@Green July/August 2023 | Page 15

JULY-AUGUST , 2023 | @ green

EVENT

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ASEAN Power Grid for distribution and sustainability

Narendra Asani General Manager GE Gas Power , Malaysia .
energy framework to ensure that the noticeable effects of climate change will not be permanent .
A TRANSITION WORTH INVESTING
Besides the mindset shift towards renewables , the renewable energy sector is ripe with investment opportunities .
“ Energy transition may be the biggest investment opportunity of our lifetimes ,” said Ashton . “ While many people focus on the risks and compliance obligations of ESG and energy transition , I say the smart money focuses on the opportunities and the early mover advantages presented
by the most significant investment opportunity of our times .”
Although investments in renewable energy sources were few and far between in the early 2000s , current investment opportunities for renewables offer a lucrative business prospect for investors that wish to dip their feet in renewables .
“ To achieve the net zero ambitions by 2020 , US $ 3-5 trillion in investment is required annually for the next two and a half decades ,” Ashton added .
“ IEA ( International Energy Agency ) Executive Director Fatih Birol told the Financial Times that global solar power investment is set to outstrip spending on oil production this year for the first time .
“ This year , 1.7 trillion dollars is forecast to be spent across clean energies compared to one trillion on fossil fuels . Just five years ago , the total investment pool was two trillion , which was roughly half and half . Changes are happening .”
Indeed , with the current trend of climate change and the concerns of energy security , investors can and should seize the opportunity to invest in renewables to ensure a sustainable future not just for power companies but for the people and the planet . – @ Green
THE EARTH " S population will no doubt continue to grow over the coming decades . The United Nations Population Division stated that in 2022 , the world population had reached a burgeoning eight billion . By 2050 , the world ’ s population could reach a whopping 9.7 billion .
As the number of humans rises , so does the number of mouths to feed or , in this case , the consumption of fossil fuels to generate power through traditional means to sustain the growing population . Fossil fuels inevitable depletion means renewable sources must be sought .
“ With the energy industry facing a growing population and economic well-being , there is a need for more energy to supply the requirements of more humans around the world ,” said Laura Ashton , CEO of Low Carbon Advisors ( Singapore ), during the WPPIC 2023 .
“ But we need to do this in a sustainable way , bringing costs down and ensuring energy security for countries .”
During the conference , industry experts , delegates and ASEAN discussed the ASEAN Power Grid ( APG ) and its role in the future sustainability within the Southeast Asia region .
The APG aims to facilitate crossborder electricity trade and support the integration of renewable energy sources within the region . Although there has been some progress with the grid , the project has not yet come to fruition due to the many challenges
that plague the project .
Ashton said : “ The 10 member States of ASEAN showed great interest in the ASEAN Power Grid . To make the grid work , we require harmonisation and alignment on how to do it and how to do it effectively .”
Although Southeast Asia has abundant untapped renewable energy sources , technical , political , institutional and economic factors are only some of the challenges that hold back the APG from reaching fruition .
This is due to the diverse nature of the ASEAN Member States ( AMS ). One can look at the development of the ASEAN Connectivity Master Plan ( ACMP ), which attempts to improve infrastructure and connectivity within AMS .
However , due to the voluntary nature of the plan , participation and cooperation from other state members would prove difficult , and sometimes , the level of investment and involvement would not be the same among members .
Therefore , harmonisation of national regulations and technical standards is key for the AGP to become a reality .
Ashton added : “ If ASEAN can activate this grid , we can have energy flowing from distant parts of the region - from the supply to where it ’ s required , unleashing commercial opportunities for governments and businesses and allowing populations all through ASEAN to have more access to reliable energy that is sustainable in the long-term .”

Finding common ground

THE ROAD to a green and sustainable future is not without its challenges . Regardless of whether someone is willing to pick up the torch and lead the flock or the abundance of natural renewable resources , gears will not shift if companies and organisations continue to act independently , disregarding harmonisation and collaboration .
As previously stated , ASEAN is a rich and diverse association with many cultural , geographical and political backgrounds . However , these traits , unfortunately , bear a weakness as the various regions of ASEAN and differing priorities , socioeconomic development , and regulatory systems of member States may hinder the progress of the ASEAN Power Grid ( APG ).
Besides the development of the
ACMP , Indonesia , the nation that assumed the ASEAN chairmanship in 2023 , delayed the carbon tax implementation until 2025 , citing domestic energy security concerns .
On the other hand , Singapore , utilising a market-based economy whereby the market is fully liberalised and determined by market forces , starkly contrasts the other ASEAN member States ( AMS ), characterised by substantial government intervention to ensure that power remains affordable .
These differences in the mindsets of the member States would undoubtedly delay the implementation of the APG .
“ Energy transition is not about politics ,
Camilo Morales it is not about continents , it is not about flags , it is not about one person ,” said Camilo Morales , Secretary General of Naturgas , Colombia , during the conference .
“ When we talk about the energy transition , we talk about how policymakers , political leaders and industrial leaders can deliver affordable energy to the people . It is about ensuring affordable electricity to our people through introducing renewables using local natural resources .”
Therefore , common ground must be established by the member States to ensure the success of the APG . Harmonisation of regulatory frameworks , technical requirements and guidelines would be a good start on this task as it would enable a safe and reliable method for state members to work with minimal conflict .
Additionally , once harmonisation is in place , member States can appoint an independent regional regulatory institution . This regulator would ensure efficient and fair regional electricity trade and exchange .
This would hopefully enhance cooperation and collaboration amongst the AMS in establishing the APG . Policymakers must also consider installing regular , high-level regional dialogues amongst the AMS to ensure smooth communication for discussing challenges and opportunities .
Morales added : “ I hope the energy transition will become a common goal for everyone . It should be a global purpose that allows us to become not only a low carbon emission civilisation , but also allow our future generations to have a prosperous world .”