The 43rd Association of Southeast Asian Nations (Asean) Ministers on Energy Meeting has officially endorsed the new regional energy plan for 2026-30, targeting a 30pc share of renewables in the primary energy mix and a 45pc share in installed power capacity by the end of the period.
The plan, which was adopted on 16 October during the Asean ministerial meeting in Malaysia this week, raises the region's previous 2025 targets of a 23pc share in the energy mix and a 35pc share in installed power capacity.
It also targets a 40pc reduction in energy intensity in the region by 2030 based on 2005 levels, compared with the previous ambition of a 32pc decrease by 2025.
The new plan is structured around three key objectives, namely strengthening energy connectivity in the Asean region, promoting energy resilience and encouraging an equitable energy development.
In addition to renewable energy targets, the other key strategies are to accelerate the development of the Asean power grid, enhancing energy efficiency in buildings and across sectors, such as transport and agriculture. There is also a plan to explore nuclear energy as a viable low-carbon option for both power and non-power usage.
Fossil fuels will continue to play a role, including in plans to "support investment in oil and gas activities" through joint ventures and partnerships, with an emphasis on the role of a trans-Asean gas pipeline to ensure connectivity and energy security. But this will come with multiple initiatives to reduce emissions via carbon capture and storage (CCS) and other technologies, and managed emissions from the coal value chain.
Southeast Asia's power demand rose by more than 7pc in 2024, almost double the global average, according to a report published last month by energy watchdog the International Energy Agency (IEA). Countries in the region are still heavily reliant on coal and gas for power generation, but there is significant potential to utilise renewables to meet demand, according to the IEA.
The region is eyeing greater cross-border collaboration and a low-carbon energy future through the development of the Asean power grid. This includes projects such as the Lao PDR-Thailand-Malaysia-Singapore power integration project (LTMS-PIP), and the Brunei Darussalam-Indonesia-Malaysia-Philippines power integration project (BIMP-PIP).
