Recent Developments in Energy Transition and Innovation in the Asia-Pacific Region
28 minute read | June.30.2026
The Asia-Pacific region made strides in nuclear energy exploration, BESS requirements for renewable energy procurement, offshore wind, and strengthening governance policies on natural resources and attracting foreign investments.
Here’s a roundup of the latest developments from key markets in the region:
Singapore: Nuclear Readiness and Low-Carbon Reliability Planning
India: Considering New VCC Regime, and Changes to Lending Restrictions
On 19 May 2026, the Energy Market Authority (EMA), Singapore’s energy sector regulator, announced that Singapore will undertake the International Atomic Energy Agency (IAEA) Integrated Nuclear Infrastructure Review (INIR) Phase 1 Mission in 2027. This independent, voluntary external peer review will assess Singapore’s ability to make an informed decision on the deployment of nuclear energy, and whether the island nation’s capability building efforts are advancing in the right direction.
Nuclear energy remains one of the potential clean energy sources that Singapore is exploring to meet its growing energy needs while achieving net-zero emissions by 2050, as an island nation with limited resources amidst a global landscape of frequent energy disruptions and volatile price fluctuations.
While Singapore continues to explore the possibility of nuclear energy for the future, the EMA has taken steps to secure near-term electricity supply and explore additional low-carbon options.
The EMA launched two Requests for Proposals (RFP) that are good illustrations of Singapore’s parallel planning approach in securing near-term reliability through hydrogen-ready gas generation while simultaneously developing the evidence base for longer-term low-carbon options.
What are the two RFPs?
The study will assess technical, environmental and commercial feasibility for next-generation geothermal systems, identify areas for further study, and propose policy frameworks for potential geothermal projects. Proposals are due by 29 June 2026.
For developers and investors, the CCGT RFP represents a near-term opportunity to participate in Singapore’s power market, while the geothermal and nuclear workstreams are more likely to generate advisory and technical mandates before project development opportunities emerge.
On 18 May 2026, Malaysia’s government-owned electricity utility, Tenaga Nasional Berhad (TNB), launched the Santong battery energy storage system (BESS) in Dungun, Terengganu, a 100 MW / 400 MWh project connected at the 132/33 kV Santong BESS main intake substation.
Some notable facts about the project:
We expect the Santong BESS project will provide practical reference points for the next wave of storage procurement in Malaysia, particularly in view of the significant BESS procurement being undertaken under the Malaysia Battery Energy Storage System (MyBeST) program, a competitive bidding initiative representing the largest deployment of grid-connected BESS in Peninsular Malaysia to date.
Malaysia’s focus on storage procurement can be further seen in its move to make storage a core requirement in its next large-scale solar procurement cycle, marking a shift from standalone solar procurement toward solar-plus-storage as a grid-stability tool.
On 3 June 2026, it was announced that all solar projects under the upcoming sixth Large Scale Solar programme (LSS6) will be required to include BESS. This is to strengthen grid stability as Malaysia expands its renewable generation. Under Malaysia’s National Roadmap for the Energy Transition (NETR), the country is targeting 70% renewable energy capacity by 2050.
LSS6 is expected to be rolled out this year, with an indicative total capacity reportedly around 2,200 MW, the largest round to ever be held in Malaysia’s solar sector.
Indonesia has further tightened its foreign exchange proceeds regime through Government Regulation No. 2 of 2026, effective 26 February 2026, and Government Regulation No. 21 of 2026 (GR 21/2026), effective 1 June 2026. These regulations further amend Government Regulation No. 36 of 2023 on Export Proceeds from the Cultivation, Management, and/or Processing of Natural Resources. Together, these regulations significantly strengthen the natural resource export proceeds or devisa hasil ekspor dari kegiatan sumber daya alam (DHE SDA) retention framework for natural resource exporters.
Under the revised regime:
Overall, the amendments reflect Indonesia's continued policy objective of increasing onshore foreign exchange liquidity and strengthening foreign exchange reserves.
As part of its broader strategy to strengthen governance of natural resource exports and optimize foreign exchange retention, the Indonesian government has introduced a new framework for the export of selected strategic commodities.
