Floating solar farms: Powering Southeast Asia’s renewable future

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5 August 2025 | 8 min | Article

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The renewable energy challenge in Southeast Asia

Southeast Asia is at a pivotal moment in its energy development trajectory. As one of the world's most dynamic regions, it is projected to contribute over 25 per cent of global energy demand growth between 2024–2035, creating significant opportunities for new power generation developments.^[1] This growth, driven by urbanisation, industrialisation, and electrification across buildings, industries, and transportation sectors, positions the region as a global economic powerhouse.^[2]

This insights article explores renewable energy generation in Southeast Asia, with particular focus on floating solar farms and their potential in addressing regional challenges of limited land availability and growing energy demands while unlocking sustainable development opportunities.

Key takeaways

Southeast Asia faces rapidly growing energy demands that require innovative renewable solutions to maintain energy security while meeting climate goals.
Floating solar photovoltaic (FPV) systems offer a strategic solution to Southeast Asia's renewable energy challenges by overcoming land scarcity constraints while providing additional benefits like reduced water evaporation and enhanced panel efficiency.
Southeast Asia has significant renewable energy potential, with eight ASEAN countries already committed to net-zero targets, but faces barriers including geographic constraints, policy uncertainty, and outdated infrastructure.
Successful FPV implementation requires careful consideration of strategic siting for grid connection, designs that address environmental challenges and maintenance needs, and comprehensive stakeholder engagement with residents, water users, and government agencies.

On this page

Southeast Asia's energy landscape

Floating solar: A strategic solution

FPV in Hong Kong and Singapore

Key considerations for FPV in Asia

Barriers to renewable energy adoption in Southeast Asia

Southeast Asia possesses abundant renewable resources which are poised for accelerated development as the region transitions toward cleaner energy solutions.

While currently leveraging its existing energy infrastructure, the region has an opportunity to implement innovative strategies that enhance energy security while advancing decarbonisation goals. Eight out of ten ASEAN countries have already demonstrated leadership by committing to net-zero targets, creating strong policy foundations for renewable expansion.^[1]

Watch video. Junwei Lu, Nicolas Price and Jaclyn Ooi reveal success factors for floating solar implementation across Southeast Asia.

Despite this promising landscape, Southeast Asia faces several critical barriers that impede the full realisation of its renewable energy potential and threaten to undermine climate commitments^[1]:

Geographic constraints – Land scarcity, or the opportunity cost of occupying large expanse of land, restricts conventional solar deployment, especially in densely populated places like Singapore and Hong Kong. The region’s natural island geography further creates distribution challenges.
Policy and regulatory barriers – Policy uncertainty and complex permitting processes often delay project implementation, and there remains a lack of regional coordination between grids which prevents effective cross-border energy solutions.
Infrastructure limitations – Outdated power grids create congestion and limit the integration of renewable sources, and remote installations require costly transmission with significant energy losses.

The promise of floating photovoltaic systems

Within this complex energy landscape, floating photovoltaic (FPV) systems have emerged as a promising solution to Southeast Asia’s energy challenges. By utilising existing water bodies such as lakes and reservoirs, FPVs overcome land limitations that restrict traditional ground-mounted solar expansion in densely populated areas.

FPVs also offer additional benefits. They shade the water surface, which reduces water evaporation (especially important for freshwater reservoirs), the natural cooling effect of water enhances panel efficiency by lowering ambient temperatures, and FPVs are less impacted by shading from nearby trees or buildings.

The region's renewable energy landscape is diverse and expanding rapidly within Asia. Learn more from the interactive map below.

The region's renewable energy landscape is diverse and expanding rapidly within Asia.

Indonesia notable FPV: The Cirata Floating Solar Power Plant, with a capacity of 192MWP is located on the Cirata Reservoir in West Java, Indonesia. It was inaugurated in November 2023 and is the largest floating solar power plan in Southeast Asia and the third largest globally.

