Southeast Asia faces rising electricity demand and grid constraints

Southeast Asia is facing a significant gap between rising electricity demand and the capacity of its power grids. Demand is expected to increase by more than 100 TWh by 2030, driven by industrial clusters, electric vehicles, and data centers. However, while demand often materializes within one to three years, grid infrastructure projects typically require five to 15 years to complete.

This infrastructure lag has already impacted renewable energy development. Between 2021 and 2025, approximately 50% to 60% of renewable energy projects in Indonesia, Thailand, and Vietnam were either stalled or canceled due to inadequate policy support and insufficient infrastructure.

Long-term projections from the ASEAN Centre for Energy suggest that without coordinated policy transitions, the region's final energy consumption could reach 2,047 million tonnes of oil equivalent (Mtoe) by 2060. Implementing more coordinated transition scenarios could potentially limit this consumption to 1,073 Mtoe. Experts emphasize that regional cooperation and faster grid construction are essential to mitigate energy-market disruptions and price volatility.