Recent Developments in Energy Transition and Innovation in the Asia-Pacific Region
28 minute read | September.30.2026
The Asia-Pacific region established new energy initiatives, introduced market reforms, updated regulatory standards and forged ahead in multiple areas of power generation.
Here’s a roundup of the latest developments from key markets in the region:
On 7 August 2026, the Energy Market Authority (EMA), Singapore’s energy regulator, granted conditional approvals to two companies to import a total of 900 MW of electricity from Peninsular Malaysia to Singapore, both of which will supply power generated from solar and battery energy storage systems (BESS) in Johor Bahru – namely:
Both companies are working towards commencing commercial operations around 2029. They will need to obtain all requisite approvals from relevant jurisdictions, conclude power purchase agreements with buyers, secure sufficient financing and reach financial close.
These conditional approvals build on the strong momentum in bilateral energy cooperation between Singapore and Malaysia, including:
On 20 August 2026, the EMA awarded Tuas Power Generation Pte Ltd (Tuas Power) the right to build, own and operate a new Combined Cycle Gas Turbine (CCGT) generating unit, pursuant to EMA’s RFP launched in April 2026 under its Centralised Process. The new unit is expected to provide 670 MW in power generation capacity and be ready for commercial operations by December 2031.
The new CCGT will be hydrogen-ready, capable of co-firing up to 30% hydrogen with natural gas, in line with Singapore’s requirement that all new and repowered natural gas power plants be at least 10% more energy efficient and able to draw on at least 30% hydrogen when the low-carbon fuel source becomes commercially viable. With this award, Singapore is expected to have at least 11 hydrogen-ready natural gas power plants by 2032.
The award reflects Singapore’s need to secure near-term generation capacity in the face of rapidly growing electricity demand. Tuas Power has also indicated that the new plant will not only help meet Singapore’s growing electricity demand but will also replace ageing generators due to retire over the next decade.
EMA’s Centralised Process, under which the RFP was conducted, has been an important tool for Singapore’s generation planning. The EMA previously launched two RFPs in 2023 and 2024 for new CCGT generating units – the first targeting completion by end 2027 and the second for two units expected to be operational by 2029 and 2030.
The EMA has indicated that the RFP for the 2032 unit(s) under the April 2026 RFP would accept proposals until 30 September 2026.
For developers and investors, this award is a further signal of the ongoing opportunities in Singapore’s power generation sector. The continued use of EMA’s Centralised Process provides a structured framework for private sector participation in new capacity development, and the hydrogen-readiness positions these assets for a potential future transition as Singapore’s hydrogen supply chain matures.
On 16 July 2026, Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA) announced the implementation of the sixth Large Scale Solar programme (LSS6), the largest LSS round to date and a significant evolution in Malaysia’s renewable energy procurement framework. As we noted in our previous edition, LSS6 is the first round of the LSS programme to require mandatory BESS integration alongside solar generation.
LSS6 offers a total capacity of 2,650 MW and will be implemented through three packages:
Individual bid capacities for Packages 1 and 2 are set between 60 MW and 500 MW, while Package 3 bids range from 10 to 30 MW. All LSS6 projects are targeted to achieve full commercial operation by 31 December 2029.
Priority will be given to bidders using domestically manufactured solar photovoltaic modules, and project development will be focused on high-demand areas in southern Peninsular Malaysia. The LSS6 tender is expected to close in October 2026, with the earliest awards in the first half of 2027.
For developers and investors, LSS6 represents a major procurement opportunity in one of Southeast Asia’s fastest-growing renewable energy markets. The scale of the programme, the mandatory storage component and the focus on southern Peninsular Malaysia (where date center-driven demand growth is concentrated), all signal a market that is becoming more sophisticated in how it procures and integrates renewable energy.
On 11 August 2026, PETRA launched the National Energy Efficiency Policy and Action Plan (NEEAP 2.0) for 2026 to 2035. NEEAP 2.0 succeeds the earlier action plan that ran until 2025 that focused on building more energy supply. NEEAP 2.0 focuses on mainstreaming energy efficiency across the industrial, commercial and domestic sectors in support of Malaysia’s net-zero 2050 aspiration.
NEEAP 2.0 sets a strategic target of an 11.6% improvement in electricity and thermal energy efficiency compared to business-as-usual, with estimated cumulative energy savings of 815,000 TJ (equivalent to about two years of Peninsular Malaysia’s entire electricity supply according to PETRA). PETRA projects net energy savings of RM85 billion, RM36 billion in private investment, approximately 29,000 new jobs and a reduction of 26 million tons of CO₂ equivalent by 2035.
