Electricity demand in Southeast Asia is growing rapidly. According to the Southeast Asia Energy Outlook 2026, published by the International Energy Agency (IEA) in 2026, electricity demand in the region has increased by an average of 6% annually since 2015.
Growth was even stronger in 2024, when electricity demand rose by more than 7% in a single year, nearly twice the global average electricity demand growth for the same period.
By comparison, Southeast Asia's population has grown at a much slower pace. According to United Nations Population Division data compiled by The Global Economy, the region's population grew by an average of just 0.85% in 2025. World Population Review projects that this rate will slow further to 0.67% in 2026.
Although these figures are not from exactly the same years as the electricity data, the latest available data indicate that electricity demand in Southeast Asia is growing roughly eight to ten times faster than its population.
The Southeast Asia Energy Outlook 2026 covers 10 countries: Indonesia, Vietnam, Thailand, the Philippines, Malaysia, Singapore, Myanmar, Cambodia, Laos, and Brunei.
A Decade of Rising Demand
The same report estimates that Southeast Asia will require a massive increase in electricity supply over the next decade. The additional electricity needed will be equivalent to Japan's entire current electricity consumption, making it comparable to one of the world's largest electricity-consuming countries.
Since 2015, electricity demand in the region has grown by 6% annually, significantly outpacing overall energy consumption growth, which averaged only 4% per year over the same period. As a result, electricity now accounts for more than 20% of Southeast Asia's total final energy consumption.
The Engines of Electricity Growth
The Southeast Asia Energy Outlook 2026 identifies three main drivers behind this surge in electricity demand. First is the growing need for air conditioning. Demand for air conditioners is projected to triple by 2035 as more middle-class households can afford them.
Second is the rapid expansion of data centers, which are emerging as a major new source of electricity demand.
Third, and by far the largest contributor, is industry. The industrial sector currently accounts for around 45% of the region's total energy consumption and has been the primary driver of rising electricity demand since 2015, particularly through manufacturing and metal production.
Coal Remains the Backbone
To meet this surge in electricity demand, Southeast Asia still relies heavily on coal. According to the IEA report, coal consumption in the region has grown by 8% annually.
Its share of the region's total energy mix has increased from 20% in 2015 to 30% today. In the power sector, coal's role has expanded even more sharply, with its share of total generating capacity rising from 37% to 47%.
Renewable energy has actually grown at a faster rate in percentage terms, averaging 7% annually, while solar and wind power have expanded by around 35% per year.
However, because they started from a much smaller base, the region's renewable energy supply is still dominated not by solar or wind, but by hydropower, modern bioenergy, and geothermal energy. Together, these three sources accounted for more than 95% of Southeast Asia's total renewable energy supply in 2024.
The Region's Funding Gap
According to the Southeast Asia Energy Outlook 2026, annual energy investment in Southeast Asia increased by 30% to more than US$100 billion in 2025, making it one of the fastest-growing energy investment regions in the world.
Even so, the amount remains insufficient to meet the region's needs. Southeast Asia receives only around 3% of global energy investment, despite accounting for roughly 5% of the world's total energy consumption.
In the same report, the IEA estimates that without major policy changes, the region's fossil fuel import bill could surge from approximately US$80 billion in 2024 to US$245 billion by 2035.
One of the key solutions highlighted in the Southeast Asia Energy Outlook 2026 is expanding cross-border electricity networks through the ASEAN Power Grid. This would allow countries across the region to balance electricity supply and demand more effectively while facilitating the integration of renewable energy.
The report estimates that developing this cross-border grid will require US$27 billion in investment by 2040. Meanwhile, total investment in electricity grids and energy storage could reach US$50 billion annually by 2050 if the region is to achieve all of its announced climate targets.
