Developing Blended Finance Pathways for Renewable Energy in Southeast Asia (IEA)

Summary

• Since 2016, Southeast Asia has mobilized $17.9 billion in concessional and commercial financing for renewable energy through blended finance.p.4
• Convergence has captured 171 blended finance transactions in Southeast Asia, representing a combined deal volume of approximately $33.7 billion.p.21
• Of these, 54 deals specifically targeted renewable energy and BESS, accounting for roughly $17.9 billion in financing.p.21
• Every $1 of concessional capital in regional renewable energy transactions mobilizes approximately $1.40 of private capital, compared to $1.63 globally.p.21
• Total energy investment in Southeast Asia exceeded $100 billion in 2025, with power sector spending amounting to $45 billion.p.11
• Installed solar PV capacity in Southeast Asia exceeded 40 GW in 2025, a massive jump from 3 GW in 2015.p.8
• Geothermal energy has attracted roughly $3.3 billion in blended finance despite accounting for few deals.p.22

Key insights

1. Renewable energy investment in Southeast Asia reached $17 billion in 2025, surpassing the previous peak in 2019.p.11
2. The median blended finance renewable transaction is approximately $158.5 million, versus roughly $60 million in other sectors.p.21
3. Renewable energy transactions represent only about 30% of total deals but more than half of total deal volume.p.21
4. Viet Nam appears in 33% of renewable energy and BESS blended deals, followed by Indonesia (26%) and the Philippines (17%).p.22
5. Project-level structures account for 56% of renewable blended deals by vehicle type, followed by funds at 26%.p.23
6. Concessional debt accounts for 42% of concessional commitments, followed by concessional equity at 16%.p.23
7. The ADB leads DFIs and MDBs with 29 commitments and approximately $1.8 billion in commercial capital mobilized.p.24
8. Among 30 deals involving both commercial banks and MDBs, 56% included at least two commercial banks.p.25
9. Fossil fuel subsidies across Southeast Asia totalled $40 billion in 2024.p.12
10. Institutional investors hold equity equal to about 45% of market capitalization globally and 18% across Asia, compared to just 7% in the Philippines.p.13