Southeast Asia embraces offshore wind power, as Trump bashes renewable energy

Southeast Asia’s offshore wind industry is gaining momentum as Trump administration’s renewable energy rollbacks create new opportunities for the region, analysts say.

As the offshore wind industry faces significant setbacks in the United States due to policy reversals under President Donald Trump, Southeast Asian nations are emerging as promising new frontiers for renewable energy investment. Industry experts point to the region’s favorable geography and growing policy support as key factors driving this shift.

Trump’s administration has systematically dismantled U.S. offshore wind development by halting construction on major wind farms, revoking permits, canceling federal water leases for wind energy, and cutting $679 million in funding for a dozen projects. This represents a complete reversal from the Biden administration’s renewable energy policies.

“The White House’s policy pivot has thrown billions of dollars’ worth of U.S. offshore wind projects into turmoil,” said Rebecca Williams from the Global Wind Energy Council. “Asia and Southeast Asia are a beacon of hope for the industry.”

Southeast Asia’s archipelagic geography, with extensive coastlines and consistently strong ocean winds, makes it particularly suitable for offshore wind development. The technology allows for the harnessing of stronger, more consistent ocean breezes to generate clean electricity, according to the International Energy Agency.

The Philippines and Vietnam are leading the region’s offshore wind push. In November, the Philippines held its first offshore wind auction, opening up 3.3 gigawatts of potential development across designated seabed areas. Energy Secretary Sharon Garin described the move as shifting offshore wind power from “potential to reality” by establishing clear rules for grid connections, port usage, and equipment logistics.

“The Philippines is ready to compete for global investment,” Garin stated.

Filipino corporation ACEN has already partnered with Denmark’s Copenhagen Infrastructure Partners to develop the nation’s first large-scale offshore wind project, targeting up to 1 gigawatt in Camarines Sur province.

Vietnam has also revitalized its offshore wind ambitions after earlier delays. In April, the country revised its national power plan, setting a target of up to 17 gigawatts of offshore wind capacity by 2035. The government is streamlining marine zoning rules and updating permitting procedures to attract foreign investment.

Despite Norway’s Equinor withdrawing from Vietnam earlier this year due to regulatory delays, investor confidence is gradually building. Copenhagen Infrastructure Partners is collaborating with state-owned PetroVietnam on an offshore wind project in south-central Vietnam, while Germany’s PNE AG is planning a $4.6 billion, 2-gigawatt farm in Binh Dinh province.

China is playing an increasingly significant role in Southeast Asia’s renewable energy development. State-owned Power China recently completed the Binh Dai offshore wind project in Vietnam, while Mingyang Smart Energy is exploring a 2-gigawatt project in Northern Luzon, Philippines. China already dominates global wind power installations and manufactures more than half of the world’s wind turbines.

“We’re seeing more governments in the Global South, especially in countries in Asia, who haven’t had that background in offshore wind, now really step up,” Williams noted.

The potential for growth in the region is substantial. The 11 member states of the Association of Southeast Asian Nations (ASEAN) currently have no installed offshore wind capacity, despite being home to half of the global population and expected to account for much of the world’s future energy demand. Currently, wind generates barely 7% of electricity in the Asia-Pacific region.

“Southeast Asia is stepping forward as the U.S. retreats,” said Amisha Patel of the Global Offshore Wind Alliance. Last month, Singapore announced a three-year plan for wind energy conferences to position itself as a regional hub for the industry.

The region faces unique challenges, particularly extreme weather events. The Philippines and Vietnam experienced devastating typhoons this year, raising concerns about infrastructure resilience. However, Michael Hannibal of Copenhagen Infrastructure Partners emphasized that technology for disaster-resilient turbines exists. “Countries will just need to make sure offshore wind sites are adapted and made for the environment that they are to live in,” he said.

Regional collaboration is also taking shape. Vietnam signed a deal in May for a transmission line to export power to Singapore and Malaysia, potentially creating a more integrated renewable energy network across Southeast Asia.

As global investors seek alternative markets amid U.S. policy uncertainty, Southeast Asia’s wind energy sector appears poised for significant growth, potentially serving as a model for other developing nations looking to reduce dependence on fossil fuels.