Findings from Pacific Energy Summit 2014
Launched in 2009, NBR’s annual Pacific Energy Summit is an invitation-only event that convenes leaders from government, business, and research to explore innovative solutions to the dual challenges of rising energy demand and climate change. By bridging the commercial, public, and nonprofit sectors, the Summit informs policy and inspires collaboration to help support sustainable economic development.
I had a privilege to attend the Pacific Energy Summit (PES) 2014 on June 30 to July 1, 2014 at JW Marriot Seoul Hotel. There was a number of participant from Southeast Asia, including the Mr Susilo Siswoutomo, Vice Minister, Ministry of Energy and Mineral Resources of Indonesia, and Ith Praing, secretary of state at Cambodian Ministry of Industry, Mines and Energy.
During this two days Summit, various topics were being discussed extensively. But, two things that attracted me much are:
First, on how to pursue a regional cooperation in developing healthy energy systems for economic development, Dr Philip ANDREWS-SPEED from Energy Studies Institute, National University of Singapore coined the need as the foundation. He also highlighted the reluctance of the Nations in pursuing the cooperation. To some extent, based on my experience in managing various energy cooperation in ASEAN, I am quite agreed with Philip. But, going further, it’s the level of national economy and domestic need that affect a lot. Brunei Darussalam and Singapore, of course, don’t have an interest to talk about electrification, but in Cambodia and Myanmar, this is definitely a top priority for them. With its abundance resources on fossil fuels, the region expects Indonesia to supply them, but with the rising of domestic demand, the cooperation will be a second priority for Indonesia.
Second, is the idea of Dr. Mark THURBER from Stanford University, when discussed shifting strategies for energy and environmental security in the ASEAN region. In recognizing the rising (and continue domination) of coal in ASEAN’s energy mix – and in any other region in the world – He coined the idea to implement $1/ton CO2 tax in SE Asia. For me, this is an interesting idea.
The finding from the 3rd ASEAN Energy Outlook showed that total CO2 emission in the Alternative Policy Scenario (APS; where ASEAN implement all of their energy efficiency and renewable energy plans) will be about 679 million tons of Carbon equivalent (Mt-C), 24% lower than that of the Business as Usual (BAU) scenario (895 Mt-C).
So, it’s mean 679 million $ in APS (or 893 million $ in BAU).
According to the IEA’s publication; World Energy Investment Outlook 2014, the New Policies Scenario, cumulative investment that needed in ASEAN during the period 2014-2035 in energy supply is 1,909 billion $ and in energy efficiency is 192 billion $ ($2012).
Oh, no! Still far far away.
Of course, put carbon price definitely will raise the energy price in ASEAN, where lot of them are still applying subsidy.
I think this is definitely an interesting topic for my research. Will ask Dr. Thurber, then.