Southeast Asia’s sputtering green transition is prompting European utilities to rethink their investments in the fast-growing region, a shift that underscores investor frustration with what was until recently a promising renewable-energy market.
Large green-power groups including Portugal’s EDP Renewables and Denmark’s Orsted have paused projects or withdrawn from certain countries in the past two years, blaming a lack of long-term policy clarity, and have pushed instead into more advanced Asia-Pacific markets.
The retreat is a direct result of red tape, disconnected grids and vacillating governments — and it will likely prolong the region’s struggle to move away from coal, which still accounts for the lion’s share of its power generation.