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Southeast Asia must upgrade grids to expand renewable power by 2050
The International Energy Agency estimates renewable capacity in Southeast Asia could almost triple by 2035, but transmission bottlenecks could limit how much clean power can be delivered.
Southeast Asia will need major investment to upgrade and modernise its electricity transmission networks to support larger renewable power deployments over the coming decades, the International Energy Agency said, citing grid capacity as a growing constraint on power distribution.
According to IEA projections highlighted by OilPrice, the region accounts for 9% of the world’s population and 4% of global GDP, but is set to represent nearly 20% of global energy demand growth by 2035 under current policy settings.
OilPrice added that eight countries in the region have introduced economy wide net zero targets, and that the mix of higher renewable investment and expanding electrification has helped reduce fossil fuel import dependence, saving the region about $30 billion in import costs in 2025.
The report also points to renewable energy capacity of 120 GW in 2024, with expectations it will almost triple by 2035 under current policies or grow fivefold if announced targets are achieved, while noting the transmission system challenge as the likely bottleneck.