Malaysia notable FPV project: Batang Air Floating Solar Farm (50MWp) will be Malaysia's largest hybrid power station combining both solar and hydropower energy. It is currently under construction, and will be in Sarawak, on a reservoir near a hydropower plant in the National Par of Batang Ai.

Philippines notable FPV project: Blueleaf and SunAsia energy secured contracts in May 2023 for six floating solar projects (cumulative capacity of 610.5MW) on Laguna Lake, near Manila. It will represent the country's first foray into large-scale FPV which holds very high potential for the archipelagic geography of the Philippines.

Singapore notable FPV project: Singapore's first inland floating solar project, the 60MWp Sembcorp Tengeh facility uses over 122,000 panels across 45 hectares. Commissioned in 2021, it was one of the world's largest inland floating PV systems at the time.

Thailand notable FPV project: 45MW Sirindhorn Dam Floating Solar Project in Ubon Ratchanthani Province began commercial operation in 2021.

Vietnam notable FPV: The Da Mi Reservoir Floating Solar Plant, a 47.5MWp facility completed in 2019, is a significant renewable energy project in Vietnam, and the first large-scale floating solar project in SE Asia.

Countries	Electricity generation		RE Types
Countries	RE (%)	Non-RE (%)	RE Types
Indonesia	18.200	81.800	Hydro, biofuels
Malaysia	18.431	81.569	Biofuels, hydro, solar PV
Philippines	22.132	77.868	Hydro, biofuels, Solar PV, waste, geothermal, wind
Singapore	4.794	95.206	Solar PV, waste
Thailand	18.330	81.670	Hydro, biofuels, Solar PV, wind, geothermal, waste
Vietnam	49.097	50.903	Hydro, biofuels, Solar PV, wind

Figure 2. Southeast Asia’s renewable energy mix. Source: International Energy Agency, 2022^[1]

The development landscape for FPVs in Southeast Asia has also gained momentum over the last 5 years, with several large-scale projects commissioned:

Singapore: Sembcorp Tengeh Floating Solar Farm (60MWp, 2021)
Indonesia: Cirata Floating Solar Power Plant (192MWp, 2023)
Vietnam: Da Mi Reservoir Floating Solar Plant (47.5MWp, 2019)
Thailand: Sirindhorn Dam Floating Solar Project (45MWp, 2021)
Philippines: Laguna Lake Floating Solar development by SunAsia Energy and Blueleaf Energy (610.5MW, under development)^[3]
Malaysia: Batang Air Floating Solar Farm (50MWp, 2024)^[4]

Even more ambitious projects are underway, such as EDP Renewables' 2.2GWp FPV development at the Duriangkang reservoir in Indonesia and a 141MWp project in Kranji Reservoir in Singapore.

Strategic advantages for Southeast Asia

Given these projections and the region's unique constraints, FPVs represent a strategic opportunity for Southeast Asia as they simultaneously:

Enhance energy security through domestic renewable generation;
Optimise land use by utilising water surfaces instead of limited land resources; and
Accelerate progress toward climate commitments by expanding clean energy capacity.

This three-fold advantage positions FPVs as a key technology in the region’s sustainable energy transition.^[1]

FPV applications in Hong Kong and Singapore

Both Hong Kong and Singapore represent compelling case studies for FPV implementation due to their similar geographical and resource constraints:

Geographic advantages – Both locations receive significant sunlight year-round while facing limitations with alternative renewables. Wind speeds are insufficient for turbines, hydroelectric and geothermal sources are unavailable, and limited proximity to inhabited areas makes nuclear deployment challenging.
Environmental compatibility – Current FPVs show minimal environmental impact, with no significant changes to water quality and wildlife habitats through careful planning and design. Panels deployed on open water benefit from unobstructed sunlight and cooler operating temperatures compared to rooftop installations in high-rise urban landscapes.
Economic benefits – Solar has become a particularly cost-effective electricity source globally, reducing dependence on imported fuels. Additionally, FPVs decrease water evaporation from reservoirs, providing water conservation benefits critical to such resource-conscious urban areas.

