20100531-IEA-Deploying_Renewables_in_Southeast_Asian_Countries_164页_2mb

Summary of "Deploying Renewables in Southeast Asia: Trends and Potentials" (IEA, 2010)

Core Content

This report by the International Energy Agency (IEA) analyzes the current status, policy support, and future prospects of renewable energy deployment in Southeast Asia, with a specific focus on the ASEAN-6 countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. It explores the opportunities and challenges in deploying renewable energy technologies (RETs) across the electricity, heating, and transport sectors.

The study is part of the IEA's broader efforts to understand global renewable energy markets and policies, building on the principles outlined in Deploying Renewables: Principles for Effective Policies (IEA, 2008). It emphasizes the importance of non-economic barriers and policy risks in hindering renewable energy development, while also highlighting the realisable potential for renewables in the region, which is significantly larger than what is currently being achieved.

Main Views and Findings

1. Current Status of the Energy Sector in ASEAN-6

• Energy demand in ASEAN-6 countries more than doubled between 1990 and 2007.
• Fossil fuels account for the majority of energy supply (74%), with combustible biomass and waste (22%) and geothermal and hydro (3% and 1%, respectively) contributing the rest.
• Renewables (primarily hydro and geothermal) account for 15% of electricity generation in the ASEAN-6.
• Biofuels are being produced in most ASEAN-6 countries, with Thailand leading in production. Vietnam is the only country not producing first-generation biofuels.
• Cooling demand is rising due to climate change and increasing disposable incomes.

2. Policy Support for Renewable Energy

• Policy frameworks are being developed to support renewable energy deployment, with a focus on medium- and long-term targets.
• Indonesia, Singapore, and Thailand have introduced CO₂ emissions reduction targets in support of the Copenhagen Accord.
• Financial incentives include feed-in tariffs (FITs), tax exemptions, capital cost grants, and R&D support.
• Non-financial support mechanisms such as standard power purchase agreements (PPAs), preferential arrangements for small generators, and information support are also being introduced.

3. Prospects for Renewable Energy Deployment

• Realisable potential for renewables is defined as the maximum achievable potential assuming all barriers are overcome and effective policies are in place.
• The realisable potential for renewable electricity in 2030 is 1.8 times the 2007 electricity consumption in the region.
• Non-hydro renewables (biomass, onshore wind, geothermal, and solar PV) are expected to have a significant role in future deployment.
• Renewable heating has a realisable potential of 18% of estimated heat demand, with modern biomass being the largest contributor.
• Biofuels have a realisable potential of 17% of transport energy demand in 2007, which could support the growth of the transport sector while reducing emissions.

4. Challenges and Barriers

• Non-economic barriers such as infrastructure limitations, grid access issues, regulatory and administrative hurdles, persistent fossil fuel subsidies, and lack of information and training are major obstacles.
• Technical/infrastructure barriers are ranked highest in terms of impact, followed by administrative and market-related barriers.
• Sustainability concerns are growing, especially for first-generation biofuels, due to land-use changes and GHG emissions.
• Investor risk perceptions are influenced by policy changes, legal security, and financial support schemes.

5. Key Recommendations

• Reduce non-economic barriers to renewable energy diffusion, including administrative hurdles, grid access, and fossil fuel subsidies.
• Remove fossil fuel subsidies to create a more level playing field for renewable energy technologies.
• Ensure equitable distribution of financial incentives so that the poorest households are not disproportionately burdened.
• Design predictable and consistent policies that align with the broader energy policy framework to attract investment.
• Encourage off-grid applications to support electrification and socio-economic development.
• Promote sustainable biofuel production through strong sustainability criteria and certification schemes.
• Establish platforms for policy exchange and barrier reduction, such as the ASEAN Plan of Action for Energy Co-operation.
• Harmonise market rules and incentives across the region to support the expansion of the ASEAN Power Grid.
• Integrate renewable energy policies with climate change policies to maximize the benefits of climate change financing.

Conclusion

The ASEAN-6 countries show significant potential for renewable energy deployment, with hydro, biomass, wind, and solar PV being the most important technologies. However, non-economic barriers and policy risks remain major challenges. The report recommends a coordinated and long-term approach to renewable energy policy, supported by financial and non-financial incentives, to ensure sustainable and efficient deployment of renewables in Southeast Asia.