Policy Dialogue on Energy for Sustainability Development in Asia and the Pacific

Transcription

1 Policy Dialogue on Energy for Sustainability Development in Asia and the Pacific Session 5: Collaboration with UN-Energy Asia-Pacific and Regional and Global Organization UN-ESCAP, December 2013, Bangkok, Thailand Hardiv H. Situmeang ASEAN Centre for Energy (ACE)

2 Three Core Dimensions of Energy Sustainability 2

3 3 Core Dimensions of Energy Sustainability Energy Security Social Equity Environmental Impact Mitigation Energy sustainability *) is based on 3 (three) core dimensions: (1) Energy security, (2) Social equity, and (3) Environmental impact mitigation. The development of stable, affordable, and environmentally sensitive energy systems defies simple solutions. These three goals constitute a trilemma, entailing complex interwoven links between public and private actors, governments and regulators, economic factors, national resources, environmental concerns, and the behaviors of individuals. It needs firm action to steer the national energy system onto sustainable energy path in achieving stable, affordable, and environmentally sensitive energy systems. Energy Security: For both net energy importers and exporters this includes the effective management of primary energy supply from domestic and external sources; the reliability of energy infrastructure; and the ability of participating energy companies to meet current and future demand. For countries that are net energy exporters, this also relates to an ability to maintain revenues from external sales markets. Social Equity: This concerns the accessibility and affordability of energy supply across the population. Environmental Impact Mitigation: This encompasses the achievement of supply and demand-side of energy efficiencies and the development of energy supply from renewable and other low-carbon sources. *) WEC Definition. Policies for the future 2011 Assessment of country energy and climate policies, WEC 2011.

4 Key Challenges

5 Some Routes to Enhance Energy Security

6 uncertainty World Energy Issues Monitor Asia, 2013 energy prices critical uncertainties ccs climate framework hydrogen economy electric vehicles sustainable cities nuclearmiddle East dynamics energy affordability renewable energies biofuels large scale accidents energy water nexus China India terrorism trade currency barriers uncertainty business cycle electric storage global recession unconventionals corruption capital markets energy subsidies commodity prices innovative regulation energy efficiency energy poverty new market players US policy smart grids large scale hydro Brazil Russia EU Cohesion regional interconnection talent macro geopol. & business vision & economicregional environment technology weak signals need for action impact

7 ASEAN CENTRE FOR ENERGY (ACE)

8 Vision & Mission Vision The Centre as catalyst for the economic growth and development of the ASEAN region by initiating, coordinating, and facilitating national as well as joint and collective activities on energy. Mission ACE will accelerate the integration of energy strategies within ASEAN by providing relevant information, state-ofthe-art technology and expertise to ensure that over the long-term, the necessary energy development policies and programs are in harmony with the economic growth and the environmental sustainability of the region.

9 ACE in the ASEAN Energy Sector ASEAN HEADS OF STATE/GOVERNMENT OTHER MINISTERIAL MEETINGS A M M AMMST ASEAN SG A E M A M E M OTHER MINISTERIAL MEETINGS A S C S O M LEGEND: AEBF: ASEAN Energy Business Forum AEM: ASEAN Economic Ministers AFOC: ASEAN Forum on Coal AMEM: ASEAN Ministers of Energy Meeting AMM: ASEAN Ministerial Meeting AMMST: ASEAN Ministerial Meeting on Science & Technology ASC: ASEAN Standing Committee ASCOPE: ASEAN Council on Petroleum COST: Committee on Science & Technology EE&C SSN: Energy Efficiency and Conservation Subsectoral Network HAPUA: Heads of ASEAN Power Utilities/Authorities NRSE SSN: New & Renewable Sources of Energy Subsectoral Network SCNCER: Sub-Committee on Non- Conventional Energy Research S G: Secretary General SOM: Senior Officials Meeting SOME: Senior Officials Meeting on Energy REPP-SSN: Regional Energy Policy and Planning Sub Sector Network COST SCNCER RE SSN ASEAN SECRETARIAT ASEAN CENTRE FOR ENERGY (ACE) EE & C SSN S O M E AEBF ASCOPE AFOC HAPUA REPP- SSN NEC- SSN 9

