The $84 Billion Green Light: Why ASEAN's Nuclear Commitments Are a Global Investment Signal
The Association of Southeast Asian Nations (ASEAN) stands at a critical point in its energy transition, moving decisively from policy considerations to the active implementation of civilian nuclear energy programs. This strategic pivot is driven by long-term energy security and the pursuit of ambitious Net Zero Emissions (NZE) targets. Through the 69th International Atomic Energy Agency (IAEA) General Conference, held on 15–19 September 2025 in Vienna, Austria, countries in the region such as Indonesia, Malaysia, Vietnam, the Philippines, and Thailand participated and voiced their nuclear initiatives.
Currently, Southeast Asia does not yet operate any nuclear power plant (NPP) and remains highly dependent on coal and natural gas for baseload electricity generation. In this context, nuclear energy emerges as a key pillar of long-term national and regional strategies. The use of nuclear power as a clean energy baseload in the region offers significant advantages, from high energy density to advanced safety systems, with the potential to complement renewables and support data centers. The region’s growing preference for adopting advanced nuclear technologies such as Small Modular Reactors (SMRs) is also becoming evident, supported by their flexibility, relatively short construction period, and lower financial risk compared to conventional nuclear power plants, making them reliable power suppliers in the region’s diverse geography. The region’s nuclear capacity target is currently projected to reach 8.5 GW by 2037, with an estimated initial investment value of USD 84.15 billion and market revenue potential of USD 9.2 billion per year. This capacity target is projected to grow significantly by 2050, exceeding 20 GW.
As the world’s fourth-largest economic bloc with a population nearing 700 million, ASEAN still faces challenges in harmonizing its nuclear programs, a crucial step to build investor confidence. Additionally, significant challenges such as securing innovative financing, strengthening public acceptance, and developing credible long-term strategies for high-level radioactive waste management remain key issues that must be addressed to ensure a sustainable nuclear energy future for the region.
Charting the Progress: How ASEAN Nations Are Powering Their Nuclear Commitments
The 69th IAEA General Conference served as an essential platform for policy discussions and for setting the direction of member states’ nuclear development initiatives. The event reaffirmed the importance of nuclear technology for climate resilience, protection of the global nuclear non-proliferation regime, and highlighted nuclear energy’s role in meeting future energy demand, such as powering data centers, strengthening agricultural systems, and supporting medical applications. As IAEA member states, ASEAN countries also delivered their national statements and commitments.
Indonesia is committed to optimizing new and renewable energy resources to support national development. The construction of NPPs has been prepared as part of the national energy program aligned with the National Long-Term Development Plan 2025–2045 and NZE 2060, targeting a 500 MW nuclear energy capacity by 2034, consistent with the Electricity Supply Business Plan (Rencana Usaha Penyediaan Tenaga Listrik, RUPTL) 2025–2034. This preparation is also supported by strengthening infrastructure and regulation, including the plan to establish a Nuclear Energy Program Implementation Organization (NEPIO), stakeholder involvement, and human resource development.
Malaysia stated its seriousness in exploring nuclear power as a long-term energy transition strategy, supported by accession to relevant international legal instruments. This aligns with the renewed vision for Malaysia’s nuclear energy program as outlined in the 13th Malaysia Plan (Rancangan Malaysia Ketiga Belas, RMK13) 2026–2030. The Department of Atomic Energy Malaysia, as the national authority, is also responsible for ensuring these instruments are implemented effectively.
The Philippines believes that nuclear applications can lead to sustainable development through industrial partnerships. The country also stated that nuclear power will be operated by private companies, in line with the nuclear energy roadmap contained in the Philippine Energy Plan (PEP) 2023–2050 by the Department of Energy (DOE). This statement strongly points toward a public-private partnership (PPP) scheme that has been explored by the Philippine government through DOE’s collaborative efforts over the past few years.
Vietnam reaffirmed the continuation of its Ninh Thuan NPP project, aimed at strengthening energy infrastructure, ensuring long-term energy security, and promoting human resource and scientific capacity development. Vietnam is currently conducting a comprehensive assessment of NPP infrastructure together with the IAEA, which will serve as the foundation for a national roadmap toward safe and secure NPP implementation. Other instruments such as legal frameworks, nuclear oversight, research development, and technical support organizations (TSOs) will also be developed to support its first NPP project, with a 4,000 MW capacity by 2035.
