For so long, Southeast Asia has been known for its energy sector, with average demand growth of 6% per year in the particular sector. However, COVID-19 pandemic has significantly affected the Southeast Asia energy sector. In response to the impact, the region has slowly shifted its focus to optimizing renewable energy.
Strict lockdown measures across Southeast Asia have increased electricity demand in residential sectors, but also have weakened electric consumption in commercial and industrial sectors. A 20% decline in electric consumption throughout SEA was recorded and increasing as the full lockdown period went on.
The demand for energy in Southeast Asia has soared by more than 80%, compared to the demand back in 2000. The International Energy Agency predicted that the demand will further grow by 60% in the upcoming 20 years. Aiming to have a sustainable energy ecosystem by 2030, Southeast Asia has paved its way through becoming the third country with the highest coal power plants. Being significantly reliant on coal, however, will burden Southeast Asia to get out of the crisis.
In fact, there are only a few countries that consider renewable energy sectors as the response to the economic recovery. The unavailability of public funding support has made some countries see the renewable energy sector as unattractive. Limited infrastructure
Using renewable energy for Southeast Asia power supply will benefit them in some ways, such as:
Bouncing back from COVID-19 requires effective and efficient actions that will be beneficial in the long-term energy ecosystem. Turning into renewable energy, US-based companies are presented with opportunities to invest in this industry across the Asian market.