10 Specialized Energy Bodies and Focal Points ASCOPE (ASEAN Council on Petroleum) HAPUA (Heads of ASEAN Power Utilities/Authorities) AFOC (ASEAN Forum on Coal) EE&C SSN (Energy Efficiency and Conservation Subsector Network) RE SSN (Renewable Energy Sub-sector Network) REPP SSN (Regional Energy Policy Sub-sector Network) NEC SSN (Civilian Nuclear Energy Sub-sector Network)

11 ASEAN PLAN OF ACTION FOR ENERGY COOPERATION APAEC (Highlights)

12 APAEC Bringing Policies to Actions: Towards a Cleaner, More Efficient and Sustainable ASEAN Energy Community Objectives To support the realization of the ASEAN Community towards 2015 and beyond. To enhance energy security, accessibility and sustainability for the ASEAN region with due consideration to health, safety and environment through accelerated implementation of action plans, but not limited to: Program Area 1. ASEAN Power Grid 2. Trans-ASEAN Gas Pipeline 3. Coal and Clean Coal Technology 4. Energy Efficiency and Conservation 5. Renewable Energy 6. Regional Energy Policy and Planning 7. Civilian Nuclear Energy

13 APAEC APPROACHES Strengthen coordination, participation in all program areas to narrow development gap, improve energy access, and to facilitate economic integration of the ASEAN region; Adopt targets or aspirational goals in programs and consider cross-sector issues towards accelerating all the initiatives taking into account the domestic energy situation of the individual ASEAN Member State; Provide a conducive environment for greater private sector involvement and participation, including securing foreign direct investment; Broaden perspective and focus of action on human resources and capacity building skills; Recognize enabling factors and barriers, such as human and financial resources and regulatory issues; Develop and implement transparent legal, regulatory and technical frameworks in various energy projects, in particular, on the cross border interconnection projects to promote open and flexible energy trade; and Develop and expand the energy mix and supply sources in a sustainable and environmental-friendly manner through optimal utilization of potential energy sources of the region to include frontier exploration and development and extensive research on both fossil fuels and renewable energy resources and energy efficiency and conservation.

14 APAEC Program Area No. 4. Energy Efficiency & Conservation Objective To strengthen cooperation in energy efficiency and conservation through institutional capacity building and increasing private sector involvement including enhancing public awareness as well as expanding markets for energy efficient products. Strategic Goals To pursue the aspirational goal of reducing regional energy intensity of at least 8% by 2015 based on 2005 level To achieve higher end-use energy efficiency for all sectors through regulatory and market approaches, where appropriate To enhance institutional and human capacity emphasizing the development of energy efficiency technology and service providers in the ASEAN region To encourage private sector participation, especially financial institutions to support EE&C investment and implementation

15 APAEC Program Area No. 5 Renewable Energy Objective To institute and maintain sustainable development on the use of renewable energy and its technologies Strategic Goals To achieve a collective target of 15%* for regional renewable energy in the total power installed capacity by 2015 To strengthen regional cooperation on the development of renewable energy and alternative energy including hydropower and bio-fuels To promote the development of centers of research and development on renewable energy in the region; To promote open trade, facilitation and cooperation in the renewable energy sector and related industries as well as investment in the requisite infrastructure for renewable energy development

16 APAEC EE & RE Progress Joint Ministerial Statement of the 31 st ASEAN Ministers of Energy Meeting (AMEM), 25 September 2013, Bali, Indonesia (Excerpt) Paragraph 7 The Ministers commended the efforts of the Energy Efficiency and Conservation Sub-Sector Network (EE&C-SSN) particularly in promoting and improving energy efficiency in the region, which contributed to a 7.56% reduction in the ASEAN-wide energy intensity (EI) in 2010 over 2005 level, and noted that ASEAN is on track to meeting the collective target of 8% reduction by In this regard, the Ministers noted the EE&C-SSN s Work Plan to develop a credible long-term EI reduction target for ASEAN and a systematic mechanism to monitor EI reduction. Paragraph 8 On Renewable Energy (RE), the Ministers noted the activities undertaken by the Renewable Energy Sub-Sector Network (RE-SSN) and the Renewable Energy Support Program (RESP) in promoting the development of renewable energy in the region, including capacity building workshops on RE Standards, mini-hydro, Solar PV and the publication of the ASEAN RE Development The Ministers appreciated the efforts of ASEAN Member States and noted the excellent advancement of RE installed capacity to 29.3% in The Ministers appreciated the successful launching of the 1 st ASEAN Renewable Energy Week and the 1 st ASEAN Renewable Energy Forum led by Malaysia and the ACE.

