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IEA warns rising fuel imports, power demand threaten Southeast Asia’s energy security – EnviroNews
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Southeast Asia faces growing energy security risks as rising fuel imports, increasing electricity demand and greater exposure to global market disruptions combine to put pressure on the region’s energy systems, the International Energy Agency (IEA) has warned.
In its new ASEAN Energy Security Review, the IEA called for stronger national preparedness and deeper regional cooperation across oil, gas, coal, electricity and critical minerals to help countries of the Association of Southeast Asian Nations (ASEAN) cope with supply disruptions and volatile energy prices.
The report, which examines the reliability and affordability of energy supplies across the region, is due to be presented to ASEAN Energy Ministers at their meeting in Manila on October 7.
According to the review, energy demand per person in Southeast Asia has increased by almost 30 per cent over the past decade, driven by economic growth, industrialisation, urbanisation and rising living standards.
At the same time, regional crude oil production has declined by 40 per cent from its peak in the 1990s, while crude oil imports have continued to rise.
Growing imports of liquefied natural gas (LNG) are also leaving several countries increasingly exposed to fluctuations in international gas markets.
The IEA said disruptions to energy flows through the Strait of Hormuz this year had further demonstrated the vulnerability of countries dependent on international fuel markets and strategic shipping routes.
Electricity systems are also expected to come under increasing pressure.
The report projects that electricity demand across Southeast Asia will grow by an average of about 5.4 per cent annually between 2026 and 2030, driven by increased cooling needs, industrial expansion and the rapid growth of data centres.
The IEA said meeting this rising demand reliably would require significant investment in electricity grids, generation capacity and system flexibility, while energy planning would also need to account for fuel supply risks and extreme weather events.
“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,” IEA Executive Director, Fatih Birol, said.
He stressed that energy security needed to be incorporated into decisions across the entire energy system, ranging from oil stocks and gas infrastructure to electricity grids and energy efficiency.
“By working more closely together, ASEAN countries can make better use of their collective resources and respond more effectively when disruptions occur,” Birol said.
IEA urges diversification, stronger preparedness
The review recommends that ASEAN countries diversify their sources and routes of energy supply, increase the use of domestic resources where economically viable, and accelerate energy efficiency and electrification.
It also calls for clearer emergency procedures, improved market monitoring and regular exercises to test national and regional responses to major energy disruptions.
The IEA, however, noted that energy security strategies would need to reflect the different circumstances of individual ASEAN countries.
Coal, for instance, remains an important source of electricity and industrial energy in several member states, making reliable coal supplies an immediate energy security consideration even as countries pursue longer-term pathways for diversification.
The agency said existing ASEAN agreements provide a foundation for strengthening regional energy security.
The ASEAN Plan of Action for Energy Cooperation 2026–2030 offers a framework for implementing the recommendations, while the ASEAN Framework Agreement on Petroleum Security could support emergency planning and oil stockholding.
The review stressed that regional commitments would increasingly need to be translated into practical arrangements for information sharing, emergency response and cross-border assistance as energy demand continues to grow.
Efficiency, critical minerals and battery storage
Beyond increasing energy supplies, the IEA said greater efficiency could reduce pressure on the region’s fuel imports and electricity infrastructure.
More efficient vehicles, buildings, appliances and industrial equipment could help moderate energy demand while reducing exposure to international fuel price shocks.
The report also recommends stronger cooperation on critical minerals to help ASEAN countries develop regional capabilities and reduce exposure to concentrated global supply chains.
The review was developed in cooperation with the ASEAN Centre for Energy (ACE), the ASEAN Secretariat and ASEAN Member States, with the IEA saying it would continue deepening collaboration with governments and other partners across Southeast Asia.
Meanwhile, the IEA and ACE have released a joint policy brief examining policy and regulatory measures needed to accelerate deployment of battery energy storage systems.
The agencies said battery storage could strengthen electricity security by providing flexibility to power systems and helping integrate increasing shares of variable renewable energy.
The IEA’s latest assessment ultimately points to a regional energy system in which security will increasingly depend not only on securing individual fuels, but also on diversification, efficiency, resilient infrastructure, emergency preparedness and stronger cooperation among ASEAN countries.
