A recent analysis by Ember, a global energy think tank, reveals that ASEAN could save up to $67b by replacing its planned gas power expansion with solar energy. The report highlights that the cost of generating electricity from gas-fired power plants could reach $109b annually at projected LNG prices, whereas solar energy could deliver the same electricity for approximately $42b.
The ongoing Gulf crisis, which has disrupted Liquified Natural Gas (LNG) supplies, underscores the vulnerability of ASEAN’s reliance on fossil fuels. The report warns that countries like Singapore, heavily dependent on gas, could see generation costs soar to $260.8 per megawatt-hour, double the levels recorded in February 2026.
Ember’s analysis also points out the broader economic implications, including currency pressure and rising inflation, particularly in countries with high fossil fuel dependence. “Current and past crises have proven that fossil import dependence is risking energy security,” said Dr Dinita Setyawati, Senior Energy Analyst at Ember. The report argues that a pivot to renewable energy is essential to buffer against future energy shocks.
Furthermore, the analysis cautions against reverting to coal as a temporary solution, noting that coal-fired electricity remains more expensive than solar plus storage. Thailand’s increased coal usage could add 3.2 million tonnes of CO2 emissions annually, exacerbating environmental concerns.
The report concludes by advocating for accelerated renewable energy deployment and regional cooperation to enhance energy security and reduce reliance on volatile fossil fuel markets.
