Southeast Asia is set to be a major driver of global energy demand, accounting for nearly 20% of growth to 2035. But the IEA’s new energy outlook warns that the region’s reliance on imported fossil fuels is a deep structural vulnerability.
Before recent crises, around 60% of Southeast Asia’s crude oil and a third of its gas imports came from the Middle East. Without structural change, the region’s fossil-fuel import bill could rise from over $80 billion in 2024 to around $245 billion by 2035.
The IEA points to clean energy, electrification, and efficiency as key levers to reduce import exposure. Renewable capacity, which stood at 120 GW in 2024, is projected to nearly triple by 2035 under current policies. For Southeast Asia, the energy transition is no longer just about emissions; it is a core economic security strategy.
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