The International Energy Agency's Southeast Asia Energy Outlook 2026, the seventh edition of its regional study, argues that the Middle East conflict has exposed structural weaknesses in Southeast Asia's energy system. The region accounts for a large share of global energy-demand growth to 2035, yet imports much of its oil and gas, so price shocks pass quickly into electricity, transport and household budgets.
The report models three scenarios. Under stated policies, energy demand rises by nearly a third to 2035 while clean sources meet over 40% of incremental growth; under announced pledges, emissions peak around 2030. It singles out electricity demand growing twice as fast as total energy use, driven by cooling, data centres and EV charging, and notes that clean-energy investment still represents only a small share of the global total.
The IEA argues that structural measures - competitive renewables auctions, efficiency standards and cross-border power trade - reduce import exposure more durably than short-term subsidies. The full report is available at the IEA report page