Rising energy needs challenge Asia’s supply stability

Rising energy needs a push for renewables.

Asia’s energy sector is confronting a surge in demand, driven by annual growth rates of 5-6%, a trend that, if sustained, will result in a 30% increase over the next five years.

According to Izumi Kai, Chief Executive Officer of JERA Asia, this demand will necessitate "significant investment…for new capacities and new transmission lines just to keep up." Ensuring a stable and affordable energy supply remains critical, with Kai emphasising that "regional collaboration is needed to address Asia’s energy needs" to maintain stability across the region.

With JERA’s experience managing the LNG value chain, Kai sees “various opportunities across Asian countries” to leverage this expertise in emerging markets like Vietnam, the Philippines, and Bangladesh.

Recently, JERA demonstrated a significant step in reducing carbon emissions by substituting 20% of coal with ammonia at Japan’s Hekinan power plant, achieving a 20% CO2 reduction.

By 2030, Kai anticipates a substantial increase in renewable energy use across key Asian economies such as Singapore, Thailand, the Philippines, and Vietnam. However, he cautions that fossil fuels will still be necessary to meet overall energy demand.

“It’s not practical to decrease everything by renewables within five years or 10,” he explained. As renewables expand, there will also be a growing need for low-carbon solutions like carbon capture and storage (CCS) to manage emissions from traditional power sectors.

"One of the technological challenges is how to manage CO2 locally," he noted, suggesting that liquefied CO2 could potentially be transported to suitable storage sites in countries like Malaysia and Indonesia.

The outlook for Asia’s energy market by 2030 includes a mix of increased renewable adoption, expanded LNG infrastructure, and a focus on advanced low-carbon technologies.