Southeast Asia becomes a new hotspot for China's wind power investment

From the mountains of Laos to the beaches of Vietnam, wind turbines from China are accelerating their rotation. Recently, Southeast Asia, which has been greatly affected by high international energy prices, has become a key battleground for global competition in the clean energy industry, and Chinese companies are rapidly becoming pivotal participants in this market. The New York Times reported that as of May this year, the focus of the global wind power industry has undergone a "decisive shift", with all six major wind turbine manufacturers coming from China, replacing the once dominant European and American companies. US media believe that wind power manufacturers from China are driving the booming development of clean energy markets in developing countries.
Assist in the green transformation of multiple countries' economies
The Mengsong 600 MW wind power project, designed and constructed by China Electric Power Construction, is operating stably in the high mountain area of southern Laos at an altitude of over 2000 meters. As the first wind power project in Laos, this project is also currently the largest single wind power project in Southeast Asia.
For a long time, Laos has hoped to build a "Southeast Asian battery" based on its abundant hydropower resources. But after the dry season from November to April of the following year, precipitation sharply decreases and hydropower output significantly declines, causing a long-term problem of "seasonal power shortage" for local industrial production and residents' lives. And the Mengsong project happens to fill this gap. The project leader told Global Times reporters that high-altitude areas often exhibit the characteristic of "strong winds during the dry season", which naturally complements hydropower - when hydropower is at its peak, wind power enters its peak generation period. The "water wind complementary" model not only improves the stability of the power grid, but also exports most of the electricity produced by the project to Vietnam through cross-border transmission lines, creating foreign exchange income for Laos.
Compared to the investment and construction model of some Western companies that only develop resources and do not settle industries locally, Chinese companies emphasize more on localized cooperation and long-term capacity building. Officials from the Ministry of Energy and Mines of Laos stated that during the project construction period, over 1000 local residents participated in labor, management, translation and other work, accounting for more than 60% of the total number of employees. The Chinese side also provides professional training for local employees in equipment operation and maintenance, wind turbine hoisting, safety management, etc., to cultivate new energy technology talents for Laos.
In Chaiyaphong Province, Thailand, the Chaiyaphong Wind Farm project, developed by Thai Power Holdings Group and equipped by China Goldwind Technology, has a total installed capacity of 80 megawatts. Chinese enterprises have tailored flexible tower technology suitable for low to medium wind speed areas according to local conditions, and optimized equipment operation algorithms for local power grid fluctuations. Thai Power Holdings Group Vice President Saksit stated that China's wind power technology has undergone rapid iteration in recent years. Compared to their European and American counterparts, Chinese companies have significant advantages in terms of cost-effectiveness, delivery efficiency, and after-sales response.
Recently, China Energy Engineering Yunnan Institute, a subsidiary of China Energy Engineering Group, formed a joint venture with Anhui Electric Power Construction Second Company and won the bid for the general contracting project of 150 MW wind power project in Mondulkiri, Cambodia. This project is one of the first large-scale wind power projects planned and developed in Cambodia. After the project is put into operation, it is expected to generate approximately 380 million kilowatt hours of electricity annually, saving 116000 tons of standard coal annually. For Cambodia, which has long relied on energy imports, this project will not only greatly optimize its energy structure, but also unleash the potential for future industrial electricity price declines.
Is open investment beneficial for Chinese enterprises?
In recent years, facing the rising pressure of energy security and the trend of global green industry chain reconstruction, many Southeast Asian countries have significantly increased their openness to investment in clean energy construction.
According to Forbes magazine's website on the 17th, the "blockade" of the Strait of Hormuz has completely shattered Southeast Asia's illusions about energy security. After the outbreak of the US Israel Iran conflict at the end of February this year, the transaction cost of liquefied natural gas in Southeast Asia actually doubled. According to the website of Diplomat, the deteriorating security situation around the Strait of Hormuz has led to a surge in global energy prices, exposing the vulnerability of many Southeast Asian countries to high dependence on imported energy. In order to stabilize supply, many governments in the region have taken emergency response measures. In the long run, this crisis may change the process of the region's transition to renewable energy.
Ernie Demolar, a Southeast Asian analyst at Ember, a global energy policy research institute, believes that businesses and governments in Southeast Asian countries are increasingly inclined to view energy security and sustainable development as mutually coordinated goals. The current market turbulence may be a turning point for the development of renewable energy in the region. This is an opportunity, and I believe that some of the things that have happened this year will accelerate our energy transition, "said Mabanua, President of Alterenergy, a renewable energy company in the Philippines
To alleviate energy pressure, the Philippines proposes to increase the proportion of renewable energy generation to 35% by 2030 and further increase it to 50% by 2040. The revised Renewable Energy Law of the country provides a series of preferential policies, including a 7-year income tax exemption period, equipment import exemption, zero value-added tax rate, and accelerated depreciation. New energy projects can also enjoy institutional dividends such as priority grid connection and green certificate trading.
