

Natarajan believes this is not just an aspirational aim but an absolute necessity for realising the region’s full decarbonisation potential. “Initiatives like the APG could provide affordable electricity access to over 670 million people,” he adds, “by enabling optimal resource sharing and balancing supply variability.”

Such interconnection would allow surplus power from solar-rich nations like Malaysia or wind-abundant areas like Vietnam to be shared with neighbouring countries, improving energy security, reducing fossil fuel reliance, and enhancing economic competitiveness.

But the path forward is not without obstacles. Harmonising regulatory frameworks, building technical interoperability across grids, mobilising infrastructure financing, and navigating geopolitical considerations all pose significant challenges. Progress will require political will, regional cooperation, and multilateral support.

Towards a Scalable and Just Energy Transition

The region’s clean energy goals will only be met through a combination of partnership, innovation, and sustained investment.

As Natarajan puts it, success depends on combining global experience with deep local understanding to deliver tailor-made, commercially viable, and durable solutions.  Whether through multi-gigawatt joint ventures or merchant market hybrids, the future of clean energy in Southeast Asia will be built on approaches that reflect the region’s complexity and ambition.

Raghuram Natarajan will be speaking at Enlit Asia 2025, taking place in Bangkok from 9 to 11 September. For more information, visit www.enlit, asia.com.