17 The 3 rd ASEAN Energy Outlook

18 The 3 rd ASEAN Energy Outlook Projection Scenarios Business-as-Usual (BAU) Scenario or the Base Case Scenario Used the historical correlation of final energy consumption and economic activity from 1980 to The GDP growth as well as the energy supply would be based on current targets by each government as well. In view of the use of regression analysis, the trends of future consumption follow historical trends. Alternative Policy Scenario (APS) It is assumed that the energy efficiency saving goals of the governments of all the member states of ASEAN is met. The scenario also includes the improvement in thermal efficiencies of fossil fuel-fired power plants as well as use of alternative fuels and technologies such as nuclear technology, renewable energy and biofuels.

19 The 3 rd ASEAN Energy Outlook Primary Energy Consumption from 1990 to 2030 (BAU Scenario) Total primary energy consumption increased from 252 MOTE in 1990, 339 MTOE in 1995 to 511 MTOE in 2007 or 3.6% per annum. Under BAU, it will growth 4.5% per year from 2007 to reach 1,414 MTOE in Coal will have the fastest annual growth as demand increases in power generation, but oil will remain as the major source of energy.

20 The 3 rd ASEAN Energy Outlook Primary Energy Consumption from 1990 to 2030 (APS) In the APS, the growth of primary energy consumption will be at a slower 3.6% per annum to reach only 1152 MTOE in 2030, 18.5% lower than in the BAU scenario. This is the result of imposing EE&C action plans and saving targets of the member countries. Primary energy intensity will decrease by 29.7% to 408 TOE/million USD.

21 The 3 rd ASEAN Energy Outlook ASEAN Primary Energy Mix, 2007 and 2030 Under BAU Scenario, the total primary energy consumption increased from 511 MTOE in 2007 to 1,414 MTOE in Coal will have the share of 29.3% in 2030, increasing from 14.8% in Natural gas share decreases from 21.4% in 2007 to 16% in Oil share in primary energy mix decreases from 36.2% in 2007 to 35.1% in Geothermal energy increases its share from 2.9% to 3.4% in Hydro will also grow, however its share will only 2.1% in Others here mostly dominated from biomass

22 The 3 rd ASEAN Energy Outlook ASEAN Electricity Generation by Source, 2007 and 2030 From 2007 to 2030, ASEAN is projected to increase its electricity generation from Renewable Energy sources. Hydro power will increase its share from 12.5% in 2007 to 14.5% in While Geothermal share will decline from 3% in 2007 to 2.3% in 2030, under BAU scenario other* Renewable Energy sources will increase their share from 0.7% in 2007 to 5% in *Others here mostly dominated from biomass

23 The 3 rd ASEAN Energy Outlook CO 2 Emission from 1990 to 2030 (BAU Scenario vs APS) Total CO 2 emission in the APS will be about 679 million tons of Carbon equivalent (Mt-C), 24% lower than the BAU scenario (895 Mt-C). CO 2 emission per unit of GDP will also increase at the average annual rate of 0.5% from 283 t- C/million USD in 2007 to 317 t-c/million USD in 2030 in the BAU. In the APS, on the other hand, CO 2 intensity will decrease by 0.7% per year to 240 t-c/million USD.

24 The 3 rd ASEAN Energy Outlook RAISED CONCERNS TO THE ENERGY SECURITY OF ASEAN & GLOBAL ENVIRONMENTAL STABILITY ASEAN will continue to be heavily dependent on fossil fuels especially oil in the future. The rapid growth of electricity demand will also be a driving force in increasing use of fossil fuels especially coal. One of the most effective ways of meeting future demand is improving energy efficiency as shown by the APS results. In this regard, ASEAN might to revisit their energy efficiency programs to optimize the benefits that could be derived from them. Another sustainable way to meet increasing demand is to accelerate the development of clean energy such as renewable and alternative energy. ASEAN needs to improve the energy investment climate so that it will become more conducive to investors. ASEAN should also continue to strengthen regional cooperation especially in sharing best practices in energy development and utilization including energy efficiency.

