Asian nations, particularly energy-hungry countries like South Korea, Japan, and Southeast Asian states, are responding to the Iran war's disruption of oil and gas flows by rapidly diversifying their energy sources. This immediate reaction has often involved an increase in coal consumption to maintain grid stability. For instance, South Korea delayed the retirement of three coal plants and increased power generation from active nuclear facilities, while Japan pushed for restarts of nuclear power plants idled since the Fukushima disaster. Southeast Asian nations such as Thailand, Vietnam, and the Philippines also burned more coal, with the Philippines even considering lifting a ban on new coal plants, though ultimately deciding against it for future projects. Globally, coal investments are projected to reach $180 billion in 2026, the highest since 2012, according to the International Energy Agency.
While coal use has surged as an emergency measure, the conflict has also underscored the critical importance of energy security, prompting a re-evaluation of long-term energy strategies focused on renewables and nuclear power. South Korea's minister of climate, energy and environment, Kim Sungwhan, emphasized that an over-reliance on fossil fuels makes nations vulnerable to external shocks, accelerating the push towards domestically produced renewable energy as a national security strategy. Similarly, Vietnam aims for 10% of public offices and homes to have rooftop solar by 2030, and Indonesia plans to install 100 gigawatts of rooftop solar by 2034, a significant jump from its current 1.3 gigawatts.
Despite the short-term increase in fossil fuel reliance, many experts see this as a catalyst for a faster energy transition. Brenda Valerio of New Energy Nexus in the Philippines noted that while the transition isn't linear, it doesn't negate green energy gains. Policymakers in Asia are increasingly valuing renewable energy for its security benefits, not just sustainability. The recent energy shocks are viewed as a clear signal to expedite a break from the old system, with electrification presenting an economic growth opportunity even if initial power supplies are from coal, due to the higher efficiency of electric devices and vehicles. Some countries, like Pakistan, have seen significant shifts, with coal-fired electricity rising by 27% while natural gas power dropped by more than 80% in April compared to the previous year.
