Southeast Asia is on the brink of a monumental shift in its energy landscape, driven by economic growth, urbanization, and an urgent need to cut carbon emissions. The Atlantic Council Global Energy Center (GEC) is stepping up to the plate, collaborating with stakeholders across the region to develop the necessary policies and business strategies to finance and deploy clean energy technologies at an accelerated pace. With the region’s energy demand projected to skyrocket by two-thirds by 2040, the stakes couldn’t be higher. The GEC’s partnership with the Singapore International Energy Week 2024 (SIEW) as a Strategic Insights Partner is a timely move, aiming to foster a robust platform where stakeholders can engage with cutting-edge technologies and discuss their large-scale deployment to shape Southeast Asia’s energy future.
This transformation is not just about meeting immediate energy needs; it’s about laying the groundwork for a sustainable and resilient energy system. Each country in Southeast Asia, from the highly industrialized Singapore to developing economies like Vietnam, faces unique energy security and sustainability challenges. Yet a common thread runs through these challenges: the necessity for an integrated transition strategy that supports economic growth while aligning with global climate objectives. The adoption of innovative clean technologies is central to this strategy. Technologies such as carbon capture, utilization, and storage (CCUS), battery storage, enhanced geothermal systems, and small modular reactors (SMRs) are not just buzzwords; they are essential tools for ensuring a reliable, resilient, and clean energy supply.
Natural gas is often labeled a “transition fuel” by many Southeast Asian nations. While it remains a fossil fuel, it emits nearly half the carbon dioxide of coal and can be blended with renewable sources. The region is ramping up investments in liquefied natural gas (LNG) infrastructure, with Singapore positioning itself as a key LNG trading hub in Asia. Companies like Pavilion Energy and Sembcorp Industries are investing in LNG bunkering services, providing cleaner fuel options for shipping and bolstering Singapore’s energy security. This reliance on natural gas is a stopgap measure, but emerging clean technologies pave the way for deeper decarbonization and long-term sustainability.
Battery storage systems are emerging as a linchpin for stabilizing power grids as intermittent renewables like solar and wind gain traction. The Asian Development Bank has proposed a $30 million, 50-megawatt battery energy storage project in northern Vietnam, aimed at reliably integrating solar energy into the grid. With Vietnam adding a staggering 16.5 gigawatts of solar capacity in 2020, this initiative could serve as a blueprint for other Southeast Asian nations grappling with renewable integration challenges.
CCUS projects are also on the rise, aimed at mitigating emissions from the region’s fossil fuel use while ensuring energy security. Indonesia’s Gundih field project, led by Pertamina in partnership with Japan, is set to capture and store 300,000 tons of carbon per year. Meanwhile, Malaysia’s Kasawari project, spearheaded by Petronas, aims to become one of the world’s largest offshore carbon capture initiatives, targeting the capture of up to 3.3 million tons of carbon annually. These projects illustrate the potential for large-scale CCUS to decarbonize the natural gas industry in Southeast Asia.
Enhanced Geothermal Systems (EGS) present another opportunity for the region, particularly in Indonesia, which boasts some of the highest geothermal potential globally. By tapping into EGS, Indonesia could meet its ambitious goal of increasing capacity to 9.3 GW by 2035. However, scaling up this technology will necessitate significant investment and the right policy frameworks to attract private sector involvement.
Advanced nuclear reactors, particularly SMRs, are also gaining traction as a reliable source of carbon-free baseload energy. Singapore’s recent civil nuclear cooperation agreement with the United States opens the door for access to US nuclear technology, including SMRs, as part of its long-term decarbonization strategy. Indonesia is not lagging either, developing its own SMR technology through the PeLUIt-40 project, aimed at helping the country achieve net-zero emissions by 2060.
The energy transition in Southeast Asia is not merely an environmental imperative; it’s a catalyst for economic growth and development. Clean energy technologies are fostering new industries, attracting foreign investment, and creating jobs. Countries that position themselves as leaders in cleantech innovation stand to unlock industrial expansion and international collaboration. As the region embraces sustainable energy, it will enhance its competitiveness in the global economy and reduce its vulnerability to the volatility of global energy markets.
By committing to a clean energy future, Southeast Asia is not just stepping up its climate game; it’s also building a resilient, competitive economy that can thrive amid a rapidly changing global landscape. The future is bright, but it requires a collective effort to ensure that the transition is not only sustainable but also equitable for all stakeholders involved.
