{"id":1956,"date":"2023-03-28T08:37:14","date_gmt":"2023-03-28T01:37:14","guid":{"rendered":"https:\/\/gunungcapital.com\/?p=1956"},"modified":"2023-03-28T08:37:16","modified_gmt":"2023-03-28T01:37:16","slug":"decarbonization-of-asean-energy-systems","status":"publish","type":"post","link":"https:\/\/gunungcapital.com\/zh\/decarbonization-of-asean-energy-systems\/","title":{"rendered":"Decarbonization of ASEAN Energy Systems"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"1956\" class=\"elementor elementor-1956\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7172996 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7172996\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8effffe\" data-id=\"8effffe\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-946a04d elementor-widget elementor-widget-text-editor\" data-id=\"946a04d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">Many nations pledged to reach carbon neutrality by 2050 or 2060 at the United Nations Climate Change Conference (COP26) in Glasgow, United Kingdom. ASEAN will likely face significant challenges in achieving carbon neutrality because:\u00a0<\/span><\/p><ol><li><span style=\"font-weight: 400;\">ASEAN largely depends on coal-based electricity production and petroleum-based transportation.<\/span><\/li><li>To gain economic parity with developed nations, ASEAN will likely continue to increase energy consumption.<\/li><li><span style=\"font-weight: 400;\">Renewable energy (RE) sources, such as solar and wind, have low potential in ASEAN because of low solar radiation and unstable wind speed.<\/span><\/li><\/ol><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">As a result, RE may not eventually contribute to the region\u2019s carbon neutrality.<\/span> <span style=\"font-weight: 400;\">To achieve carbon neutrality by 2050-60, ASEAN must choose technologies that can reduce CO<\/span><span style=\"font-weight: 400;\">2<\/span><span style=\"font-weight: 400;\"> emissions in a cost-effective manner. The installation of zero-emission energy technologies, such as green hydrogen\/ammonia production; carbon capture, utilisation and storage (CCUS); direct air capture and biomass energy with CO<\/span><span style=\"font-weight: 400;\">2<\/span><span style=\"font-weight: 400;\"> capture and storage, can help in this context. The implementation of these low- or zero-emission technologies will likely incur high marginal abatement costs, which calls for innovation in energy technology to reduce these costs. Another critical component in attempting to attain net zero emissions in the ASEAN area will be afforestation, as a measure of carbon offset. Table 1 presents estimates of major ASEAN members&#8217; energy-related CO2 emission reduction targets.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1511722 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1511722\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8eaf081\" data-id=\"8eaf081\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f600931 elementor-widget elementor-widget-image\" data-id=\"f600931\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"209\" src=\"https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-28-080816.png\" class=\"attachment-large size-large wp-image-1958\" alt=\"ASEAN countries emission target\" srcset=\"https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-28-080816.png 864w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-28-080816-300x78.png 300w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-28-080816-768x201.png 768w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-28-080816-18x5.png 18w\" sizes=\"(max-width: 800px) 100vw, 800px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-69f2660 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"69f2660\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fbd6c49\" data-id=\"fbd6c49\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e1f97d4 elementor-widget elementor-widget-text-editor\" data-id=\"e1f97d4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">ASEAN holds material prospects for the RE industry because the region\u2019s electricity demand is forecast to quadruple by 2040, then today\u2019s demand, will be double the world average pace of electricity demand growth. To meet this challenge, member states are eager to attract foreign expertise and investments<\/span><span style=\"font-weight: 400;\">.<\/span> <span style=\"font-weight: 400;\">For the transition to a net-zero power system, ASEAN needs to focus on technology transformation, large-scale deployment of RE and implementation of strong energy efficiency measures through the following measures:\u00a0<\/span><\/p><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>No approval for new coal plants<\/i><\/b><b>:<\/b><span style=\"font-weight: 400;\"> New unabated coal-fired plants should not be approved for a net-zero emission (NZE) environment.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Large-scale deployment of RE<\/i><\/b><b>:<\/b> <span style=\"font-weight: 400;\">The current share of RE in the overall energy mix is less than 10%. To cater to the growing demand in the region, the share of RE needs to grow significantly, based on the availability of resources and the potential in the member states.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><strong><i>Grid modernization\u00a0and consolidation<\/i>:<\/strong><span style=\"font-weight: 400;\"> Ensuring electricity security with a higher share of variable RE would require grid modernization and consolidation, demand side management, digitalization, enhanced cyber resilience and inter-region planning.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Retrofitting old conventional plants<\/i><\/b><b>:<\/b> <span style=\"font-weight: 400;\">Coal-\u00a0and\u00a0gas\u2010fired plants\u00a0should be retrofitted with\u00a0CCUS or co-fired with hydrogen-based fuels (such as 15% methanol or 20% ammonia, with an aim for 100% methanol or ammonia) to enable existing assets to contribute to the transition while supporting energy security.