Powering ASEAN’s clean energy future: Business-driven pathways to regional integration

At the recent Energy Asia 2025, Gentari convened a timely and solutions-focused roundtable titled “Powering ASEAN’s Clean Energy Future: Establishing a Resilient Renewable Energy Market Through Corporate Leadership.” Bringing together senior energy leaders, policymakers and key stakeholders, the session focused on a key premise: business-led collaboration is no longer optional. It is essential.

Across ASEAN, the scale and urgency of the clean energy transition demand a new kind of leadership - one where businesses play a central role as co-creators of systemic change.

The clean energy imperative
ASEAN’s renewable energy ambitions are bold. Member states aim to achieve 35% renewable energy in installed capacity by 2025, with net-zero targets committed by most nations for mid-century. Yet, progress remains fragmented. Without accelerated, coordinated action, the region risks falling short.

This transformation can no longer rely solely on government policy. Corporate demand—driven by ESG mandates, decarbonisation goals, net-zero pledges and the rapid growth of energy-intensive sectors such as manufacturing, logistics and data centres has become a central force in accelerating clean energy adoption. To date, corporate buyers have already enabled over 3.3 GW of new renewable capacity in ASEAN through power purchase agreements (PPAs). With data centre energy consumption in Southeast Asia projected to quadruple by 2030, the critical question now is whether supply can scale fast enough to meet this surging demand.

Fixing the supply side: grids, permitting and cross-border trade
Roundtable participants unanimously stressed that unlocking demand requires first fixing supply-side constraints—starting with grid infrastructure, permitting processes and regional integration.

Initiatives like the ASEAN Power Grid (APG)—with its 17.6 GW interconnection ambition—are foundational for enabling efficient clean energy trade across borders, from the Mekong subregion to Peninsular Malaysia. The success of the Lao PDR-Thailand-Malaysia-Singapore (LTMS-PIP) exchange offers proof of concept, but also, highlights the complex hurdles ahead.

Demand for renewables often sits in one country, while supply is in another—but without mandates or regional grid alignment, bundling electrons with RECs remains a challenge. ~ Roundtable Participant

Despite liberalised generation markets in several ASEAN nations, transmission and retail remain tightly regulated, creating major friction for corporate buyers, especially for cross-border procurement.

Grid modernisation, harmonised standards and political leadership—not just commercial momentum—are urgently needed to turn ASEAN’s clean power ambitions into bankable, scalable outcomes.

Renewable Energy Certificates (RECs): an immediate enabler
In markets where direct procurement is constrained, RECs are emerging as a scalable tool for clean energy procurement, but they are not without challenges. The roundtable highlighted three major issues:

1. Fragmentation: Multiple certificate standards (I-REC, TIGRs, national schemes) and inconsistent tracking systems limit regional liquidity and credibility in REC markets.
2. Recognition gap: Many cross-border RECs are not recognised under global frameworks like RE100, largely due to perceived issues around additionality, lack of robust tracking and questions over whether the clean energy attributes can be credibly claimed in a different jurisdiction.
3. Oversupply: Issuance of RECs is currently outpacing corporate redemption, weakening price signals and reducing the financial viability for new renewable energy projects.

Participants also raised the importance of ensuring greater alignment between RECs and actual renewable energy deployment. One insight that emerged was the need to encourage structures that pair RECs more closely with physical electricity delivery—such as in bundled procurement models. While unbundled RECs remain useful in constrained markets, a stronger push toward mechanisms that tie certificates to tangible generation and grid access can enhance traceability, improve project bankability and reinforce credibility with global reporting frameworks.

A regionally harmonised REC governance model is essential to ensure traceability, credibility, and international recognition—transforming RECs from administrative instruments into catalysts for real-world clean energy deployment.

“RECs can help track green electrons, but the endgame must be new projects and credible climate impact.” ~ Roundtable Participant

Business-led collaboration: a catalyst for action
One theme rang clear across the discussion: businesses are not waiting. They are leading.

