Opportunities abound for Singapore’s financial hub to play a key role in developing strategic investments and partnerships that are crucial to the region's renewable energy ambitions.
The International Energy Agency (IEA) has predicted that Artificial Intelligence (AI) and data centers will sharply increase the demand for renewable power. The net increment of renewable power generation for AI will likely triple to 262 terawatt-hours (TWh) by 2026 compared to 2023, and the share of AI demand in renewable power generation is expected to double to 17.9%.
Fossil fuels make up 83% of ASEAN energy mix. With energy needs expected to triple by 2050 compared to 2020 levels, the urgency for a low-carbon transition is clear. Nine ASEAN countries have committed to reaching net zero or carbon neutrality by mid-century.
Without any mitigation measures, the energy demand of ASEAN in 2050 is projected to increase by triple the 2020 value due to the population and economic growth of the region. Coal is projected to account for the significant shares for approximately 43% and 22% of the total ASEAN’s electricity generation and primary energy supply in 2050, respectively.
On 3 July 2024, the Government of Vietnam issued its long-awaited decree permitting direct power purchase agreements (DPPAs) for renewable energy between private project developers and private energy consumers. An extraordinary feature of the decree grants permission for entirely privately developed, owned, and operated transmission lines. This provision could allow the development of large-scale solar or wind farms at remote sites to supply industrial consumers directly. This landmark legislation could ignite a new wave of rapid renewable energy development in Vietnam.
For India to achieve its net-zero target by 2070, a comprehensive transition to renewable energy is imperative. This necessitates a multifaceted approach, encompassing policy frameworks, investment strategies and technological advancements.
Hydrogen is touted as the "ultimate energy source of the 21st century." Significant in promoting sustainable global economic development, it gradually becomes one of the important drivers for global energy transition.
Since the United States (US) Biden Administration announced the temporary pause on new liquefied natural gas (LNG) export approvals early this year, many Asian countries expressed concern about the potential disruption in energy security and decarbonization goals.
In November 2022, the Indonesian government and the multi-government International Partners Group (IPG) announced the US$20 billion Indonesia Just Energy Transition Partnership (JETP). Unprecedented in size and scope, it seeks to mobilise public and private sector funds to retire energy assets with high carbon dioxide (CO2) emissions, and accelerate the adoption of clean technology, whilst providing the country with sustainable economic development. But discussions seem to have become stuck on defining transition priorities.
Last week, Indonesian financial regulators indicated they were considering a place for new coal-fired power plants in the country’s green taxonomy. This appears to be going beyond their plan to recognize, under the green label, targeted coal power plants scheduled for early retirement. The U-turn not only marks a backsliding of the official position displayed early last year but, if implemented, would also relegate Indonesia to the bottom of the pack of global green or sustainable finance taxonomies.
Asia has a powerful climate financing challenge. Taking the power sector for example, the region is projected to consume half the world’s electricity by 2025, and whilst growing renewable energy adoption offers encouraging signs of transition, the reality is that significant additional financing is required to deliver a net-zero power landscape.
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Commentary
Indonesia’s energy crossroads: Turning ambition into action
Indonesia’s energy crossroads: Turning ambition into action
India’s energy crossroads: Why the power sector must focus on infrastructure modernisation and system resilience
Exploring clean, renewable energy sources to meet Southeast Asia’s energy demands
Navigating risk strategies for decommissioning traditional power plants
Is Northeast Asia set to lead the second surge of floating offshore wind?
Beyond the grid: What is really driving smart cities in today’s energy transition
Offshore wind power needs Singapore’s expertise as Asia’s reliance on fossil fuels rises
South Korea needs to accelerate renewable energy adoption to fuel Artificial Intelligence and semiconductor sectors
Carbon Capture and Storage: The bold path forward for ASEAN
Exploring carbon pricing revenue recycling for securing raw materials of biomass co-firing in ASEAN
Vietnam’s direct power purchase agreement decree could catalyze a new era for renewable energy
Enhancing Financing Availability is Crucial for Achieving India’s Decarbonisation Goals
Commercial production of white hydrogen unlikely in the short term
Three reasons the US LNG pause does not threaten South Korea’s energy security and transition
Implementing Indonesia’s JETP plan requires prioritisation, processes, and transparency
Indonesia signals it could abandon science-based taxonomy for coal power plants
Can voluntary carbon markets accelerate decarbonisation in Asia?