Balancing growth and sustainability: Southeast Asia’s energy dilemma

With its rapidly growing economies, booming populations, and increasing urbanisation, Southeast Asia is witnessing a tremendous surge in energy demand. The region is changing quickly, and that growth has made it one of the fastest-developing parts of the world. But with this rapid growth comes a big challenge: How can Southeast Asia meet its rising energy needs while also protecting the environment for future generations?

The region needs more energy to keep up with its development, but the ways it has traditionally produced energy - mainly through fossil fuels like coal and natural gas-are not sustainable in the long run. The region needs to find a way to balance economic growth with the urgent need for clean, renewable energy.

The regional energy situation

Southeast Asia includes countries like Indonesia, Malaysia, Thailand, the Philippines, and Vietnam, home to over 700mn people in all.

However, the region's energy production is still largely based on fossil fuels. Coal, oil, and natural gas make up the majority of the energy used in Southeast Asia. Indonesia, which is the world’s largest exporter of coal, relies heavily on coal-fired power plants to meet its energy needs. Countries like Malaysia and Thailand also use large amounts of natural gas to produce power.

But these fuels come with a big environmental cost and Southeast Asia is already feeling the impacts of climate change-rising sea levels, more frequent storms, and extreme weather events are affecting communities, especially in low-lying coastal areas.

The push for clean energy

Southeast Asia faces increasing pressure to reduce its carbon emissions and fight climate change. As part of the Paris Agreement, countries in the region have pledged to reduce their carbon emissions and work toward cleaner energy sources.

The biggest problem is coal. Even though it is known to be harmful to the environment, coal is still widely used because it is cheap and easily available. Vietnam has plans to build more coal-fired power plants to meet the growing demand for electricity and Indonesia continues to rely on coal as a major energy source. These countries are not alone as many Southeast Asian countries still use coal to produce energy.

In Southeast Asia, however, air pollution caused by burning coal is a serious health problem. Cities in countries like Thailand, Vietnam, and Indonesia often suffer from high levels of air pollution, leading to respiratory illnesses and other health issues.

Energy access is another problem. Many people in rural areas of Southeast Asia still lack reliable electricity. According to the International Energy Agency, more than 50mn people in Southeast Asia do not have access to electricity. This is a significant challenge, especially as countries strive to improve the living standards of their citizens. As a result, governments often turn to cheap fossil fuels such as coal to provide electricity to these areas, but this only increases their reliance on non-renewable energy sources.

Renewable energy: the solution for Southeast Asia?

The good news is that Southeast Asia has great potential for renewable energy and is really starting to shift towards cleaner, greener energy sources.

Solar

Among all the renewable energy options, solar power has the most potential in the region. Southeast Asia enjoys plenty of sunshine throughout the year, making it ideal for solar energy production. As such and thanks to government incentives, a number of countries are seeing solar energy capacity growing rapidly in recent years. Vietnam, the Philippines, Thailand, and Indonesia, are all making progress in adopting solar energy.

Wind, hydropower, and geothermal

In addition to solar energy, Southeast Asia has other renewable resources that can help meet its energy needs. Wind energy, for example, has great potential in countries like Vietnam and the Philippines, which experience strong winds in certain regions. Southeast Asia is also home to many rivers and mountains, making hydropower a good option for countries like Laos and Cambodia.

Geothermal energy is another important renewable resource. The Philippines is already a leader in geothermal energy production, and Indonesia has vast geothermal potential as well. Both countries continue to expand their geothermal energy production to reduce their dependence on fossil fuels.

Policy support and investment

For Southeast Asia to fully embrace renewable energy though governments must create supportive policies and offer incentives for investment. Countries need to improve their energy infrastructure, build more renewable energy projects, and attract private investors. Governments can also work together to share renewable energy resources, which could help make the energy transition more affordable and efficient.

One example of regional cooperation is the ASEAN Power Grid, which aims to connect electricity grids across Southeast Asia. By linking countries together, the region could share renewable energy resources more easily and reduce the overall cost of energy production. This is a concept starting to make inroads in the Cambodia – Vietnam – Thailand region in particular as well as between Indonesia and Singapore.

Energy efficiency

In addition to increasing renewable energy production, Southeast Asian governments can help reduce energy demand by improving energy efficiency. To this end, governments and industries can promote energy efficiency in many ways. Public transportation systems can encourage the use of electric buses, and factories can invest in more energy-efficient machines and processes.

Smart technology

New technologies, such as smart grids and energy storage systems, can also help Southeast Asia transition to renewable energy. A smart grid with a modernised electricity network that uses digital technology to deliver power more efficiently can make it easier to integrate renewable energy, such as solar and wind, into the energy system, and in the process can help prevent power outages.

Energy storage systems, such as large-scale batteries, can store excess energy produced during the day and release it when needed; a key factor in storing energy generated by solar and wind, which are not always reliable.

Southeast Asia’s energy dilemma is a complex challenge. On one hand, the region needs more energy to fuel its growing economies and improve the lives of its people. On the other, the region must address the harmful effects of fossil fuel use, such as air pollution and climate change.

With the right policies, investments, and technological advancements, Southeast Asia can build a sustainable and affordable energy future for its many varied populations, and by shifting to cleaner sources of energy, improving energy efficiency, and embracing smart technologies, the region can continue to grow economically while protecting the environment.