Recent Developments in Energy Transition and Innovation in the Asia-Pacific Region
10 minute read | September.30.2025
The Asia-Pacific region continues to accelerate its energy transition, with governments and industry leaders rolling out new policies, launching innovative projects, and updating regulations to foster sustainability, attract investment, and drive economic growth. This edition of APAC Energy Pulse highlights the latest developments across key markets, providing energy clients with actionable insights and a comprehensive overview of the region’s evolving landscape.
Here’s a roundup of the latest developments from key markets in the region:
Singapore is advancing its low-carbon ambitions by launching co-funded carbon capture and storage (CCS) feasibility studies for the power sector. In July, the Energy Market Authority (EMA) selected five proposals from Keppel Infrastructure, PacificLight Power, and YTL PowerSeraya to receive funding for site-specific CCS studies. These studies will examine two main pathways:
These studies mark a significant step in Singapore’s journey toward decarbonization. The findings will deepen the country’s understanding of CCS options and lay the groundwork for future engineering projects, supporting national climate goals and energy sector transformation.
Vietnam is moving quickly to establish International Financial Centers (IFCs) in Ho Chi Minh City and Da Nang, aiming to operationalize them by the end of 2025. The IFC Steering Committee’s Decision No. 114/QĐ-BCĐTTTC (Decision 114) sets out a detailed action plan, including:
This rapid regulatory development is designed to attract long-term capital and position Vietnam as a leading financial hub, with clear legal frameworks boosting investor confidence and enabling digital transformation.
In August, Vietnam’s Politburo issued Resolution No. 70-NQ/TW, setting ambitious targets for energy security and sustainable development through 2030, with a vision to 2045. Key goals include:
This strategy is pivotal for Vietnam’s economic growth, industrialization, and energy security, providing clear targets and incentives to overcome supply challenges and align with global climate commitments.
Vietnam’s National Assembly has passed the Law on Digital Technology Industry (DTI Law), effective January 2026, formally recognizing digital assets as property under the Civil Code. The law categorizes digital assets into virtual assets, encrypted assets, and other digital assets, while excluding central bank digital currencies (CBDCs), securities, and other financial assets regulated separately. Following the DTI Law’s passage in September, the government launched a five-year pilot program for virtual asset markets, establishing Vietnam’s first official legal framework for crypto asset issuance and trading.
The DTI Law enhances legal certainty for users and investors, strengthens compliance with international standards, clarifies tax obligations, and paves the way for regulated exchanges—supporting innovation and safer market participation.
In August, Vietnam introduced a flexible legal framework allowing direct appointment of investors for projects involving strategic technology, digital infrastructure compatibility, or urgent socioeconomic needs. This change, under Decree 225/2025, aims to accelerate key projects and address national priorities, while balancing efficiency with transparency and quality in investor selection.
Malaysia’s 13th Malaysia Plan (13MP), presented in July, outlines the country’s socioeconomic strategy for 2026-2030, with several energy sector highlights:
These measures demonstrate Malaysia’s commitment to leading Southeast Asia’s energy transition and attracting private sector investment, while opening new opportunities in nuclear technology and market innovation.
In August, Malaysia’s Ministry of Energy Transition and Water Transformation reduced system and community access charges for CRESS and CREAM programs. The charge reduction addresses market concerns about high participation costs, which previously limited uptake of the CRESS program in particular.
This change is expected to boost participation and investment in Malaysia’s renewable energy sector, making green power more accessible and supporting the country’s transition goals.
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|
Existing Charges |
Reduced Charges |
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Firm Supply |
Non-Firm Supply |
Firm Supply |
Non-Firm Supply |
|
|
CRESS |
25 |
45 |
20 |
40 |
|
CREAM |
15 |
9 |
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India is proposing amendments to its Electricity Rules, 2005 (proposed June 11, 2025), to further liberalize energy storage system (ESS) regulations. If adopted, these changes would allow consumers to develop, own, lease, or operate an ESS directly, and enable ESS developers to sell or lease storage space to consumers. Previously, only utilities and load dispatch centers could access storage directly.
This shift toward a consumer-centric ESS market offers new options for commercial and industrial users seeking captive storage solutions, potentially reducing dependence on generators and influencing tariff structures.
The Philippine Department of Energy (DOE) is launching an open and competitive bidding process for at least 100 MW of new renewable energy service contracts, focusing on untapped geothermal, wind, and hydropower resources. Eleven areas have been identified for potential development, including:
A dedicated committee will evaluate bidders’ legal, technical, and financial qualifications, ensuring transparency and compliance with guidelines under the Open and Competitive Selection Process (OCSP). While the bidding is open to both local and foreign firms, small-to medium-scale geothermal projects (below US$50 million) remain subject to local ownership requirements. This auction is designed to accelerate the Philippines’ clean energy transition, diversify the energy mix, and attract investment through fair competition and high standards.
PTT Exploration and Production (PTTEP), Thailand’s national oil and gas company, has reached a final investment decision on the Arthit CCS storage project in the Gulf of Thailand. The five-year investment, estimated at 10 billion Thai baht (USD 320 million), will begin carbon storage operations in 2028 and ramp up to a peak capacity of 1 million tons of CO₂ per year.
The Arthit CCS project will serve as a pilot for cultivating CCS expertise and driving adoption in Thailand, supporting the country’s net zero goals and enhancing long-term economic competitiveness.
As mentioned in our last update, Taiwan’s Ministry of Economic Affairs is considering the introduction of a price floor for its next offshore wind auction, now expected in 2026. This follows the cancellation of several Round 3.2 projects and allows more time to incorporate industry feedback. The price floor is seen as a turning point, potentially making projects more attractive to investors and unlocking stalled investment.
As Taiwan approaches its target of 10.9 GW of offshore wind by 2030, future auctions may shift toward deeper-water sites, requiring more expensive floating technology and further financial support.
South Korea’s Ministry of Trade, Industry and Energy (MOTIE) announced the results of the H1 2025 offshore wind auction:
The auction incorporated enhanced security and supply chain evaluation criteria, with significant Korean content playing a key role. These results demonstrate the government’s strong preference for public sector participation, echoing previous auctions, and raise questions about future opportunities for private developers, especially as floating offshore wind and onshore wind projects are expected in the next round.