Southeast Asia in the Age of Electricity

Southeast Asia is entering a more electricity-intensive phase of development at a time of heightened energy security concerns. The region is facing an energy supply shock linked to the conflict in the Middle East, where around 60% of its crude oil imports and one-fifth of its natural gas imports originated from prior to the crisis. This is prompting governments to reassess measures to strengthen energy security and affordability, including through diversification, efficiency and faster deployment of clean energy technologies.

Electricity demand has increased by over 70% since 2015, growing around 6% per year, faster than overall energy demand. In the Stated Policies Scenario (STEPS), the share of electricity in final energy consumption rises from around 11% in 2000 to 29% by 2035. The global average in 2025 was 21%, compared to 23% in Southeast Asia.

Demand for cooling has doubled since 2015 and now accounts for around 13% of regional electricity demand, while air conditioner ownership rises from some 30% of households today to nearly 55% by 2035. Industrial electricity demand grows to about 900 TWh by 2035 in the STEPS, from 650 TWh in 2025.

Transport electrification is becoming a driver of electricity demand. Electric cars reached around 40% and 45% of new car sales in Viet Nam and Singapore in 2025. This share exceeds 80% in Viet Nam and 95% in Singapore by 2035 in the STEPS. Combined with electrification of two/three-wheelers, where the electric share of sales approaches 45% by 2035, this creates an opportunity to reduce oil dependence, strengthen energy security and improve air quality.

Rising electrification increases the importance of reliable, resilient and affordable electricity systems. Electricity access is near universal in most Southeast Asian countries, but reliability, power quality and system resilience – though improving – remain uneven, requiring continued investment in networks, flexibility, system-stability solutions and supporting infrastructure.

The extent to which electrification can contribute to strengthening energy security, affordability and industrial competitiveness will be shaped by policy. Targeted support for efficient appliances, electric vehicle (EV) deployment, grid investment, regional co-ordination and clean energy technology manufacturing can reduce reliance on fossil fuel imports and support economic development.