ASEAN has emerged as a dynamic economic region, supported by regional cooperation, expanding markets and population growth.
A 2020 report by the World Economic Forum and Bain & Company projected that ASEAN would grow by 4% annually and become the world’s fourth-largest economy by 2030, with a GDP of US$ 4.5 trillion and a population of 723 million.
As the region develops, energy is vital to economic growth, industrial expansion and growing populations. Yet ASEAN remains dependent on imported energy and exposed to global supply-chain disruptions.
Given ASEAN’s reliance on maritime trade, disruptions to oil and energy shipments can affect regional and global markets. This links maritime security, energy security and economic stability in the Indo-Pacific.
In this context, the Philippines occupies a strategic position at the heart of the Indo-Pacific, alongside vital maritime routes carrying global trade and energy supplies. The South China Sea, including the West Philippine Sea and the Strait of Malacca are among the world’s most important maritime corridors, making their stability essential to regional economic resilience.
As ASEAN economies expand, rising electricity demand will require substantial investment in energy infrastructure. The region also has significant untapped solar, wind, hydropower and geothermal resources.
This presents an opportunity for ASEAN to strengthen energy security by diversifying its energy mix, reducing dependence on imported fossil fuels and accelerating renewable energy investment.
Renewable energy is not new. For millennia, humans have used biomass for heating and cooking, wind for transport and water for mechanical power. Today, technological advancements enable these resources to be harnessed more efficiently and at a much greater scale.
ASEAN economies face varying oil-supply vulnerabilities. The Philippines, despite having domestic oil production, remains dependent on imported petroleum. Singapore, meanwhile, has substantial oil refining capacity but relies on imported crude oil and natural gas.
These vulnerabilities highlight the need to diversify energy sources. Renewable energy development is therefore not merely an environmental priority but a strategic economic necessity, helping economies strengthen resilience against external shocks and volatile fuel prices.
The Philippines is well-positioned with abundant solar, wind, hydropower and geothermal resources, including substantial offshore wind potential. Developing these resources can strengthen energy security and attract private investment in generation and supporting infrastructure.
The 26th ASEAN Energy Business Forum (AEBF-26), held in Manila from October 5 to 9 and hosted by the Department of Energy (DOE), highlighted the region’s commitment to deepening energy cooperation, mobilizing investment and strengthening connectivity. The forum brought together government officials, industry leaders, investors and financial institutions to advance ASEAN’s clean energy transition.
During the forum, DOE Secretary Sharon Garin emphasized that ASEAN’s renewable energy potential creates opportunities beyond power generation, including transmission and distribution networks, battery storage, smart grids, energy efficiency, system flexibility and digital technologies.
“The Philippines’ approach is one part of a much larger regional investment landscape. Across ASEAN, our opportunity is to turn this potential into bankable projects that can mobilize capital and bring investments to implementation. Investors need predictable policies, transparent regulation, viable commercial structures, credible project pipelines and infrastructure that allows new capacity to reach markets and consumers,” Secretary Garin said.
Under the Philippine Energy Plan 2023-2050, the country aims to increase renewable energy’s share in the power generation mix to at least 35% by 2030, 50% by 2040, and more than 50% by 2050. Achieving these targets will require sustained investment in generation, transmission, storage and grid infrastructure.
Beyond expanding generation capacity, ensuring that renewable energy reaches consumers reliably and affordably is equally important. Inadequate transmission infrastructure, limited storage capacity, and implementation delays can constrain investment benefits. Addressing these challenges therefore requires coordinated planning, regulatory certainty, and stronger collaboration between governments and the private sector.
At a forum organized by the Global Renewables Alliance and Global Wind Energy Council during AEBF-26, speakers called for stronger regional cooperation on renewable energy and electrification. They emphasized expanding electricity grids through the ASEAN Power Grid, alongside accelerating solar, onshore and offshore wind and energy storage deployment.
The ASEAN Power Grid remains central to regional energy cooperation, with the potential to strengthen energy security, facilitate cross-border electricity trade, and improve access to affordable and reliable power for nearly 700 million people.
Greater regional connectivity would allow ASEAN economies to complement one another’s energy resources, enabling electricity generated in one country to support demand in another. This could improve supply reliability while creating opportunities for cross-border investment and a more integrated energy market.
Atty. Monalisa Dimalanta, former chairperson of the Energy Regulatory Commission and the National Renewable Energy Board, emphasized translating regional commitments into concrete projects.
“The ASEAN Power Grid must move from lines on a map to projects that can be financed and built. A power grid, whether it's regional or local, that exists only on paper will not keep the lights on,” she said.
Atty. Dimalanta acknowledged that government initiatives are moving in the right direction, citing stronger generator accountability, batteries, island grid expansion, microgrids, rooftop solar, smart and green grid planning, and oil and gas contingency measures. However, she stressed that emergency responses must become permanent systems supported by enforceable reliability standards, transparent reserve obligations, firm deadlines and consistent monitoring.
These ambitions require sustained investment and effective implementation. Governments must create an enabling environment that encourages private capital, while businesses and financial institutions can finance the infrastructure necessary for a reliable energy transition.
Long before modern technology, indigenous communities in the Philippines had already harnessed natural resources to meet their energy needs. Today, technological advancements, greater access to capital, and regional cooperation provide even greater opportunities to develop these resources sustainably.
For the Philippines and the wider ASEAN region, accelerating renewable energy development offers an opportunity to strengthen energy security, attract investment and promote inclusive economic growth. Ultimately, the transition toward renewable energy is not only an economic necessity but also a commitment to responsible resource development, environmental protection and a more sustainable future for generations to come.
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Venice Isabelle Rañosa is the research director of think tank Stratbase Group.