Jakarta. The Iran war energy crisis has opened doors for Beijing to help ASEAN switch to renewables, according to a Chinese envoy, as the Philippines became the world’s first country to declare an energy emergency.

The war-induced Strait of Hormuz shutdown had put energy shipments from the Middle East to a standstill. The global crude benchmark Brent even hit $103 per barrel on Thursday. Manila — now assuming ASEAN’s rotating chairmanship — recently announced a fuel emergency, while the Indonesian government claimed that Jakarta had not run out of supplies.

In a press briefing, Chinese Ambassador to ASEAN Wang Qing responded to a question on whether Beijing would lend a helping hand to shield Southeast Asian nations from the energy crisis. Wang responded that China was quite well-prepared thanks to its early shifts to emissions-free sources, and this could be something to work on together with the ASEAN states.

"We have done a lot of work for our energy transition. We are in a better position to tackle this challenge. Over 50% of our electricity comes from renewables, … be it hydrogen, solar, wind, and nuclear,” Wang saidon Thursday.

“We will continue to enhance our energy transition. I think it provides a new opportunity for China-ASEAN cooperation.”

Wang admitted that sources such as wind and solar could not meet 24/7 power needs. This brings the need to develop battery energy solar systems, another area that Beijing is willing to partner on. 

A day earlier, Finance Minister Purbaya Yudhi Sadewa said that Indonesia has “not entered an energy emergency”, while warning that Jakarta should brace itself if the situation persists. He dismissed fiscal strain worries by saying that Jakarta would not make any changes to the state budget and energy subsidies for now. 

Philippine President Ferdinand Marcos Jr had just announced that an energy emergency would enable his government “to implement responsive and coordinated measures”. The state of emergency, which will be in force for a year, will allow officials to take action against fuel hoarding and supply manipulation.

Iran has closed off the Strait of Hormuz — a critical waterway for oil delivery — in retaliation following US-Israeli strikes in late February. About two weeks ago, ASEAN economic ministers held a meeting to navigate the conflict. The 11-strong group highlighted the need to “diversify energy sources and supply routes, particularly through biofuels and renewables”. It is also open to working with its dialogue partners.

As of 2022, ASEAN’s renewables shares in its total primary energy supply reached only 15.6%, although this would mean the number had not taken into account its latest member, Timor-Leste. The sunny Indonesia is now looking to install 100 gigawatts of solar power within two years. Fellow ASEAN member Vietnam has just clinched a Russian deal that could revive its nuclear power ambitions. 

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