IEA Warns Southeast Asia's Energy Import Bill Could Triple to $245 Billion by 2035
Updated
Updated · The Associated Press · Jun 16
IEA Warns Southeast Asia's Energy Import Bill Could Triple to $245 Billion by 2035
3 articles · Updated · The Associated Press · Jun 16
Summary
$245 billion by 2035 is Southeast Asia’s projected energy import bill if it fails to diversify faster after the Iran war, the IEA said, up from $80 billion in 2024.
The agency said the conflict exposed the region’s heavy reliance on oil and gas moving through the Strait of Hormuz, driving higher energy bills, inflation and even renewed coal use during supply stress.
The shock is also accelerating alternatives: EV sales more than doubled in 2025 to about 500,000 units, and the Philippines became the second-largest market for Chinese solar exports in the first quarter.
Nuclear plans in Indonesia, Vietnam and the Philippines are advancing but remain slow, leaving the IEA to press for faster grid upgrades, more renewable investment and regional power sharing through the ASEAN Power Grid.
As Southeast Asia bets on nuclear power, can it overcome a 15-year timeline before the next global energy crisis strikes?
Amidst an energy crisis, can Southeast Asia bridge its massive green funding gap before AI-driven demand overwhelms its fragile grids?
With China mediating peace and buying Iranian oil, how will its dual role reshape Southeast Asia’s long-term energy security?
Southeast Asia’s 2026 Energy Crisis: Geopolitical Shocks, $138 Oil, and the Urgent Race for Clean Power
Overview
The Iran war and the disruption of trade through the Strait of Hormuz have sent shockwaves through the global economy, causing Brent crude prices to soar to $138 per barrel and food prices to hit a three-year high by June 2026. These events have severely impacted Southeast Asia’s energy security and economic stability, leading to rising inflation and threatening agriculture due to fertilizer shortages. As a result, the IMF has cut its 2026 growth forecast, highlighting the region’s vulnerability and the urgent need for Southeast Asia to diversify its energy sources and strengthen resilience against future crises.