NEEAP 2.0 complements the supply-side measures being pursued through programmes like LSS6 and MyBeST by addressing the demand side of the energy equation. For a market where electricity demand is projected to grow rapidly – driven in part by data centers and advanced manufacturing – energy efficiency improvements could play a meaningful role in managing the pace at which new generation capacity must be brought online, while also signalling opportunities for energy service companies and technology providers.
Indonesia’s long-awaited new Oil and Gas Law is now moving forward after more than a decade of attempts to replace Law No. 22 of 2001 on Oil and Gas.
In August 2026, the House of Representatives (DPR) agreed that the bill would take the form of a replacement law rather than a further amendment to the existing law and approved it as a DPR initiative. According to news reports, President Prabowo Subianto subsequently issued a Presidential Letter (Surat Presiden) dated 14 September 2026 appointing five ministers to represent the government in the deliberations, clearing the way for formal discussions between the government and the DPR. The DPR is reportedly targeting completion of the bill by mid-October 2026, before the end of the current parliamentary sitting period.
One of the most significant proposed changes is the establishment of a new Special Oil and Gas Business Entity (Badan Usaha Khusus Minyak dan Gas Bumi or BUK Migas) as part of a broader restructuring of Indonesia's upstream oil and gas governance. The Minister of Energy and Mineral Resources has recently confirmed that BUK Migas is intended to sit directly under, and be accountable to, the president. Reports suggest that the government is considering strengthening BUK Migas’ role in addressing cross-sector licensing issues while preserving the licensing authority of the relevant ministries, as well as giving BUK Migas greater flexibility in negotiating cooperation arrangements, including in relation to cost recovery.
The precise institutional relationship between BUK Migas and SKK Migas remains to be settled through the legislative process. While BUK Migas has been widely discussed as a potential successor to SKK Migas, including in public statements by lawmakers, the government has not yet confirmed whether its establishment would result in SKK Migas being replaced entirely or otherwise restructured. The precise institutional relationship between BUK Migas and SKK Migas, the scope of BUK Migas’ authority and the applicable transitional arrangements remain key issues to watch as the bill progresses through formal government-DPR deliberations.
The Ministry of Energy and Mineral Resources has issued MEMR Regulation No. 7 of 2026 on Business Activity Standards for Risk-Based Business Licensing in the Energy and Mineral Resources Sector (MEMR 7/2026). MEMR 7/2026 implements Government Regulation No. 28 of 2025 on Risk-Based Business Licensing and replaces MEMR Regulation No. 5 of 2021, updating the sector-specific standards and requirements that apply under Indonesia's OSS risk-based licensing framework.
The regulation has broad application across the energy and natural resources sector, including oil and gas, mineral and coal mining, electricity, geothermal and supporting business activities.
Companies operating in these sectors should assess whether their existing or proposed activities are subject to updated licensing standards or additional requirements under MEMR Reg 7/2026.
Bank Indonesia has issued:
These implement:
The revised framework generally requires the natural resource export proceeds or devisa hasil ekspor dari kegiatan sumber daya alam (DHE SDA) to be received and placed through state-owned enterprise banks (SOE banks), subject to certain bilateral trade exception. This removes the previous ability to use Indonesia Eximbank or other foreign-exchange banks for such purpose.
For non-oil and gas DHE SDA, conversion into rupiah is limited to 50% of the accumulated DHE SDA received during the relevant month.
As mentioned in our previous publication, GR 21/2026 introduced an exception for qualifying mining exporters under designated bilateral trade arrangements. Ministry of Finance Regulation No. 48 of 2026 on Criteria for Exporters Eligible for Special Provisions in Fulfilling the Obligations for the Receipt, Placement and Use of Foreign Exchange Export Proceeds from Natural Resources (MOF Reg 48/2026) sets out the eligibility requirements for this exception, including that the exporter must be a perusahaan perseroan with at least one shareholder from a designated partner country holding at least 10% of its shares. Qualifying exporters may place DHE SDA with designated foreign-exchange banks, including non-SOE banks, subject to a minimum 30% placement requirement for at least three months.
On 23 August, the 16th National Assembly passed the Petroleum Law No. 10/2026/QH16 (the “New Petroleum Law”), with 94.60% of delegates voting in favour. The New Petroleum Law comprises 12 chapters and 62 articles, fully replacing the 2022 Petroleum Law, and will take effect on 1 March 2027.
Rather than overhauling the existing regime, the New Petroleum Law recalibrates it in specific areas. Much of the 2022 Petroleum Law is carried over, giving continuity to petroleum contracts and agreements already in place.
