Southeast Asia has the potential to tap into abundant renewable resources to satisfy its rapidly increasing electricity demand, according to a new report of the International Energy Agency (IEA).
in 2024, electricity consumption in the region surged by over 7%, nearly twice the global average, and is projected to double again by 2050.
this surge is fuelled by swift urbanization, industrial expansion, and improving living standards. Southeast Asia has an estimated 20TW of untapped solar and wind potential.
the report suggests that even a fraction of this could significantly contribute to meeting the soaring demand while enhancing energy security. Currently, many countries in the region are heavily reliant on imported fuels, making them vulnerable to global market volatility and supply disruptions. With eight of ten Association of Southeast Asian Nations (ASEAN) member states setting net-zero emissions targets, policy instruments such as competitive auctions and direct power purchase agreements are being employed to foster renewable adoption.
according to the IEA report, the challenges associated with integrating variable renewable energy sources such as solar and wind are manageable.