Asia is undergoing an energy transition and there’s scope to scale up using renewable energy sources within the region, in accordance with the CEO of a Southeast Asian-based Philippine energy company.
“We’re obviously quite positive about renewables in Southeast Asia,” AC Energy’s John Eric Francia told CNBC’s “Street Signs Asia,” adding that the corporate has gained traction since its shift to cleaner energy sources in 2016.
According to him, AC Energy currently has 2,100 megawatts of renewable capability and plans to extend it to five,000 megawatts by 2025. According to a company with operations within the Philippines, Vietnam, roughly 80% of the corporate’s power comes from renewable sources. Indonesia, India and Australia.
While he acknowledged that the change can be gradual, he said recent events had highlighted the chances of renewable energy.
According to the Carnegie Endowment for International Peace, rising domestic demand in 2022 will drive up energy consumption in Southeast Asia, straining the region’s ability to reconcile near-term energy supply needs with long-term goals similar to more sustainable growth through clean energy.
According to the International Energy Agency, energy demand within the region will increase by 60% by 2040, representing 12% of world growth. By 2040, electricity demand is predicted to grow at a rate of 4% per yr, twice the worldwide average.
Electricity currently accounts for just 16 percent of total energy consumption in Southeast Asia, but that percentage will increase because the region sees greater demand for refrigeration and other gadgets consequently of rising wages.
The region has set itself lofty ambitions, aiming to realize net zero emissions by the primary half of the century. To achieve this, governments must work hard to transition to renewable energy.
Vietnam, for instance, still gets 84 percent of its energy from fossil fuels, half of which is coal. Singapore – 98%, Thailand – 79%, Indonesia – 76%, Malaysia – 67% and the Philippines – 66%, so the remainder of Southeast Asia relies less on coal, but its energy sources are heavily depending on other fossil fuels. In other words, the region has loads of room to grow.
Nevertheless, progress within the region is noticeable. The ASEAN Roadmap for Energy Cooperation outlines ideas for regional energy infrastructure, a single marketplace for liquefied natural gas, cleaner coal technology, increased renewable energy opportunities and civilian nuclear energy, amongst others.
Things are moving forward. Despite its dependence on fossil fuels, Vietnam has develop into a renewable energy leader in Southeast Asia because of a mix of favorable tariffs and tax incentives.
More is on the way in which because the master plan features a financial component to assist it move on a greener path. The region’s dependence on fossil fuels opens the door to a more sustainable supply mix, but this transition will likely be difficult because it should require skillfully balancing greater energy demand and cleaner energy supplies without causing inflation, reducing business margins or increasing consumer spending.
Source: CNBC.com, Carnegie Endowment for International Peace
