In Southeast Asia, Switching to Solar Offers Relief from Energy Crisis Caused by Iran War

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In March, a few weeks after the war in Iran began jolting energy markets, Heidi Mendoza had solar panels installed on the roof of her three-story house in Marikina, Philippines, from where she teaches financial literacy classes online. “I got scared that we might lose electricity,” she said.

Last month, Ming Kuang Chai, an architect in Kuala Lumpur, Malaysia, made a similar addition to his home. “The Iran war, and the fact that I drive an electric car, pushed me to install the panels quickly to manage my living costs,” he said.

Adiana Julia hopes to add her parents’ house in Yogyakarta, Indonesia, to the solar-powered ranks early next year. “It’s better if we can find ways to reduce our dependence on the grid,” she said.

This shift is occurring in many parts of Southeast Asia, a region whose energy sector is heavily reliant on oil imported via the Strait of Hormuz, which has been effectively closed since the war began. The United States and Iran have announced a preliminary agreement to end the war and the strait may reopen soon. But the economic fallout from the conflict will last much longer, and in some cases may change consumer behavior for good.

Days after U.S.-Israeli strikes on Iran started the war on Feb. 28, the Philippines declared a national emergency, warning of rolling blackouts as the price of oil skyrocketed when traffic in the strait came to a standstill. That was the cue for Ms. Mendoza, 63, who had long considered adding solar power to her house. She spent 390,000 Philippine pesos, about $6,500, to prevent disruptions in power supply.

Otherwise, she said, “I wouldn’t be able to do my online work.”

The increase in demand has been beneficial to China, the world’s largest maker of solar panels. In March, it sold 5.5. gigawatts of solar capacity to Southeast Asia, more than twice as much as the previous year, according to Wood Mackenzie, a consulting firm. That capacity is enough to power 1.45 million homes for a year, said Wan Afiq Naqiuddin, an analyst at the firm.

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