Southeast Asia does not need to prolong its dependence on coal to ensure energy security, despite claims to the contrary by the Association of Southeast Asian Nations (ASEAN), the Institute of Energy Economics and Financial Analysis (IEEFA) has argued in new analysis. Back in June, the ASEAN Centre for Energy published a report arguing in favour of coal “phase down” rather than “phase out”, claiming the latter posed “tremendous challenges for ASEAN due to the role of coal in providing sufficient energy supplies at the lowest cost possible, its contributions to the region’s economy and its employment of thousands of people in coal-dependent areas”. But IEEFA argued commodity price fluctuations made coal-dependent countries in Southeast Asia vulnerable to higher electricity prices. It said the trebling of coal prices in 2022 had hurt ASEAN member countries, including Vietnam, the Philippines and Cambodia. There is “substantial opportunity” to increase renewables without hurting grid reliability, it added. “Softening regional climate ambitions based on pro-coal narratives would only prolong the region’s exposure to volatile commodity markets, obstruct capital flows toward clean energy, and prevent countries from realising the economic benefits of the energy transition,” said report author Christopher Doleman, IEEFA’s Liquefied Natural Gas/Gas Specialist for Asia.
