Singapore Leads ASEAN Energy Transition, But Regional Grid Gaps Persist: SEAS 2025 Survey

SINGAPORE, October 28, 2025 – As Singapore marks its 60th year, industry leaders believe the nation has made steady progress on its energy transition journey, though broader ASEAN resilience continues to be tested by regulatory and infrastructural constraints. These findings are part of the State of the Energy Transition 2025: Rethinking Resilience and Readiness in a Disrupted World survey conducted by the Sustainable Energy Association of Singapore (SEAS) ahead of the Asia Clean Energy Summit (ACES).

Steady Progress at Home

According to the SEAS survey of over 100 energy professionals, nearly two-thirds (67%) said Singapore’s energy transition showed some or strong improvement compared to last year. Respondents cited efforts to expand low-carbon energy integration, strengthen carbon trading mechanisms, and drive investment in renewables as key reasons for optimism.

When asked about Singapore’s defining ambition at 60, 29.5% of participants said the nation should be remembered for achieving deep solar and low-carbon integration despite land constraints, while another 21.9% hoped to see Singapore become the energy diplomacy anchor in ASEAN’s clean power grid.

Challenges on the Path to Net-Zero

The high cost of renewables (41.9%), land scarcity for infrastructure (58.1%), and overreliance on gas imports (55.2%) were identified as Singapore’s most pressing transition challenges. Respondents also pointed to the need for stronger carbon trading frameworks and fewer regulatory gaps to accelerate progress.

ASEAN’s Uneven Transition

Regionally, Singapore emerged as the clear leader, with more than half (51.4%) of respondents naming it as ASEAN’s frontrunner in the energy transition, far ahead of Malaysia (14.3%) and Vietnam (13.3%).

However, the regional landscape remains constrained by regulatory uncertainty (66.7%), financing constraints (56.2%), and grid infrastructure gaps (73.3%)—highlighting persistent fragmentation across ASEAN power markets.

Pathways to Regional Collaboration

To achieve the region’s renewable energy targets, 41.9% of respondents called for expanded cross-border grid interconnectivity, while 28.6% urged for harmonised regional energy regulations. Clearer policy frameworks and investments in clean infrastructure were cited as the most impactful enablers for ASEAN’s clean energy future.

Cross-border coordination frameworks were also viewed as the single most effective measure to strengthen ASEAN’s energy supply chain resilience (66.7%), followed by boosting local manufacturing capacity (17.1%).

Technology and Energy Mix Outlook

When asked about the most promising energy sources over the next five years, solar energy dominated (83.8%), followed by green hydrogen (57.1%) and wind (36.2%).

However, technical barriers persist — with grid interconnectivity gaps (83.8%) and inadequate storage systems (32.4%) topping the list of obstacles to ASEAN’s energy resilience.

While bioenergy was recognised for its potential, 37% of respondents noted scalability challenges due to feedstock and infrastructure constraints.

Carbon Market Readiness

The survey revealed cautious optimism toward carbon markets. Uniform regulatory standards (28.6%) and better accounting and verification systems (36.2%) were deemed essential to building trust and participation, alongside the need for cross-border trading platforms and political will.

Investment Sentiment

Looking ahead, energy storage and batteries (65.7%) are expected to attract the highest investor interest in the next 12 months, followed by green hydrogen and fuels (32.4%) and grid upgrades (41.9%)—signalling continued focus on infrastructure resilience and innovation.

Global Headwinds

External risks loom large. The top perceived threats include supply chain disruptions (41.9%), energy protectionism (45.7%), and climate finance delays (37.1%)—all exacerbated by geopolitical tensions and commodity price volatility.

Despite this, most respondents expressed confidence that ASEAN can navigate these disruptions through greater collaboration, policy coherence, and investment in emerging technologies such as storage, hydrogen, and AI-based grid management.

The State of the Energy Transition 2025 survey by the Sustainable Energy Association of Singapore (SEAS) gathered insights from over 100 energy professionals across Singapore and Southeast Asia. It forms part of the annual Asia Clean Energy Summit (ACES), which convenes policymakers, investors, and clean energy innovators to discuss the region’s transition readiness and pathways toward net-zero.