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America First — But who decides what that means? An overreliance on oil and gas transported through the Strait of Hormuz left the region particularly vulnerable to shocks from the Iran war, a “stark wake-up call” for its energy security, the report says.
It notes that rising sales of electric vehicles, a renewed interest in nuclear power and a boom in rooftop solar and other renewable energy installations show that the war is spurring change.
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But more sweeping reforms are needed. Otherwise, Southeast Asia’s energy import bill could rise to US$245 billion by 2035, tripling from US$80 billion in 2024, the report warns.
“Diversification of energy sources and supply routes is now a central priority,” the IEA’s executive director Fatih Birol said.
The shock sent Southeast Asia into a state of energy triage, leading to higher energy bills and rising inflation.
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