Renewable Energy for the Hospitality Industry: A New Path to Sustainable Operations

As operational costs rise and the pressure for green transformation intensifies, hotels and resorts across Southeast Asia are presented with a valuable opportunity to redefine their business models toward greater savings and sustainability. One of the most promising solutions is the integration of renewable energy—particularly solar and wind power—into daily operations. These systems not only reduce costs and carbon emissions but also align with the growing trend of sustainable tourism, attracting eco-conscious travelers, especially international guests.

Why the Hospitality Industry Needs an Energy Transition

Hotels and resorts consume significant amounts of electricity for air conditioning, cooling, heating, lighting, in-room electronics, hot water systems, pools, restaurants, and spas. According to the International Energy Agency (2020), commercial buildings—including hotels—account for a substantial portion of global energy consumption. In Southeast Asia, popular destinations like Phu Quoc (Vietnam), Bali (Indonesia), and Phuket (Thailand) are often located on islands or in remote areas with unstable grid access. This leads many establishments to rely on diesel generators, driving up operational costs and contributing to high carbon emissions that harm the environment.

Sustainable tourism is becoming a top priority for travelers. A 2023 Booking.com survey found that 97% of Vietnamese travelers are interested in eco-friendly trips, highlighting a growing demand for environmentally conscious hotels and resorts. Transitioning to renewable energy not only helps hospitality businesses cut costs but also enhances brand reputation, meets guests’ expectations, and complies with international environmental standards, including net-zero targets by 2050.

Benefits of Renewable Energy

Renewable energy offers numerous practical advantages for hotels and resorts in Southeast Asia. Solar and wind power can significantly reduce electricity expenses, especially as the cost of traditional energy continues to rise. According to EnergyLink, the payback period for solar systems in hotels is around five years, thanks to falling technology costs and increasing energy efficiency. In sunny regions such as Vietnam, Thailand, and Indonesia, solar power can cover up to 70–80% of the energy needs for small to mid-sized hotels, based on a 2023 report by Constant Energy.

Renewable energy also lowers carbon emissions, helping hotels meet sustainability goals and comply with standards like RE100 and ASEAN energy transition initiatives. The global tourism industry is expected to generate 6.5 billion tons of CO₂ by 2025—13% of total greenhouse gas emissions, according to Nature Climate Change. By using renewable energy, hotels can reduce their environmental impact, attract eco-conscious travelers, increase revenue, and strengthen their brand image.

In areas with unstable power grids—such as remote tourist islands—renewable energy ensures energy independence, allowing operations to continue without relying on external sources. Additionally, hotels that adopt renewable systems may benefit from government subsidies and tax incentives in countries like Vietnam and Singapore, easing the burden of initial investment.

Common Types of Renewable Energy

Solar energy is the most widely adopted renewable solution in the hospitality sector in Southeast Asia, thanks to its feasibility and decreasing costs. Hotels can install photovoltaic (PV) panels on rooftops or the ground to convert sunlight into electricity for lighting, hot water, and powering devices. With its tropical climate and abundant sunshine, Southeast Asia is ideal for solar energy. Constant Energy reports that Vietnam and Thailand lead the region in solar production, while Indonesia has a potential of up to 2,900 GW. Excess solar energy can be stored in batteries or sold back to the grid, creating additional revenue streams. Installation takes only 2–3 weeks and doesn’t interrupt hotel operations, according to EcoBnB.

Wind energy is well-suited for coastal or island locations with strong winds, such as Phu Quoc (Vietnam), Koh Phra Thong (Thailand), and Palawan (Philippines). Hotels can install small-scale wind turbines or partner with nearby wind farms to source clean energy. Although wind turbines are more expensive to install than solar panels, partnering with existing farms is a practical solution, according to EnergyLink. Vietnam, with its vast offshore wind potential, is becoming a hub for wind energy projects, according to CSIS. Wind power provides consistent energy, especially when combined with storage systems, allowing continuous hotel operations even in adverse weather conditions.

Aside from solar and wind, some Southeast Asian hotels are experimenting with other renewable sources such as mini-hydro and biomass. However, solar and wind remain the most preferred due to their practicality and cost-effectiveness in the region.

