Asia races to stockpile oil, speed up renewables in response to Iran war

Asian nations are swiftly increasing their oil stockpile reserves and transitioning to clean energy sources in response to the disruptions caused by the Iran war. Southeast Asia has been most affected, as 80% of the oil transported through the Strait of Hormuz to the region previously passed through these waters. Nine nations, along with Japan, have agreed to support each other's oil stockpile development and jointly maintain reserves on a voluntary basis.

Japan's State Minister of Economy, Trade and Industry, Takagi Kei, confirmed that Japan and its Asian partners have expressed willingness to collaborate to strengthen the region's oil stockpile capacity. The Philippines, which imports almost all of its oil, plans to establish a national reserve by the end of 2027, which could later serve as a regional stockpile.

The ASEAN nations have also committed to boosting their share of clean energy in power generation, aiming for 30% of total primary energy supply and 45% of installed power capacity to come from renewables. Currently, renewables only account for 14.1% of primary energy, and green power constitutes 33.7% of the installed capacity as of 2020.

The region is falling behind in green energy adoption, with the 2025 targets set at 25% and 35% respectively. Furthermore, the ASEAN member countries reached an enhanced preliminary agreement to develop a long-awaited regional power grid, a significant step forward in regional energy integration.