IEA data shows coal expected to supplant natural gas in SE Asia

• 10 years ago (2013-10-03)
• Junior Isles

North America 999

---

Coal is to replace natural gas as Southeast Asia’s dominant energy source, with the region expected to nearly double its energy consumption over the coming two decades, according to data from the International Energy Agency (IEA)’s Southeast Asia Energy Outlook.

The 10 members of Association of Southeast Asian Nations (Asean) will see energy demand grow at more than twice the global average, and will produce 49 per cent of their generation via coal by 2035, up from 31 per cent in 2011, with gas-fired generation dropping from 44 per cent to 28 per cent over the same period.

The IEA report claims that "As long as fuel-price differentials continue to favour coal over gas by a significant margin, Southeast Asia's incremental power generation is set to be dominated by coal."

These predictions are in line with plans by Indonesia, the world’s top exporter of thermal coal, to almost double output by 2035, and data showing coal as the fuel source for about 75 per cent of generation capacity being built by Asean members, the IEA affirmed.

“Coal-fired generation grows faster than every other source except bioenergy and some renewables that grow from a very low base,” the IEA says. It sees renewables increasing from a 14 per cent share in 2011 to 20 per cent in 2035.

Southeast Asia’s energy demand will rise to about one billion tonnes of oil equivalent during the period, representing more than 10 per cent of global growth in energy use, the IEA said.