The Southeast Asian 
Challenge

Southeast Asia faces a dual energy challenge: electricity demand is accelerating just as the region must reduce dependence on fossil fuels and build power systems capable of withstanding increasingly severe climate conditions. The International Energy Agency (IEA) projects regional electricity demand to grow around 4% annually through 2035, rising from more than 1,300 TWh to over 2,000 TWh. Yet coal supplied about half of Southeast Asia's electricity in 2023 and accounted for roughly 80% of power-sector emissions. (IEA) The World Bank similarly warns that rapidly rising electricity demand and continued coal dependence are driving emissions growth in East Asia, while renewable resources remain substantially underutilized. (World Bank, 2026)