Corporates are driving change on multiple fronts - demanding traceable, high-impact RECs; championing clearer policy frameworks; and deploying capital into infrastructure and renewable energy projects. From catalysing grid modernisation to influencing policy design and setting new standards for clean energy procurement, corporates are actively reshaping the trajectory of ASEAN’s energy transition.

Today’s corporates are not merely energy consumers - they are co-investors, co-designers and coalition builders. They are demanding high-integrity RECs that are traceable and impactful, pushing for clarity in cross-border trade rules and investing in infrastructure that accelerates regional integration.

In many cases, businesses are moving faster than regulation, demonstrating what is possible when commercial ambition aligns with climate responsibility.

“Let’s not talk about problems—let’s focus on solutions and get some of these deals done.”  ~ Roundtable Participant

This is not just a case of businesses stepping in to fill policy gaps. It signals a broader shift in the energy landscape: from state-led models to market-enabled ecosystems.


In such a landscape, public-private partnerships become a force multiplier - unlocking innovation, de-risking capital and accelerating project deployment at scale.

Examples of progress include:

• LTMS-PIP, serving as a model and proof-of-concept for regional electricity trade.
• Project VMS, establishing a future corridor for grid interconnection between Vietnam, Malaysia, and Singapore.
• The Gentari–Sembcorp hydrogen partnership, showing how business can catalyse early-stage technologies while unlocking enabling policy reform, de-risk early-stage projects and push policy reform.

“Cross-border and cross-industry partnerships are not just enablers—they are economic multipliers.” ~ Sushil Purohit, Chief Executive Officer, Gentari

Yet, as powerful as corporate momentum is, it must be complemented by clear and consistent government action. Business leadership cannot operate in a vacuum.

To move from fragmented pilot projects to systemic regional transformation, the enabling environment must catch up: streamlined permitting, interoperable standards, predictable regulations, and aligned incentives are all vital.

This is not about shifting responsibility. It is about deepening partnership. The future of ASEAN’s clean energy market will depend on how effectively the public and private sectors can align around shared goals, common frameworks, and coordinated execution.

Regional learnings: policy and market synergy
ASEAN is not starting from scratch. Valuable lessons can be drawn from peers across Asia.

China’s Green Electricity Certificate (GEC) reforms offer a compelling blueprint. By introducing Renewable Portfolio Standards (RPS) - which require utilities and large consumers to source a mandated share of electricity from renewables - China created a powerful demand signal. This was paired with stringent verification systems and alignment with national targets, transforming a fragmented REC-like system into a globally recognised market mechanism.

Another standout example is India’s Green Open Access policy, which mandates reduced surcharges and streamlined approvals for renewable energy procurement by commercial and industrial consumers. Coupled with digital registry systems, India is enabling transparent, high-volume REC trading while supporting new renewable energy investments.

Together, these examples show how policy clarity, traceable instruments and market integration can unlock meaningful progress and offer ASEAN a practical pathway forward.

What’s needed next
To accelerate ASEAN’s transition into an integrated, renewable-powered region, the roundtable called for five key enablers:

• A harmonised REC governance model with local issuers, aligned with global frameworks like RE100.
• Streamlined permitting and robust grid planning to attract and de-risk capital investment.
• Clear demand signals, including mandatory green targets alongside voluntary action.
• Blended finance structures and government-to-government platforms to unlock private capital.
• Strong leadership to coordinate and enforce regional energy market integration.

Conclusion: the time for ASEAN to act is now
The energy transition is no longer aspirational - it is a competitive necessity. No company, sector or country can do it alone. Business-led collaboration, supported by enabling policy and infrastructure, must drive the transition from ambition to action.

To meet surging corporate demand, accelerate decarbonisation and build a seamless regional power market, ASEAN must recognise corporate leadership and government action are two sides of the same coin. A harmonised REC system, integrated grids and clear regulatory frameworks are not distant ideals - they are immediate necessities.

The insights from this roundtable point to a pragmatic path forward. Gentari remains committed to catalysing this shift by convening changemakers, enabling market mechanisms and building the partnerships needed to unlock ASEAN’s clean energy future.

The momentum is here. Now is the time to act.