A new report from the global energy think tank Ember suggests that integrating Artificial Intelligence (AI) into Southeast Asia's power systems could generate substantial economic and environmental benefits over the next decade, while playing a pivotal role in managing the region's rapidly expanding solar capacity. According to the analysis, the region stands to achieve cumulative cost savings of up to $67 billion USD for its power sector between 2026 and 2035, while simultaneously reducing CO₂ emissions by as much as 386 million tonnes.
As ASEAN member states accelerate their energy transition, solar power is emerging as a primary driver of change. Power systems are entering a more complex operational phase, driven largely by the variable nature of solar generation. The share of variable renewable energy (VRE), primarily solar and wind, has more than doubled from 2.3% in 2020 to approximately 5% in 2025-with solar photovoltaic (PV) systems accounting for a significant portion of this growth. Long-term projections indicate that VRE could account for 42–47% of the region's electricity generation by 2045, with solar expected to represent the largest share among renewable sources in some scenarios even surpassing 60%. Managing the inherent intermittency of solar power and ensuring grid stability are becoming critical challenges, mirroring trends observed in other global markets with high PV penetration.
The Ember report highlights that AI tools, already deployed in power systems worldwide, offer a pathway to navigate this complexity-particularly for solar-rich grids. Key applications-including advanced solar generation forecasting, predictive maintenance for infrastructure, real-time grid control, and optimized power dispatch-have demonstrated tangible improvements in operational efficiency and grid management in markets with high solar and wind penetration. Accurate forecasting of solar output, influenced by weather patterns and cloud cover, is essential for system operators to balance supply and demand effectively.
The study examined two adoption scenarios based on analysis by Deloitte. In a widespread adoption scenario, AI integration could reduce annual power sector costs, leading to cumulative savings estimated between $45 billion and $67 billion by 2035. The exact figure depends on the pace of renewable energy deployment, particularly the rate of new solar installations. Concurrently, the efficiency gains from AI could result in emission reductions of approximately 290 to 386 million tonnes of CO₂. The most significant economic benefits are projected in scenarios with higher shares of renewables, where improved solar forecasting and system optimization yield the greatest returns by reducing curtailment of solar farms during peak generation periods and optimizing energy storage dispatch.
The report notes that ASEAN possesses a foundational readiness for this technological shift, supported by robust growth in its digital economy and data centre infrastructure, valued at around $300 billion and projected to approach $1 trillion by 2030. Key power markets like Indonesia, Vietnam, Thailand, Malaysia, and the Philippines are already scoring above the global average on AI readiness indicators, with utilities initiating pilot projects focused on forecasting and operational optimization-including initiatives specifically targeting solar power integration challenges.
However, the report cautions that AI adoption in the energy sector also introduces new risks. These include technical challenges related to the probabilistic nature of AI versus the deterministic requirements of power grids, data fragmentation, and heightened cybersecurity vulnerabilities. Furthermore, the lack of clear regulatory and liability frameworks could impede large-scale, system-wide deployment. For solar-heavy grids, ensuring data quality from distributed PV systems remains a particular challenge.
The findings underscore that while AI presents a commercially available set of tools to enhance grid efficiency and enable greater solar integration, realizing its full potential requires a move from isolated pilot projects to coordinated, system-wide implementation, guided by robust governance and human oversight. This evolution will be crucial for ASEAN to fully capitalize on its abundant solar resources and meet its renewable energy targets.
(Source: Based on information from a report by Ember, titled "Energising Southeast Asia: How AI can power the transition," published March 2026.)
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