Southeast Asia’s overall energy demand is expected to increase nearly 60 percent by 2040.
(Photo: Reuters)

Hanoi (VNA) – Southeast Asia’s overall energy demand is expected to increase nearly 60 percent by 2040 led by the growth of fossil fuel and oil in power generation and transport, the International Energy Agency (IEA) said on October 24.

Southeast Asia will become a key driver for energy demand globally as its economy triples in size and its total population grows by a fifth, according to the IEA.

The region will have to spend more than 300 billion USD in 2040 on net energy imports, equivalent to about 4 percent of the region’s total gross domestic product (GDP).

The imports, expected to hit around 6.9 million barrels per day by 2040, will cost the region up to 280 billion USD per year, making oil its biggest import product.

The region’s increasing dependence on imported energy raises significant energy security concerns, the agency said.

The region is expected to install more than 565 gigawatts (GW) of power-generation capacity in 2040, from 240 GW today. Coal will overtake gas in the power sector.

Oil usage in the region will expand to around 6.6 million barrels per day by 2040 from 4.7 million barrels today, with the number of road vehicles increasing strongly.-VNA