According to a newly released report by the International Energy Agency (IEA), rapid industrialization, urbanization, and rising living standards are driving Southeast Asia's energy demand.

Over the past decade, the region's per capita energy consumption has risen by nearly 30%. By 2030, demand is projected to grow by an average of 5,4% annually, primarily for cooling, data centers, and industrial use.

However, the IEA assesses Southeast Asia to be in a difficult position due to escalating energy costs. As the Iran conflict enters its seventh month, the organization warns that regional energy security will worsen because electricity demand is increasing faster than supply expansion.

"Southeast Asia is one of the world's most dynamic regions, with growing energy demand to fuel its growth, but it faces many challenges amid increasing global energy uncertainty", IEA Executive Director Fatih Birol stated.

To bolster regional energy security, the IEA suggests Southeast Asian countries should increase power sharing among themselves and diversify supply sources. However, analysts note that member countries face numerous obstacles, ranging from geopolitical instability to differences in energy market models. These barriers could leave the region vulnerable to energy shocks.

Unlike East Asian neighbors such as Japan and South Korea, Southeast Asian countries have limited energy reserves and fewer resources to respond to crises. To cope, some have resorted to emergency energy prioritization to conserve supplies, increase coal usage, and purchase additional Russian crude oil.

A house with solar panels in Kawit, Philippines on 26/6. *Photo: Reuters*

The crisis has also spurred a series of new policies aimed at cleaner energy, ranging from nuclear power agreements and solar electricity subsidies to electric vehicle purchase incentives. According to Zero Carbon Analytics expert Amy Kong, these measures could help diversify the region's energy sector. "The Iran conflict has, to some extent, forced governments to confront reality", she said.

The IEA urges Southeast Asia to continue diversifying energy supply sources and routes, utilize more domestic energy sources, accelerate electrification, and enhance energy efficiency.

Putra Adhiguna, Executive Director of the Energy Shift Institute in Jakarta, believes Southeast Asia is at a crossroads and needs to accelerate action. "The region requires far more decisive changes in how it implements energy transition and diversifies traditional sources", he said.

By Phien An (according to AP)