Iran War Accelerates Southeast Asia’s Renewable Energy Push

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Fuel disruptions caused by the Iran war are accelerating Southeast Asia’s transition toward renewable energy as governments seek to reduce their reliance on imported fossil fuels.

Felicity Bradstock is a writer and journalist based in Mexico City. She writes for energy websites and covers several other industries, as well as writing…

Several countries in Asia have recognised the need to accelerate the deployment of renewable energy to reduce reliance on fossil fuel imports and support energy diversification.

The ongoing conflict in the Middle East has significantly reduced fuel trade in recent months, leading to fears of shortages as countries worldwide scramble to find different suppliers and switch to alternative energy sources. The International Energy Agency (IEA) has previously pointed out the significant potential Asia has to increase its renewable energy capacity, and now several governments are putting the agency’s advice into action.

An October report published by the IEA stated that “Southeast Asia’s energy security challenges are intensifying as demand grows, reliance on imported fuels rises, and interactions across energy systems become increasingly complex – creating a greater need for coordination and planning.” In the report, the IEA recommends stronger national preparedness and deeper regional cooperation in energy to help the region overcome ongoing supply disruptions and volatile prices.

Over the last decade, energy demand per person in Southeast Asia has risen by nearly 30 per cent, driven by economic growth, industrial development, and urbanisation. Meanwhile, the region’s crude oil output has decreased by 40 per cent since its 1990s peak, driving up oil imports. The region has also increased the import of liquefied natural gas (LNG) in recent years, leaving it highly vulnerable to price fluctuations and trade disruptions.

The IEA predicts that electricity demand in Southeast Asia will increase by around 5.4 per cent per year between 2026 and 2030, driven by greater use of cooling, expanding industries, and the growth of data centres.

Fuel shortages and high prices, driven by the war in Iran that began in February, have…

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