The framework is principally set out in Government Regulation No. 24 of 2026 on the Governance of Exports of Strategic Natural Resource Commodities (GR 24/2026), effective 1 June 2026. Initially covering coal, crude palm oil and ferroalloys, GR 24/2026 contemplates a centralized export coordination mechanism through a designated state-owned entity.
Indonesia's second sovereign wealth fund, Danantara Indonesia, is reportedly exploring participation in a proposed US$30 billion renewable energy project aimed at exporting low-carbon electricity to Singapore.
The initiative is expected to involve the development of large-scale solar generation capacity, battery energy storage systems and cross-border transmission infrastructure connecting Indonesia and Singapore.
If realised, the project could become one of Southeast Asia's largest cross-border clean energy initiatives, supporting Singapore's decarbonisation objectives, while advancing Indonesia's renewable energy ambitions and strengthening regional energy cooperation.
The project remains at an early stage. Key details, including the investment structure, project sponsors, offtake arrangements, regulatory approvals and implementation timeline, have yet to be finalised. The initiative will likely require close coordination among multiple stakeholders across both jurisdictions and will depend on the continued development of Indonesia's regulatory framework for cross-border electricity exports and Singapore's electricity import regime.
On 26 June 2026, the government issued Decree No. 243/2026/ND-CP (Decree 243), which took effect on the same date. Decree 243 amends Decree No. 57/2025/ND-CP on direct power purchase agreements (DPPAs) and Decree No. 58/2025/ND-CP on renewable and new energy development.
Notably, Decree 243:
Generally, surplus electricity sales are capped at 50% of electricity generated by a rooftop solar system (the cap was at 20% under the previous regulation). However, higher surplus sales may be agreed on until 31 December 2030 where the local grid has the capacity to receive the output and safe system operation is maintained.
Separately, on 2 June 2026, Vietnam’s Ministry of Industry and Trade (MOIT) issued Circular No. 29/2026/TT-BCT (Circular 29) regulating the operation of the Vietnam Wholesale Electricity Market (VWEM), including market registration, operational planning, bidding, dispatch, pricing, settlement and supervision.
Notably, Circular 29:
These regulatory developments were accompanied by Vietnam’s first virtual DPPA transaction. On 1 June 2026, Samsung Electronics Vietnam Thai Nguyen became the first corporate customer in Vietnam to purchase renewable electricity through the DPPA mechanism via the national grid, with power supplied by the TTC Duc Hue 2 solar power plant (Samsung–TTC transaction).
Together, Decree 243, Circular 29 and the Samsung–TTC transaction flag the beginnings of Vietnam joining other ASEAN countries like Singapore and the Philippines, by putting in place the means to have a truly competitive local electricity market at the large scale or corporate level. This is even where settlement risk, pricing visibility and curtailment exposure remain key issues to monitor.
On 17 April 2026, MOIT issued Circular No. 20/2026/TT-BCT (Circular 20), which amends Circular No. 10/2025/TT-BCT on the methodology and principles for applying the avoided cost tariff (ACT) to small renewable energy power plants. Circular 20 took effect on 2 June 2026.
Notably, Circular 20:
This update should provide additional tariff and contractual certainty for small renewable energy projects, particularly small hydropower and distributed renewable sources.
On 18 May 2026, the government issued Resolution No. 66.18/2026/NQ-CP (Resolution 66) on decentralisation, reduction and simplification of administrative procedures and business conditions across 11 ministries and sectors. These ministries and sectors include public security, industry and trade, science and technology, home affairs, national defence, justice, finance, construction, culture, sports and tourism, health and education and training.
Resolution 66 is scheduled to take effect generally from 1 July 2026 and will remain in force until 28 February 2027. Certain MOIT-related provisions, however, took effect earlier from 20 May 2026.
For the energy sector, Resolution 66 should be viewed alongside the proposed draft Electricity Law amendments (which are currently in progress – stay tuned to further issues of this pulse for updates) and the government’s wider administrative reform agenda.
Notably:
Developers should nevertheless approach the change carefully:
India is considering the establishment of a dedicated Variable Capital Company (VCC)-like regime for Gujarat International Finance Tec-City (GIFT City). The Ministry of Finance has prepared a draft International Financial Services Centres Authority (Amendment) Bill 2026 to introduce and govern such a scheme. The proposal follows the Finance Minister’s FY 2024-25 Budget announcement that legislative approval would be sought for a flexible variable company structure for pooled private equity funds, as well as aircraft and ship financing and leasing.
