SEA electricity demand slows in 2023
Indonesia, for example, is expected to see a 4% electricity demand growth in 2023, slower than the 6.3% last year.
A recent report from Fitch Ratings showed a slower electricity demand for Vietnam, Indonesia, and Thailand following a strong pandemic rebound in 2022.
From 7.7% in 2022, Vietnam is seeing a decrease in electricity demand at 3% in 2023, which is seen to be related to the prolonged drought in the area affected by hydropower generation. While there had been an early tariff increase in May 2023, this did not prove to be enough to cover the operating costs, consequently affecting Vietnam Electricity and its subsidiaries.
Indonesia is expected to post a 4% increase in electricity demand in 2023, also slower than the 6.3% in 2022. This is affected by the GDP growth currently estimated to be at 4.8% in 2023, despite challenges from global inflation and rising interest rates. Fitch Ratings expect electricity tariff to remain flat due to upcoming elections in 2024.
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Electricity demand in Thailand remains resilient, with an expected growth of 2.4% in 2023, just a little behind from the 3% in 2022. This demand is seen to be driven by the slow yet consistent recovery of the country’s tourism sector. Dismantling COVID restrictions and Thailand’s reopening policy have also improved domestic electricity demand.