Southeast Asia's electricity demand is rising at one of the fastest rates in the world, underscoring the need for countries to diversify energy supplies and reinforce grid infrastructure. A new IEA report released today highlights how countries in the region can leverage their abundant renewable resources, notably wind and solar PV, to meet soaring demand and achieve their energy priorities.
Electricity demand in the region grew by more than 7% in 2024 - nearly double the global average - and is set to double again by 2050, driven by rapid urbanisation, industrial growth and rising living standards. Today, many member states of the Association of Southeast Asian Nations (ASEAN) depend heavily on imported fuels, which exposes the region to risks of fuel price volatility and supply disruptions, as seen during the recent global energy crisis. Meeting demand growth securely and affordably will require coordinated action from policymakers, regulators and utilities across the region, according to the report.
Southeast Asia is particularly well placed to benefit from its renewable energy resources, the report finds. With an estimated 20 terawatts of untapped solar and wind potential - equivalent to around 55 times the region's current total power capacity - even a fraction of this could meet future demand while strengthening energy security. Solar and wind are now among the most cost-competitive options for new electricity generation across Southeast Asia. Harnessing these resources would lower fuel imports, reduce exposure to volatile global markets, and help countries meet their emissions reductions targets.
Regional initiatives are already building momentum. The ASEAN Vision 2045 and upcoming renewal of the ASEAN Plan of Action for Energy Cooperation (APAEC) place strong emphasis on clean energy deployment, while eight of ten ASEAN member states have announced net zero emissions targets. Policy instruments such as competitive auctions and direct power purchase agreements are expanding across the region to accelerate renewable adoption.
The report underscores that the near-term challenges from growing shares of variable renewable energy are manageable through proven low-cost measures. Today, all ASEAN countries except Viet Nam are in the early phases of integrating variable renewables, a stage where impacts on the power system remain modest. Practical steps, such as unlocking flexibility in existing power plants, improving forecasting, updating grid codes and modernising grid monitoring, can be implemented without major system overhauls. Expanding demand response through smart air-conditioners, EV charging and storage could further support integration while lowering consumer bills. The report will be presented at the high-level plenary session of the ASEAN Energy Business Forum (AEBF) on 15 October 2025 in Kuala Lumpur.
Recognising Southeast Asia's crucial role in shaping global energy trends, the IEA recently opened the IEA Regional Cooperation Centre based in Singapore, the first IEA office outside the Agency's Paris headquarters. The Centre builds on long-standing relationships and supports the region in tackling the pressing challenges of renewable integration, grid modernisation and energy transitions.