Thailand is committed to fulfilling its responsibilities on nuclear safety, security, and safeguards. The country also emphasized the importance of regional cooperation in advancing nuclear science and technology to promote both regional and global nuclear programs, which implicitly supports the development of Thailand’s 600 MW NPP project by 2037. Singapore, on the other hand, while not yet committed to building an NPP, reaffirmed that mastering nuclear science and technology offers promising solutions for the region’s progress, particularly SMRs for clean energy transition. Nuclear safety, strong regulations, and public trust remain top priorities for Singapore, making feasibility assessments of technological readiness its main responsibility.
ASEAN’s Nuclear Playbook: National Roadmaps Shaping the Region’s Energy Transition
Within ASEAN’s nuclear energy development leadership landscape, Vietnam demonstrates significant progress, particularly through the introduction of the Ninh Thuan NPP project to meet long-term national energy needs. This strong commitment is not only based on clean energy transition and decarbonization goals but also supported by competent infrastructure development, including stronger regulations, TSOs, and human resource capacity through the Da Lat Research Reactor and the newly planned Nuclear Science and Technology Research Center, equipped with a 10–15 MW reactor currently under feasibility study and site survey.
ASEAN’s nuclear energy momentum is also illustrated by the Philippines, through the signing of Republic Act No. 12305 (RA 12305), the Philippine National Nuclear Energy Safety Act, by President Ferdinand Marcos Jr. on September 18, 2025, which establishes PhilATOM as the country’s first independent and quasi-judicial nuclear regulator with sole authority over all nuclear and radiation-related activities. The Philippines has also secured a seat on the IAEA Board of Governors (2025–2027), strengthening its role in shaping global nuclear safety and security policies. Furthermore, the Philippines is determined to accelerate the construction of its first NPP, supported by DOE’s plan to provide pioneer incentives to the first private company building an NPP in the country, targeting operation by 2032 with an initial capacity of 1,200 MW.
Malaysia has also shown substantial progress in its energy roadmap. Following the announcement of its renewed nuclear program under RMK13 with a potential implementation target around 2031, the latest 2026 national budget reflects concrete government support for Malaysia’s long-term energy strategy, allocating RM 28.6 million (around USD 6.8 million) for the nuclear energy development program under MyPOWER Corporation, an agency under the Ministry of Energy Transition and Water Transformation (PETRA), to build Malaysia’s nuclear infrastructure and governance in accordance with IAEA standards.
Measured progress is also seen in Indonesia, through the integration of nuclear energy into the National Energy Policy (KEN) under Government Regulation (PP) No. 40/2025, signed by President Prabowo Subianto. This regulation, derived from the Energy Law, became effective on September 15, 2025, replacing PP No. 79/2014, and sets out the vision for national energy mix and sustainability targets up to 2060, projecting a 0.4% nuclear energy mix share by 2032, increasing to 12% by 2060.
Other countries like Thailand and Singapore remain in the exploration phase, focusing on research, human resource development, and safety studies for future technology feasibility. ASEAN’s nuclear programs, however, require coordinated collaboration to align regional commitments. Regional cooperation development through ASEAN Network of Regulatory Bodies on Atomic Energy (ASEANTOM) and ASEAN Nuclear Energy Cooperation - Sub-sector Network (NEC-SSN), along with collaboration with international organizations such as the IAEA, initiated by ASEAN, could become crucial agendas for aligning the region’s nuclear programs. This momentum will be especially relevant with the Philippines set to chair ASEAN next year.
The Economic Prospects: Unpacking ASEAN’s Multi-Billion-Dollar Energy Opportunity
The success of ASEAN’s nuclear programs also depends on complex economic calculations involving large-scale capital investment, strategic technology choices, and innovative financing models. The financial scale of this transition is massive, requiring a clear understanding of costs, risks, and broader socio-economic benefits to secure necessary public and private sector support. The projected market outlook from ASEAN’s nuclear programs over the coming decades is highly promising for investors, with an estimated USD 84.15 billion investment required for 8.5 GW capacity by 2037, expected to generate annual market revenues of USD 9.2 billion. Furthermore, long-term programs extending to 2050, with a projected capacity exceeding 20 GW and requiring over USD 200 billion investment, promise multiplied returns.
