Southeast Asia’s energy security challenges are intensifying as demand grows, reliance on imported fuels rises and interactions across energy systems become increasingly complex – creating a greater need for coordination and planning, according to a new IEA review. The report recommends stronger national preparedness and deeper regional cooperation across different sectors and fuels to help members of the Association of Southeast Asian Nations (ASEAN) withstand supply disruptions and volatile prices.
The ASEAN Energy Security Review examines risks across oil, gas, coal, electricity and critical minerals, and sets out actions to strengthen the reliability and affordability of energy supplies. The IEA will present the review’s key findings to ASEAN Energy Ministers at their meeting in Manila on 7 October.
Energy demand per person in Southeast Asia has risen by almost 30% over the past decade, driven by economic growth, industrial development, urbanisation and rising living standards. At the same time, regional crude oil production has fallen by 40% from its peak in the 1990s while crude imports have increased. Growing imports of liquefied natural gas are also exposing several countries to fluctuations in global gas markets. The severe disruptions to energy flows through the Strait of Hormuz this year have underscored the importance of preparing for shocks to international fuel markets and strategic shipping routes, the report notes.
Pressures on electricity systems are set to increase, according to the report. Electricity demand in Southeast Asia is projected to rise by an average of around 5.4% a year from 2026 to 2030, supported by greater use of cooling, expanding industries and the growth of data centres. Meeting that demand reliably will require investment in grids, generation capacity and system flexibility, as well as planning that accounts for fuel supply risks and extreme weather.
“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,” said IEA Executive Director Fatih Birol. “Energy security must be built into decisions across the whole system from oil stocks and gas infrastructure to electricity grids and more efficient use of energy. By working more closely together, ASEAN countries can make better use of their collective resources and respond more effectively when disruptions occur.”
The review recommends that ASEAN countries diversify their sources and routes of supply, make greater use of domestic energy resources where economically viable and expand energy efficiency and electrification. It also calls for clearer emergency procedures, stronger market monitoring and regular exercises to test how countries would respond to major disruptions. Moreover, the review stresses that coordinated energy security measures must reflect different national circumstances. For example, coal still plays a significant role in electricity generation and industrial activity in several ASEAN countries, highlighting the importance of reliable coal supply and credible pathways for diversification away from it.
Existing ASEAN agreements offer a foundation for this work. The ASEAN Plan of Action for Energy Cooperation 2026-2030 provides a framework for taking these recommendations forward. The review finds that turning regional commitments into working arrangements for information sharing, emergency response and cross-border support will be increasingly important as the region’s energy needs grow. This can be supported by putting the ASEAN Framework Agreement on Petroleum Security for emergency planning and oil stockholding into action.
At the same time, more efficient vehicles, buildings, appliances and industrial equipment could ease pressure on fuel imports and power systems across the region, while closer cooperation on critical minerals could help countries develop regional capabilities and reduce exposure to concentrated global supply chains. The report was developed in close coordination with the ASEAN Centre for Energy (ACE), the ASEAN Secretariat and ASEAN Member States. The IEA welcomes its deepening collaboration with governments and partners across Southeast Asia.
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