Asia leaves the West behind in electrification, new report says

The report, Electric Asia, argues that the region's growing reliance on electricity rather than fossil fuels is reshaping both its economic trajectory and the global energy landscape. Asia now generates more than half of the world's electricity and has accounted for three quarters of global electricity demand growth since 2000.

Researchers say Asia surpassed Western economies in overall electrification in 2016 and is now electrifying five times faster. Electricity accounts for 26% of Asia's final energy consumption, compared with 21% in the West.

While China remains a major driver of the transition, the report highlights broader regional progress. Southeast Asia overtook the United States in electrification in 2023 and surpassed it in electric vehicle adoption last year. South Asia, meanwhile, moved ahead of the US in solar power's share of electricity generation in 2022.

The report attributes much of Asia's shift to its limited fossil fuel resources. Despite being home to more than half of the world's population, the region holds only a small share of global oil and gas reserves and spends around $1.1 trillion annually on fossil fuel imports. In 2024, imported fuels accounted for nearly a third of Asia's primary energy demand.

At the same time, Asia has become the world's dominant producer of clean energy technologies. The region manufactures more than 95% of solar panels, 85% of batteries and 75% of wind turbines globally. Even excluding China, the rest of Asia remains a major producer of solar and battery components.

According to the report, falling costs have significantly improved the economics of electrification. Solar power combined with battery storage is now cheaper than fossil fuel generation across much of Asia, while electric vehicles have reached price parity with conventional petrol-powered cars in several markets.

Researchers estimate that more than 70% of Asia's energy demand can already be met through commercially available electrification technologies. The region also possesses renewable energy resources capable of generating at least 14 times its current energy demand.

The report argues that recent geopolitical disruptions have strengthened the case for accelerating the transition. Asia remains heavily dependent on imported oil and liquefied natural gas, particularly from the Middle East, making it vulnerable to supply disruptions and price shocks.

Electrifying road transport alone could cut Asia's oil imports by roughly half and save more than $300 billion annually, the report estimates.

Beyond energy security, the transition could deliver wider economic and environmental benefits. Researchers argue that reducing fossil fuel imports would improve trade balances, strengthen economic resilience and create millions of jobs in emerging clean technology industries. It could also help address severe air pollution, which continues to affect much of the region.

Earlier, Qazinform News Agency reported that 47% of EU’s electricity came from renewables in 2025.