In developing their nuclear programs, ASEAN countries adopt diverse financing models. A two-tier financial market appears to be emerging. The first tier involves state-backed megaprojects, such as in Vietnam, where state-owned enterprises like EVN and Petrovietnam act as major investors, supported by government guarantees and bilateral international loans. The second tier follows a market-based approach for SMRs, exemplified by the Philippines. Instead of direct state investment, the government uses policies to reduce market risk for private capital. Its “Pioneer NPP” framework establishes models like the Regulated Asset Base (RAB), providing revenue certainty by sharing construction and operational risks between investors and consumers, a model also being piloted in the UK. Combined with incentives such as priority dispatch, it aims to attract private equity, infrastructure funds, and corporate offtakers through PPP models. This approach is expected to be adopted across the region, with national utilities co-investing to bridge capital gaps and share development risks.
The adoption of SMRs may also unlock new opportunities in corporate power purchase agreements (CPPAs). National utilities are likely to become major nuclear power offtakers in Southeast Asia, often co-investing in projects through PPPs to bridge significant capital needs while sharing development risks. Within ASEAN’s power market structure, nuclear energy could enable lower wholesale electricity prices in high cost liberalized markets such as Singapore and the Philippines, where price sensitivity drives adoption decisions, creating attractive economic conditions despite high upfront investment. The development of the regional nuclear sector promises significant socio-economic benefits. Each 1 GW nuclear power plant can require approximately 200,000 workforces throughout its lifecycle, including direct, indirect, and induced employment. These jobs typically consist of high-skilled, long-term positions in construction, engineering, operations, maintenance, and eventually decommissioning.
Strategic Roadmap Ahead: Policy, Partnership, and Investment Pathways for Nuclear Journey
ASEAN’s nuclear landscape is defined by a dynamic of “differentiated acceleration,” with various national models evolving simultaneously. While regional governance plays an important role in driving the energy transition, the success of ASEAN’s nuclear ambitions will ultimately depend on how effectively member states navigate cross-sectoral challenges related to innovative financing, human resource development, and sustained public acceptance.
For investors and technology providers, adopting a portfolio approach to ASEAN’s multi-model market is essential. Market entry strategies based on private financing and power purchase agreements (PPAs) may work effectively in the Philippines but may not suit state-controlled systems like Vietnam, therefore, each strategy must be tailored to national financing, regulatory, and political structures. Moreover, competitive advantage cannot be gained solely through technology sales; it must also come through initial and sustained investments in partnerships with local manufacturing firms, engineering companies, and academic institutions, strengthening national capacity, reducing long-term costs, and demonstrating long-term commitment to build government and regulator trust. On the other hand, financial models should evolve beyond mere Levelized Cost of Electricity (LCOE) comparisons by assessing the financial value of risk reduction offered by SMRs since shorter construction periods mean less capital at risk and faster revenue generation.
For policymakers, regional initiatives to develop joint technical and regulatory frameworks for licensing advanced nuclear technologies are equally crucial. Such harmonization will reduce duplication among national regulators, lower costs and uncertainties for technology vendors, and create a more attractive and efficient regional market. ASEAN, together with international partners, must jointly organize a series of regional public engagement forums to build public trust. These forums should involve civil society organizations, academics, media, and the public to engage in open, scientific dialogue about the benefits, risks, and safety measures of nuclear energy use.
ASEAN’s Nuclear Ambition: Balancing Vision, Readiness, and Real-World Challenges
ASEAN’s nuclear renaissance is uneven but real. Countries are now leaving the starting line. Strong ambitions have been declared, followed by the establishment of regulatory frameworks and concrete roadmaps. However, without sequential strategies, innovative financial support, and strong regional coordination, nuclear potential risks becoming another strategic project in waiting. To make nuclear energy a pillar of a sustainable energy future, countries must move and collaborate, share experiences, sharpen regional safety standards, and collectively build public trust.
This initiative will be reinforced at the 10th edition of the Asia Nuclear Business Platform (ANBP) 2025, to be held on December 9–11, 2025, in Jakarta, Indonesia. This event will serve as a vital forum bringing together policymakers, global stakeholders, and industry leaders to shape the next phase of ASEAN’s nuclear trajectory. With the National Energy Council of Indonesia (DEN) as the host, the forum will strengthen ASEAN’s energy commitment toward realizing a sustainable nuclear energy program. Through structured measures such as strong regulators, modular technology pilots, strategic financing, and transparent public communication, ASEAN’s nuclear commitments can be transformed into a reality that is safe, efficient, and impactful.
