Power Markets in Transition at Energy Asia 2025
The power sector is at the forefront of global energy transition, with the rapid expansion of renewable energy technologies and the continued electrification of our modern world.
This is a sector undergoing a remarkable transformation towards low-carbon energy. In 2015, the ratio of clean power to unabated fossil fuel power investments was roughly 2:1. By 2024, the International Energy Agency (IEA) estimated this ratio had reached 10:1.
Asia Pacific will play a transformative role in the further development of the power sector, with more than half of the growth in global power demand for the next two decades coming from the region.
One of Energy Asia’s key themes, Power Markets in Transition, explores the remarkable potential to drive Asia’s energy transition with effective strategies for a changing power ecosystem.
A Changing World of Power
Low-carbon power sources have seen significant growth over the past few decades, driven in particular by the commercial success and rapid deployment of wind and solar technologies.
According to the International Renewable Energy Agency (IRENA), Asia is a major driving force of this change, accounting for the majority (69.3%) of new renewable energy capacity in 2023. Asian renewable energy capacity increased by 327.8GW to reach 1,961GW in this period—more than half (50.7%) of newly added global capacity.
This evolution is further accelerated by the electrification of existing systems, compounded by the rapidly escalating demands from emerging technologies such as artificial intelligence.
Electricity underpins modern economies, and its share of final energy consumption is expected to rise from 20% today to half (50%) by 2050 if we are to achieve a net-zero emissions scenario.
However, the power sector is grappling with significant challenges—complex regulatory processes, obstacles in capital deployment, and intricate sourcing and supply chains. These hurdles are critical barriers, slowing the transformation of the grid and impeding the deployment of new generation capacities needed to meet the global demand for reliable, affordable, and low-emission electricity.
Asia’s electricity demand is poised to increase dramatically, propelled by demographic growth, rapid economic developments, and extensive urbanisation. This demand is likely to accelerate at an even more significant pace in developing countries across the region.
While meeting this growing demand, the rapid decarbonisation of power systems must also balance against ongoing issues in energy accessibility and affordability, particularly in rural and developing communities.
Addressing these imperatives will require strategies that fulfil immediate energy needs while committing to long-term climate objectives, encouraging nations to deploy a variety of technologies and adapt their energy strategies to their unique developmental circumstances and priorities. These strategies will need to balance the ongoing trilemma of affordable, secure and sustainable energy ecosystems.
Collaboration to Complement a Low-carbon Future
The route to a decarbonised power sector varies widely across Asia, reflecting the diverse resource availability and developmental priorities of each country.
Regional initiatives, such as the ASEAN Power Grid, are crucial for facilitating resource sharing and fostering cross-border collaboration, which is key to advancing a cohesive strategy with supportive national energy policies that complement power sector decarbonisation across the continent.
The ASEAN Power Grid has long been touted as an ambition of the region, and the recent ASEAN Interconnection Masterplan Study III further highlights the proposed benefits of greater grid resilience and affordable energy which an integrated, strategic approach could deliver.
Grid interconnection and power partnerships can help alleviate resource disparities and contribute to equitable energy distribution beyond geographical borders, allowing all nations to benefit from a sustainable energy future.
We invite you to join us from 16-18 June at the Kuala Lumpur Convention Centre, to explore these complex issues and collaborate on solutions that drive the delivery of Asia’s energy transition. Together, we can harness the power of regional cooperation to meet our shared climate goals and ensure a sustainable future generations to come.
