IEA warns of growing electricity security pressures in ASEAN as demand surges

A new International Energy Agency report finds that Southeast Asia’s power grids will face mounting security challenges as electricity demand climbs at an average of 5.4% per year through 2030. The surge is linked to higher cooling needs, expanding data-center capacity and industrial activity, with Indonesia projected to generate roughly 40% of the additional demand and Vietnam about 26%. The region’s dependence on imported LNG and coal is likely to keep generation costs and consumer prices on an upward trajectory.

Natural-gas use is expected to rise, especially for power generation, prompting the addition of around 24 GW of gas-fired capacity, while alternatives such as biomethane and low-emissions hydrogen remain limited. The IEA also notes that ASEAN’s abundant critical-mineral reserves could support clean-energy technology supply chains, but vulnerabilities persist due to concentrated global sources and shifting trade policies.