Rising electricity demand deepens Southeast Asia's energy security
concerns, IEA reports says
[October 06, 2026] By
ANTON L. DELGADO
BANGKOK (AP) — Risks to Southeast Asia's energy supplies are multiplying
faster than nations are coming up with solutions to meet rapidly rising
demand for electricity, according to an International Energy Agency
report released Tuesday.
Southeast Asia has a seemingly insatiable appetite for energy, but the
region is now in a pinch as energy costs rise, partly due to the Iran
war. Fast-growing Southeast Asian economies also need more electricity
to power data centers and keep homes and businesses cool.
To beef up regional energy security, the report says Southeast Asian
nations should share electricity amongst each other and diversify where
they get their power. But countries face multiple hurdles, from
territorial conflicts between neighbors to differing types of national
energy markets, according to analysts, who warn these barriers may keep
the region vulnerable to energy shocks.
“Southeast Asia is one of the world’s most dynamic regions, but its
rising needs for energy to power its economic growth face challenges in
an increasingly uncertain global energy landscape,” Fatih Birol, the IEA
executive director, said in a statement.
With the Iran war now bleeding into its seventh month, the IEA warns
energy security issues among the Association of Southeast Asian Nations
will intensify as the region’s electricity demands outpace growth in
power generation.
Rapid industrialization, urbanization and rising living standards are
driving Southeast Asia's energy demand, which has risen almost 30% per
person over the last 10 years. From now until 2030, the IEA forecasts
demand will expand at an average annual rate of 5.4% because of demand
for cooling, data centers and industry.
The energy crisis stemming from the closure of the Strait of Hormuz has
been a wake-up call for Southeast Asia, which has suffered fuel
shortages and soaring costs.
[to top of second column] |
A solar installer secures a solar panel onto the roof of a home in
Manila, Philippines, on May 1, 2026. (AP Photo/Anton L. Delgado)
 Unlike their wealthier East Asian
neighbors Japan and South Korea, countries in Southeast Asia have
limited energy reserves and fewer resources for dealing with the
crisis.
To survive, countries went into a state of energy triage to conserve
power, while also burning more coal and buying Russian crude oil.
But as the conflict lengthened, it also led to new policies for
cleaner power — from nuclear energy agreements, to solar power
subsidies and incentives for buying electric vehicles.
That can help diversify the region’s energy sector, according to Amy
Kong, with Zero Carbon Analytics. "The Iran war has given
governments a bit of a reality check," she said.
If Southeast Asia wants to improve its energy security, nations need
to continue diversifying energy supply sources and routes, make
greater use of domestically available energy resources and
accelerate electrification alongside efficiency improvements, the
IEA said.
Countries need to act, and move faster, said Putra Adhiguna, with
the Jakarta-based Energy Shift Institute.
“Southeast Asia is at a crossroads,” he said. “There needs to be
much more drastic change in how the region adopts the energy
transition and diversifies its traditional energy sources.”
All contents © copyright 2026 Associated Press. All rights reserved |