The New Petroleum Law is built around five policy pillars approved under Resolution No. 81/NQ-CP dated 3 April 2026, including:
Key changes under the New Petroleum Law include:
Petrovietnam is required to prepare and approve plans for selection of contractors, conduct bidding processes, review transfers of participating interests and determine whether to exercise its participation and pre-emption rights, which previously required Prime Ministerial or MOIT approval.
At the field-development stage, Petrovietnam may approve resource and reserve reports, outline development plans, early production plans, field development plans and decommissioning plans, subject to specified thresholds.
Marginal fields are those not capable of being developed and produced at the time of assessment because their investment returns are below the minimum threshold required under the prevailing technological, economic and technical conditions.
Enhanced oil recovery (EOR) projects receive an additional cost recovery ceiling of up to 10 percentage points and contract extensions of up to five years.
CCS activities linked to petroleum blocks will be governed by the New Petroleum Law, while standalone CCS projects will fall under separate energy legislation. Revenue from carbon credit sales is to be booked as a reduction of cost recovery.
Implementing regulations, including a new decree to replace Decree No. 45/2023/ND-CP, are being drafted by MOIT and will be required before the New Petroleum Law takes effect.
Developers and investors in Vietnam's upstream sector may want to monitor these closely, particularly the detail on CCS frameworks, shared infrastructure mechanisms and the scope of Petrovietnam’s expanded authority.
On 4 July 2026, the Government issued Decree No. 272/2026/ND-CP (Decree 272), establishing detailed mechanisms for implementing Resolution No. 253/2025/QH15 (Resolution 253) on national energy development for 2026–2030. Decree 272 took effect immediately and will remain in force until 31 December 2030.
Background
Resolution 253 was passed by the National Assembly in December 2025 to implement the Politburo's Resolution No. 70-NQ/TW on national energy strategy to 2030, with a vision to 2045. It introduced a package of special mechanisms, applying from 2026 to 2030, to remove longstanding bottlenecks in power sector development. The package targets four areas:
Among other things, it also sets parameters for DPPAs, and for offshore wind, allows the Prime Minister to approve the investment policy and the investor together for projects scheduled to operate by 2030, without a competitive tender.
Resolution 253 applied from 1 March 2026, but a number of its mechanisms could not be applied in practice until detailed implementing rules were issued. Decree 272 now provides those rules.
Decree 272
Decree 272 does not introduce new investment incentives, but completes the practical framework for energy project development, addressing longstanding bottlenecks for offshore wind and power grid infrastructure.
Notably:
National defence, security and sovereignty remain key considerations during the appraisal process. In general, Decree 272 should help move Vietnam's offshore wind sector from planning into project development, which has been slow to happen.
The Impact
In practice, Decree 272 is less about new policy and more about making existing policy applicable in practice. Resolution 253 sets the direction, and Decree 272 now hopefully gives developers a clearer view of who decides, what they need to file and how long it should take.
As always in Vietnam, implementation will be the real test. Statutory timelines are only as effective as the agencies applying them. Together, the New Petroleum Law and Decree 272 represent a significant regulatory recalibration across Vietnam's energy sector. Developers and investors should review their project development strategies against the new frameworks and continue to monitor the passage of further implementing regulations.
On 6 April 2026, the Ministry of Power (MoP) issued an office memorandum formally introducing Insurance Surety Bonds (ISBs) as an acceptable alternative to bank guarantees (BGs) across all power procurement frameworks in India for both:
This operationalises the Ministry of Finance’s amendments to Rules 170(i) and 171(i) of the General Financial Rules, 2017 (GFRs) in February 2022, which both:
The MoP had already incorporated ISB provisions in the Standard Bidding Guidelines for renewable energy projects (solar, wind, hybrid and Firm and Dispatchable Renewable Energy), pumped storage projects and transmission projects. The April 2026 memorandum extends this uniformly across all remaining power procurement segments, including long-term, medium-term and short-term procurement and emerging segments such as BESS. The move is part of a broader government push to mainstream surety bonds across public procurement, following similar steps in highway and coal.
The directive is a structurally significant reform:
For developers and investors, the key areas to watch are the pace and consistency of implementation across states as procuring entities update their bidding documents, and the readiness of India’s insurance market to scale underwriting capacity for large-value power and storage tenders.
Project finance documentation will also need to reflect ISBs as a permitted form of security, with attention to step-in rights, substitution mechanics and interaction with other elements of the project security package.
