The ASEAN Centre for Energy (ACE) has unveiled the ASEAN Energy Investment 2026 report at the 26th ASEAN Energy Business Forum in Manila, aiming to mobilise capital for the region’s energy transition. The report, themed “Mobilising Capital for Energy Security, Resilience, and Connectivity in ASEAN,” addresses the region’s escalating investment needs and the financial mechanisms required to attract large-scale capital.
According to the ASEAN Energy Outlook, energy demand in ASEAN is expected to rise by 4.2% annually, reaching 2,047 million tonnes of oil equivalent by 2060. To meet these demands, an annual investment gap of approximately US$405b must be bridged, with cumulative investment needs estimated at US$14.3t by 2060. Electricity generation and transport sectors are projected to account for 80% and 17% of these investments, respectively.
ACE Executive Director Razib Dawood emphasised the report’s role in unlocking investment and enhancing energy security. “The AEI 2026 Report answers the question of how ASEAN can unlock investment and mobilise capital necessary to enhance ASEAN’s energy security, resilience, and connectivity,” he stated.
The report identifies the high cost of capital as a significant barrier, with financing costs for clean energy projects in ASEAN being at least double those in advanced economies. To mitigate these challenges, the report suggests a three-step de-risking approach: policy reform, risk-sharing agreements, and financial instruments like guarantees and political risk insurance.
The launch event featured remarks from UK Ambassador to ASEAN Helen Fazey and a panel discussion moderated by ACE’s Senior Economist Ambiyah Abdullah. The report aims to guide governments, financial institutions, and investors in transforming ASEAN’s energy priorities into viable projects, stressing the need for coordinated action for a sustainable energy future.
