SIEW Ministerial Dialogue: Partnerships Key to Accelerating Global Energy Transition

Global energy leaders converged at the SIEW Ministerial Dialogue to discuss energy transition challenges. Panellists explored how financing, and regional cooperation drive sustainable energy projects, emphasising the need to balance security, affordability, and environmental goals. Discussions also highlighted regional interconnectivity potential, such as the ASEAN Power Grid, to optimise resources and reduce costs. The dialogue reinforced the importance of cross-border collaboration in achieving a sustainable energy future.

Here are the key insights gleaned from the discussion: 

1. Financing is critical to accelerating energy transition projects

Securing financing is one of the most significant hurdles for large-scale energy infrastructure projects. 

To address this, H.E. Keo Rottanak, Minister of Mines and Energy for the Kingdom of Cambodia, emphasised the need to create an enabling investment climate to attract funding from the private sector. “We are a small country with a developing economy, and there is a fair perception of political risk here,” he said. “That is why one of the things we have put in place is to provide sovereign guarantees, which help the investment community feel more confident when investing in Cambodia.”

2. Balancing energy security, affordability, and sustainability is a delicate challenge

Managing the trade-offs between reliable energy supply, consumer affordability, and sustainability goals is a critical challenge. 

Hon Shane Jones, Minister for Resources, Associate Minister for Energy for New Zealand, stressed that governments must ensure that energy remains affordable while pursuing sustainability goals. “If the public cannot see the upside of climate-positive outcomes, and they are suffering disproportionately on the journey, this will lead to political mayhem,” he said. “They must believe that the government is enhancing their lives, not only in 20 years’ time, but right now.”

3. Inclusive and transparent policymaking is vital to maintain public support

Transparency and inclusivity were also recurring themes throughout the session. 

Hon Mr Jones emphasised the importance of maintaining public trust by being transparent about the costs and trade-offs: “As the Minister for Resources, one of the greatest challenges is ensuring that the information is clear, the price part is not too onerous, and there's a lot of transparency as to the trade-offs that politicians need to make. For example, if you need to rely on gas during the energy transition, just tell people the truth.”

Meanwhile, H.E. Mr Rottanak underscored the need to ensure that vulnerable groups, such as women and young people, benefit from the energy transition. Specifically, Cambodia has embedded inclusivity requirements in their power purchase agreements, mandating a significant role for women in renewable energy projects.

4. Regional interconnectivity can open investment opportunities and optimise energy resources

The panel also highlighted the benefits of regional cooperation. Hon. Dr Doto Mashaka Biteko (MP), the Deputy Prime Minister and Minister for Energy of Tanzania, said, “As a member of the Western Africa Power Pool and the South African Power Pool, Tanzania has established interconnectors to share surplus energy with neighbouring countries, such as Burundi, Kenya, and Rwanda. We are inviting investors to develop these projects, because the demand is there, and the market is there.”

H.E. Mr Rottanak echoed the sentiments, specifically on the ASEAN Power Grid, “Energy transition can be very costly and time-consuming. Also, we have resources that are not distributed evenly across nations. However, through the ASEAN Power Grid, I believe that meaningful pathways can be created to make the transition less costly and more inclusive.” 

5. Long-term vision are essential to drive the energy transition

Finally, political leadership and vision were identified as the cornerstone of any successful energy transition. “I believe that, for energy transition, the money is out there. Both investors and financial institutions are ready to put money in,” said H.E. Mr Rottanak. “However, it is up to the 10 ASEAN governments and the politicians there to make it happen.”

The SIEW Ministerial Dialogue illuminated the multifaceted challenges and opportunities in the global energy transition. From the critical role of financing and the delicate balance of energy security, affordability, and sustainability, to the importance of inclusive policymaking and regional cooperation, the discussion underscored the complexity of the journey ahead. As the world moves towards a sustainable energy future, it's clear that success will hinge on transparent governance, and collaborative efforts that transcend national borders.

Stay tuned as the conversation evolves throughout the day. Follow @SIEW_sg on Telegram and Twitter for key insights, as we navigate Day 1 together.