When Fatih Birol, executive director of the International Energy Agency, called the ongoing global energy turmoil the “biggest energy security threat in history” in April, his warning seemed prescient by summer. The United States authorized the Southwest Power Pool to use backup generation across 17 states amid extreme heat, European nuclear plants curtailed operations due to drought, and EU gas stocks hit record lows in August. Bangladesh tightened business hours as its gas shortage worsened.
These disruptions stem from weather extremes, wars in the Middle East and Ukraine, and a surge in electricity demand driven by economic growth, electric vehicles, and the AI boom. The 2020s have exposed the fragility of centralized, aging power systems built for a more stable era. As a 2025 study in the Journal of Electrical Systems and Information Technology noted, up to 35.655% of transmitted energy is lost in these networks.
In response, interest is growing in decentralized energy resources (DERs)—solar panels, batteries, small generators, and digital controls that can operate independently or feed into the main grid. Microgrids, which combine DERs, can keep local areas powered during outages. Wealthier nations have led in deploying these technologies, with companies like General Motors and Tesla using software to connect household batteries to the grid. But poorer and conflict-affected regions are now testing whether decentralization can sustain electrification when central systems fail.
Ukraine’s wartime microgrids
Ukraine offers a stark example. After more than four years of war, Russia has destroyed or occupied roughly two-thirds of Ukraine’s prewar power capacity, according to Ukrainian investment firm SCM. The country’s generation capacity has fallen from 56.1 gigawatts to 27 GW, per a 2025 CSIS report. Integration with the Continental European Grid provides some relief, but Ukraine is building locally supported microgrids to reduce reliance on vulnerable transmission lines and disperse targets.
Solar microgrids now keep hospitals and water systems running during outages. In 2025, DTEK Renewables partnered with Britain’s Octopus Energy to install rooftop solar and battery storage at 100 sites over three years. Cities like Vinnytsia have established five microgrids using solar, gas, and hydropower, with plans for five wind farms. Ukraine has also deployed its largest battery storage—200 MW across six sites—built in just six months, a quarter of the time typical in Europe. This urgency has made Ukraine “one of the fastest-developing renewable markets in Eastern Europe,” according to the German-Ukrainian Energy Partnership.
Yet results are uneven. On sunny days, solar surpluses are followed by severe deficits when weather changes or Russia attacks. The coming winter will test how reliably this emerging network can support the vulnerable central grid.
Puerto Rico’s resilience lessons
Puerto Rico, though not in Asia, offers lessons for the region. Since 2017, hurricanes and earthquakes have repeatedly devastated its grid, causing the longest blackout in US history (11 months after Maria) and a two-day island-wide outage in 2025. Puerto Ricans experience 15% more service interruptions and 21% longer outages than the US average. In response, communities and businesses have adopted solar and battery systems, creating a decentralized layer that provides backup and reduces dependence on the fragile central network.
For Asia, these examples are instructive. The region faces rising demand, extreme weather, and geopolitical tensions that threaten energy security. Two wars deepen global oil crisis, and events like the Hormuz crisis reshape ASEAN economies, highlighting vulnerabilities. Countries like India, Indonesia, and Vietnam are investing in renewables, but centralized grids remain dominant. The Gulf of Thailand’s energy deadlock underscores the need for diversified approaches.
Decentralized energy is not a panacea, but it offers a path to resilience. As Asia’s economies grow and climate risks intensify, integrating DERs and microgrids could prevent the next crisis—or at least soften its blow. The question is whether governments will act before the next shock arrives.
