Renewables
Middle East conflict drives Southeast Asian renewable energy push
Supply disruptions and price volatility caused by the ongoing war in Iran are accelerating long-term renewable energy policy adoption across Southeast Asia.
Key points
- Southeast Asian nations have announced numerous renewable policies following fuel trade reductions.
- The International Energy Agency projects rapid renewable capacity growth across the Asia-Pacific region.
- Structural hurdles including grid constraints and financing remain challenges for project execution.
What happened
According to reporting by OilPrice, ongoing conflict in the Middle East has restricted fuel trade and triggered fears of energy shortages across Asia. Governments in Southeast Asia are responding by fast-tracking renewable energy and electrification policies to reduce their exposure to volatile fossil fuel markets.
Data from an investigation by Zero Carbon Analytics indicates that regional governments have introduced numerous policy measures. While fossil fuel interventions have largely concentrated on short-term relief spanning less than six months, policies supporting renewable energy frequently target long-term structural changes lasting three years or more.
Over recent decades, Southeast Asia has faced rising energy demand per person alongside a significant decline in domestic crude oil output from its peak in the 1990s. Increased reliance on imported oil and liquefied natural gas has heightened the region's vulnerability to global supply disruptions. International Energy Agency projections suggest electricity demand will continue to climb steadily through 2030, driven by industrial development, urbanisation, and cooling requirements.
What comes next
The International Energy Agency forecasts that renewable energy capacity across the Asia-Pacific region, excluding China, will expand significantly between 2026 and 2031. Solar photovoltaic installations are expected to drive the majority of these additions, supplemented by onshore wind and hydropower.
Despite an improved outlook and upwardly revised forecasts for several regional markets, international bodies note that infrastructure bottlenecks persist. Governments in countries such as Indonesia, Vietnam, the Philippines, and Thailand continue to face hurdles including inadequate grid capacity, land acquisition delays, and financing difficulties that complicate the transition from targets to operational projects.
Why it matters
For energy investors and policymakers in Africa, the Southeast Asian experience highlights the vulnerability of import-dependent energy systems during global geopolitical crises. As traditional fuel markets experience volatility—illustrated by Brent spot prices reaching 92.14 US dollars per barrel and WTI at 89.62 US dollars per barrel on 11 November 2026, according to US Energy Information Administration data—emerging economies face urgent pressures to diversify supply sources.
African nations grappling with similar import dependencies can observe how targeted long-term renewable policies help insulate economies from external supply shocks. However, the Southeast Asian case also underscores that expanding green energy requires concurrent investments in transmission grids, storage systems, and administrative streamlining to convert policy ambitions into reliable power generation.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
4.2% of electricity in Iran was renewable in 2021Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