Vietnam has also opened up a "green channel" for clean energy investment. In recent years, Vietnam has continuously optimized the approval process for new energy and gradually clarified the electricity price and grid connection mechanism. According to Vietnam's latest power development plan, the country plans to achieve a target of 6 to 17 gigawatts of offshore wind power installation by 2035. At the beginning of this year, Chinese clean energy company Far East Energy signed a supply agreement with Vietnam Refrigeration and Electrical Engineering Company for offshore wind power projects, which will use 16 large capacity offshore wind turbines using Chinese technology. Indonesia also plans to build a regional new energy manufacturing center based on nickel resource reserves. With the gradual reform of the new energy licensing system and the relaxation of localization ratio restrictions, the Indonesian wind power market is receiving increasing attention from international capital.
Huang Dongri, a specially appointed researcher at the Regional Country Research Center of Guangxi Normal University for Nationalities, stated in an interview with Global Times that from the second half of 2025 to the first quarter of 2026, Chinese wind power companies will increase their investment in Southeast Asian countries such as Vietnam, the Philippines, and Indonesia, with Vietnam experiencing the most significant rebound in investment. Meanwhile, some European and American companies are gradually withdrawing from this market. There are two main reasons for this. Firstly, the adjustment of new energy policies in Southeast Asia has highlighted the importance of supporting wind and photovoltaic power generation. Secondly, the competitiveness of Chinese wind power enterprises has increased. The main focus of Chinese wind power enterprises in Southeast Asia has always been on design, procurement, construction (EPC) general contracting and host supply, which not only provides high cost-effectiveness in the local market, but also increasingly mature services.
The head of Mingyang Group, a Chinese clean energy company that has deployed wind power projects in multiple Southeast Asian countries, told Global Times reporters that Southeast Asia is becoming one of the most dynamic regions for new energy growth in the world. On the one hand, the rapid development of industrialization, urbanization, and digital economy in the region has brought about a sustained increase in electricity demand; On the other hand, energy security and cost pressures are also driving countries to accelerate the development of local renewable energy. In particular, countries such as Vietnam, the Philippines, and Indonesia have been continuously releasing signals for offshore wind power and new energy development in recent years. Wind power planning, electricity pricing mechanisms, and foreign investment openness are gradually improving. For Chinese wind power companies, Southeast Asia is not only a market opportunity, but also an important region for promoting global energy transformation and industrial synergy.
Combination Fist makes it difficult for opponents to replicate
Analysts have pointed out that in the past few decades, European and American giants have long monopolized the global high-end wind power market, but in the emerging main battlefield of Southeast Asia, Chinese companies are reshaping the rules of the competitive game. The head of Mingyang Group told Global Times reporters that there are several very distinct characteristics of the Southeast Asian wind power market. The first is the complexity of resource conditions. A large number of wind power projects in Southeast Asia are located in coastal, island, and typhoon prone areas, which puts higher demands on the wind turbine's ability to resist typhoons, adapt to marine environments, and maintain reliability. The second is that countries in the region generally hope that the development of new energy can drive local supply chains, employment, and industrial upgrading. Therefore, market demand is no longer just about "purchasing equipment", but more about industry chain collaboration, localized manufacturing, technology transfer, and long-term operational service capabilities. The third issue is that many Southeast Asian countries have varying levels of power grid infrastructure, and the market requires integrated "wind solar hydrogen storage" and comprehensive energy solutions, rather than just a single wind power product. This also means that Chinese companies are shifting their focus from traditional equipment exports to truly global and localized competition. In addition to technical adaptability, it is also necessary to have the ability to integrate the industrial chain, local cooperation, and long-term service capabilities.
Tong Meng Dawei, Deputy Director of the China ASEAN Research Center at Cambodia University of Technology, stated in an interview with Global Times that "Chinese companies in Southeast Asia are accelerating a qualitative change from 'simple equipment export' to 'systematic solution output'. What Southeast Asian countries are really concerned about is not just a single wind turbine, but the scarce financing channels, grid connection technology, infrastructure support, and industrial incubation capabilities behind it. Chinese companies can play a 'combination punch' of engineering construction, financial support, local training, and long-term operation and maintenance. This full stack comprehensive output capability is becoming a core moat that European and American competitors find difficult to replicate in the short term
Chinese wind power equipment has outstanding advantages of excellent quality and high cost-effectiveness, which is the fundamental factor that impresses the Southeast Asian market and achieves rapid business expansion. Lin Boqiang, Dean of the China Energy Policy Research Institute at Xiamen University, said in an interview with Global Times that the core key is that Chinese wind power products have strong comprehensive competitiveness. Lin Boqiang believes that the competitiveness of Chinese enterprises in the global wind power market is currently at a high level. At the same time, China also has a very mature wind and solar energy storage supporting model, which can make the application scenarios of wind power in Southeast Asia more diverse. The cost of wind power generation is basically the same as the local industrial and commercial electricity prices. It can not only adapt to grid connected use scenarios, but also meet the demand for off grid power supply, greatly improving stability. The long-term development trend of the industry is very clear. For Chinese wind power companies that plan to expand into the Southeast Asian market in the future, Lin Boqiang suggests that the core development direction of the company is to continuously optimize products, further improve the quality of wind power equipment, reduce production costs, and consolidate cost-effectiveness advantages. The external issues involved in the process of going abroad, such as diplomatic docking and geopolitical coordination, are difficult for enterprises to deal with alone, and can be coordinated and resolved by the government.