Supportive policies and integration are vital for greener grids in Asia – panelists

By Terh Yee Jiunn

The time is right for Asia to plunge into renewable energy but regulators must put the right policies in place to convince financiers that clean power will be a sound and viable investment, panellists said at a roundtable session on Friday at Singapore International Energy Week 2015.

Given the falling production prices for solar and wind, there is a good opportunity for a “growing role of renewables in the fuel mix”, said Dr Ken Koyama, chief economist and managing director at the Institute of Energy Economics Japan.

Most renewable sources are indigenous and can help countries that import the majority of their energy to improve energy security, the panelists said, adding that there is greater public acceptance for cleaner sources of power than coal and nuclear.

Many countries in the region have set ambitious targets, with Japan, China and India planning to raise the proportion of variable renewable energy to up to 20% of their fuel mixes by 2030.

But one major challenge is having the right support to stimulate and sustain investment in renewable energy capacity. Dr Romeo Pacudan, interim chief executive officer of the Brunei National Energy Research Institute, said this could be achieved with a combination of policy measures, innovation and a hybrid of policy designs.

Overcoming intermittency of renewable energy is vital to its increasing adoption, the panellists said.

“Energy market integration could promote the development of renewable energy,” said Dr Li Yanfei, energy economist at the Economic Research Institute for ASEAN and East Asia.

An integrated grid could better absorb the intermittent generation of renewables and the diversity of renewable types across different countries and markets could complement one another, he added.

Pacudan agreed, saying he is looking forward to a Brunei-Sabah-Sarawak interconnection in 2018 to 2019.

Laos is hoping to increase its exports of hydroelectricity to Thailand and Vietnam and will continue to work on projects to supply the region, including Malaysia and Singapore, said Khamso Kouphokham, deputy director general of the Department of Energy Policy and Planning at the Ministry of Energy and Mines.While there will be challenges as more countries look towards integrating carbon-free renewable energy to meet increasing power demand, the panelists were optimistic that having supportive policy measures and regional market integration would provide adequate capacity and strengthen infrastructure resiliency for a greener grid.

About Singapore International Energy Week (SIEW)

In its 8th edition, Singapore International Energy Week is the premier platform in Asia for energy insights, partnerships and dialogue, bringing together the world’s leading conferences, exhibitions and roundtables in one week and one location. SIEW enriches the global energy conversation by convening political, business, academic and energy industry thought-leaders to define and advance the world’s energy challenges, solutions and actions across the spectrum of oil and gas, clean and renewable energy, and energy infrastructure financing.

Please visit www.siew.gov.sg for more information.

About the Energy Market Authority

The Energy Market Authority (EMA) is a statutory board under Singapore’s Ministry of Trade and Industry. Our main goals are to ensure a reliable and secure energy supply, promote effective competition in the energy market and develop a dynamic energy sector in Singapore. Through our work, we seek to forge a progressive energy landscape for sustained growth.

Please visit www.ema.gov.sg for more information.