KUALA LUMPUR -- Southeast Asian governments are increasingly developing long-term renewable energy and electrification policies that outweigh fossil fuel plans because of the energy shocks caused by the Iran war, according to a study released on Friday.

Six major Southeast Asian economies -- Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam -- have introduced 37 renewable energy and electrification plans since the U.S. and Israel launched their attack on Iran on Feb. 28. That compares with 29 plans for fossil fuels, according to Zero Carbon Analytics, a U.K.-based climate and energy research group.

The difference also applies to longer-term strategies. According to the researchers, ASEAN countries introduced 24 renewable energy and electrification policies with implementation periods of roughly three years or more, against just six fossil fuel policies. Most fossil fuel measures were also short-term responses expected to be of less than six months in duration.

Amy Kong, a senior energy transition researcher at Zero Carbon Analytics, described the trend as a "gear shift" in the region's energy transition: "Since the outbreak of the war, long-term clean energy policies have outweighed fossil fuel initiatives, and they are being translated into real action." The policy push comes amid one of the most turbulent periods for oil markets in nearly two decades. Crude prices remain elevated at more than $90 per barrel as the Middle East conflict persists.

One of the policies highlighted in the report is Indonesia's ambitious plan to build 100 gigawatts of solar power over the next three years, starting with the development of 14 solar plants with a total capacity of 5.3 GW that was initiated by President Prabowo Subianto last month. Southeast Asia's largest economy currently has just 1.5 GW of installed solar capacity.

One of the policies highlighted in the report is Indonesia's ambitious plan to build 100 gigawatts of solar power over the next three years, starting with the development of 14 solar plants with a total capacity of 5.3 GW that was initiated by President Prabowo Subianto last month. Southeast Asia's largest economy currently has just 1.5 GW of installed solar capacity.

The Philippines has introduced 13 low-carbon policies -- the most among ASEAN major economies. It has fast-tracked expanding solar capacity and required developers of renewable projects to optimize energy storage. Vietnam commissioned its first large grid-connected battery system in July, with 50 megawatts of output capacity and 100 MW-hour storage. The region's fastest-growing economy has also drawn up rules for direct power purchases that include allowing data centers and EV charging facilities to buy electricity directly from renewable power producers.

An electric taxi operated by Green and Smart Mobility, an affiliate of Vietnamese EV maker Vinfast. In 2025, VinFast overtook Toyota Motor to become the country's largest automaker.

© Getty Images Thailand has meanwhile introduced green utility tariffs that allow corporate buyers to procure renewable power through the grid. Kong said such moves "boost [the] market competitiveness" of renewables.

Kong said policy ambition is currently moving faster than project delivery, but execution can be expected to catch up as frameworks emerge. She identified the Philippines and Thailand as among the countries best placed to turn policy into projects.

"Renewables are no longer a compromise but a key solution across multiple lenses," Kong told Nikkei Asia.

The region is nevertheless still looking to fossil fuels to manage immediate supply and price pressures. Indonesia has redirected funds toward energy subsidies, while the Philippines established an emergency fuel procurement fund and a strategic petroleum reserve. Thailand has restarted two decommissioned coal-fired units, while the Philippines is considering fast-tracking up to 5 GW of new coal capacity.

Yu Sun Chin, senior Asia regional researcher at Zero Carbon Analytics, warned that short-term fossil fuel measures risk creating a "structural lock-in," adding that governments need stronger support for grid infrastructure -- including battery storage -- to ensure renewable electricity can be used at all hours.

Samirul Ariff Othman, senior consultant at Global Asia Consulting in Malaysia, said despite the low-carbon policy announcements, fossil fuels still account for just over half of regional energy investment, with coal supplying most of Southeast Asia's additional electricity generation over the past decade.

"There is a genuine shift in strategic thinking, but it is too early to call it a structural transformation," he said. "The Iran crisis may prove to be an important catalyst because it has changed the argument from decarbonization to energy security, affordability and strategic resilience." An expert at a Jakarta-based intergovernmental energy agency, who requested anonymity, said the Iran crisis has changed how policymakers view energy transition, that it is not only about going green. "It's about how we increase energy security," he said, noting that fossil fuels remain the backbone of Southeast Asian electricity generation -- impeding any abrupt shift.

"There is a genuine shift in strategic thinking, but it is too early to call it a structural transformation," he said. "The Iran crisis may prove to be an important catalyst because it has changed the argument from decarbonization to energy security, affordability and strategic resilience." An expert at a Jakarta-based intergovernmental energy agency, who requested anonymity, said the Iran crisis has changed how policymakers view energy transition, that it is not only about going green. "It's about how we increase energy security," he said, noting that fossil fuels remain the backbone of Southeast Asian electricity generation -- impeding any abrupt shift.

Samirul said the reform of grids and power-systems remain the region's biggest constraints, followed closely by financing. He said Southeast Asia's challenge is converting political ambitions into "grids, financeable projects and actual megawatts."