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Southeast Asia’s power demand drives massive integration of solar and wind

Southeast Asia, facing rapid electricity consumption growth, could tap up to 20 terawatts of solar and wind potential to strengthen energy security.

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Electricity consumption in Southeast Asia rose by more than 7% in 2024, almost double the global average. This trend is fuelled by rapid urbanisation, industrial growth and rising living standards. According to a recently published report, meeting this demand reliably will require coordinated action from policymakers, regulators and grid operators.

Energy dependence increases regional vulnerabilities

Several member countries of the Association of Southeast Asian Nations (ASEAN) still rely heavily on fuel imports, leaving them exposed to price volatility and supply disruptions. The effects of the recent global energy crisis have heightened these vulnerabilities, underlining the urgency of diversifying the regional power mix. The report identifies 20 terawatts of untapped solar and wind potential in the region, about 55 times current installed capacity.

Regulatory tools to accelerate integration

Solar and wind are now among the most economically competitive power generation sources. Their expansion would help reduce imports, stabilise local markets and align with national emissions reduction goals. To date, eight of the ten ASEAN member states have set carbon neutrality targets. Instruments such as competitive auctions and direct power purchase agreements are multiplying to boost renewable adoption.

Manageable technical challenges in the short term

Integration of variable renewable energy remains at an early stage in most ASEAN countries, with Viet Nam as the main exception. At this stage, their impact on the grid remains modest. The report points to proven, low-cost and quickly applicable measures: flexibility in existing plants, modernised forecasting tools, updated grid codes and improved monitoring of electrical infrastructure.

Regional cooperation to support the transition

In this context, the International Energy Agency (IEA) recently opened a Regional Cooperation Centre in Singapore, marking its first office outside its Paris headquarters. This facility is designed to support ASEAN countries in managing renewable integration and modernising their grids. The report will be presented during the plenary session of the ASEAN Energy Business Forum, scheduled for October 15 in Kuala Lumpur.

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