drweerawat presentation unescap regional energy cooperation[1]

8/3/2019 DrWeerawat Presentation UNESCAP Regional Energy Cooperation[1]

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Regional Energy Cooperation and theRole of the Private Sector in Asia andthe Pacific: Regional Cooperation in

Energy Security Issues

Weerawat Chantanakome, PhD

Executive Director, ASEAN Centre for Energy

Asia-Pacific Business Forum 2008

United Nations Conference Centre, Bangkok, Thailand,27 April 2008



1970

2004

1990

1985

1980

1975

GLOBAL OIL

CRISIS

ASEAN ENERGY COOPERATION

1970

2004

1990

1985

1980

1975

APAEC (1999-2004 and 2004-2009)Establishment of ACE (1999)Hanoi Plan of Action / MOU on TAGPASEAN Vision 2020 (1999)ASEAN Program of Action on Energy Cooperation (1995-1999)ASEAN Energy Amendment (1995); AEMEC to AMEMPriority for ASEAN Power Grid, APSA and TAGP (1994)

Thai-Indo Coal Coop. (1990)AEEMTRC creation (1988)Phil – Indo Coal Coop. (1987ASEAN Energy Cooperation Agreement (1986)

ASEAN Petroleum Security Agreement (APSA, 1986)

1st Meeting of HAPUA (1981)Indonesia & Malaysia assisted other ASEAN Countries on

oil needs / 1st AEMEC (1980)ASCOPE’s Emergency Petroleum sharing scheme(1977)ASCOPE creation (1976)

ASEAN Emergency Petroleum Sharing SchemeSupplementary to ASCOPE’s (1983)

ASEAN Establishment (1967)

Gulf War (1990)

Iran – Iraq Tanker War(1981-1988)

2nd Oil Shock (1979)

1st Oil Shock (1973)

EN

ERGY

SECURITY

ASCOPE: ASEAN Council on Petroleum ; AEEMTRC: ASEAN-EU Energy Management Training and Research Centre;TAGP: Trans-ASEAN Gas Pipeline; AMEM: ASEAN Ministers on Energy Meeting

Introduction : Energy Security as Reason for ASEANEnergy Security as Reason for ASEAN

Energy CooperationEnergy Cooperation



ASEAN HEADS OF

STATE/GOVERNMENT

ASEAN HEADS OF

STATE/GOVERNMENT

AMMSTOTHER

MINISTERIALMEETINGS

ASEAN

CENTRE

FORENERGY

(ACE)

COST

A M M ASEAN

S GA E M

OTHER

MINISTERIALMEETINGS

A S C S O M

ASCOPE

NRSE

SSN

EE & C

SSN

HAPUA

AEBF AFOCSCNCER

ASEAN

SECRETARIAT

A M E M

S O M E

LEGEND:

AEBF: ASEAN Energy Business ForumAEM: 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

REPP-

SSN

ASEAN Centre for Energy (ACE)ASEAN Centre for Energy (ACE)

NES

SSN



Develop transparent legal,regulatory and technical

frameworks

ASEAN Plan of Action for EnergyASEAN Plan of Action for Energy

Cooperation (APAEC) 2004Cooperation (APAEC) 2004--20092009

A

P

A

E

C

Trans-ASEAN Gas Pipeline

ASEAN Power Grid

Coal and CCT

Regional Energy Policy &Planning

Renewable Energy

Energy Efficiency &Conservation

1. Trans-ASEAN Gas Pipeline

2. ASEAN Power Grid

3. Coal and CCT

6. Regional Energy Policy &Planning

5. Renewable Energy

4. Energy Efficiency &Conservation

Programs Approaches

narrow development gap

greater private sectorinvolvement and participation

capacity building

Develop and expand the energymix and supply source

1

2

5

3

4

7. Nuclear Energy Safety inAPAEC 2009-2014



Increase in energy demand requires huge capital

Has potential to strain governments and financialmarkets

Guidance and direction to effectively mobilizeresources are needed

Concerted efforts and pursued collectivelyequates to more and solid chances to reducerisks of energy insecurity, economic vulnerabilityand ecological imbalance

Regional Cooperation in Energy Security IssuesRegional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:



COOPERATION what it is NOT Does not intend to undermine individual country’s goals and

strategies Does not advertently or inadvertently seek to beef up

readiness and competitiveness at the expense of the other

COOPERATION is continuum of d ist i nc t appr oaches and s t ra t eg ies by

individual countries, deployed at va ry i ng l eve l s of responsibilities, capacities and expectations yet bounded and

binded by shar ed goa ls and asp i ra t i ons in pursuing aco m m o n a g en d a

“Energy Security and Sustainable Development for A ll,Today and Beyond”




New Sustainable Energy Paradigm

Enhanced regional cooperation that is based on

shared visions Strengthened collaboration; energy is both a national

and regional security issue

Eliminates any fear or perceived fear that cooperationundercuts national interest or that a build up of cooperation initiatives, mostly overlapping, alreadyexists

COOPERATION is EVOLUTIONARY as much as theneeds are.