Aurecon has been involved in several FPV projects that demonstrate the practical implementation and technical considerations of floating solar in Asia.

The development of a 55 MWp FPV at Pandan Reservoir, a freshwater reservoir located in Singapore, required careful planning to balance energy generation with existing uses.

Key considerations addressed by Aurecon included:

Development of preliminary engineering design and business model: Aurecon was tasked with studying the technical, commercial, and financial feasibility of deploying an FPV on Pandan, identifying key constraints and opportunities and integrating them into a preliminary design.
Integration of stakeholder feedback: Because of its location in an urban, residential area, extensive stakeholder engagement was conducted with reservoir users, residents and community groups, and government agencies - their feedback was taken into account for the development of the preliminary engineering design.
Recreational zones: Pandan Reservoir features multiple areas open to the public, for recreational activities such as rowing, kayaking, drone-flying, and fishing. Specific zones were created to accommodate these and preserve the reservoir’s recreational aspect.

Hong Kong is exploring deploying FPVs on its reservoirs to generate renewable energy in a land-scarce setting. This supports Hong Kong’s carbon neutrality goal targeted for 2050 through innovative and sustainable energy solutions.

Aurecon has been involved in this strategic Hong Kong initiative, bringing its expertise from Singapore to explore key technical considerations:

Comprehensive site analysis: Thorough evaluation of reservoir conditions, environmental factors, and site-specific limitations to determine optimal scale for floating solar PV installations.
Environmental and ecological assessment: Rigorous assessment of potential effects of FPV deployment on reservoir ecosystems to ensure environmental sustainability and regulatory compliance.
Economic viability analysis: Development of detailed cost estimates and financial sustainability assessments to optimise project scale and long-term viability.

These projects illustrate how floating solar installations can be successfully integrated into existing water infrastructure while carefully balancing energy generation with environmental protection, recreational use, and operational requirements.

Key considerations for delivering successful FPV projects

There are several considerations to keep in mind when leading, designing, and delivering FPV projects in the Southeast Asian context:

Strategic positioning and community integration

In land-constrained environments, FPVs are desirable when strategically located. Optimal placement near grid infrastructure minimises costs and power losses.

In urban settings like Singapore, successful integration requires maintaining water quality while considering recreational activities and minimising disruptions to residents and the surrounding environment.

Design for maintenance and environmental adaptation

FPV designs must address environmental challenges from water exposure, waves, and wildlife while facilitating effective operations and maintenance. Strategic design choices improve serviceability, such as wide integrated walkways for personnel access and maintenance-friendly equipment like string inverters.

Small adaptations to local conditions yield significant benefits, for example, covering gaps between floats prevents insect breeding in stagnant water.

Comprehensive stakeholder engagement

Extensive engagement with various stakeholders is critical to project success in urban areas. This includes addressing concerns of:

Residents who consider reservoirs integral to their neighbourhood and community;
Reservoir users and groups who use and depend on the space on a regular basis;
And government agencies which oversee different parts of a potential FPV project (grid integration, water management, park environment, fire safety, etc.).

Unlocking floating solar's potential in Southeast Asia

Countries in Southeast Asia face the dual challenge of meeting climate targets while addressing rapidly growing energy demand. This balancing act is further complicated by the region's unique constraints: limited suitable land, insufficient transmission infrastructure and isolated grids, and regulatory and permitting obstacles.

FPVs have emerged as a particularly valuable solution in this context, especially for highly urbanised areas like Hong Kong and Singapore, where energy demand is concentrated but space for traditional power generation is scarce. Recent innovations in both photovoltaic technology and floating systems have substantially enhanced the cost-effectiveness and practical viability of FPVs.

With experience spanning from initial feasibility assessments through concept design to tender management, construction supervision and oversight, Aurecon brings end-to-end expertise to floating solar projects. Our proven track record across leading markets in floating solar development equips us with insights and capabilities essential for advancing renewable energy solutions throughout Southeast Asia. Partner with us to unlock the full potential of floating solar for the region's sustainable energy future.