Southeast Asia finds itself at a crossroads, as a recent report warns of the region’s deepening dependence on fossil fuels while grappling with rising electricity demand. In a worrisome turn, the 10 nations of ASEAN met last year’s 3.6% spike in power demand entirely through fossil fuel sources, further delaying their much-needed transition to renewable energy, according to environmental think tank Ember.
Renewable energy’s share of ASEAN’s energy mix dropped to 26%, a slip from the 28% mark in 2022, largely due to droughts impacting hydropower production. The report paints a grim picture of increasing carbon emissions, which spiked by 6.6% in 2023—adding an alarming 44 million tonnes of CO2 to the atmosphere. Among the region’s top polluters are Vietnam, Malaysia, and the Philippines, heavily reliant on coal, while Singapore and Thailand primarily contribute emissions from natural gas.
The slow pace of the energy transition in Southeast Asia means the region is missing out on the economic benefits of clean energy, such as the dropping costs of solar and wind power. The report emphasizes, “At this rate, ASEAN is locking itself into greater dependence on fossil fuels, missing opportunities for emerging clean energy technologies, and falling behind on climate goals.”
Solar and wind power are seen as Southeast Asia’s best long-term hope, but challenges with storage, grid management, and ensuring power during peak hours hinder progress. Hydropower, once a reliable option, is now faltering due to unpredictable weather patterns.
The International Energy Agency (IEA) also weighed in, stating that Southeast Asia would need to ramp up investment in clean energy by five times—to $190 billion annually—if it hopes to meet its climate goals by 2035. Even so, carbon emissions are projected to rise by 35% by 2050 if the region continues down this fossil-fuel-heavy path. The IEA highlighted the risk of relying on fuel imports, leaving countries vulnerable to economic and environmental crises.
Courtney Weatherby, from the Stimson Center’s Southeast Asia program, noted that while solar power offers significant potential, institutional barriers and the need for stable power supply are major hurdles to a quick energy transition.
As electricity demand grows at an annual rate of 4%, the clock is ticking for ASEAN nations to embrace renewables or risk being stuck in the murky waters of fossil fuel dependency.