Implementing Renewable Energy

To adopt renewable energy, hotels must take several concrete steps. First, they need to assess their energy needs to determine power requirements and identify suitable areas for installation. Next, they should choose appropriate technologies based on geographic and economic conditions—solar for sunny regions and wind for coastal areas.

While the upfront cost can be high, funding models like Constant Energy’s Power Purchase Agreements (PPAs) in Southeast Asia and tax incentives in Vietnam and Singapore can ease the burden. According to ehotelier, such programs allow hotels to pay based on energy output rather than upfront installation costs. Finally, regular maintenance and system management are essential for sustained efficiency and resolving technical issues.

Real-World Examples

Many hotels and resorts in Southeast Asia have successfully implemented renewable energy, becoming benchmarks for sustainable hospitality:

• Oasia Downtown, Singapore: Uses rooftop solar panels for lighting and air conditioning. Its design incorporates greenery on facades and roofs, lowering surface temperature by up to 25°C and reducing cooling energy, according to The Guardian. The hotel also uses NEWater—Singapore’s high-quality recycled water—for irrigation and air conditioning.

• Suối Rao Ecolodge, Vietnam: Located in Bà Rịa – Vũng Tàu, it’s the first destination certified as a Net Zero Station, storing 1,558.86 tons of CO₂ over six years while emitting only 19 tons annually, according to the Ministry of Natural Resources and Environment (2024). The resort uses solar power and complements it with recycled water for irrigation and carbon-offset tree planting.

• Golden Buddha Resort, Thailand: On Koh Phra Thong island, it uses solar panels to power fans and hot water systems, avoiding air conditioning by leveraging natural sea breezes. It bans plastic bags, uses recycled materials like bamboo, and ships waste to the mainland for treatment, according to The Guardian.

• El Nido Resorts, Philippines: Located on Apulit, Miniloc, Lagen, and Pangulasian islands, these eco-resorts use solar power, sustainable architecture, and conservation programs such as giant clam relocation in Bacuit Bay, according to The Honeycombers. They also limit motorized boats to protect marine ecosystems.

• Bambu Indah, Indonesia: A luxury boutique hotel in Bali that uses solar power and recycled materials like bamboo and reclaimed teak. It recycles wastewater, serves organic local food, and composts to minimize environmental impact, according to DirectAsia. It also offers cultural classes to inspire sustainable travel.

Challenges and Solutions

Despite the many benefits, renewable energy adoption in Southeast Asia’s hospitality sector faces several challenges. High upfront costs for solar panels and small wind turbines can be a hurdle for smaller hotels. However, financial assistance through PPAs and government tax relief—available in Vietnam, Thailand, and Singapore—can mitigate this. Geographical dependence is another challenge: solar energy needs ample sunlight, and wind power requires strong, consistent wind. Advances in high-density lithium-ion battery storage technology are helping address intermittency issues, according to Solar Energy. Additionally, a lack of awareness and technical expertise can be overcome through staff training and partnerships with energy providers like Constant Energy.

Future Outlook

The green travel trend is accelerating the hospitality industry’s transition to renewables. Vietnam leads the region in solar and wind production, with vast offshore wind potential (CSIS). Thailand emphasizes solar and biomass, while Indonesia leverages geothermal and solar energy (BillionBricks). The Philippines is pushing clean energy under its 2008 Renewable Energy Act. Improvements in battery storage and falling costs are making renewable systems more viable. Government support—such as Vietnam’s import tax exemptions for renewable equipment—and international initiatives like the ASEAN Energy Transition Partnership encourage hotels to aim for 100% renewable usage. As sustainable tourism demand grows, renewable energy becomes not just a trend but a necessity for long-term hotel viability.

Conclusion

Renewable energy—especially solar and wind—is opening a new path to sustainable operations for hotels and resorts in Southeast Asia. These solutions help cut costs, reduce carbon emissions, and enhance brand reputation, while meeting the rising expectations of green-conscious travelers. Real-world examples like Oasia Downtown (Singapore), Suối Rao Ecolodge (Vietnam), and Golden Buddha Resort (Thailand) showcase how renewable energy is not only practical but essential for the hospitality industry's future.