Rising electricity demand deepens Southeast Asia’s energy security concerns, IEA reports says

Risks to Southeast Asia’s energy supplies are multiplying faster than nations are coming up with solutions to meet rapidly rising demand for electricity, according to an International Energy Agency report released Tuesday.

Southeast Asia has a seemingly insatiable appetite for energy, but the region is now in a pinch as energy costs rise, partly due to the Iran war. Fast-growing Southeast Asian economies also need more electricity to power data centers and keep homes and businesses cool.

To beef up regional energy security, the report says Southeast Asian nations should share electricity amongst each other and diversify where they get their power. But countries face multiple hurdles, from territorial conflicts between neighbors to differing types of national energy markets, according to analysts, who warn these barriers may keep the region vulnerable to energy shocks.

“Southeast Asia is one of the world’s most dynamic regions, but its rising needs for energy to power its economic growth face challenges in an increasingly uncertain global energy landscape,” Fatih Birol, the IEA executive director, said in a statement.