Power Shift: Southeast Asia Weighs Costly Gas Expansion Against Renewables Boom, Says Report

A recent report by Global Energy Monitor sheds light on Southeast Asia’s pivotal energy crossroads, where the region must weigh the costs of expanding gas infrastructure against the promising prospects of renewable energy. Titled “Southeast Asia’s Energy Crossroads: The Cost of Gas Expansion Versus the Promise of Renewables,” the report delves into the challenges and opportunities facing countries in the region as they chart their energy futures.

With Southeast Asia experiencing rapid economic growth and urbanization, the demand for energy continues to escalate. Historically, the region has relied heavily on fossil fuels, particularly coal and natural gas, to meet its energy needs. However, concerns about climate change and air pollution are prompting a reevaluation of this dependence on fossil fuels.

According to the report, Southeast Asia is poised to invest over $120 billion in new gas infrastructure by 2030. This includes pipelines, liquefied natural gas (LNG) terminals, and power plants. However, despite the allure of gas as a “bridge fuel,” renewable energy deployment is outpacing gas expansion in the region. In 2021 alone, Southeast Asia added 15 gigawatts (GW) of new renewable energy capacity, compared to just 6 GW of gas-fired power.

The report also underscores the economic risks associated with gas expansion. With gas prices subject to volatility and geopolitical tensions, overreliance on gas could expose Southeast Asian economies to financial instability. In contrast, renewable energy offers a more stable and predictable energy source, with the potential to drive economic growth and job creation.

Moreover, the environmental implications of gas expansion cannot be ignored. Despite being touted as a cleaner alternative to coal, gas infrastructure still emits greenhouse gases and contributes to climate change. In contrast, renewables offer a path to decarbonization, helping Southeast Asia mitigate the impacts of climate change and achieve its emissions reduction targets.

However, transitioning to renewable energy is not without challenges. Grid integration, regulatory frameworks, and financing mechanisms all present barriers to renewable energy deployment. Addressing these challenges requires a coordinated effort from governments, businesses, and civil society to create an enabling environment for renewable energy investment and deployment.

As Southeast Asia stands at this energy crossroads, the decisions made in the coming years will have far-reaching implications for the region’s future. Embracing renewable energy offers the promise of a cleaner, more sustainable future, while doubling down on gas expansion risks locking in carbon emissions and exacerbating climate change.

The report by Global Energy Monitor serves as a call to action for policymakers, urging them to prioritize renewable energy development and transition away from fossil fuels. By seizing the opportunity to embrace renewables, Southeast Asia can pave the way for a more resilient, prosperous, and sustainable future for generations to come.