[Impact Webinar] Energy Transition Readiness in ASEAN
“On behalf of the Philippine department of energy, let me reiterate that we are committed to power up Filipino communities through clean efficient robust and sustainable energy systems
that will create wealth propel industries and transform the lives of Filipino men and women
and genuine generations to come!”
- Hon. Rowena Cristina L. Guevara, Undersecretary, Department of Energy, Philippines
“We're extremely excited about the changes that we've seen and an extremely excited ASEAN market - we're clearly looking to develop a range of renewable energy projects across all the technology solar, wind, hydro, storage. We are looking to support players through both project finance, corporate finance and other capital market or public-private instruments.”
– Ms. Isabel Chatterton - APAC Regional Industry Director, Infrastructure and Natural Resources, IFC
The ASEAN region is at a crossroads in terms of energy transition. According to the latest IRENA presentation, the economic and population growth in the region will result in a 2.5-fold increase in energy demand by 2050. However, the region still heavily relies on fossil fuels, with around 86% of primary energy demand in 2021. This dependence is not sustainable as the region faces an insufficient supply of fossil fuels to meet the growing demand, with import dependence growing rapidly. In this context, it has become crucial for ASEAN to expand clean electricity generation and invest in system flexibility to enable the transition towards a sustainable energy future.
Lived on April 26, this webinar delved into the pressing need for energy transition in the ASEAN region, in partnership with IRENA, Department of Energy Philippines, National Energy Council Indonesia, EGAT, SEDA Malaysia, IFC, Wärtsilä, Black & Veatch, KPMG Singapore, and DivinaLaw.
00:03:08---00:20:26 | ASEAN Energy Transition Readiness Index: The Urgency to Decarbonize
Mr. Adam Adiwinata, Lead Consultant, ASEAN Energy Transition Outlook, IRENA
00:21:37---00:51:42 | Charting Indonesia Path to Clean Energy Leadership in ASEAN: Strategies and Opportunities
Hon. Dr. Satya Yudha Widya, Member, National Energy Council, Indonesia (DEN-RI)
00:52:53---01:09:48 | The State of Renewables in Thailand - Towards a Circular Carbon Neutral Economy
Mr. Wischu Srithong, Head of Hydro and Renewable Energy Power Plant, EGAT
01:10:41---01:27:06 | Creating a Thriving Malaysian Renewable Transition Roadmap
Mr. Ganesha Pillai, Assistant Director Strategic Planning Unit, SEDA Malaysia
01:28:40---01:42:49 | The Philippines' Renewable Energy Market Liberalization: Opportunities and Challenges
Ms. Rowena Guevara, Undersecretary, Philippines' Department of Energy (DOE)
01:43:48---01:57:58 | Dramatic Shifts in the Philippine Energy Market - Outlook for the New Auction in June
Mr. Jay Layug, Senior Partner, DivinaLaw
01:59:20---02:13:42 | The ASEAN Future Grids: Accelerating ASEAN's Energy Transformation through Energy Storage
Mr. Wilhelm van Butselaar, Area Manager Energy Storage and Optimization, Wärtsilä Energy
02:14:52---3:00:00 | [Panel Discussion] Foreign Direct Investment Considerations in ASEAN's Energy Sector with a Spotlight on the Philippines
Mr. Sharad Somani, ASPAC Head of Infrastructure, KPMG Singapore
Ms. Isabel Chatterton, Director & Regional Head of Industry, IFC
Mr. Narsingh Chaudhary, Executive Vice President, Black & Veatch
Our Top 7 Key Takeaways
1. ASEAN's Energy Transition: Renewable Energy, Hydrogen, and Energy Efficiency for Future Growth (IRENA)
In the context of ASEAN's energy transition, IRENA's 1.5 - S highlights a significant push towards electrification, renewables, and energy efficiency. By implementing these measures, energy demand could be reduced by 22% compared to the Planned Energy Scenario. This approach will see electricity comprise 45% of the total final consumption, a marked increase from the current figure of below 20%. Additionally, renewable direct use, particularly bioenergy, will see growth. While fossil fuels will still be consumed, investments in energy efficiency will make up around one-third of investment, and the energy investment rate will increase from 1.1%/yr to 2.5%. Notably, hydrogen will play a crucial role in the industry sector and international bunkering.
