Southeast Asia's Electricity Demand Surge Drives Clean Energy Push
Southeast Asia's electricity demand is soaring, with countries heavily reliant on imported fuels. Regional initiatives and policies are pushing for clean energy deployment to enhance energy security and combat climate change.
The region has an estimated 20TW of untapped solar and wind potential. Even a fraction of this could significantly contribute to meeting the rapidly increasing demand. In 2024, electricity consumption surged by over 7%, nearly twice the global average, and is projected to double again by 2050. Eight of ten ASEAN member countries, including Indonesia, Malaysia, and Thailand, have set net-zero emissions targets. These countries are adopting proven low-cost measures to enhance flexibility in existing power plants and modernise grid infrastructure. Policy instruments like competitive auctions and direct power purchase agreements are fostering renewable adoption. Despite challenges, integrating variable renewable energy sources is manageable without major system overhauls.
Southeast Asia's clean energy transition is gaining momentum. With abundant renewable resources and supportive policies, the region is well-positioned to enhance energy security and meet its net-zero emissions goals.