Asia’s Electric Future Could Save Over $300 Billion Annually in Oil Imports: Ember Report – Indian PSU

Asia stands on the cusp of a historic energy transformation, with electrification, renewable energy and clean technologies poised to reshape the region’s economic and geopolitical landscape. According to a new report by global energy think tank Ember, accelerating the adoption of electric vehicles (EVs), renewable energy and electrified technologies could help Asia save more than $300 billion annually in oil imports, while strengthening energy security and economic growth.

The report highlights the rise of what it calls “electrotech”—a combination of renewable energy, electrification and the technologies that connect them—which is rapidly changing the way Asia produces and consumes energy.

Asia Leading the Global Electrification Revolution

Home to nearly half of the world’s population, Asia generates more than half of global electricity and has accounted for around three-quarters of worldwide electricity demand growth since 2000.

The report notes that Asia surpassed Western economies in electrification levels in 2016, despite having significantly lower per-capita incomes at the time. Today, electrification accounts for 26% of Asia’s final energy consumption, compared to 21% in the West, with Asia’s electrification rate growing five times faster.

The region comprises four major energy blocs—Greater China, South Asia, Southeast Asia and Northeast Asia—each contributing to an unprecedented shift toward electricity-driven growth.

Beyond China: Wider Asian Momentum

While China remains a dominant force in clean energy deployment, the report emphasizes that the transformation extends far beyond Beijing.

• Southeast Asia surpassed the United States in electrification levels in 2023.
• The region also overtook the US in electric vehicle adoption in 2024.
• South Asia exceeded the US in solar energy share in 2022.
• Asia excluding China has emerged as the world’s second-largest producer of solar panels and battery components.

Heavy Dependence on Imported Fossil Fuels

Despite its economic strength, Asia remains heavily dependent on imported fossil fuels. The region possesses only 4% of global oil and gas reserves but imports approximately $1.1 trillion worth of fossil fuels annually, accounting for nearly one-third of its primary energy demand.

As a result, Asia represents 62% of global fossil fuel imports, exposing economies to geopolitical tensions and volatile international energy prices.

Asia’s Clean Energy Manufacturing Advantage

The report identifies Asia as an “electrotech superpower,” dominating global manufacturing of clean energy technologies:

• More than 95% of global solar panel production
• Around 85% of battery manufacturing
• Nearly 75% of wind turbine production

Additionally, Asia’s solar and wind resources are estimated to be sufficient to generate at least 14 times the region’s total energy demand and around 100 times its current oil and gas production.

Economics Favour Electrification

Rapid declines in technology costs are accelerating the shift away from fossil fuels.

According to the report:

• Solar-plus-storage systems are now cheaper than fossil-fuel-based power generation across much of Asia.
• Electric vehicles have become more affordable than petrol-powered cars in several markets.
• More than 70% of the region’s energy consumption can already be electrified using commercially available technologies.

These developments have fundamentally altered the economics of energy within just the past five years.

Hormuz Risk Highlights Energy Vulnerability

A major concern highlighted by Ember is Asia’s dependence on energy imports from the Middle East.

In 2024, the region sourced:

• 45% of its oil imports from the Middle East.
• 30% of its LNG imports from the region.

Any disruption in strategic chokepoints such as the Strait of Hormuz could significantly impact Asian economies through higher fuel prices and supply shortages.

The report suggests that recent geopolitical tensions are prompting governments across Asia to reconsider traditional energy strategies and accelerate domestic clean energy deployment.

New Energy Playbook for Asia

Ember proposes a new energy roadmap centered on electrification and renewable energy deployment. Key recommendations include:

• Accelerating electric vehicle adoption to reduce oil imports by nearly half.
• Expanding renewable energy generation to replace LNG in power production.
• Promoting electric cooking solutions to lower household fuel expenses and improve public health.
• Building what the report describes as an “Electro-Shield” to enhance energy sovereignty and reduce trade deficits.

A Trillion-Dollar Opportunity

The report argues that Asia has a unique opportunity to redirect hundreds of billions of dollars currently spent on fossil fuel imports into domestic industries, infrastructure and clean technology manufacturing.

Beyond economic benefits, the transition could significantly improve air quality for the region’s population, where nine out of ten people are exposed to pollution levels exceeding World Health Organization guidelines.

The Asian Century Powered by Electrons

Ember concludes that while Western economies built their prosperity on fossil fuels during the industrial age, Asia now has an opportunity to build its future on electricity and clean technologies.

“The West built its wealth on fossil fuels, which fuelled the Great Divergence. Asia now has the chance to build its future on electrons,” the report states.

As governments across the continent seek greater energy independence, economic resilience and climate security, the report positions electrification as a defining pillar of what could become the true Asian Century.

The writer of this article is Dr. Seema Javed, an environmentalist & a communications professional in the field of climate and energy