ASEAN accounted for approximately 7.3 per cent of global GDP and 11 per cent of global energy demand in 2024, and is projected to account for more than 35 per cent of global energy demand by 2035, assuming the current growth rate continues. Moreover, the region’s GDP is projected to grow around 5 per cent in 2026, which will affect energy demand in the region.

According to the 8th ASEAN Energy Outlook, energy demand in the region is projected to grow almost three times the 2022 level by 2050, with a fossil fuel-dominated energy supply under the baseline condition. Aligned with the region’s commitment to carbon neutrality, the region aims to accelerate the deployment of renewable energy (RE) and emerging technologies, while also enhancing power grid interconnection.

Under the APAEC 2016-2025 Phase II the APAEC 2021-2025, the region aims to achieve approximately 23 per cent of the RE share in total primary energy sources by 2025 and is projected to reach around 50 per cent by 2050. This marks a substantial increase from the 2022 level, which was around 22 per cent.

For energy transition efforts, the region needs around US$200 billion. However, the current ASEAN expenditure for clean energy investment accounts for only 2 per cent of the global level.

This Op-Ed was published on BERNAMA. Read the full article here.