SE Asia's coal uptick seen as short-term fix to supply shock, survey finds

Southeast Asia's energy industry views the recent increase in coal use and project activity as a short-term response to supply disruption rather than a shift in coal phase-out plans, according to a survey by the Sustainable Energy Association of Singapore (SEAS).

The survey found 40% of respondents saw higher coal use as a short-term response to energy security concerns, while 28% viewed it as a mid-term measure and only 6% saw it as evidence of a shift back toward coal. Geopolitical development affected 90% of respondents, with 59% reporting a moderate or significant impact.

Greater interest in local or regional energy solutions was the most common effect of supply disruption, cited by 39% of respondents, followed by delayed investment decisions at 38%. More than 70% identified grid infrastructure and regional connectivity as the main obstacle to the energy transition.

SEAS Chairman Edwin Khew said the return to coal was a temporary solution during a period of heightened supply shortage, with demand shifting toward domestic supply and increased project enquiries. The industry remains focused on building renewable capacity, with ASEAN needing greater flexibility and collaboration on generation, storage and cross-border grid connectivity through the ASEAN Power Grid, he said.

The survey also found 60% of respondents were either running artificial intelligence pilot projects or implementing AI solutions, with data quality and implementation costs each cited by 58% as barriers to adoption. The survey gathered responses from 100 energy sector professionals across Southeast Asia between July and August.

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