IEA: Southeast Asia Needs Grid Investment to Nearly Quadruple by 2050
Iraq Wants to Double Oil Output—and Needs OPEC to Get Out of the Way Felicity Bradstock is a writer and journalist based in Mexico City.
She writes for energy websites and covers several other industries, as well as writing… Southeast Asia needs to invest heavily in upgrading and modernising its transmission networks if countries across the region hope to deploy larger quantities of renewable energy over the next decade.
With investment in green energy growing ever higher, the grid systems in countries such as Indonesia, India, and Vietnam simply cannot keep up with capacity growth, creating a bottleneck in power distribution.
Upgrading and expanding transmission networks would respond to the growth in regional power demand while reducing dependence on fossil fuels.
Southeast Asia accounts for 9 per cent of the world’s population and 4 per cent of its GDP, but is set to account for almost 20 per cent of global energy demand growth to 2035 under its current policy setting, according to the International Energy Agency (IEA).
To meet this demand and reduce dependence on fossil fuels, eight countries in the region have introduced economy-wide net zero targets.
Heavy investment in renewable energy and electrification over the last decade has already helped to reduce fossil fuel import requirements, saving the region roughly $30 billion in import costs in 2025.
Southeast Asia’s renewable energy capacity stood at 120 GW in 2024 and is expected to almost triple by 2035 under current policy settings or grow fivefold if announced targets are achieved.
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However, to achieve this growth, governments across the region must invest heavily in their transmission and distribution networks, which need to more than double in length by 2050 to keep pace with rising demand and cope with the growing variability of supply and demand, says the IEA.
Investment in grids and storage must increasefrom $13 billion today to $50 billion in 2050to meet announced pledges, including investing an estimated $27 billion in cross-border interconnections under the ASEAN Power Grid.
Across Asia, energy consumption rose by around 50 per cent over the past decade, while investment in energy infrastructure remained broadly stagnant.
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