Renewable Energy M&A Surges Across Southeast Asia's Emerging Markets

Renewable energy has become one of the most active M&A sectors across Southeast Asia in 2025, driven by national energy transition targets, declining technology costs, and growing investor appetite for clean energy assets. The region's combination of rapid economic growth, rising electricity demand, and ambitious decarbonization commitments has created a compelling environment for both project-level and platform-scale transactions.

Vietnam: Scale and Complexity

Vietnam has been one of the most active renewable energy M&A markets in the region, owing largely to its substantial installed solar capacity built during previous feed-in tariff programs. This existing asset base has created opportunities for project-level and platform acquisitions, attracting international energy companies, infrastructure funds, and specialized renewable energy investors. Several large solar portfolio transactions were completed during 2025, as original developers sought exits and institutional buyers moved to acquire operating assets with established cash flows. However, the Vietnamese market has also presented challenges, including grid curtailment issues that have reduced the output of some solar installations and an evolving regulatory framework that has introduced uncertainty around future power purchase agreements and pricing mechanisms.

Thailand: A Well-Developed Framework

Thailand has attracted significant investment from both domestic conglomerates and international buyers, supported by a well-developed regulatory framework for renewable energy. The country's strategic location as a potential ASEAN energy trading hub adds an additional dimension to its attractiveness, as investors position for the eventual integration of regional power markets. Thai renewable energy companies, several of which have built diversified portfolios spanning solar, wind, and biomass, have been popular targets for strategic and financial buyers seeking established platforms with development pipelines and operating expertise.

Philippines: Opening to Foreign Investment

The Philippines has emerged as one of the most promising renewable energy M&A markets in Southeast Asia following the government's decision to liberalize foreign ownership rules for renewable energy projects. This regulatory change opened the door for international investors to take majority positions in wind, solar, and geothermal assets for the first time, triggering a wave of investment interest. The country's strong solar and wind resources, combined with a large and growing electricity market, have attracted developers and investors from across the region and beyond. Geothermal assets, in which the Philippines has historically been a global leader, have drawn particular attention from acquirers seeking baseload renewable generation.

Indonesia: Regulatory Challenges and Emerging Opportunity

Indonesia has lagged its regional peers in renewable energy M&A activity, primarily due to regulatory complexities and the dominant role of state-owned utility PLN in the power sector. The pricing mechanisms for renewable energy, combined with the requirement to work through PLN for power off-take, have historically deterred some international investors. However, recent policy changes, including revised renewable energy pricing regulations and increased government commitment to energy transition targets, are expected to create new opportunities for M&A activity. Given Indonesia's enormous electricity demand and abundant renewable resources, the market represents significant long-term potential for investors willing to navigate its regulatory landscape.

From Greenfield to Secondary Markets

A broader trend shaping renewable energy M&A across Southeast Asia is the transition from greenfield development to secondary market transactions. As first-generation renewable energy projects mature and original developers seek to recycle capital, a more liquid and active secondary M&A market is emerging. This maturation of the market is attracting a different class of buyer -- infrastructure funds and institutional investors who prefer operating assets with proven cash flows over development-stage risk. The growing depth of the secondary market is a sign of the sector's increasing institutionalization and a positive indicator for future M&A activity.

Sustained Investment Momentum

The structural drivers underpinning renewable energy M&A in Southeast Asia -- national decarbonization targets, declining costs for solar and wind technology, rising electricity demand, and growing ESG mandates among institutional investors -- are expected to sustain investment momentum for years to come. As regulatory frameworks continue to evolve and the market matures, the region is likely to see increasing deal volumes, larger transaction sizes, and a broadening of the buyer universe to include more global infrastructure and energy transition funds.