- Singapore is moving ahead on renewables, with 30 percent of companies already sourcing over half their energy from low carbonsources, according to survey by ABB’s Energy Industries division
- Results show clear confidence in digital technologies, as 78 percent of Singapore respondents view AI and automation as key enablers of the energy transition
- Investment momentum is rising, with 68 percent of Singapore firms planning to allocate more than 10 percent of their CAPEX to energy transition initiatives over the next five years
Singapore is pulling ahead on several energy transition fronts. 30 percent of respondents report that more than half of their organization’s energy supply is from renewable sources (compared to 25 percentregionally), a sign that businesses here are moving faster to embed clean energy in their operations. Looking ahead, 82 percent expect to increase their renewable energy use by more than 20 percent in the next five years (compared to 77 percent regionally), underscoring a strong pipeline of demand that will help advance Singapore’s decarbonization goals.
These findings are part of the Asia Pacific Energy Transition Readiness Index 2025, an industry researchproject conducted by ABB’s Energy Industries division. The Index is based on a survey of over 4,000 business leaders responsible for automation, electrification, digitalization and sustainability strategies across 10 industries and 12 geographical markets, including Singapore. It focuses on energy-intensive industries such as chemicals, data centers, energy and power generation, manufacturing, oil and gas, transportation and others.
Based on 20 indicators across Strategy, Technology and Infrastructure, Finance, and Talent, the research finds that 60 percent of companies in APAC are at a high or average readiness level, with 40 percent at early stages. It also identifies opportunities and challenges across the four key pillars of the Index for both Singapore and the wider APAC region, highlighting the need for coordinated action to accelerate progress.
The data shows that Singapore companies are also stepping up their energy transition investment. 68percent plan to allocate over 10 percent of their CAPEX to energy transition initiatives over the next five years. In the near term, 26 percent expect investment in transition efforts to increase by over 50 percentin the coming year (compared to 19 percent regionally), rising to 43 percent within four to five years.These figures suggest not only long-term commitment, but also a growing urgency to act in the short term.
These business-level trends closely align with Singapore’s national energy strategies, including a target of 2 GWp of solar capacity by 2030, a raised ambition to import up to 6 GW of low-carbon electricity by 2035, and a national hydrogen strategy positioning low-carbon hydrogen to potentially meet up to half of Singapore’s power needs by 2050.
“As a regional hub for low carbon innovation, Singapore’s role as a sustainability leader is becoming more prominent,” said Abhinav Harikumar, VP of ABB’s Energy Industries division, Southeast Asia.“Accelerating progress from Singapore to the wider region requires aligning investments with transitionpriorities and harnessing technology as a catalyst. It also calls for talent development and stronger collaboration across the ecosystem to drive lasting impact.”
The research also shows growing momentum for digital transformation, with 71 percent of APAC respondents identifying artificial intelligence (AI) and automation as key enablers of the energy transition. This rises to 78 percent in Singapore, underscoring strong local confidence and anopportunity for companies to leverage AI for data-driven energy management, accelerate investment in smart grid solutions and support interoperability.
Singapore respondents also prioritize automation (35 percent) and digitalization (34 percent) for operational transformation, while electrification (31 percent) is driving decarbonization and progress toward net-zero goals.
Across APAC, respondents recognize the critical role of cross-sector collaboration in unlocking transition potential. Key enablers cited include stronger government incentives (62 percent), cross-border grid collaboration (60 percent), and greater private sector investment (56 percent). In Singapore, 30 percentof respondents also highlight public-private partnerships (PPP) among the top three untapped opportunities to accelerate local transition efforts.
The research indicated that solar is poised to lead Singapore’s energy transition. 75 percent of respondents in Singapore already use solar as a main source of renewable energy (compared to 73percent regionally). Looking ahead, Singapore companies view solar (60 percent), green hydrogen (46percent), and wind (42 percent) as the top three ‘game changers’ for renewables over the next five years, signaling optimism for emerging low-carbon technologies beyond solar.
Conducted between May and June 2025, the research demonstrates strong commitment to the energy transition both in Singapore and APAC. Unlocking the region’s full potential will require stronger alignment between investment priorities and transition demands; faster adoption of key technologies; and deeper stakeholder engagement. Full report available here.
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