Photo 1. (From left to right) Dr Zulfikar Yurnaidi, head of Energy Modelling and Policy Planning (MPP) Department, ACE; Dato’ Ir. Ts. Razib Dawood, Executive Director of ACE; H.E. Helen Fazey, Ambassador of the United Kingdom to ASEAN; Stefano Marguccio, Deputy CEO of Sustainable Energy for All (SEforALL).
Manila, 6 October 2026 – The ASEAN Centre for Energy (ACE) officially launched the ASEAN Energy Investment 2026 report on 6 October 2026, at the 26th ASEAN Energy Business Forum (AEBF-26), held in conjunction with the 44th ASEAN Ministers on Energy Meeting (AMEM) in Manila, Philippines.
The ASEAN Energy Investment (AEI) 2026 adopts the theme of “Mobilising Capital for Energy Security, Resilience, and Connectivity in ASEAN”. This third edition of the flagship series examines the region's growing investment needs, project bankability, the potential of de-risking mechanisms and financial instruments needed to mobilise capital at scale.
According to the ASEAN Energy Outlook (AEO9), ASEAN's energy demand is projected to grow by 4.2% annually, reaching approximately 2,047 million tonnes of oil equivalent (Mtoe) by 2060, with renewable energy accounting for 14.1% of total primary energy supply in 2024. To meet future energy needs, the region must close an annual investment gap of approximately USD 405 billion through 2060. The total cumulative investment requirements are estimated at USD 14.3 trillion by 2060, with electricity generation and transport investment needs accounting for 80% and 17% of it, respectively. However, total ASEAN energy investment in 2025 accounted for around 3%-4% of global investment, indicating the crucial need for ASEAN to scale up capital mobilization for the energy sector.
Dato’ Ir. Ts. Razib Dawood, Executive Director of ACE, officiated the launch and presented the report's key findings.
“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, while facilitating the region’s energy transition. It demonstrates ACE’s ongoing commitment to supporting ASEAN Member States (AMS) in pursuing the region’s energy priorities and energy security, aligned with our regional energy blueprint, the ASEAN Plan of Action on Energy Cooperation 2026–2030, targets,” said Dato’ Razib.
The report identifies that the region does not lack policy ambition. The main constraint is the cost of capital. Financing costs for clean energy projects in ASEAN are at least twice those in advanced economies, driven largely by political, regulatory, and offtake risks. To address these constraints, particularly for clean energy, the report recommends a three-step sequenced de-risking approach:
· Step 1: Policy and regulatory reform and stronger project fundamentals.
· Step 2: Contractual risk-sharing through robust power purchase agreements.
· Step 3: Financial de-risking instruments such as guarantees, political risk insurance, currency hedging, credit enhancement and blended finance, which are most effective once the
Photo 2. Opening remarks by H.E. Helen Fazey, Ambassador of the United Kingdom to ASEAN (left), and Stefano Marguccio, Deputy CEO of Sustainable Energy for ALL (SEforALL) (right).
The launching was followed by a plenary session, with high-level attendance from H.E. Helen Fazey, UK Ambassador to ASEAN, who delivered opening remarks, alongside Stefano Marguccio, Deputy CEO of Sustainable Energy for All (SEforALL).
Photo 3. Panel discussion.
Dr. Ambiyah Abdullah, Senior Economist at ACE, then moderated a panel discussion on energy investment in ASEAN. The speakers were Dr. Anindya Bhattacharya, Technical Adviser, SEforALL; Roshen Fernando, Economist, Economic Research and Development Impact Department, Asian Development Bank (ADB); Rexor Amancio, Regional Lead for Asia Pacific, GRA; Juhi Bansal, Regional Coordinator for Asia and the Pacific, United Nations Framework Convention on Climate Change (UNFCCC); Gino de Villa, Global Director of Climate, Hatch; and the closing remark by Dr. Zulfikar Yurnaidi, Head of Energy Modelling and Policy Planning (MPP), ACE.
The launch of ASEAN Energy Investment 2026 marks another step in ACE's efforts to support ASEAN Member States in mobilising capital for the region's energy priorities. The report examines the investment gap, identifies key risks to project bankability and outlines de-risking mechanisms and financial instruments. It aims to help governments, financial institutions, investors and industry stakeholders turn ASEAN's energy priorities into bankable projects and investable opportunities. It also underlines the importance of coordinated action among governments, development partners and the private sector for a secure, resilient and sustainable energy future for ASEAN.
Access the report here: go.aseanenergy.org/AEI2026
