Southeast Asia could save $45.4 billion by choosing solar over planned gas plants, study finds
Solar power already costs half as much as gas to generate across five of the region's biggest economies, and the gap is expected to widen by 2030.
Five Southeast Asian economies could save about $45.4 billion by building enough solar capacity to replace the gas power plants they have planned, according to an analysis by research group Zero Carbon Analytics (ZCA).
Nearly 49 gigawatts of gas capacity is under construction or in pre-construction in Indonesia, Malaysia, Thailand, the Philippines and Vietnam, the group found using Global Energy Monitor data. Vietnam accounts for about 34.5 gigawatts, which would raise its gas capacity 380% from 2025 levels, followed by Malaysia at 9.6 gigawatts.
Solar was already cheaper to generate than gas in all five countries in 2025, costing 50% less on average, and the gap could widen to 84% by 2030, according to ZCA's analysis of BloombergNEF and International Energy Agency data. The comparison measures lifetime generation costs, not the rates consumers pay. In the Philippines, solar cost $54 per megawatt-hour, compared with $99 for gas.
Large electricity buyers are already shifting. Microsoft Indonesia signed a 10-year agreement with state utility PLN for 200 megawatts of renewable power, and Samsung Electronics signed Vietnam's first grid-based direct power purchase agreement for solar electricity.
"The economic case for gas is becoming harder to justify as projects face volatile fuel prices and rising costs, while renewable power continues to become more competitive," said Yu Sun Chin, a senior Asia regional researcher at ZCA.
This brief is based on reporting by Hannah Alcoseba Fernandez, published Oct. 6, 2026, in Eco-Business. Read the original: https://www.eco-business.com/news/southeast-asia-could-save-us454-billion-with-solar-instead-of-planned-gas-projects-study/
This article was produced with the assistance of AI tools and reviewed by an editor before publication.
