SE Asia could account for 25% of the rise in energy demand over the next decade

Southeast Asia is a very dynamic region and a driving force behind global energy trends, with a projected rise in energy demand over the coming decades second only to India. It has accounted for 11% of global energy demand growth since 2010 but is projected to contribute more than 25% of the growth over the period to 2035 in the Stated Policies Scenario (STEPS), which indicates the direction of travel for the energy sector based on today’s policies.

This increase in demand is underpinned by strong economic expansion, population growth, and Southeast Asia’s position as a global manufacturing and industrial hub. However, this scenario brings serious concerns for energy security and sustainability: rising dependence on fossil fuel imports, escalating import costs, and a projected one-third increase in energy-related CO2 emissions by 2050.