Coal will be Southeast Asia's most important energy source by 2030

In recent years, following an increase in demand, coal is projected to overtake natural gas to become the largest source of energy in Southeast Asia by 2030.

The International Energy Agency projects a threefold increase in coal-based electricity production to 920 TWh in 2035 from just 255 TWh in 2013. As a result, the share of coal in total electricity generation is expected to increase to 48 percent.

“We are seeing a shift towards increased investment in high-performance coal use. What is the reason? This is mainly because the infrastructure costs for using coal are lower, ”said Benjamin Sporton, executive director of the World Coal Association (WCA) in Jakarta.

Sporton noted that the development of gas infrastructure, including pipes, ports and conversion facilities, is approximately five times more expensive than coal infrastructure. “In fact, the costs of building infrastructure for gas processing plants in Asia are often higher than the costs of building the gas plant itself,” he said.

So it's natural that coal will take the crown from natural gas as the largest source of energy in Southeast Asia by 2030.