In July 2026, the Department of Energy (DOE) temporarily suspended all activities under the fifth round of the Green Energy Auction Program (GEA-5), which was set to be the Philippines’ first competitive auction for offshore wind.
The GEA-5 had been targeting 3,300 MW of fixed-bottom offshore wind capacity for delivery between 2028 and 2030. The programme had been advancing, with the Energy Regulatory Commission (ERC) setting a ceiling price in February 2026, and a list of qualified bidders had been expected in July 2026.
The DOE indicated that the pause is intended to strengthen the auction framework before bidding proceeds, particularly around interagency coordination and project-readiness requirements.
The areas under review include:
The suspension is notable given the scale of the Philippines’ renewable energy ambitions. Under its 10-year Green Energy Auction Program, the DOE plans to auction a minimum of 25 GW of additional renewable energy capacity through 2035. GEA-5 was intended as a key milestone in that programme.
An updated auction timeline and any revisions to the GEA-5 terms of reference will be announced once the technical and coordination work is complete. The DOE has emphasised that offshore wind remains central to its clean energy strategy and that the recalibrated framework is expected to improve the quality and viability of eventual project awards.
On 15 July 2026, the National Energy Policy Council (NEPC), chaired by Prime Minister Anutin Charnvirakul, approved a package of seven electricity reform measures aimed at reducing household electricity costs, opening the clean energy market to greater competition and ensuring large power users bear a fair share of infrastructure costs.
Key measures include:
On 4 September 2026, Thailand's newly established data center policy board, chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, ordered a temporary pause on ongoing data centre projects while new industry standards are developed. This affects 166 data center projects, comprising 49 under construction and 117 awaiting approval.
The standards, expected to be announced within a month, will establish uniform oversight standards for both operating and proposed facilities. They are expected to cover town planning, building separation requirements, safety, electrical systems, backup fuel storage and environmental protection, and will apply to both commercial data centers and those built for organisations’ own use. Existing operators will receive a transition period to bring their facilities into compliance.
The pause follows a surge in data center investment. In the first half of 2026, the Board of Investment approved 88 AI and data center projects worth a combined THB 886 billion, exceeding the THB 623 billion recorded for all of 2025. Nationwide, 35 data center are operational, and 117 proposed facilities are awaiting investment approval.
Looking ahead, the government has signalled that future data center approvals will be assessed on broader criteria including employment, technology transfers, clean-energy use and greenhouse gas reductions, with water and electricity prices expected to reflect direct and indirect costs so that consumer households do not subsidise large operators.
Following termination of 440 MW Wei Lan Hai (EDF), Haixia II (300 MW LeaLea/Skyborn) and Haiding II (600 MW Corio/TotalEnergies) projects, all three sites are now eligible for reallocation in Round 3.3.
Of the remaining Phase 3.1 projects, Formosa 4 (495 MW Synera consortium) remains in development and is currently undergoing financing, having secured a CPPA with Taiwan Smart Electricity & Energy (TSEE) in late 2025. CIP's 495 MW Fengmiao Phase I — the only Phase 3-1 project to have reached financial close — is progressing well.
All pin piles have been installed, and jacket foundations are being deployed, with the project on schedule for completion by the end of 2027.
Round 3.2, which awarded 2.7 GW across five projects in August 2024, has also experienced significant attrition. In May 2025, the MOEA cancelled the development rights for EnerVest's 240 MW Deshuai and Corio/TotalEnergies' 360 MW Formosa 3 (Haiding 1) after both failed the contract review process.
More recently in August 2026, the Energy Administration initiated termination of the 700 MW Youde project (Shinfox), the largest Round 3.2 award.
Of the original five Round 3.2 winners, only CIP's 600 MW Fengmiao 2 and Synera's 800 MW Formosa 6 remain active, and Fengmiao 2 has been reported to have commenced its financing process.
The Round 3.3 application window remains on track for its 30 September deadline, with results expected before year-end. In a significant development, the Energy Administration issued revised framework guidance in July, formally confirming that the Round 3.1 projects with cancelled capacities will be available for reallocation under Round 3.3.
The reopening of these sites is intended to maximise utilisation of sites that have already undergone environmental and development work. The capacity expansion mechanism (up to 50% of original allocation, subject to the 1 GW per-developer cap) remains unchanged.
The Ministry of Economic Affairs is expected to launch Round 3.4 in late 2026 or early 2027. The anticipated opening of the "Taichung Direct Flight I-Point" navigational channel is expected to release approximately 4–6 GW of new capacity.
