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Uneven electrification will affect ASEAN competition

Tuesday, May 2, 2017

Electrification is a driver and symptom of economic growth, but South-east Asian electrification rates are uneven

While some South-east Asian countries have total or near-total electrification, others lag far behind

Source: International Energy Agency -- World Energy Outlook 2016; World Bank (including UN, Eurostat, US government and Secretariat of the Pacific Community data); Oxford Analytica

Outlook

Electricity powers social and economic development; this development in turn drives demand for yet more electricity as economies grow in size, complexity and automation. In 2016, the average national electrification rate was 82.3% in South-east Asia, according to the International Energy Agency. In urban areas this rate was 94.2%, and in rural areas 76.7%.

However, notable laggards are Cambodia and Myanmar, two of South-east Asia’s fastest-developing economies. Disparities in electrification contribute to the uneven competitiveness of South-east Asia’s economies. These gaps are expensive to close, so poorer states will need international donor aid to supplement tax incomes -- Myanmar’s electrification to 2030 could cost at least 40 billion dollars.

Impacts

  • Electrification can help to reduce poverty.
  • Electrification will allow more automation.
  • Expanding electrification will bring investment opportunities in renewable and non-renewable energy infrastructure.
  • Greater electrification will see more coal burning and hydropower dam construction; environmental and land rights controversies are likely.

See also