According to CRI’s analysis, as Southeast Asia’s economy grows, the demand for both domestic electricity and industrial and commercial land is on the rise, boosting the growth of the power sector.
The development of the power industry in various countries in Southeast Asia varies widely.
Southeast Asia in this report includes 10 countries: Singapore, Thailand, Philippines, Malaysia, Indonesia, Vietnam, Myanmar, Brunei, Laos and Cambodia. With a total population of over 600 million by the end of 2021, Southeast Asia has an overall economic growth rate higher than the global average and is one of the key drivers of future global economic growth.
According to CRI’s analysis, the economic levels of the 10 Southeast Asian countries vary greatly, with Singapore being the only developed country with a per capita GDP of about US$73,000 in 2021. While Myanmar and Cambodia will have a GDP per capita of less than US$2,000 in 2021. The population and minimum wage levels also vary greatly from country to country, with Brunei, which has the smallest population, having a total population of less than 500,000 people in 2021, and Indonesia, which has the largest population, having a population of about 275 million people in 2021. The most economically advanced countries in Southeast Asia do not have a legal minimum wage, with the actual minimum wage exceeding US$400 per month (for foreign maids), while the lowest minimum wage level in Myanmar is only about US$93 per month.
Southeast Asia relies on imports for 40% of its energy, currently relying on the Middle East for oil and gas, and Australia as the main source of coal imports. The energy mix in Southeast Asia is 80% coal and oil and gas, and the remaining renewable energy is mainly hydropower, with photovoltaic power and wind power in their infancy. In this case, nuclear energy becomes very attractive.
As of the end of 2022, Southeast Asian countries do not have active nuclear reactors, but the situation could change. Since the end of May 2022, Indonesia, Vietnam and the Philippines have successively expressed their desire to have nuclear power in order to meet growing energy demand and move away from dependence on fossil energy.
The Philippines has built nuclear power plants, but they are not in operation. The only fully built nuclear power plant in Southeast Asia was built under former President Ferdinand Marcos, but the Philippine government shut it down after the 1986 Chernobyl disaster, making it never officially operational. According to the assessment, the Bataan nuclear power plant can be put into operation if US$3 billion to US$4 billion is invested in maintenance costs.
According to CRI forecast, Southeast Asia’s power sector will continue to grow from 2023-2032. Relatively cheap labor and land costs have attracted a large number of foreign investors to shift their production capacity to Southeast Asia, making industrial electricity consumption rise rapidly. On the other hand, as Southeast Asia’s economy grows and residents’ living standards rise, domestic and commercial electricity consumption also continues to rise. It is expected that in 2023-2032, more thermal and hydroelectric power plants will be built in Southeast Asia, while a number of nuclear power plants may be completed and put into operation.
- Southeast Asia Power Industry Status and Major Sources in 2018-2022
- What is the Impact of COVID-19 on Southeast Asia Power Industry?
- Which Companies are the Major Players in Southeast Asia Power Industry Market and What are their Competitive Benchmarks?
- Key Drivers and Market Opportunities in Southeast Asia Power Industry
- What are the Key Drivers, Challenges, and Opportunities for Southeast Asia Power Industry during 2023-2032?
- What is the Expected Revenue of Southeast Asia Power Industry during 2023-2032?
- What are the Strategies Adopted by the Key Players in the Market to Increase Their Market Share in the Industry?
- What are the Competitive Advantages of the Major Players in Southeast Asia Power Industry Market?
- Which Segment of Southeast Asia Power Industry is Expected to Dominate the Market in 2032?
- What are the Major Adverse Factors Facing Southeast Asia Power Industry?