Even as the global energy mix will continue to include a combination of energy sources, it is still vital for companies to leverage technologies to address the challenge of emissions. Our correspondent Boo Yi Lin explains.
The International Energy Agency (IEA) launched its Southeast Asia (SEA) Energy Outlook 2019 at the Singapore-IEA Forum earlier today.
Mr. Keisuke Sadamori, Director, Energy Markets and Security at the IEA, highlighted key trends within the publication, including forecasts of the energy sector developments in the region. He shared that SEA will continue to see rapid energy demand growth all the way to 2040, and will go on to become one of the key global centres for energy.
This rapid energy demand, he added, will require an enormous amount of energy sector development, amounting to approximately $120 billion per annum on average up until 2040. This is double the amount that was invested in the sector for 2018.
Based on SEA’s policy today, all fuels will be expected to meet SEA’s rising energy demand, according to the report. The IEA projects that coal, oil and gas will meet 80 per cent of this growth, while renewables will make up the last 20 per cent by 2040.
However, Mr. Sadamori also shared that the continued dominance in fossil fuels in the energy mix will have considerable costs. For one, it can lead to a two-thirds increase in carbon dioxide (CO2) emissions and a roughly 50 per cent increase in premature deaths from air pollution by 2040 from today’s levels.
Opportunities and Challenges in the Energy Landscape
Mr. Sharbini Suhaili, Group CEO, Sarawak Energy, shared that the political environment is changing today, with more pressure and expectations from customers and stakeholders in terms of energy reliability and sustainability.
While the energy mix will continue to comprise a combination of energy sources, Dr. Vijay Swarup, Vice President of Research and Development, ExxonMobil Research and Engineering Company, shared that new technologies like carbon capture and storage can help address the challenge of emissions in fuels.
Instead of just looking at energy supply to meet rising demand, we can also leverage technology to address inefficiencies in the energy system to save energy.
Mr. Thomas Baudlot, Chief of Finance, Strategy and New Business, ENGIE South East Asia, shared that cooling in neighbourhoods and cities can be done in an efficient fashion, which would use 40 per cent less energy.
He added, “Focusing on both energy efficiency and renewable technologies is not only a good driver for the future but will helps us consume [energy] better.”