Coal uptick in Southeast Asia seen as short-term fix

Geopolitical developments affected 90% of respondents.

Southeast Asia’s energy industry views the recent increase in coal use and project activity across parts of the region as a short-term response to supply disruption, rather than a shift in coal phase-out plans.

A survey by the Sustainable Energy Association of Singapore (SEAS) found that 40% of respondents viewed the increase in coal use as a short-term response to energy security concerns.

Another 28% saw it as a mid-term measure to manage the region’s energy transition, and only 6% viewed it as evidence of a shift back towards coal.

The survey also revealed that 90% of respondents had been affected by recent geopolitical developments, with 59% reporting a moderate or significant impact and 24% reporting a significant impact.

Greater interest in local or regional energy solutions was the most common effect of supply disruption, cited by 39% of respondents.

Delayed investment decisions followed at 38%, whilst respondents also reported demand for suppliers that can provide domestic generation.

More than 70% of respondents identified grid infrastructure and regional connectivity as the main obstacle to the energy transition, whilst skills and workforce deployment and the slow deployment of energy storage were each cited by 5%.

Edwin Khew, Chairman of SEAS, said the increase in coal use was a response to supply shortages rather than a change in the region’s long-term energy direction.

“The industry has discerned that the return to coal is a temporary solution during a time of heightened shortage of supply,” Khew said.

He said demand had shifted towards domestic supply, with greater interest in local and regional energy solutions and increased project enquiries.

Khew said the industry remained focused on building renewable capacity, whilst ASEAN needed greater flexibility and collaboration on renewable energy generation, storage, and cross-border grid connectivity through the ASEAN Power Grid.

The survey also found that 60% of respondents were either running artificial intelligence pilot projects or implementing artificial intelligence (AI) solutions.

Data quality and availability and the cost of implementation were each cited by 58% as barriers to AI adoption in Singapore.

The State of the Energy Transition Survey 2026: How geopolitics and AI are reshaping Southeast Asia’s energy landscape gathered responses from 100 energy sector professionals across Southeast Asia via an online survey conducted between July and August.