Energy efficiency is the key to the sustainable energy future in Southeast Asia, supporting renewable energy policies. This refers to reducing energy consumption for the same output, resulting in long-term benefits.
The International Energy Agency (IEA) emphasizes the importance of energy efficiency as the primary foundation of a sustainable global energy system. Through the 8th IEA Global Conference on Energy Efficiency, the IEA highlights an annual increase in energy efficiency from 2.2% to over 4% by 2030, supporting the transition towards net-zero emissions by 2050 through innovation and private investments.
ASEAN is committed to increasing energy intensity as part of energy efficiency efforts, with targets of a 20% increase by 2020 and 30% by 2025. Energy intensity is measured as energy units per unit of GDP.
Here’s Why!
Energy demand in Southeast Asia continues to rise by about 3% annually over the last two decades. However, fossil fuels still dominate, reaching 83% in 2020, while renewable energy only accounts for 14.2%. By 2050, it's estimated that oil, natural gas, and coal will contribute 88% of the total primary energy supply.
Without new discoveries or infrastructure improvements, Southeast Asia is projected to become a net importer of natural gas by 2025 and coal by 2039, potentially resulting in higher fossil fuel prices and additional pressure on consumers.
Over the next 20 years, it's estimated that around 300 million air conditioners will be installed in Southeast Asia, a sixfold increase from 2023. This increase is driven by hotter weather, rising incomes, and increased cooling demand. However, it will also lead to a significant rise in energy consumption and greenhouse gas emissions due to the dominant use of fossil fuels in the region's power generation.
Southeast Asia has a high cooling demand due to a combination of hot weather and low AC ownership. Only 15% of households in this region have AC, but it's expected to increase to 60% by 2040, with nearly two AC units per household. As demand rises, energy use for cooling in buildings is also growing rapidly, increasing by 750% over the last 30 years.
In the next 20 years, AC is projected to contribute nearly 19% of electricity consumption in this region, potentially reaching 30% during peak times, threatening the stability of the power grid and the transition to renewable energy.
The sustainable energy future in Southeast Asia depends on energy efficiency. These efforts not only support renewable energy policies but also pave the way towards net-zero emissions by 2050. However, significant challenges lie ahead. It requires not only investments and innovations but also contributions from all sectors of society to bring about a greener and more sustainable future for this region.
Source:
- https://global.abb/energy-efficiency-movement/en-en
- https://aseanenergy.org/news-clipping/towards-an-energy-efficient-asean/#:~:text=While%20most%20Southeast%20Asian%20countries,gross%20domestic%20product%20(GDP).
- https://www.cleancoolingcollaborative.org/blog/unlocking-the-power-of-sustainable-cooling-energy-efficient-solutions-in-southeast-asia/
- https://iesr.or.id/en/renewable-energy-must-reign-supreme-in-southeast-asia
- https://www.cnbc.com/2023/10/17/southeast-asia-looks-to-renewable-power-for-energy-security.html
