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Southeast Asia clean energy push faces near-term grid and energy security risks

Energy importing countries in the region were thrown into crisis after the Strait of Hormuz closed in February, cutting 20% of global oil and gas flows overnight, according to OilPrice.

Reported · Written up by our desk · Energy

Southeast Asia has been hit hard by the energy crisis tied to the War in Iran, leaving many countries scrambling to shore up local energy supply chains, OilPrice reports.

The outlet says the surge in volatility across global energy markets has accelerated the clean energy transition, but cash-strapped, import-dependent Southeast Asian nations face constraints. It points to ageing, overburdened grids that it says are not ready for a rapid build-out of indigenous renewable capacity, creating near-term energy security risks and transition limitations.

OilPrice attributes the regional shock to the Strait of Hormuz closure in February, when it says 20% of the world’s oil and gas flows were cut off overnight. It adds that before the U.S. and Israel began a military offensive in Iran, about 80% of oil and 90% of natural gas exported through the Strait were destined for Asian markets.

The article notes that the Philippines declared a national energy emergency after the closure and that governments across the region turned to energy rationing, while shifting toward more localized energy resilience measures.

Latest closeNat gas $2.620 ▼2.5%

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