Energy wake-up call

Editor's note: In this weekly feature China Daily gives voice to Asia and its people. The stories presented come mainly from the Asia News Network (ANN), of which China Daily is among its 20 leading titles.

A regional electricity grid, nuclear power and ramping up renewables and electric vehicles are among the ways Southeast Asia could boost energy security while also meeting rising energy demand, the head of the International Energy Agency said in June.

The energy crisis triggered by the war in Iran has highlighted just how exposed Southeast Asia is to costly energy imports and the need for urgent, bold steps to shield the region from future shocks, IEA Executive Director Fatih Birol told The Straits Times.

The region is at an inflection point and what it decides now on energy policies will have a profound impact not only on its future but the rest of the world, Birol said on the eve of the release of the IEA's Southeast Asia Energy Outlook 2026 report.

The region remains heavily dependent on fossil fuels, the burning of which is driving climate change and causing more extreme weather, such as storms and floods, that threaten key infrastructure, including power plants, the report says.

"Southeast Asia is at the forefront of the impact of the current energy crisis," Birol said. "I think countries are now putting energy security very high on the agenda, and they are looking at domestic sources of energy generation as much as possible.

"In my view, the biggest winners here will be renewables and nuclear power, and also electric cars because of different factors, but including the cost advantage and the unparalleled energy security benefits."

And an ASEAN Power Grid, long planned but yet to be achieved, would build cross-border electricity interconnections, help balance supply and demand, integrate renewable resources, and lower costs for participating countries, Birol said.

"In my view, this is a no-brainer. There are some political challenges to overcome, and I believe the current crisis will help overcome these political difficulties. And my recent discussions with the government leaders in the region have made me hopeful in this respect," he added.

Challenges include harmonizing power trading across 11 different grids in each of the 11 ASEAN nations, establishing agreements allowing connections with other nations and overcoming technical barriers, such as transmission/distribution voltages and operating standards.