Digital tools underused in Asia-Pacific energy transition — ABB

Interest is accelerating, but adoption is limited.

Fewer than 15% of companies in the Asia-Pacific region are making full use of digital tools to drive their energy transition despite growing recognition of their importance, according to ABB.

Interest is accelerating, but adoption is still limited, Anders Maltesen, president of Hub Asia at the Energy Industries Division of ABB Pte. Ltd., told Asian Power. 

Some companies are taking concrete steps. In the Philippines, Aboitiz Equity Ventures, Inc. is “doing a lot on digital to improve their energy efficiency and reduce their emissions,” whilst in Thailand, IRPC Public Co. Ltd. uses an advanced process control system to optimise steam and energy use at its cogeneration plants, he said via Zoom.

The technology cut high-pressure steam header variability by up to 50% and lowered steam consumption.

ABB’s Asia-Pacific Energy Transition Readiness Index 2025 surveyed 4,085 energy leaders across the region between May and June and found that 71% see artificial intelligence (AI) and automation as key enablers of transition goals. Yet only 11% to 14% reported using fully optimised tools such as AI-driven optimisation, digital twins, or scenario modelling.

The ABB study also found mixed perceptions about the region’s progress. About 65% of respondents said the transition is moving at an adequate pace, while 56% have a formal energy management and transition plan. However, only 13% rated themselves as highly ready in terms of technology and infrastructure.

Here’s the rest of the interview.

Why are Asia-Pacific companies optimistic about energy transition but slow to act?

Every country is different, and everybody has a different energy transition recipe to get to their goal. And I think it’s important to understand why we also see some differences in terms of why there is a disconnect between optimism and action. We see a high level of confidence, and that means people start to believe that we are on the right track. People start to see that things are happening, and that means they get optimistic. 

Generally, we all believe in a kind of linear curve, and that means we often feel that if we draw a line to 2050, we're likely to feel that we are a little bit behind. But if we draw an exponential curve, which is very likely what's going to happen with the different technologies, because certain technologies we can already scale, we should maybe see a higher exponential growth than what we're seeing today.

People see the confidence that we will make it, but also part of it is the newer technology—they are still in the pilot phase. Scaling them at the moment is likely not economical because at the pilot, we get higher costs. So we need to see that the first few commercial-scale projects come through, and then when they prove that we can bring down the cost, we're likely going to see that accelerating.

What is hindering companies from developing foundational plans for their energy transition?

Asia is competing with the rest of the world. Capital is looking for the right mix between risk and return. Asia needs to focus on looking at how to get the right risk-and-return balance. The capital is there, but it's about getting that right. 

Organisations are ramping up their investments, 57% are spending more than 20%, which is actually above the global average. So it's not that things are not happening, but they could go better faster when we manage the risk-and-reward balance, specifically for private capital. Government funding is a different issue, and we have also seen more and more companies focusing on allocating more investments.

I think they expect to grow their investments in sustainability by 50% over the next five years. So that's also a good indication that things are on the right track. If we think there's a bottleneck today, that is going to disappear in the next few years.
Not enough companies have set targets yet, but it also depends on the size of the companies. I would say most of the bigger companies, we definitely see that targets are set. Now, some smaller companies maybe are not setting targets, but that doesn't mean they're not doing things. They're not as focused on communicating their targets to the outside. 

Are data and advanced tech being underused in the Asia-Pacific region’s energy transition?

We definitely see a lot of interest in this part of the world, but we should not forget one of the reasons, and this comes back to the trilemma. If we look at, for example, Malaysia, Indonesia, the Philippines, Vietnam, and Thailand, affordability has been higher on the agenda than sustainability. Therefore, I would say some of these countries are likely a bit slower in adopting it. 
Japan, Korea, Singapore, and Australia are leading more here, and some of them are definitely at par with what we have seen in some of the European countries, specifically in Northern Europe. So I think it's a little bit in terms of the priorities on the trilemma, but we see that picking up.

Given the pace and wide readiness gap, what intervention is most critical to address the issue?

The most important thing for us is collaboration, and that is with all the stakeholders. It's not just between governments and industries. It's between governments. We talk about the interconnected grids, so if we can connect the grids in Asia together, then all the countries can help each other to balance the fluctuation on the grid and thereby make fewer investments. And even in terms of implementing new technology, if we collaborate more, then that is a way to move faster.