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Fossil fuels to continue; cleaner energy later – Energy Barometer 2025: Insights from ASEAN’s energy workforce
3/12/2025
6 min read
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This year, the Energy Institute’s Energy Barometer draws on the insights from a regional energy workforce that reflects a local transition that is ambitious yet pragmatic: one that recognises the realistic role fossil fuels will continue to play, looks ahead to emerging clean energy technologies, and underscores the need for deeper regional cooperation, stronger policy frameworks and an energy transition that benefits all communities, writes Energy Institute Senior Analyst Kinga Niemczyk AMEI.
Southeast Asia is at the heart of many of the world’s energy issues. Demand is soaring at one of the fastest rates globally according to the International Energy Agency (IEA); fossil fuels still account for almost 90% of the region’s energy mix; and intensifying climate impacts – from typhoons and floods to extreme heat – are already disrupting lives and livelihoods. At the same time, governments across the Association of Southeast Asian Nations (ASEAN) are pledging greater climate ambition, announcing regional energy integration plans and exploring technologies once thought out of reach – from large-scale storage and hydrogen to carbon capture, use and storage (CCUS) and nuclear power.
The Energy Barometer makes one point clear: despite rapid clean-energy progress in parts of the region, fossil fuels will remain a key pillar of ASEAN’s energy systems for years to come. Most respondents expect fossil fuel use to decline only moderately this decade, with one quarter expecting it to even increase. According to surveyed energy professionals, the reasons are not ideological but practical: affordability, energy security, and infrastructure and alternative technology limitations continue to dominate the decisions of governments and investors.
This is not a region in denial about the need to decarbonise; rather, it is one dealing with the realities of uneven development, infrastructure gaps and economies still shaped by domestic coal, oil and gas. As several interviewees emphasised, the transition is not simply a matter of swapping one fuel for another – it is about logistics, resilience and ensuring that energy remains accessible to rapidly growing populations.
Yet the same respondents who take a realistic view of fossil fuels’ ongoing role also overwhelmingly support adapting the sector to a changing world. Diversification into low-carbon fuels, improving efficiency and investing in emissions-reduction technologies such as CCUS are seen as essential steps to maintain energy security while preparing for deeper decarbonisation. The message is pragmatic: fossil fuels are not disappearing overnight, but neither should they remain static.
The Energy Barometer makes one point clear: despite rapid clean-energy progress in parts of the region, fossil fuels will remain a key pillar of ASEAN’s energy systems for years to come. Most respondents expect fossil fuel use to decline only moderately this decade, with one quarter expecting it to even increase.
Regional cooperation: widely endorsed, not yet enabled
Perhaps the most marked finding in this year’s Barometer is the strong support for greater regional integration. Whether it’s linking power grids, building cross-border infrastructure or aligning regulations, ASEAN energy professionals agree that cooperation is key to keeping energy affordable and reliable. The renewed commitments announced at the 43rd ASEAN Ministers on Energy Meeting, including an updated ASEAN Power Grid plan and a new regional renewable energy roadmap, reflect the same momentum seen in the survey.
Yet the enthusiasm is tempered by realism. Concerns about sovereignty, regulatory divergence, financing and political alignment persist. Interviewees drew attention to the deeper historical and institutional factors that shape cooperation in the region. Energy poverty remains recent memory in parts of ASEAN; political fault lines are still tangible.
Still, incremental progress is visible. Commercial and industrial buyers are increasingly driving interest in cross-border electricity trade, while bilateral collaborations – such as those emerging between Singapore and Johor – demonstrate how local successes can scale. Respondents argue that ASEAN institutions can play an enabling role by building shared regulatory frameworks, developing cross-border infrastructure and mobilising finance, but national governments must ultimately align domestic priorities with regional commitments.
Clean energy ambitions rising, but barriers remain persistent
Across the board, respondents show cautious optimism about ASEAN’s renewable energy targets. Views on achieving the region’s 35% renewable electricity share by 2030 are evenly split, reflecting the mixed progress across member states.
High up-front capital costs of integrating renewables and policy uncertainty stand out as the most significant obstacles. As several interviewees noted, fossil fuel subsidies embedded in many ASEAN economies distort price signals and make it harder for renewables to compete. Clearer long-term policy frameworks, predictable incentives and innovative financing mechanisms will be essential to unlock investment.
The expanding digital economy adds a new layer of complexity. Data centres are becoming some of the region’s fastest-growing electricity consumers.
A just energy transition: building inclusion across ASEAN
ASEAN is unique in both the scale and diversity of its energy landscape. Without deliberate planning, the energy transition risks widening existing inequalities. Energy professionals emphasise through the Barometer that low-income households, remote communities and digitally excluded populations face the greatest risk of falling behind. Strengthening technical, policy and environmental-social skills will therefore be essential to building an energy system that is resilient, equitable and capable of delivering both innovation and inclusion.
Through the Energy Institute’s active branches in Malaysia and Singapore, the EI Academy and its Executive Leadership in Energy Programme, the EI is working to equip professionals across the region with the expertise the transition demands. The newly launched Energy Institute Student Chapter at Universiti Teknologi Petronas (UTP) further supports emerging leaders.
Turning ambition into action
If the Energy Barometer’s messages could be boiled down to one sentence, it is this: ASEAN has the ambition, the ideas and the technologies to build a cleaner, more resilient energy future – but political clarity and regional cooperation will determine whether it succeeds.
The survey respondents are not calling for abrupt shifts or idealistic targets. They are asking for policies that match the region’s realities: clearer regulations, sustained investment in infrastructure, incentives that support both households and industry, and a regional approach that strengthens resilience.
About the EI Energy Barometer
The 2025 Energy Barometer: Insights from ASEAN energy workforce is the eleventh annual survey of energy professionals, including both EI members and non-member participants.
It was developed by the Energy Institute working in partnership with UTP in Malaysia and the ASEAN Centre for Energy (ACE), Indonesia, with support from the Malaysian Ministry of Economy and S&P Global Commodity Insights. The Energy Institute is grateful for their collaboration, expertise and commitment throughout the process.
The online survey, conducted from August to October 2025, received responses from 236 energy professionals.
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