The phase will also incorporate approximately 2.2 GW of unallocated capacity from previous rounds, making it a critical final stage for fixed-bottom projects. No formal framework has yet been published.
On 8 September 2026, the Energy Administration held a briefing on Taiwan's inaugural floating offshore wind demonstration programme. Two to three demonstration projects are planned. Each comprises six to 12 floating platforms with a capacity of 100–200 MW (total programme capacity of 200–600 MW), with grid connection targeted for 2032–2033.
Draft selection regulations are expected by end-2026, with a six-month bidding period and results anticipated in Q3 2027. A feed-in tariff will underpin the programme. At least six potential sites have already secured EIA approval.
On 20 August 2026, the National Assembly passed seven climate and energy bills, including amendments to the Electricity Business Act and the Renewable Energy Act, giving effect to the reforms set out in the First Renewable Energy Basic Plan.
RPS Abolished and a Contract Market Introduced
The amendments, which are scheduled to take effect on 1 January 2027, will abolish the Renewable Portfolio Standard (RPS) in its current form and establish a renewable energy contract market as the principal route to market for new renewable capacity.
Under the RPS, revenue depended on securing a long-term REC purchase agreement, and bankability turned on the creditworthiness and credit support of the offtaker.
Under the new regime, the government will announce total and technology-specific capacity in advance (in principle on a five-year forward view), select long-term fixed-price contract counterparties by competitive auction. It will impose a purchase obligation on electricity businesses and electricity purchasers to be designated, which will be led by KEPCO acting for itself and other mandatory offtakers, with purchase costs recovered through electricity tariffs. KEPCO will purchase power directly at a long-term fixed price as a highly-rated counterparty, which should materially improve bankability.
The abolition of the RPS is the most consequential development for the sector since the One Stop Shop Act. The critical details are the contract market rules and standard form contract, which will determine contract term, pricing and settlement, allocation of curtailment and transmission constraint risk, completion deadlines, termination, and security and lender rights (lender diligence will focus on these provisions). The methodology for the new “preferential price” replacing REC weightings is unpublished, and its effect will need to be assessed project by project.
RPS Transitional Arrangements
The REC issuance and trading provisions will remain in force until 31 December 2029. No new RECs may be issued after 31 December 2026. Those holding RECs issued by that date may continue to trade under the existing rules, as may generators licensed before commencement who are recognised under the Ministry of Climate, Energy and Environment (MCEE) notice.
During the transition, mandatory supply quotas under the existing RPS will be fixed at 2026 levels. The REC spot market will be phased out after a two- to three-year grace period through a transition market. The existing REC-weighting mechanism is expected to be replaced from the 2027 auctions by a "preferential price" added to the bid price.
After 31 December 2029, grandfathered RECs may be saleable only to fixed-price contract counterparties (including replacement counterparties).
Power Generation Information Certificate
The amendments introduce a “power generation information certificate” issued by the contract market management institution to verify the energy source, output and generation period. It is intended as a verification instrument rather than a tradable property right and is expected to be non-transferable.
The certificate is expected to be used for RE100 compliance under corporate PPAs, although its legal character and detailed use remain to be confirmed in subordinate legislation and the contract market rules.
On 30 June 2026, the MCEE’s Offshore Wind Promotion Task Force revealed the “Roadmap for Mid- to Long-Term Offshore Wind Power Tenders” (Roadmap). This is the first 10-year tender plan setting out annual auction volumes and system direction from H2 2026 to 2035.
The Roadmap is the follow-on delivery plan for the targets set in the December 2025 inter-ministerial “offshore wind infrastructure expansion and deployment plan” – 10.5 GW commissioned or under construction by 2030 and 25 GW of cumulative deployment by 2035.
Korea’s Mid- to Long-Term Offshore Wind Auction Roadmap targets 55 GW to be tendered over the decade, at 4 GW or more per year. This runs as a two-track structure: 31 GW through existing fixed-price competitive auctions for licensed projects (2026 to 2033) and 24 GW through "power generation district" auctions under the One Stop Shop Act, starting with 2 GW in H2 2029, continuing at 2 GW per year through 2030 and then 4 GW per year from 2031 to 2035.
The Roadmap is not legally binding. Nevertheless, as the government's first 10-year offshore wind execution plan, it should function as an important policy guideline and give sponsors, lenders and the supply chain a longer planning horizon for turbine and equipment orders, port and vessel investment and financing.
The upcoming H2 2026 auction round is expected to be announced soon following industry briefings, which will be followed closely by industry participants alongside the Roadmap.
Nhan Dang contributed to this article.