If implemented, the framework could give GIFT City a more internationally familiar platform for global fund managers, combining sub-fund ring-fencing, flexible capital mechanics and investor confidentiality within a single purpose-built vehicle. However, key operating details will depend on the final legislation and delegated regulations, including the business governance and procedural rules that the draft framework leaves for future regulatory prescription.
On 10 June 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Commercial Banks – Credit Facilities) Third Amendment Directions 2026 (Third Amendment Directions). The Third Amendment Directions introduces a detailed framework for bank lending to Real Estate Investment Trusts (REITs) and revises the existing framework for bank lending to Infrastructure Investment Trusts (InvITs). These amendments will come into force on 1 October 2026, or earlier, if wholly adopted by a commercial bank at such time.
Among the key notable changes under the Third Amendment Directions are:
The changes should lead to multiple improvements:
At the same time, the eligibility conditions, listing requirements and 80% cash flow threshold may limit near-term access for newly-established trusts or portfolios with significant greenfield exposure. Banks will also need to prepare board-approved policies, exposure limits and monitoring systems before the effective date of the Third Amendment Directions.
On 17 April 2026, the Department of Energy of Philippines (DOE) announced that the 7th Round of the Green Energy Auction (GEA-7) will be launching this year. It was expected to release the terms of reference for GEA-7 around the second quarter of 2026.
GEA-7 will offer renewable energy capacities nationwide, but with a strategic focus on Mindanao, which will have a significantly increased allocation (estimated at approximately five times the capacity offered in previous GEA rounds).
This is intended to stimulate investments into Mindanao, address increasing energy demand and promote a more balanced and resilient power system across the country.
Some notable features of the upcoming auction include:
The GEA-7 will be of interest to solar PV and BESS project developers, investors and financiers considering investing in the Philippines. It further demonstrates the nation’s growing credentials as a regional powerhouse for green energy.
Thailand’s Metropolitan Electricity Authority and Provincial Electricity Authority officially launched the Utility Green Tariff 2 (UGT2) scheme on 30 April 2026, enabling companies to meet carbon-reduction targets through a wider source of green electricity procurement.
Prior to the launch of UGT2, the Utility Green Tariff 1 (UGT1) scheme was launched in 2025, and served as Thailand’s main corporate green electricity procurement scheme. One key difference between UGT1 and UGT2 is the scope of renewable energy sources available to consumers, which is significantly expanded under UGT2:
Other notable differences include:
We expect UGT2 will appeal more to large commercial and industrial users with long-term electricity needs, and its introduction will be welcome news to such corporate buyers.
As foreshadowed in our previous update, Taiwan launched Round 3.3 of its offshore wind auction on 1 April 2026, offering up to 3.6 GW of new capacity with applications open until the end of September and results expected before year-end. Projects are scheduled for grid connection in 2030–2031, with individual allocations capped at 1 GW (up from 600 MW previously).
The framework introduces key reforms:
The auction comes against a backdrop of mixed success for the previously awarded Phase 3-1 projects:
Looking ahead, a Round 3-4 allocation of approximately 4–4.5 GW is anticipated next year, potentially incorporating previously terminated sites and newly-released sea areas, as the government targets 18.4 GW by 2035 and 40–55 GW in the long term.
On 30 March 2026, the Ministry of Climate, Energy and Environment (MCEE) opened the 2026 first-half offshore wind competitive auction. The bid submission window ran from the announcement date to 12 May 2026. The selection results were announced on 30 June 2026.
Some highlights:
This year’s offshore wind auction generated significant interest from international and domestic developers, particularly in light of the phasing out of the RPS and the REC scheme (see below), as reflected in the record bid-to-award ratio. The total comfortably exceeded the prior year’s 689 MW and was achieved notwithstanding the approximately 3% reduction in the ceiling price.
The selected projects are sponsored by a mix of domestic and international developers:
On the other hand, the reducing ceiling prices may pose a difficult dilemma for the developers whose projects were awarded support in this auction.
