Southeast Asia is projected to contribute 25% of global energy demand growth by 2035, ranking second after India, according to the Southeast Asia Energy Outlook 2024 report by the International Energy Agency (IEA).
The report considers Southeast Asia’s energy mix, which includes an assessment of its solar market.
This increase seen in the report is driven by the region’s expanding economy, population, and manufacturing sector. However, the IEA report says that the estimated contribution will not be enough to curb carbon dioxide emissions.
These are projected to rise by 35% by 2050.
The IEA report shows that solar power plays a significant role in the region’s clean energy mix. Southeast Asia has substantial solar potential, especially in countries like Vietnam, where solar photovoltaic (PV) capacity surged due to government incentives.
Despite this growth, Southeast Asia’s renewable energy adoption, particularly solar and wind, lags behind global trends. For instance, solar PV and wind are expected to contribute 25% of Southeast Asia’s electricity generation by 2035.
To align with national net-zero targets and COP28 goals, the IEA calls for increased clean energy investments.
Although Southeast Asia accounts for 6% of global GDP, it currently attracts only 2% of global clean energy investments.
Coupled with strategies to reduce emissions from young coal-fired plants, solar PV and other renewables are seen as critical for reducing the region’s reliance on fossil fuels.
Complications
The news comes following recent US tariffs on solar imports from Southeast Asia.
The region’s solar growth, already lagging behind global trends, may face additional pressures from these tariffs, further complicating efforts to meet rising energy demands and clean energy targets.
As Southeast Asia supplies a significant portion of US solar components, the tariffs are expected to raise solar equipment costs. Investigations are ongoing, with potential changes to the rates expected in 2025.
