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Asia Energy Crisis Cools Air Conditioning

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Across South and Southeast Asia, a heat wave is colliding with an energy crunch linked to the war in Iran, leaving millions struggling to stay cool. The region depends heavily on imported oil and gas, with 80 percent of oil passing through the Strait of Hormuz supplying Asian markets. Governments from Bangladesh to the Philippines have implemented power conservation measures as demand for air conditioning surges.

Businesses face difficult choices as energy constraints tighten. Malls and coffee shops remain among the few consistently cooled public spaces in tropical cities like Bangkok and Manila. Some companies like insurance analyst Meynard Alvarez have invested in rooftop solar panels to offset rising electricity costs, enabling continued air conditioning use despite the crisis.

The energy shortage threatens long-term economic stability in vulnerable countries. The International Energy Agency projects air conditioning units in Southeast Asia to reach 186 million by 2035, a fivefold increase from 2023. This surge in demand will strain already limited energy resources, potentially forcing businesses and governments to make increasingly difficult trade-offs between comfort and economic survival.