A focus on strategies needed to propel the region towards a sustainable energy future, while safeguarding energy security and resilience. Lee Mian Rong and Wong Dai Yuan report.
As the energy landscape rapidly transforms, the importance of strategies for managing the dual challenges of energy security and resilience becomes increasingly vital. Simultaneously, there is a growing need to accelerate progress towards a sustainable energy future.
We had the opportunity to hear from a panel of prominent speakers at the recent Singapore Energy Summit Session 1: Net Zero Asia on 23 October at SIEW 2023. Discussions centred around how government leaders, international institutions and industry titans can work together towards a net zero Asia.
Bridging divides to forge a sustainable energy future
H.E. Keo Rottanak, Minister of Mines and Energy from the Kingdom of Cambodia, emphasised the significance of addressing knowledge gaps, technology limitations, lifestyle changes, and financing hurdles. He pointed out that while political acumen is crucial, "political commitment can come about because you build consensus at the knowledge level".
In addition, Minister Rottanak highlighted the roles that each energy technology plays, underscoring the need for understanding and establishing commitment among countries.
The lack of a level playing field is also evident in the varying natural endowments of different countries, he noted. To that end, actions such as interconnections between countries, the transfer of technological knowledge from more developed economies, and bridging technology gaps for developing nations like Cambodia, hold the potential to be game changers.
Bridging the technology divide across nations necessitates collaboration from both the technology consumers and producers. As Minister Rottanak eloquently put it: "This is the time that each of us, our leaders should focus more on the planet and perhaps less on political differences."
Challenges and opportunities in China
Jin Wei, Executive Vice President of the State Grid Corporation of China, outlined the challenges and offered recommendations for sustainable energy development in Asia. These challenges encompass the delicate balance between the energy transition and energy security, innovation in energy technologies, and the need for increased investments in the energy sector.
To address these challenges, he proposed three measures. These are to:
- Strengthen technological cooperation;
- Advance infrastructure investment cooperation; and
- Utilise multilateral cooperation mechanisms.
China, in particular, is actively promoting the development of renewables and new energy sources. The country is also advocating for the electrification of end-user energy consumption, and strengthening the groundwork for ensuring a reliable energy supply.
Unlocking investments in renewables
Ir. Jisman Parada Hutajulu, Director General of Electricity of the Ministry of Energy and Mineral Resource in the Republic of Indonesia, laid out the country's strategies for forging a sustainable energy future. Indonesia is charting a course away from fossil fuels, embracing cleaner energy sources and venturing into carbon capture, energy utilisation, and storage technologies.
Liang Ting Wee, President of TotalEnergies Asia Pacific & Middle East - Marketing & Services, delved into the intricacies of investing in the diverse landscape of Asia Pacific. Recognising the region's vast potential, he acknowledged challenges such as permitting complexities and unfavourable policies in some markets.
However, he also highlighted positive developments including countries setting renewable energy targets and emissions reduction goals, which offer companies more clarity and transparency. Mr Liang also said: "Such progressiveness can really bring together the strength and synergies of the region in terms of producing renewable energy projects that can benefit not just one, but multiple companies. This brings tremendous opportunities for economic and social responsibilities."
The role of financial institutions in the energy transition to a net zero world
Lim Wee Seng, Group Head of Energy, Renewables, and Infrastructure at DBS Bank, discussed the financing challenges and opportunities in Asia's energy transition. He pointed out that infrastructure projects need to appropriately allocate risk and scale opportunities in order to attract investors.
In an environment marked by increasing interest rates and attractive returns, Mr Lim emphasised the role of finance and encouraged a coordinated and coherent approach in public-private partnerships for planning and executing renewable energy projects. He noted: "The public sector needs to step up in coordinating and enabling the regulatory framework for people to invest."
Australia's path to a clean energy future
The Hon. Chris Bowen MP, Minister for Climate Change and Energy, Australia (Federal), shared Australia's commitment to addressing climate change and ensuring a sustainable energy future. He said the country is preparing for a substantial increase in renewable energy generation through the modernisation and expansion of power grids, as well as significant investments in renewable hydrogen generation programmes. Australia's The eventual aim is to become a major exporter of clean energy.
Minister Bowen highlighted the need for international collaboration, saying: "We know that Australia can’t get there alone. We must work in partnership with countries in our region to build new industries in clean energy supply chains to share knowledge, expertise, and technology."
Asia's path towards sustainability entails not only the transition to cleaner energy sources but also developing resilient and interconnected energy grids. Public-private partnerships, supportive regulatory frameworks, and coordinated planning will all play a pivotal role in mobilising the capital needed for the energy transition.
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