Southeast Asia’s Electricity Demand Surges, Driving Need for Renewable Energy: IEA
By Tiash Saha – September 23, 2025
Eight of ten ASEAN member states have set net-zero emissions targets.
Southeast Asia has the potential to harness abundant renewable resources to meet its rapidly growing electricity demand, according to a new report by the International Energy Agency (IEA).
In 2024, electricity consumption in the region grew by more than 7%, nearly double the global average, and is expected to double again by 2050. This growth is driven by rapid urbanisation, industrial expansion, and improving living standards.
Southeast Asia has an estimated 20 terawatts (TW) of untapped solar and wind potential, a resource base that could play a decisive role in meeting future demand while boosting energy security.
At present, many countries in the region rely heavily on imported fossil fuels, exposing them to global market volatility and supply risks.
With eight of ten ASEAN member states pledging net-zero emissions, policies such as competitive renewable energy auctions and direct power purchase agreements (DPPA) are being implemented to accelerate clean energy deployment.
The IEA notes that the challenges of integrating variable renewables like solar and wind are manageable. Low-cost solutions can be adopted without major overhauls, including:
-
Enhancing flexibility of existing power plants
-
Improving forecasting capabilities
-
Modernising grid infrastructure
Demand-side measures such as smart air conditioners, electric vehicle (EV) charging, and storage systems can further smooth integration and lower consumer costs.
The report also points to regional frameworks supporting the energy transition, including ASEAN Vision 2045 and the upcoming renewal of the ASEAN Plan of Action for Energy Cooperation (APAEC).
To further strengthen engagement, the IEA has established the IEA Regional Cooperation Centre in Singapore—its first office outside Paris—to support renewable integration, grid modernisation, and transition planning.
