China may still lead in clean energy investment in Southeast Asia, but Japan, South Korea, and Australia are each carving out roles in solar, battery, and power transmission projects, signalling growing competition in the region’s energy transition.
Southeast Asia’s shift to cleaner energy has mostly been linked to China’s growing investments. But new research shows other countries are stepping in to build their own presence in the region.
A report by Zero Carbon Analytics looks at how Japan, South Korea, and Australia are competing with China in clean energy projects in Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. These countries are among the fastest-growing economies in Southeast Asia and are all working to expand their use of renewable energy.
From 2013 to 2023, China led the way in public clean energy investment across the region, putting over US$2.7 billion into projects. But each of the other countries in the study has found its own way to grow influence.
South Korea has become a key player in battery supply chains, especially in Malaysia and Indonesia. Japan is active in solar and geothermal projects and is also involved in several energy transition finance programs. Australia is playing a more targeted role in cross-border power transmission.
“Although China dominates overall clean tech investment and trade, South Korea has carved out a niche in battery component exports and Japan in solar investments,” said Yu Sun Chin, a research associate at Zero Carbon Analytics. “Promising opportunities remain for these nations to expand their clean energy investments across Southeast Asia.”
Japan’s biggest strength lies in its support for regional transition finance. It has backed Indonesia’s US$20 billion Just Energy Transition Partnership and is also involved in Vietnam’s version of the same plan. Japan has committed US$25 million to the Energy Transition Mechanism, aimed at phasing out coal plants in the Philippines, Vietnam, and Indonesia. It has also put over US$1.3 billion into solar projects and US$142 million into geothermal efforts across the five Southeast Asian countries. In the Philippines, Japan is currently the largest supplier of electric buses and cars.
South Korea leads battery component exports to Malaysia and Indonesia, and it ranks second behind China in supplying EV batteries to Indonesia.
Australia’s role is different. It’s working on the Australia-Asia Power Link, which will send solar power from Australia to Singapore by way of Indonesia. This shows its focus on transmission infrastructure.
Clean energy is now seen not just as a climate issue, but as a way to boost economies and strengthen ties. China, for example, has called EVs, solar panels, and lithium batteries the new drivers of growth. Its clean energy push in Southeast Asia has also helped build closer relationships with governments in the region.
On the other side, rising demand for green energy in countries like Malaysia is making renewables more affordable than fossil fuels. This opens the door for countries to shift faster toward cleaner power, while also giving private investors and governments a reason to back new energy projects.
Southeast Asia needs an estimated US$180 billion in yearly investment to meet its clean energy goals. Experts say that growing green demand within the region could help send the right signals to investors and suppliers.
“Renewables are rapidly becoming the cheapest power source in much of Southeast Asia,” said Amy Kong, also a research associate at Zero Carbon Analytics. “Expanding regional clean energy will help secure affordable energy to power the bloc’s rapid economic growth. Investors that participate in the energy transition could capture clean market share, meet net zero targets and build regional cooperation in the face of geopolitical volatility.”
These findings come just ahead of the ASEAN Summit set to take place on May 26–27 in Malaysia. Regional leaders are expected to talk about clean industry plans and how to strengthen supply chains, especially in light of new US tariffs on clean energy imports.
