Southeast Asia’s electricity demand is projected to grow by an average 5.4 per cent annually between 2026 and 2030, while coal demand is expected to rise 4.4 per cent a year, according to the International Energy Agency (IEA). Cooling, data centres, industrial activity and wider electrification are driving consumption across the region. The IEA’s ASEAN Energy Security Review said rising energy needs are increasing the region’s exposure to imported fuel disruptions and strategic shipping routes. LNG flows through the Strait of Hormuz fell close to 65 per cent year on year during the first eight months of 2026, while deliveries to ASEAN declined around 75 per cent. Despite elevated prices, regional LNG imports increased about 20 per cent as buyers turned to spot cargoes from the United States and Australia. ASEAN’s energy demand has increased 40 per cent since 2015, while electricity demand has risen more than 60 per cent. Around 97 per cent of households have electricity access, putting the region on track for universal access by 2030. However, coal and oil each represented around 30 per cent of total energy supply in 2025, while natural gas accounted for close to one fifth. The region’s dependence on fossil fuels is expected to remain significant. Coal demand is projected to record the world’s fastest growth through 2030, led by Indonesia and Viet Nam. Electricity generation accounts for about 75 per cent of coal use, while industrial demand is also supported by Indonesia’s nickel-processing sector and planned aluminium capacity in North Kalimantan. The IEA also identified risks in critical mineral supply chains. ASEAN battery-cell manufacturing capacity rose from 16 GWh in 2023 to 26 GWh in 2024, with committed projects potentially taking capacity above 80 GWh by 2030. Indonesia’s nickel industry relies heavily on sulphur imports from the Middle East, while the Strait of Hormuz carries half of global seaborne sulphur trade. The agency recommended diversified supplies and transport routes, stronger emergency preparedness, regional cooperation, strategic stockholding and faster energy efficiency measures.