Southeast Asia is set to miss its renewable energy production goal, underscoring the region’s struggle to transition away from fossil fuels such as coal and liquefied natural gas (LNG), according to a report by an intergovernmental think tank.
The Asean Centre for Energy revealed that by the end of 2024, clean power will account for 19% of the region’s total energy mix, falling short of the Association of Southeast Asian Nations (ASEAN) target of 23%. The report also indicated that Southeast Asia may become a net importer of LNG by 2027, further complicating its energy outlook.
The industrial and transport sectors in larger economies like Indonesia and Vietnam are major energy consumers. However, the demand for electricity from households in smaller nations like Cambodia is also on the rise. By 2050, regional energy demand is expected to more than double, according to Zulfikar Yurnaidi, head of energy modelling and policy planning at the Asean Centre for Energy.
While ASEAN countries are set to surpass their renewable energy installation goals by 2025, the region’s limited energy storage capacity poses a challenge for integrating renewable power into the grid consistently. Yurnaidi emphasized that achieving energy security and reducing emissions will require governments to adopt a range of climate-friendly policies. These include green financing, modernizing power grids, investing in emerging technologies like carbon capture, and developing educational programs to prepare workers for green jobs.
The energy transition in Southeast Asia, however, remains a “delicate” process, according to Yurnaidi. Unlike the European Union, ASEAN lacks a unified governance structure and operates on a consensus-based decision-making model, which some critics argue hampers its ability to tackle urgent challenges like climate change in a coordinated manner.
In recent years, Southeast Asia has faced increasing pressure to address its reliance on fossil fuels and align with global efforts to reduce greenhouse gas emissions, as seen in regions like the EU. However, the unique economic and political landscape of ASEAN, as well as varying levels of development among its member states, continue to complicate the region’s energy transition.
