IEA Chief Warns Southeast Asia Faces Clean Energy Supply Risks

International Energy Agency Executive Director Fatih Birol told delegates at the Singapore International Energy Week conference on Tuesday that the concentration of clean energy supply chains poses a growing challenge for Southeast Asian countries. He noted that the region is experiencing rapid increases in electricity demand while relying heavily on a limited group of nations for equipment.

Birol stated that electricity demand in ASEAN nations is rising at twice the rate of overall energy consumption. He attributed this surge to industrial electrification, the need for air conditioning, the adoption of electric vehicles, and the expansion of data centers.

The executive director emphasized that electricity is becoming the dominant form of energy, though oil and natural gas, including LNG, will remain in use. He did not name the specific countries dominating the supply chain, but China is the largest global supplier of renewable energy equipment, including solar panels, wind turbines, electric vehicles, and batteries.

According to data from the energy think tank Ember, Southeast Asian nations have spent more than $20 billion on Chinese made clean tech products so far in 2026. Birol described these countries as key drivers of China's clean energy export boom.

Geopolitical tensions have become a dominant force in global energy markets, Birol warned. He said he had never seen the shadow of geopolitics dominate the sector so completely. He added that the Middle East war has triggered fundamental changes in consumption patterns, spurring growth in solar, coal, nuclear power, and electric vehicle adoption.

Global electric vehicle sales outside China rose 60 percent above previous trends over the last eight months due to the conflict. Birol noted that diesel prices have jumped about 200 percent and LNG prices have risen 250 percent from pre war levels. He does not expect energy markets in 2027 to return to their pre war state.