Southeast Asia is home to some of the world’s fastest-growing economies. As energy demand grows, the region is turning to renewable energy to not only to sustain economic growth but also to safeguard its energy security.
According to IEA, energy demand in Southeast Asia has increased by an average of 3% every year over the past two decades, a trend that will continue to 2030 under current policies.
However, fossil fuels still domain the region’s energy mix, accounting for about 83% in 2020, compared to renewables’ 14.2% during the same period, as data from the ASEAN Center for Energy shows.
By 2050, the center said that oil, natural gas, and coal will account for 88% of the total primary energy supply.
Zulfikar Yurnaidi, the Policy Planning Manager at the ASEAN Center for Energy, pointed out that the dependence on fossil fuels increases the region’s vulnerability to energy price shocks and supply constraints.
The ASEAN Center for Energy estimated that if Southeast Asian nations do not make significant discoveries or add to existing production infrastructure, the region will become a net importer of natural gas by 2025 and coal by 2039. This will likely result in higher fossil fuel prices and place additional strain on consumers.
To avoid this, the region must diversify its energy sources for economic growth and security, said Yurnaidi.
