The Future of Energy Markets and Company Strategies at Energy Asia
Asian energy markets are evolving rapidly under the pressures of demographic growth and escalating energy demands. The United Nations (UN) estimates that Asia Pacific’s urban population will expand from 2.3 billion to 3.5 billion people by 2050. The energy framework to meet this growth needs to be set up today.
As one of the key themes of Energy Asia 2025, ‘Future of Energy Markets and Company Strategies’ will explore the intricate balance required for energy companies to meet immediate energy needs while preparing for future growth and sustainability challenges. As we look to the future, energy companies must embrace innovation, partnerships and strategic agility to navigate this evolving landscape.
Asia’s Evolving Energy Markets
Asia’s energy future presents both opportunities and challenges. On one hand, Asia is leading global efforts to triple renewable energy capacity by 2030, with China set to account for ~60% of all renewable capacity installed worldwide between now and 2030. On the other hand, fossil fuels continue to make up a significant portion of the region’s energy mix with India alone planning to add 90 GW of coal-fired capacity by 2032 to meet rising electricity demands.
More than half of the growth in global power demand for the next two decades is projected to come from the Asia Pacific (APAC) region. Rising electricity demand will play a major part in this, with its share of final energy consumption projected to rise from 20% today to over 50% by 2050 in the Net Zero Emissions by 2050 Scenario. On a global scale, artificial intelligence (AI) and the rise of data centres will further drive this growth, contributing to 5%-9% of the world’s total electricity demand.
Asia is working to meet these growing demands with clean energy sources such as wind and solar. By 2035, Asian renewable energy capacity is expected to account for more than a third of the region’s energy demand growth. Technologies, such as carbon capture utilisation and storage (CCUS) and green hydrogen, will also play a crucial role in decarbonisation efforts. However, achieving this goal will require overcoming the challenge in commercialising these technologies, largely due to gaps in financing and regulatory frameworks.
This period of transformation comes amidst global energy shifts. The decline in China’s consumption of oil is undoubtedly reshaping energy demand projections, but the rising oil supply from the U.S. and the Western Hemisphere is rebalancing the global market. Thus, despite the push towards renewable energy in Asia, oil will continue to play a significant role in the energy mix both regionally and globally.
Companies Must Rethink Their Corporate Strategies
Delivering a just energy transition demands more than just incremental change; it requires companies to rethink their existing strategies and align them with net-zero goals. As pressures to decarbonise intensify, businesses must balance operational needs with long-term sustainability goals.
With geopolitical uncertainties adding complexity, companies that are reliant on imported fuels must start building resilient supply chains and diversifying their portfolios. One key opportunity businesses can look into is investing in renewables and grid modernisation.
This transition will unlock remarkable investment demands. S&P Global Commodity Insights projects there will be USD53 trillion in global energy investment opportunities by 2050, with a significant USD25 trillion focused on non-OECD nations of the Asia Pacific in a net-zero scenario.
A diverse range of strategies will be required to achieve these goals. This includes creating partnerships between traditional energy companies and technology providers to accelerate advances in carbon capture and hydrogen technologies. With increased collaboration between companies in different sectors, Asia can chart a better path towards achieving fair and equitable net-zero goals by 2050.
Shaping a Just Energy Transition
Achieving a sustainable energy future hinges on our ability to lead and strike a balance between energy security, affordability and sustainability amid shifting geopolitical and economic landscapes. Energy Asia 2025 gives industry leaders a platform to foster collaboration and drive net-zero goals across Asia.
Throughout the conference, you will have the opportunity to join insightful panel discussions that will delve deeper into strategies that companies can adopt to drive meaningful progress. These sessions will also highlight the importance of cross-border initiatives that companies can leverage to share resources and make significant changes in the energy sector.
Interested in knowing more about the future of energy markets and company strategies? Don’t miss Energy Asia 2025 this 16-18 June at the Kuala Lumpur Convention Centre.