2. Solar Dominants Country’s Renewable Play: Insights from Malaysia, Thailand, and the Philippines (SEDA, EGAT, DOE)
Solar energy has been and will continue to be a crucial player in the ASEAN region's energy transition due to its cost-effectiveness compared to other renewable sources. However, each country has a distinct approach to utilizing solar energy. Solar in Malaysia, for instance, sees a CAGR of more than 9% during the forecast period of 2022 – 2027, in particular featured by the government supports for both Large-scale Solar Tender and Rooftop Solar Tender Program. In Thailand and the Philippines, Floating Solar Projects that utilize dams and natural lakes have become a top priority. Thailand’s EGAT in its Power Development Plan 2018-2030 has planed 16 projects with a capacity of 2725MW, employing floating solar technology combined with multipurpose dams. Laguna Lake in the Philippines also holds tremendous potential and is looking to install a. 1.3 GW FPV project on Laguna de Bay. The project is announced by Singapore developer Blueleaf Energy and Philippine local development Sun Asia.
3. Accelerating ASEAN’s Energy Transformation through Energy and Battery Storage (Wärtsilä)
As IEA predicts that Southeast Asia collectively needs to install 1,100GW of renewable capacity to reach 85% of RE by 2050, Around 4,040 GW (1,200 GWh) of new energy storage capacity, including battery & non-battery are expected to be brought online over the next 8 years. The energy storage industry is amid of a period of very strong growth with annual additions climbing rapidly year on year in the near term. Amongst all applications, solar+storage, island grids, and stationary storage stand out with both environmental and economic benefits.
4. Unleashing the Power of Offshore Wind – All Eyes on the Philippines
The Philippines is at the forefront of the offshore wind energy industry, having awarded 63 Offshore Wind Energy Service Contracts with a potential capacity of 45.774 GW. The Department of Energy has also taken steps to streamline the regulatory framework for offshore wind by issuing a Circular outlining the procedures and requirements for awarding service contracts, as well as an Executive Order to rationalize the regulatory process. This proactive approach by the Philippines government signals a strong commitment to leveraging the potential of offshore wind to meet the country's energy needs while also promoting sustainable development.
5. Hydrogen and CCUS Gain Traction in ASEAN, Indonesia Takes the Lead (National Energy Council Indonesia)
Hydrogen and Carbon Capture, Utilization, and Storage (CCUS) are gaining increasing interest in the ASEAN region, with the Indonesian government taking a leading role in their development. As the largest and the most populous economy in Southeast Asia, Indonesia is focusing on developing reliable and affordable fossil fuel replacements to meet its energy needs. With limited energy storage facilities hindering the deployment of renewable energy and heavy emissions from the industry and transport sectors, the Indonesian government is prioritizing hydrogen and CCUS as possible decarbonization options. The government has set ambitious targets for the use of these technologies to reduce carbon emissions and promote sustainable development. Ammonia co-firing is also being explored as a means to further reduce carbon emissions from the power sector.
6. Foreign Investment Interest Rise Higher than Ever (KPMG, IFC, Black & Veatch)
Foreign investment in renewable energy in the ASEAN region has been on the rise, with countries like the Philippines making updates to attract more foreign investors. The Philippines recently lifted its restrictions on foreign ownership in geothermal and ocean energy projects, allowing 100% foreign ownership. This move is expected to attract more foreign investment and increase the development of renewable energy projects in the country. Other countries in the ASEAN region have also been taking steps to attract foreign investment, including offering incentives and creating favorable policies to promote renewable energy development.
7. [Spotlight] Philippines Prepares for the Second Round RE Auction: Open on May 3rd (DivinaLaw)
The Philippines is set to hold its second round of renewable energy auctions on 19 June, with a goal of adding 11,600 MW of renewable energy to the country's energy mix. The auctions will have a 20-year initial term for the Power Supply Agreement (PSA), renewable for another 20 years, with delivery date options of 2024, 2025 or 2026. The Department of Energy aims to add a total of 11,600 MW of renewable energy by 2026. The Green Energy Auction -3 opens on May 3rd.
Editor’s Note: The webinar highlighted the need for accelerating the ASEAN energy transition towards renewables, energy storage, hydrogen, and CCUS. It also provided insights into the potential of various renewable energy sources and storage technologies, as well as the increasing foreign investment interest in the region. The Philippines' upcoming renewable energy auctions demonstrate the government's commitment to the transition, and it will be interesting to see the developments in the ASEAN region in the years to come.
Insights Brought to You by:
Hon. Rowena Cristina L. Guevara
Department of Energy philippines
Lead Consultant, ASEAN Energy Transition Outlook
International Renewable Energy Agency
Assistant Director Strategic Planning Unit
Executive Vice President
Black & Veatch
ASPAC Head of Infrastructure
Hon. Dr. Satya Yudha Widya
National Energy Council, Indonesia (DEN-RI)
Head of Hydro and Renewable Energy Power Plant
APAC Regional Industry Director, Infrastructure and Natural Resources
International Finance Corporation
Wilhelm van Butselaar
Area Manager Energy Storage and Optimization
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