HNN – Solar power is rapidly developing, becoming one of the important energy sources in the global energy transition. With a large market, expanding production capacity, and rising electricity demand, Asia is playing a prominent role in this trend. Many new policies and development models are being implemented, opening up opportunities to diversify supply sources and promote the clean energy industry.
Asia leads the race.
According to the “Photovoltaic Application Trends 2026” report published by the International Photovoltaic Technology Partnership (IEA-PVPS), the total installed solar power capacity globally reached approximately 2.96 TW by the end of 2025. Notably, China continues to be the world’s largest photovoltaic market, far surpassing other countries, reaching 415 GW of installed capacity in 2025 and accounting for approximately 60% of the total global installed capacity.
India is also accelerating its growth. With approximately 54 GW of installed capacity by 2025, the country has risen to second place globally; followed by the US with 43 GW, Germany with 18 GW, and Pakistan with around 14 GW.
This shows that Asia holds many advantages in the solar power industry. From large-scale markets like China and India, solar power is rapidly expanding in many countries in the region.
In Southeast Asia, electricity demand is increasing due to urbanization and industrial development, while dependence on imported energy sources and geopolitical uncertainties are creating an urgent need for energy security. In this context, developing renewable energy sources, including solar power, is seen as a way to diversify supply, reduce reliance on imported fuels, and meet the region’s growing electricity demand.
According to the 9th ASEAN Energy Outlook (AEO9) report, published in October 2026, the region aims to achieve a 30% share of renewable energy in its total primary energy supply and a 45% share of renewable energy in its total installed power capacity by 2030. Solar power is identified as a key contributor to these goals.
Many markets have seen positive movement. According to the International Energy Agency (IEA), in the first quarter of 2026, the Philippines became China’s second-largest importer of solar panels, with imports approximately three times higher than the same period the previous year. This reflects the rapidly increasing demand for equipment for solar power projects, indicating a broader reorientation in the country’s energy strategies.
Along with the “Guidelines for Installing Floating Solar Panels on Reservoirs and Lakes in Malaysia 2026” developed by the National Water Research Institute of Malaysia (NAHRIM), Malaysia is promoting the development of floating solar power. The guidelines are intended as a reference document for stakeholders in planning and implementing floating solar power projects in a systematic, safe, and sustainable manner.
Meanwhile, the Singaporean government has decided to raise its solar energy deployment target to 3 GWp by 2030, boosting efforts to install solar systems on more viable surfaces. This includes utilizing all suitable rooftops, land, and water bodies. Currently, rooftop solar systems account for over 80% of the total installed capacity in the country.
On October 27th, Thai Prime Minister Anutin Charnvirakul presided over the launch of the “Solar Energy for the People Initiative.” The program aims to enable one million households nationwide to generate their own electricity from solar power, thereby boosting income from green energy sources. Anutin Charnvirakul affirmed: “Promoting clean and renewable energy is one of the key policies of the Thai government, and also a crucial issue globally, with the goal of strengthening Thailand’s energy security.”
In Vietnam, in response to the need to ensure energy security and meet the growing demand for electricity, the Government Office issued Official Letter No. 10790/VPCP-CN dated October 22, 2026, conveying the Prime Minister’s directive on immediately implementing solutions to ensure electricity supply during the 2027-2030 period. Specifically, the Ministry of Industry and Trade is directed to focus on guiding and urging ministries, agencies, and localities to concentrate on developing rooftop solar power at households, offices, production and business establishments, ensuring compliance with the Prime Minister’s directive, and encouraging the installation of energy storage systems to reduce peak-hour load and increase the self-sufficiency of local power sources.
Opportunities for development
Each country in the region is choosing a solar power development strategy that suits its land conditions, electricity demand, and investment capacity. Besides expanding large-scale plants, models such as rooftop solar, floating solar, and integrated storage systems are opening up more room for the clean energy market. This process also creates opportunities to attract investment, develop technical service industries, and participate more deeply in the energy technology supply chain.
However, to effectively harness that potential, significant investment in transmission and storage infrastructure is necessary. At the regional level, connecting the power systems of different countries also opens up avenues for long-term cooperation. Through the ASEAN Power Grid (APG), countries can enhance cross-border electricity exchange, share resources, and better exploit the potential of renewable energy.
At the Singapore International Energy Week (SIEW 2026) conference on October 26th, ASEAN Secretary-General Kao Kim Hourn also emphasized that developing the ASEAN Power Group (APG) is one of the region’s energy cooperation priorities, alongside diversifying supply sources, improving energy efficiency, and mobilizing financial resources from partners. This shows that the energy transition in ASEAN requires not only the individual efforts of each country but also coordination in planning, investment, and operation of the power system.
Along with opportunities for developing power generation projects, solar power also creates room for expanding production capacity and participating more deeply in the clean energy technology supply chain. According to the IEA, Southeast Asia is currently the world’s third largest producer of photovoltaic modules, after China and India. The existing production base facilitates countries in continuing to attract investment, acquire technology, develop supporting industries, and create more jobs.
To realize these opportunities, the ability to mobilize capital and build a stable investment environment will play a crucial role. Data from the ASEAN Energy Centre (ACE) indicates that the financing costs for clean energy projects in ASEAN are currently at least twice as high as in developed economies. Therefore, countries need to reform policies and legal frameworks, strengthen the infrastructure for project implementation, minimize investment risks, and apply financial instruments. This will be significant in transforming solar power potential into concrete projects.
The race to develop solar power is opening up many opportunities for Asian economies, from expanding power generation capacity to developing manufacturing industries and connecting the region’s power grid. To realize this potential, countries need to refine policies, upgrade infrastructure, and attract investment, thereby contributing to ensuring energy security, promoting sustainable development, and enhancing Asia’s position in the global clean energy supply chain.
DEPARTMENT OF GRASSROOT INFORMATION AND FOREIGN INFORMATION
MINISTRY OF CULTURE, SPORTS AND TOURISM
Responsible for content
Mr. Pham Anh Tuan
Head office

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