25 The 3 rd ASEAN Energy Outlook FINDING AND POLICY IMPLICATIONS As member countries continue to pursue their economic goals, primary energy consumption and CO 2 emission in ASEAN will increase almost three folds in the BaU scenario there will be increasing pressure on energy security and global environmental stability. If current energy production levels in the region do not increase - the region will have to source out this additional demand from outside the region. Appropriate energy efficiency and conservation programs, lowcarbon technologies and increased shares of non-fossil fuels in power generation - would be needed to reduce carbon intensity and enhance energy security.

26 Reference: Takato OJIMI, The President of APERC. Renewable Energy and Sustainability Development. Asia Pacific Conference on Clean, Renewable and Sustainability Use of Energy, 1 st October 2013, Bali, Indonesia. 26

27 Reference: Takato OJIMI, The President of APERC. Renewable Energy and Sustainability Development. Asia Pacific Conference on Clean, Renewable and Sustainability Use of Energy, 1 st October 2013, Bali, Indonesia. 27

28 Reference: Takato OJIMI, The President of APERC. Renewable Energy and Sustainability Development. Asia Pacific Conference on Clean, Renewable and Sustainability Use of Energy, 1 st October 2013, Bali, Indonesia. 28

29 Mitigation Potential for A Specific Period of Time

30 ASEAN CCS STRATEGIC CONSIDERATION (ACE AFOC in Collaboration with GCCSI) Next Steps for CCS Progress in ASEAN & Proposed 2014 ASEAN CCS Activities 30

31 Next Steps for CCS Progress in ASEAN 31

32 Proposed 2014 ASEAN CCS Activities Theme Knowledge Sharing Public Engagement Activity Dialogue to discuss on preferred knowledge sharing mechanisms around CCS on topics of interest: - Projects - Legal and regulatory issues - Storage assessment - Etc. Dialogue to discuss on Shared CCS Messages captured in a factsheet, as a resource for AMS. Discuss proposed case study on applying good practice public engagement in ASEAN. 32

33 ASEAN Renewable Energy Development

34 ASEAN RE Installed Capacity & Generation 2011 ASEAN RE Installed Capacity Hydro 79.18% Biomass 12.41% Goethermal 7.70% Solar 0.51% Wind 0.21% Share of RE in ASEAN Installed Capacity Mix Non-Renewable 70.67% Renewable 29.33% Wind 0.06% Hydro % Solar 0.15% Biomass 3.64% Goethermal 2.26% ASEAN RE Power Generation Hydro 75.07% Biomass 10.04% Goethermal 14.59% Solar 0.17% Wind 0.13% Share of RE in ASEAN Power Generation Mix Non-Renewable 81.08% Renewable 18.92% Hydro 14.21% Wind 0.02% Solar 0.03% Biomass 1.90% Goethermal 2.76%

35 ASEAN RE Development and Its Associated Activities

36 ASEAN EE Development and Its Associated Activities

37 Recent ACE Publications

38 Recent ACE Publications

39 Recent ACE Publications The Guideline presents effective policy approach and support mechanisms to trigger private investments in RE projects at each stage of RE market maturation.

40 Renewable Energy Market Development of ASEAN Countries Inception stage. Countries at the inception stage of RE market deployment are dependent on fossil fuels to meet their energy demand. Often, fossil fuels subsidy policies remain from the country s legacy to stimulate economic development and to ensure affordability of energy for poorer households. RE exists only as first examples and is deployed as demonstration or pilot projects. The initial formulation of regulations and policy on RE exists, but is not yet effective to pave the way for RE growth. Moreover, the cost of RE technology is above the cost of competing alternatives. At this stage, a country is challenged to formulate effective policies, provide stimulus packages and establish institutional capacity required to initiate and monitor RE market deployment. Take-off stage. At take-off stage, deployment of RE grows. Awareness of the importance of RE as alternative sources to fossil fuel is increasing, marked by the enforcement of policies and regulations that promotes RE. Most often in the take off stage, the country faces significant challenge to establish a predictable long-term support environment to generate investors confidence and appropriate incentives while managing thecost of promotional policies. Consolidation Stage. At this stage, the cost of RE technologies achieves a competitive playing field, and there is an important share of RE among the electricity sources in the country. Deployment grows towards the maximum practicable level, which is close to the realizable potential for the country.

