Southeast Asia can meet rising electricity demand through renewables: IEA

A new International Energy Agency (IEA) report highlights Southeast Asia’s potential to use renewable energy to meet rapidly growing electricity demand. In 2024, regional electricity consumption rose by over 7%, nearly double the global average, and is expected to double again by 2050 due to urbanisation, industrial growth, and higher living standards.

The region is estimated to have 20 terawatts (TW) of untapped solar and wind capacity. The report notes that even partial deployment of this potential could help meet demand while improving energy security, reducing dependence on imported fuels, and lowering exposure to global market fluctuations.

Eight of the ten Association of Southeast Asian Nations (ASEAN) members have set net-zero emissions targets. Policy tools such as competitive auctions and direct power purchase agreements are being used to encourage renewable adoption across the region.

The IEA report states that integrating variable renewable sources like solar and wind is manageable. Measures such as enhancing flexibility in existing power plants, improving forecasting, and modernising grids can be implemented without major system changes. Smart air conditioners, electric vehicle charging, and storage systems can further support integration while lowering costs for consumers.

Regional initiatives supporting clean energy include ASEAN Vision 2045 and the forthcoming renewal of the ASEAN Plan of Action for Energy Cooperation. The IEA has also launched its first office outside Paris in Singapore, the IEA Regional Cooperation Centre, to assist Southeast Asia with renewable integration, grid upgrades, and energy transition planning.