IEA Warns Southeast Asia of Widening Electricity Security Risks

The International Energy Agency released the Asean Energy Security Review on October 6, warning that Southeast Asia faces widening electricity security challenges. The agency projects that regional electricity demand will grow by an average of 5.4% annually through 2030, fueled by industrial expansion, the proliferation of data centers, and increased cooling needs.

Indonesia and Vietnam are expected to drive the majority of this increase, accounting for 40% and 26% of the growth, respectively. The report notes that a continued reliance on imported coal and liquefied natural gas may lead to higher power generation costs and increased retail tariffs for consumers.

While the region holds significant reserves of copper, cobalt, and nickel essential for clean energy, the agency warns that volatile trade policies and supply concentration create vulnerabilities. To mitigate these risks, the report suggests that Southeast Asian nations expand intra-regional investment and trade to build more resilient mineral supply chains.