IEA Warns Climate Change Threatens Southeast Asia's Energy Security

By Vijian Paramasivam

PHNOM PENH, June 30 (Bernama) -- The International Energy Agency (IEA) has warned that climate change, surging electricity demand and geopolitical tensions in West Asia are placing Southeast Asia's energy security under pressure.

The Paris-based IEA said multiple climate-related hazards will further strain the region’s energy market, which is already facing mounting challenges from volatile fuel prices.

“Climate risks add another layer to the region’s power system challenge. Climate change is expected to intensify heavy rainfall and expand floodplain exposure, increasing risks to power plants, grids and refineries,” said the agency’s “Southeast Asia Energy Outlook 2026” report, released recently. 

The report estimates that more than 52 gigawatts of thermal power capacity and nearly four gigawatts of solar photovoltaic capacity are located in areas vulnerable to flooding of at least one metre.

Extreme weather threatens every stage of the electricity supply chain from fuel extraction and transportation to electricity generation, transmission and distribution.

Increasing climate variability, including the possibility of stronger El Nino hazards, could further disrupt regional energy systems, say experts. 

Southeast Asia has become one of the world's fastest-growing manufacturing hubs and one of the main engines of global energy demand.

Electricity demand is soaring across the region, driven by rising household electricity consumption, cooling buildings, expansion of data centres, adoption of electric vehicles and industrial needs. 

The number of air conditioners in use is expected to triple by 2035 as incomes rise, cities expand and temperatures increase.

Southeast Asia is one of the world’s fastest-growing regions for aluminium, iron and steel production, said the report. 

Electricity demand is projected to more than double by 2050, requiring a rapid expansion and modernisation of power systems.

“These risks can be avoided or minimised by implementing climate resilience measures, including stronger planning standards, better climate data and targeted investment in vulnerable assets,” said the IEA report. 

-- BERNAMA