41 Predominant RE Challenges Faced by Majority ASEAN Countries

42 Support Mechanisms to Stimulate RE Bankable Projects Support Mechanism Type Description Market Mechanism Feed-in-Tariff (FiT) Premium-price FiT (Adder) Renewable Energy Portfolio Standard (RPS) Net Metering Priority Access Competitive bidding FiT guarantees the generator of renewable electricity a fixed price per kwh at which electricity is bought. Adder provides an FiT payment above the market price for electricity generation. An RPS requires which requires a minimum percentage of generation sold or capacity installed be provided by renewable energy. Obligated utilities are required to ensure that the target is met, either through their own generation, power purchases from other producers, or direct sales from third parties to the utility s consumer. Net metering is a voluntary arrangement where customers are allowed to sell excess electricity generated from qualified renewable systems back to the utility through their metered electricity connection. Under Priority Access utilities are mandated to provide priority grid connection to RE and/or place electricity from renewable energies at the top in merit order dispatch. In a competitive bidding approach, developers bid for Power Purchase Agreements (PPAs) from a utility or other contracting authority.

43 Support Mechanisms to Stimulate RE Bankable Projects Support Mechanism Type Description Equity Investment Mechanism Debt Financing Mechanism State-run or statefunded Venture Capital Capital subsidy State investment fund Mezzanine finance Microcredit Venture Capital (VC) provides equity funding for new technology, start up companies, new business models and takes greater risk and also seeks greater return from successful projects. A one-time grant to fund part of the upfront capital cost of RE projects. State investment fund is a fund for equity investment in RE project. Mezzanine finance refers to a subordinated debt or preferred equity instrument that is senior only to equity in terms of fundprovider s claim on company s asset. Microcredit is a funding instrument for small entrepreneurs who lack access to banks due to reasons such as high transaction cost.

44 Support Mechanisms to Stimulate RE Bankable Projects Support Mechanism Type Description Debt Financing Mechanism (continued) Tax Code Mechanism Risk Insurance Mechanism Emission Trading Mechanism Senior debt Loan softening Tax related incentives Carbon Tax Risk Insurance Sovereign/Policy Risk Insurance (PRI) Renewable Electricity Certificate Senior debt is a long term debt instrument secured against first charged over the project assets and/or with corporate guarantee. Loan softening allows government lending institutions to offer loan terms such as longer loan tenor, an interest rate lower than the market rate, or repayment holidays over a period. Tax related incentives are given in a variety of forms such as tax holiday, reduced tax rate, exemptions, and production tax credits. Carbon tax is a tax levied on emissions from electricity generated from fossil fuels. Insurance provides coverage for investors, contractors, exporters and financial institutions intended to spur private investment in clean energy. Sovereign policy risk insurance provides insurance to private investors against sovereign or energy policy risk. Renewable electricity certificate is an instrument that tracks and registers renewable electricity production.

45 Some Policy Guides on RE Support Mechanisms for Bankable Projects For countries with Inception stage RE development: Formulate an integrated plan for renewable energy Develop a soft loan assistance program dedicated to RE projects Provide production subsidy based on generation Develop focused support scheme for small and of-grid RE projects Provide technical assistance for capacity building For countries with Take-off stage RE development: Structure FiT with precision to achieve policy goals Implement RPS (Renewable Energy Portfolio Standard) for bulk electricity suppliers and national utilities Develop a standard PPA exclusively catering to RE Establish policy certainty Establish transparent grid and interconnection rules

