The Geopolitical Catalyst: Why Southeast Asia is Rethinking Energy
The global energy landscape is shifting rapidly and for Southeast Asia, the catalyst is often found far beyond its own borders. The ongoing conflict in Iran and the potential closure of the Strait of Hormuz—a critical artery responsible for 20 percent of the global oil trade—have served as a stark wake-up call. For decades, the region has relied heavily on Middle Eastern oil and gas. However, this dependence has left Southeast Asian economies vulnerable to volatile fuel prices and sudden economic disruptions. As Arkady Gevorkyan, a commodity strategist at Citibank, points out, these disruptions drive up electricity generation costs and increase the price of baseload power. This vulnerability is pushing nations to look beyond fossil fuels, not just for the sake of the environment, but for fundamental national security.
Nuclear Energy: The Quest for Stable Baseload Power
While the transition to green energy is a global priority, the “intermittency” of renewables remains a significant hurdle. Solar and wind power are weather-dependent, meaning they cannot always provide the steady, around-the-clock energy required by heavy industries and expanding data centers. Nuclear energy is emerging as the strategic alternative. Unlike renewables, nuclear reactions do not emit greenhouse gases and can produce massive amounts of energy using relatively few natural resources. According to Tan-Soo Jie-Sheng of the National University of Singapore’s Lee Kuan Yew School of Public Policy, the interest in nuclear energy was already growing due to rapid electricity demand and land constraints. The current geopolitical crisis has simply “reinforced and accelerated” this rationale.
Key Advantages of Nuclear Integration:
- Energy Independence: Reduces reliance on imported fossil fuels and shields economies from geopolitical price swings.
- Low Carbon Footprint: Supports decarbonization goals without sacrificing power output.
- Efficiency: Offers a smaller land footprint compared to massive solar or wind farms.
- Industrial Support: Provides the high-density power needed for energy-intensive sectors.
A Regional Roadmap: Who is Moving First?
The shift toward nuclear is no longer theoretical; several ASEAN nations are already moving from policy discussions to institutionalization.
Vietnam’s Bold Step
Vietnam is positioning itself as a frontrunner. On March 23, the country signed an agreement with Russia to construct a power plant featuring two reactors with a combined capacity of 2,400 megawatts. The goal is to bring the first plant online as early as 2030.
Malaysia’s Strategic Assessment
Malaysia has embedded nuclear energy into its 13th Malaysia Plan as of July 2025. Deputy Prime Minister Fadillah Yusof has emphasized that evaluating nuclear feasibility is increasingly relevant given the fluctuations in fuel supply and global geopolitical uncertainties.
Indonesia and Japan’s Collaboration
In March, Indonesia and Japan agreed to collaborate on nuclear energy, with discussions including the potential construction of a plant in Indonesia’s West Kalimantan Province on the island of Borneo.
Singapore’s Research Approach
While land-constrained, Singapore is actively studying advanced nuclear technology and forming international partnerships to stay at the forefront of scientific research.
The “Coal Fallback” and the Security Dilemma
Despite the push for nuclear, the transition is not linear. Some countries, including Thailand, Indonesia, and Vietnam, have pivoted back to coal as a short-term fallback to ensure immediate energy security. For instance, Thailand is exploring the revival of the retired Mae Moh coal-fired power plant, and Indonesia has decided to increase its coal output. While coal is cheaper and more accessible during a crisis, it remains the most polluting fossil fuel, creating a tension between immediate economic security and long-term climate goals. Victor Nian, co-chair of the Centre for Strategic Energy and Resources, suggests that the future energy transition in ASEAN may not be focused solely on decarbonization, but rather on a blend of energy security and economic security.
The Reality Check: Timelines and Hurdles
While the strategic argument for nuclear energy has sharpened, experts warn that it is not an “immediate” fix. Nuclear power requires a level of long-term commitment that differs from other energy projects. Dinita Setyawati, a senior energy analyst at Ember, notes that it takes years, and often decades, to:
- Train a highly skilled workforce.
- Establish robust regulatory and safety institutions.
- Identify geologically and socially suitable sites.
Yao Lixia of the National University of Singapore’s Energy Studies Institute adds that high upfront costs and public concerns mean nuclear energy remains a long-term strategic consideration. The current crisis may shift nuclear from a peripheral option to a central part of planning, but it does not shorten the time required to build these facilities safely.
Frequently Asked Questions (FAQ)
Why is the conflict in Iran affecting energy in Southeast Asia?
Southeast Asia relies heavily on oil and gas imports from the Middle East. Conflict in the region can lead to the closure of the Strait of Hormuz, which handles 20% of global oil trade, causing price spikes and supply shortages.
What is the difference between baseload power and renewable energy?
Baseload power is the minimum, constant level of electricity required to keep a grid stable. Nuclear provides this consistently, whereas renewables like wind and solar are intermittent and depend on weather conditions.
Which Southeast Asian countries are planning for nuclear energy?
Vietnam, Indonesia, Malaysia, the Philippines, and Thailand have all included nuclear energy in their power development plans or are conducting feasibility studies.
Can nuclear energy be deployed quickly to solve current energy crises?
No. Due to high upfront costs, the need for specialized personnel, and strict safety regulations, nuclear plants take years or decades to develop and deploy.
What do you think? Should Southeast Asian nations prioritize immediate energy security through coal, or commit to the long-term transition to nuclear power? Share your thoughts in the comments below or subscribe to our newsletter for more deep dives into global energy trends.
