Dr. Phyllis Yoshida is the Deputy Assistant Secretary for Asia and the Americas in the Office of International Affairs at the U.S. Department of Energy (DOE). She is responsible for implementing Administration policy for international cooperation on science and technology issues and energy policy issues. Prior to joining DOE, Dr. Yoshida served as the Director of Asia-Pacific Technology at the U.S. Department of Commerce and chaired the APEC Industrial Science and Technology Working Group among other multilateral and bilateral committees.
1. The U.S. underwent its first ever Quadrennial Energy Review (QER) in April this year. Can you tell us more about the outcomes of the review and how it would impact the U.S.’ energy priorities in the future?
President Obama directed the U.S. government in January 2014 to conduct the first-ever Quadrennial Energy Review (QER) to assess infrastructure challenges and identify the threats, risks, and opportunities for U.S. energy and climate security, enabling the U.S. government to translate policy goals into a set of integrated actions.
The first installment of the QER was released in April 2015 and highlights how to modernize U.S. energy infrastructure to promote economic competitiveness, energy security, and environmental responsibility. The QER seeks to identify vulnerabilities in the system and proposes major policy recommendations and investments to replace, expand, and modernize infrastructure where appropriate. It focused on energy transmission, storage, and distribution (TS&D) infrastructure -- the networks of pipelines, wires, storage, waterways, railroads, and other facilities that form the backbone of our energy system. Additional issues will be explored in future installments.
For more background and to read the report, please go to: www.energy.gov/qer
2. One of the key aspects highlighted in the QER is the need to strengthen and develop energy infrastructure in the United States. This is also a key challenge for Asia, especially in the ASEAN region. How do you see the United States playing an active role in infrastructure development and financing in Asia?
The need to strengthen and develop energy infrastructure is a global challenge. Reliable access to energy lies at the heart of economic development and is crucial to human well-being. In Asia, there are an estimated 387 million people without access to electricity and roughly 660 million people who rely on traditional biomass for cooking.
The United States can continue to play a significant role in assisting with the transformation of the energy infrastructure in the ASEAN region through increased technology dissemination and information sharing among our companies and governments. With an estimated US$9 trillion needed in investment in electricity alone through 2035 to meet growing demand in the region, there is enormous potential for the U.S. private sector to play an important role in the region’s energy future.
3. We have seen good energy cooperation between ASEAN and the United States, underpinned by the U.S.-Asia Pacific Comprehensive Energy Partnership (USACEP) and the ASEAN-U.S. Work Plan for Energy Cooperation. With energy demand in the region expected to continue increasing and ASEAN’s focus on greater regional connectivity, what more can the United States do to further strengthen this relationship?
The U.S. Department of Energy (DOE) is working on research and development of game-changing energy technology and is actively engaged in various policy and regulatory dialogues with our partners in the Asia Pacific region.
The 2016-2020 U.S.-ASEAN Energy Work Plan includes a number of new energy activities that range from smart grid interoperability and security, to advancing financing schemes for smart buildings. These activities and this work plan exemplify the U.S. commitment to expanding and deepening our energy collaboration between industry and government.
The U.S.-Asia-Pacific Comprehensive Energy Partnership builds upon efforts underway in APEC and ASEAN to bring concrete, impactful progress in addressing energy poverty and energy access issues in the region.
The Partnership is coordinating engagements this year on Asian gas markets and financing issues related to green buildings. The Partnership is also engaging with the private sector, as well as countries throughout the region, to identify specific projects eligible for U.S. government financing and support.
4. In light of the United States becoming an energy exporter, what are your views on the U.S. “energy pivot to Asia”, particularly on the prospects of U.S. gas exports to Asia in the near future?
Since the beginning of his Administration, President Obama has made a strategic decision to increase the United States’ focus on the Asia-Pacific region by increasing U.S. engagements and activities in this vital region.
As the United States approves LNG exports, and countries choose LNG as a possible energy source, markets in Asia, Europe and North America may become increasingly integrated, potentially reducing market segmentation. With greater resources available, LNG could have a positive impact on Asian markets by increasing the diversity of energy options in the region while helping to improve supply security.
5. On the SIEW theme of “Global Energy Transitions”, what is the United States’ view on the key challenges facing the global energy landscape?
Southeast Asia is experiencing a widening energy supply-demand gap that poses challenges to sustaining the region’s rapid rate of economic growth. Closing the gap would require doubling energy supply by 2030 and potential changes to existing policy frameworks, as well as an increased focus on market and financial incentives, innovative energy technology, energy efficiency and conversion gains and an all of the above energy strategy.
In the absence of a stable framework, growing energy demand will exacerbate the challenge of significant remaining energy poverty in Southeast Asia, where a portion of the population still does not have access to electricity.
For clean and renewable energy investments in the region, a stable and reliable framework of incentives can be used to attract project developers and private financing. Experience has demonstrated the importance of ensuring a return on investment without causing financial detriment to the end-user or indebting the government.