46 THE PROGRESS OF ASEAN POWER GRID, PROJECTS [Highlighted the results of the 29 th HAPUA Council Meeting]

47 ASEAN POWER GRID CONSULTATIVE COMMITTEE PEOPLE'S REPUBLIC OF CHINA YUNNAN CAMBODIA 12 P. MALAYSIA BATAM SINGAPORE BRUNEI SARAWAK INDONESIA 15 APG INTERCONNECTION STATUS (Revised by August 2013) Earliest COD 1) P.Malaysia - Singapore (New) ) Thailand - P.Malaysia Sadao - Bukit Keteri Existing Khlong Ngae - Gurun Existing Su Ngai Kolok - Rantau Panjang 2015 Khlong Ngae Gurun (2 nd Phase, 300MW) ) Sarawak - P. Malaysia ) P.Malaysia - Sumatra ) Batam - Singapore ) Sarawak - West Kalimantan ) Philippines - Sabah ) Sarawak - Sabah Brunei Sarawak Sabah 2020 Sabah Brunei Not Selected Sarawak Brunei 2012, ) Thailand - Lao PDR Roi Et 2 - Nam Theun 2 Existing Sakon Nakhon 2 Thakhek Then Hinboun (Exp.) Existing Mae Moh 3 - Nan - Hong Sa 2015 Udon Thani 3- Nabong (converted to 500KV) 2018 Ubon Ratchathani 3 Pakse Xe Pian Xe Namnoy 2018 Khon Kaen 4 Loei 2 Xayaburi 2019 Thailand Lao PDR (New) ) Lao PDR - Vietnam ) Thailand - Myanmar ) Vietnam - Cambodia (New) ) Lao PDR - Cambodia ) Thailand - Cambodia (New) ) East Sabah - East Kalimantan ) Singapore Sumatra

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49 Towards Realization of the ASEAN Power Grid (APG) To ensure reliability of operation, performance and safety standards and procedures in generation and transmission of electricity in any future interconnection; Deployment of zero and low-carbon energy technologies; Greater role of utilization of indigenous resources; Harmonized technical standards, codes, regulatory, and common frameworks; To secure long-term investment JOINT STATEMENT OF THE HAPUA COUNCIL MEMBERS

50 2013 JOINT STATEMENT OF THE HAPUA COUNCIL MEMBERS 1. The HAPUA Council reiterates its commitment to accelerate the implementation of the ASEAN Power Grid (APG) in support of Master plan on ASEAN Connectivity. In addition to support the development 3 potentially regional demand growth, the HAPUA Council recommends further actions to be taken as follows: a) Sustained stepped-up efforts to harmonize the common technical standard and system operation procedures to ensure reliability and security of system operation, performance and safety in generation and transmission of electricity in any future interconnections. b) Identification of an efficient and effective framework on taxation and customs tariff in order to accelerate investments in the development of APG projects. 2. The HAPUA Council fully acknowledges and highly values the crucial role of renewable energy in the sustainable supply of energy for the ASEAN region. However, to meet the fast growing demand for electricity and expectation of affordable electricity tariffs in the region, the development of large scale power generation plants such as hydropower, clean-coal power plants, and perhaps nuclear option are indispensible. The HAPUA Council further recognizes that a development of any generation project in any ASEAN member countries, that has the potential contribution beyond one country, should be celebrated and valued by all other ASEAN member countries. 3. The HAPUA Council reaffirms its commitment to achieve collective target of 15% renewable energy in its generation mix. 4. The HAPUA Council reaffirms its commitment to pursue key initiatives and programs on the enhancement of capability building within the ASEAN utilities. The compilation of list of expertise in all relevant disciplines will implemented in order to expedite information, knowledge and experience exchange. Specifically in the area of generation, in-house and external expertise in clean-coal technology, nuclear as well as shale gas will be nurtured and developed. Acknowledging its own limitation, the HAPUA Council urges and authorizes all its five Working Groups to engage external stakeholders, as the case may be, through the HAPUA Secretariat for necessary support and assistance. 5. The HAPUA Council recognizes that the ASEAN Center for Energy (ACE) plays a vital role in promoting debates, exchanges of ideas and experience, research and policy analyses. Hence, the HAPUA Council further urges ACE to provide all members of HAPUA, HAPUA s strategic partners, and the ASEAN governments with recommendations on efficient and effective ways in which to realize the ASEAN Connectivity master plan. 50

51 CROSS BORDER ISSUES OF APG PROJECTS The key impediments for the harmonization of regulatory, standards and systems are: Commercial Issues involving tariffs, taxation and other commercial terms Technical standards Financial limitation Domestic laws of each member countries