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Enhanced energy storage capacity<\/i><\/b><b>:<\/b><span style=\"font-weight: 400;\"> To manage high RE penetration, a large storage capacity would be needed. Thus, the government needs to promote RE projects with storage, hybrid (solar + wind + storage) projects, storage-only projects, pump storage and green hydrogen for long-duration energy storage.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Well-designed framework<\/i><\/b><b>:<\/b><span style=\"font-weight: 400;\"> ASEAN needs to reform its regulatory framework, execute long-term clear policies, adopt least-cost system planning and cost-recovery tariff to lower investment and financing risks, and attract private sector investments for a net-zero scenario.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>International finance<\/i><\/b><b>:<\/b> <span style=\"font-weight: 400;\">International finance and inter-regional support play a key role in improving access to private finance for ASEAN, especially for early-stage projects, adoption of new technologies (e.g., CCUS and green hydrogen), and technologies with specific risks (e.g., exploration risk in geothermal energy).<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Distributed projects<\/i><\/b><b>:<\/b> <span style=\"font-weight: 400;\">Distributed projects play a crucial role in the Net Zero Energy (NZE) scenario. Based on resource availability, solar rooftops can be deployed in individual houses, shopping malls, parking lots, industrial sheds, institutional roofs, etc. This will likely meet the reduced demand for centralized power generation and lower system upgrade costs.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Capacity development<\/i><\/b><b>:<\/b><span style=\"font-weight: 400;\"> Technology transformation and upgrade of the Transmission and Distribution (T&amp;D) system would require new skills and capabilities. ASEAN should organize training programs, study tours and certification courses to enhance the skills of the workforce and train new talent.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Demand creation for a flexible generation<\/i><\/b><b>:<\/b><span style=\"font-weight: 400;\"> The regulatory and policy framework should be revised to create demand for new green technologies, storage projects and flexible fuel (green hydrogen, ammonia, methanol, etc.) through minimum offtake obligations such as technology-specific Renewable Purchase Obligations (RPOs).<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Cross-border energy trade (CBET)<\/i><\/b><b>:<\/b><span style=\"font-weight: 400;\"> Developing market mechanisms hold the key to promoting CBET. Existing and ongoing interconnections, particularly in neighboring states, should be used rather than building and operating additional plants to generate power.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Energy as a service (EaaS)<\/i><\/b><b>:<\/b><span style=\"font-weight: 400;\"> Customers should be engaged in energy management through the adoption of the EaaS model. The EaaS model offers consumers various energy-related services (energy advisory, energy-asset installation and energy management) rather than only supplying electricity.<\/span><\/li><\/ol><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">The Economic Research Institute for ASEAN and East Asia (ERIA) calculated the cost-optimal deployment of energy technologies to attain carbon neutrality in ASEAN around 2060 by using an optimum technology selection approach. ERIA estimated the increase in yearly cost for carbon neutrality in 2050-2060 compared to the baseline at around 3.6% (US$0.58 trillion) of ASEAN\u2019s GDP in 2060.<\/span><\/p><p><span style=\"font-weight: 400;\">Gunung Capital \u2014 a private investment management firm \u2014 focuses on investments that help the world transition to a net-zero economy and promote sustainable communities. The company has recently assisted in the decarbonization of one of Indonesia\u2019s finest steel plants.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Several low-carbon technologies are available to reduce CO<\/span><span style=\"font-weight: 400;\">2<\/span><span style=\"font-weight: 400;\"> emissions during the energy transition phase, but decarbonization would encounter major economic challenges due to high CAPEX.\u00a0 By collaborating closely with global investors, policymakers, non-governmental institutions and enterprises, Gunung Capital\u2019s management supports investments in the carbon market, encourages the adoption of decarbonization technologies (through international collaboration) to reduce cost and, ultimately, funnels more capital into sustainable enterprises.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Many nations pledged to reach carbon neutrality by 2050 or 2060 at the United Nations Climate Change Conference (COP26) in Glasgow, United Kingdom. ASEAN will likely face significant challenges in achieving carbon neutrality because:&nbsp; ASEAN largely depends on coal-based electricity production and petroleum-based transportation. To gain economic parity with developed nations, ASEAN will likely continue [&hellip;]<\/p>","protected":false},"author":1,"featured_media":1962,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts\/1956"}],"collection":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/comments?post=1956"}],"version-history":[{"count":0,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts\/1956\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/media\/1962"}],"wp:attachment":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/media?parent=1956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/categories?post=1956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/tags?post=1956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}