This paper examines the evolving dynamics of the South and South-West Asia subregion’s energy systems within the broader context of sustainable development and climate action. South and South-West Asia—home to nearly one-fourth of the global population—continues to depend predominantly on fossil fuels, which constitute about three-fourths of its total energy consumption. Although renewable energy capacities, particularly in solar, have grown substantially in recent years, they have not kept pace with the region’s rapidly rising energy demand driven by industrialization, urbanization, and economic growth. The paper analyses key dimensions of the transition, including the subregion’s energy mix, import dependency, electrification trends, renewable energy expansion, energy efficiency performance, and sectoral emissions patterns. It identifies several policy priorities crucial for accelerating sustainable energy transition: strengthening renewable energy deployment frameworks; enhancing energy efficiency across sectors; improving grid reliability and cross-border power trade; promoting clean biomass utilization; and encouraging electrification of industry and transport. The study underscores that a balanced approach—integrating renewable expansion with infrastructure modernization, regulatory reform, and investment in green technologies—is vital to achieving SDG 7 and ensuring energy security. The findings provide actionable insights for governments and stakeholders seeking to design coordinated, evidence-based energy transition strategies for the subregion.