How can Southeast Asia fuel its clean energy shift?

SEA remains heavily reliant on coal, gas, and oil, making it vulnerable to hurdles like price spikes.

Southeast Asia needs to improve its access to financing, renewable energy investments, and regional cooperation to meet its growing power demand whilst reducing its vulnerability to global shocks.

In an analysis, the Asian Development Bank said Southeast Asia dependence on coal, gas, and oil to power their economies “exposes the region to volatile fuel prices and supply disruptions, even as cleaner technologies become more affordable and widely available.”

“Improving access to finance, investing in renewable power, and expanding regional cooperation can help countries meet growing energy needs whilst reducing their vulnerability to global shocks,” it noted.

The ADB report noted that most countries in the region import far more coal, oil, and gas than they export. Singapore is the most dependent, with imports several times greater than domestic supply, whilst Indonesia and Brunei are the only clear exporters.

Heavy dependence on imported fuels makes national economies more vulnerable to price spikes and supply disruptions, strengthening the case for regional cooperation and investment in local renewable resources, ADB said.

Financing solar power projects in the region is also higher than in most developed economies. Specifically in Myanmar, Viet Nam, Indonesia, and the Philippines, investors face financing costs roughly double those in Europe or North America.

Clear policies, stronger institutions, and transparent markets are needed to address this problem. In return, this could accelerate the region’s move toward affordable and sustainable energy.

“Governments, investors, and development partners can work together to make energy cleaner, more reliable, and more affordable, turning today’s energy dependency into a foundation for sustainable growth across the region,” ADB said.