4 Major Areas to Reinforce Cooperation:

I . Energy Infrastructure/ Energy Trade

ASEAN Power Grid, Trans-ASEAN Gas Pipeline,Trans-Asian Energy System (TAES)

Oil Stockpiling

Continued trust building to hasten energy trade




ASEAN Power Grid(14 power grid interconnection projects)

ASEAN Power Grid (APG) to link the electricity grids in the region tooptimize the utilization of energy resources among the membercountries.



10

The Rush to Consumer Market

Economy (2nd APAEC 2004-2009)

?

VerticallyIntegrated Unbundled

WholesaleCompetition

Full CustomerChoice

Brunei

Cambodia

Lao PDR

MyanmarVietnam

Singapore

PhilippinesIndonesia

Thailand

Malaysia

?

21



11

The ASEAN Power Grid

The ASEAN Electricity Market to 2020

MYANMAR

THAILAND LAO PDR

VIETNAM

CAMBODIA

BRUNEI SINGAPORE

PHILIPPINES

BatamKalimantan

Java

Sabah

Sarawak

Peninsular

MALAYSIA

INDONESIA

Sumatra



Subregional/Regional Energy Cooperation in

Asia: Trans Asian Energy System (TAES)

ACD – Asia CooperationDialogue

APEC – Asia PacificEconomic Cooperation

ASEAN - Association of Southeast Asian

Nations

BIMSTEC - Bay of BengalInitiative for Multi-

Sectoral Technical and

Economic Cooperation

ECNEA - EnergyCooperation in North-East

Asia

EurAsEC - EurasianEconomic Cooperation

GTI – Greater TumenInitiative

SAARC - South AsianAssociation for Regional

Cooperation

SPECA - UN SpecialProgramme for Economies

of Central Asia. . . . .

North – East Asia

South

AsiaWest&

Central

Asia

South-EastAsia

ACDAPEC

EurAsEC

SPECA

SAARC ASEAN+ 3

ECNEAGTI

ASEANBIMSTEC

ASIA

East AsiaASEAN+6



4 Major Areas to Reinforce Cooperation:

II . Financial Mechanisms and RegulatoryFrameworks to Attract Private Sector

Investment decisions directed by clear, stable

policies and rules Removal of barriers to trade and regulation to

allow multinational firms to operate at the

international level CDM – regional cooperation assessing best

practices and lessons learned to synergizeinitiatives and boost carbon markets both as a

business investment opportunity and as aclimate change arsenal




4 Major Areas to Reinforce Cooperation (cont.)I I I . Capacity Building

Quantity and quality of the workforce involved in theenergy sector begging immediate attention

Shortage pushing the cost of production upwards Advent of civilian nuclear power exacerbates workforce

concerns

Abundance of skills mismatches and shortages in keyprofessions (Asian Development Outlook 2008)

Education departments or ministries and other educationalinstitutions to get on board in energy planning

IV. Information Sharing and Increased Dialogues Information age makes access easier also let loose variety of

dubious and low quality data

Sustained cooperation to ensure accurate, reliable and updatedinformation vital to policy and decision-making (IEA, APERC, etc)

Outreach to different stakeholders to erase anymisconception and misinformation and paves way for coalitionbuilding




Increasing Access to Energy and Targeting the Poor Set clear national targets to provide minimum, if not modern

energy service, to the poor under a specific time table andbringing to the regional arena as international commitmentscompletes the virtuous cycle of new sustainable energyparadigm

Equal rights to energy services and equal investments Increasing poor’s access to energy to be integrated in policy

planning

Specific and clear targets, mandated or otherwise, and other

interventions including short-term subsidies to enticeinvestors

Private sector to propagate off-grid solutions or distributedenergy systems, create research innovations on alternative

fuels, and commercialize efficient technologies and bestpractices




“ “ I t is timeIt is time…… ASEAN countries wokeASEAN countries woke

up to the imperatives of ASEANup to the imperatives of ASEANenergy cooperation.energy cooperation.

The key security risk of ASEAN isThe key security risk of ASEAN is…… ..

itsits En er g y Secu r i t y En er gy Secu r i t y ....” ”



Thank You for Your Thank You for Your

Attention Attention

drweerawat presentation unescap regional energy cooperation[1]

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