52 Off-Grid Connection Renewable Energy & Grid Extension (Associated Key Issues)

53 Associated Key Issues Off-Grid Connection Renewable Energy & Grid Extension (Associated Key Issues) Stable, secure and economic RE off-grid integration System operations and dynamic stability of RE off-grid integration Off-grid integration of variable energy sources (RE) and extension of off-grid RE including hybrid set-up RE for rural electrification Required integrated communication: sensing & measurements, advance components, advance control, and decision support Technical standards for offgrid connection RE applications Integration of RE into grid extension planning Asset management: cost (of assets, of replacement, of operation & maintenance), performance (efficiency, reliability and security impacts), and risk (of failure, of reliability impacts, of security impacts) 1. Mark Mc Granaghan, Making Connection Asset Management and the Smart Grid, IEEE Power & Energy Magazine, Vol. 8, No. 6, November/December Stanley H. Horowits, Arun G. Phadke, and Bruce A. Renz, The Future of Power Transmissions Technological Advances for Improved Performance, IEEE Power & Energy Magazine, Vol. 8, No. 2, March/April ASEAN RESP Phase II - Collaboration ACE AND HAPUA: a Joint Study ACE and HAPUA Working Group No

54 54 Aside from its support to the on-going policy dialogues between EU and ASEAN, READI actively facilitates new dialogues. As these new areas of policy dialogue mature, they will be integrated into the READI work plans as new activity components.

55 Regional EU-ASEAN Dialogue Instrument (READI) 4-year lifetime: Jointly governed by EU and ASEAN 2,600 days of expertise available EUR 1 million available for logistics/org. support Operations managed from within ASEAN Secretariat Team of 5 senior international experts Facilitate unique policy dialogue between the two regional organisations in a variety of non-trade-related sectors Support ASEAN integration by drawing on European experience and know-how Cover a range of non-trade related sectors: ICT, Energy, Science & Technology, Disaster Management, and others

56 Activities Proposed under the Energy Component The following four activities are being implemented with support under the READI component on energy: 1) Seminar on energy security and investment regulation framework on interconnections in ASEAN and EU Countries Sept. 2012, Phnom Penh; 2) Seminar on energy efficiency and conservation covering both topics of buildings and power generation June 2013, Bangkok; 3) Seminar on clean energy technologies and technology development prospects for the ASEAN Power Sector to be held in April 2014, Malaysia; 4) Seminar on biofuels to assess biofuels policies in selected ASEAN and EU countries to be held 2nd half 2014, Manila. Following the requested support sent by some ASEAN stakeholders, the READI Energy Component participates in the follow-up activities: - The 10th APGCC/HAPUA Meeting in Bandar Seri, Brunei Darussalam, 16 January 2013; - The 6th ASEAN Power System Operator Workshop organized by HAPUA and held in Kuala Lumpur, Malaysia on 18-19th June, 2013; - The ASEAN HAPUA APG Working Group #4 Meeting to be held in Siem Reap, 56 Cambodia on 14 January 2014.

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58 The ASEAN Energy Market Integration (AEMI) The ASEAN Energy Market Integration (AEMI) initiative makes the case for energy market integration across ASEAN within the framework of the ASEAN Economic Community (AEC). A network of ASEAN academics, the AEMI Group, is working to develop the rationale for the approach, assess its benefits, design its institutional structure and formulate a strategy to deliver it through Their work has been developed in close cooperation with the ASEAN Secretariat, and is based on publications from the ASEAN Center for Energy. The 31st Senior Officials Meeting on Energy (SOME) endorsed the AEMI initiative in June 2013 in Bali. These ASEAN academics argue that a successful AEMI would be a necessary step for achieving sustainable growth in the framework of AEC in 2015 and beyond; it would enhance energy security and environmental viability across the region; and yield significant benefits for all involved, from the economic, societal and environmental perspectives. 58

59 The ASEAN Energy Market Integration (AEMI) An AEMI Forum took place in August 2013 to share the results of the academic work, establish a dialogue between policymakers (Track I) and academics (Track II) on AEMI, and get guidance to further develop it. The AEMI papers were presented and discussed, and a conclusion statement unanimously agreed by all participants. Forum unanimously adopted the vision for AEMI, and recognized the potential benefits it would deliver across ASEAN The AEMI book ASEAN Energy Market Integration: From Coordination to Integration includes Forum proceedings, conclusions and AEMI papers. The AEMI papers focused on three dimensions: Why: the rationale for AEMI, its potential benefits for within the AEC; What: its key building blocks from policy, operational perspectives; How: the strategy for its deployment through 2030 within the AEC. 59

60 Thank You