In particular, the Korean won to U.S. dollar exchange rate has exceeded ₩1,500, sharply increasing import costs for turbines and other imported equipment. Therefore, the success of this auction round will ultimately depend on how many of these projects end up progressing to FID.
On 19 May 2026, the MCEE announced the “First Renewable Energy Basic Plan” (Basic Plan) at the 38th Energy Committee meeting.
The Basic Plan:
On the same day, the National Assembly’s Climate, Energy, Environment and Labour Committee passed the corresponding energy bills, under which the RPS scheme is to end at the end of 2026. Previously-issued RECs are to be recognised for a three-year transitional period.
The move from RPS to a government-led long-term fixed-price auction system is intended to reduce REC price volatility and provide more predictable, long-term revenue (and therefore improve the bankability of the projects).
However, important implementation details — including how Renewable Energy Certificate (REC) weightings will be replaced and how surplus RECs will be handled — remain undecided, so developers and investors will want to monitor the passage of the legislation and subordinate regulations closely.
The setbacks faced by the following projects (with two of them having been awarded support after competitive auction processes) represent the ongoing difficulties facing the South Korean offshore wind sector:
In particular, the difficulties faced by the Anma and Bandibuli projects, and other projects being developed by international sponsors, suggest that the regulatory and commercial barriers facing international sponsors remain formidable.
On 1 June 2026, the International Chamber of Commerce’s (ICC) revised Arbitration Rules (ICC Rules 2026) came into effect. The ICC Rules 2026 will apply to all Requests for Arbitration filed on or after this date.
The changes to the ICC Rules promise to enhance efficiency and clarity in a constantly evolving arbitration landscape. The ICC Rules 2026 introduce new procedures and streamlines existing ones, particularly in the early stages of arbitrations, while also aiming to preserve flexibility and procedural integrity, especially regarding the selection of arbitrators and the ability to tailor proceedings to the diverse needs of users worldwide.
Notable key changes in the ICC Rules 2026 include:
Instead, the (initial) case management conference followed by Procedural Order No. 1 becomes the key instrument to structure and streamline the arbitration (Article 24 (1), ICC Rules 2026). Tribunals will now have discretion to request terms of references only where appropriate as part of Procedural Order No. 1.
By making the Terms of Reference optional, the ICC aims to retain their clarifying benefits in complex or multi-party disputes, while avoiding unnecessary front-end costs and delays in simpler cases.
The ICC Rules 2026 increase the threshold for the automatic application of expedited proceedings from US$3 million to US$ 4 million (Article 1 of Appendix V, ICC Rules 2026). Unless parties expressly opt out, the Expedited Procedure Provisions will apply where the amount in dispute is under US$ 4 million, and the parties agree to their application (Article 1 (2) of Appendix V, ICC Rules 2026).
In addition to the pre-existing expedited procedure, the ICC Rules 2026 introduce Highly Expedited Arbitration Provisions that parties can expressly opt into, either at the drafting stage through inclusion in the arbitration agreement, or after the dispute has arisen (Article 33, ICC Rules 2026). It is designed to deliver a final award within three months from the case management conference, which is itself required to be held within 7 days after the file has been transmitted to the sole arbitrator.
While the application of this new procedure is not tied to a specific amount in dispute, it is likely to be most useful in disputes where a discrete issue of law or contractual interpretation needs to be determined.
The ICC Rules 2026 expressly grant tribunals the power to summarily dispose of claims upon request. This applies where such claims are “manifestly without merit” or “manifestly outside the tribunal’s jurisdiction” (Article 30, ICC Rules 2026). Under the ICC Rules 2021, this power existed in practice as part of the tribunal’s general authority in conducting the proceedings, but there was no express procedure for doing so. There was only guidance in this respect provided in the ICC Note to Parties and Arbitral Tribunals (2017).
The six-month time limit for rendering an arbitral award (pursuant to Article 31, ICC Rules 2021) was almost never enforced in practice.
Instead, the President of the ICC International Court of Arbitration will now set a bespoke time limit for each case (Article 34, ICC Rules 2026) on a case-by-case basis, considering the procedural timetable, which may be extended upon a reasoned request from the tribunal.
This revision may provide parties with a more realistic timeframe for an expected award to be rendered, as opposed to an unknown date, increasing clarity and certainty for all those involved.