The clean energy surge in Southeast Asia faces risks of stalling due to aging and overburdened energy grids that are unable to meet rising demand. The war in Iran and the closure of the Strait of Hormuz, which disrupted around 20% of global oil and gas flows, have forced Southeast Asian countries to rapidly transition to renewable energy sources. However, recent reports indicate that between 50% and 60% of renewable energy projects in Vietnam, Thailand, and Indonesia were either canceled or stalled between 2021 and 2025.
By 2030, new electricity demand is expected to exceed 100 TWh, but grid construction can take 5 to 15 years, raising concerns among investors.
