On 27 October 2022, the ASEAN Centre for Energy (ACE) participated in the 15th Singapore International Energy Week (SIEW), an annual platform for energy professionals, policymakers and commentators to share best practices and solutions within the global energy space. Every year, the ASEAN Centre for Energy (ACE) is given the opportunity to host a Thinktank Roundtable at SIEW.
In line with this year's theme titled "A Resilient and Sustainable Energy Future", ACE hosted a Roundtable session on “Charting the ASEAN Energy Security and Climate Resilient”. This opened with key findings from the 7th ASEAN Energy Outlook (AEO7) related to assessing measures for energy resilience. The Roundtable brought together leading experts with different experiences to discuss existing efforts and future strategies to ensure energy security as ASEAN undergoes the energy transition.
Dr Nuki Agya Utama, Executive Director for ACE, delivered the Opening Remarks where he addressed the world's increasing energy demand even as it is undergoing the energy transition. This was followed by Jonathan Goh, Director, External Relations Department, Energy Market Authority of Singapore, who conveyed the importance of seeking the right balance between energy security and building climate resilience.
Dr Zulfikar Yurnaidi of ACE presenting key findings from the 7th ASEAN Energy Outlook. (Photo by PZP)
Dr Zulfikar Yurnaidi, Senior Researcher for ACE and also the AEO7 Team Leader, presented key findings from the newly published Outlook. The AEO7 uses historical data and projects multiple scenarios to model the ASEAN energy landscape until 2050. One of the key findings that Dr Zulfikar introduced is the new scenario based on optimisation – the Least-Cost Optimisation (LCO) scenario. This considers cost effectiveness, affordability and technology maturity to fulfil electricity demand in its evaluation of potentially viable technologies.
The Roundtable, led by Beni Suryadi, Manager of Power, Fossil Fuels, Alternative Energy and Storage (PFS) Department for ACE, covered three main topics:
- Energy Security and the Energy Transition
- Financing to Secure Energy Transition
- Fuels and Energy Technologies for Climate Resilience
ACE's Beni Suryadi moderating the panel discussion. (Photo by PZP)
Finding opportunities amid the global energy crisis
Kicking off the panel discussion on the topic of "Energy Security and the Energy Transition" was Jennifer Tay, Partner and Infrastructure Leader, PwC Singapore, who conveyed the importance of balancing socio-economic development with the energy transition. She also offered a business perspective that the current energy crisis has brought about new opportunities and accelerated business considerations and investments in renewables.
Adding to Ms Tay’s point, Dr Zulfikar noted that the volatility brought about by the crisis has led to shifts in policies, and countries have been actively learning and adapting to these changes.
On the other hand, Jeanne Soh, Head of Renewable and Sustainable Energy, Structured Finance Department Asia Pacific, Sumitomo Mitsui Banking Corporation, shared a less optimistic view. She felt that the reason for current statistics falling below targets is due to the lack of a contractual framework set in place and the slow speed of implementation of renewables.
Irina Lazzerini, Principal Specialist, Clean Energy, SEforAll, stated that it is essential to consider the uniqueness of each country and the levels of readiness and development differences across the countries.
Jeanne Soh of Sumitomo Mitsui Banking Corporation sharing financing perspectives.
Significant upfront funds needed for ASEAN's energy transition
The discussions continued on the importance of "Financing to Secure Energy Transition". Mr Suryadi posed questions on the role of fossil fuel companies in the energy transition and the relevant financing required to support the transition in the ASEAN region.
Ms Soh noted that most financial institutions have stopped financing and supporting coal projects due to their net zero Environmental Social Governance (ESG) goals, and that even gas projects are under scrutiny. As such, fossil fuel companies are shifting strategies and investing in hydrogen and renewable research. She pointed out that having less capital deployed to finance fossil fuels could possibly act as a catalyst for further green development.
Ms Tay then shared that there is a significant upfront investment required to adopt new technology as upgrading supporting infrastructure plays a large role in ensuring that the renewable generation capacity and efficiency can be maximised.
Ms Lazzerini added that climate targets are heavily dependent on global funding, and that climate funds should be flexible enough to support not just renewables but the value chain that goes into it. She cited that the current financing of US$59 billion is significantly below the target of US$201 billion.
On the value of low carbon technologies
In their final remarks on "Fuels and Energy Technologies for Climate Resilience", the panellists acknowledged the value of existing transition fuels and technologies like carbon capture utilisation and storage (CCUS), small modular reactors (SMR) and hydrogen. However, they noted the high cost of development.
They addressed essential elements in balancing energy security and building climate resilience, including diversifying energy options and matching technologies with available funding. They also discussed the possibility of each ASEAN Member State tapping on their natural resources and relying on the ASEAN Power Grid to enable energy resources to be shared among countries.
Mr Suryadi closed the session by reiterating the importance of countries reflecting on their needs and developing strategies to meet their climate targets.