Overview

The ASEAN Ministers on Energy, at their meeting in Bali in July 2002, signed the Memorandum of Understanding (MOU) on the Trans-ASEAN Gas Pipeline (TAGP) Project. This MOU sets out the cooperative framework for the ASEAN public and private sectors in the expeditious implementation of the TAGP Project. Under the MOU, ASEAN countries shall study the legal and institutional frameworks for cross-border supply, transportation, and distribution of natural gas in the region involving multilateral countries. The ASEAN Gas Consultative Council, to be composed of representatives from the ASEAN Member Countries, ASEAN Council on Petroleum (ASCOPE) members and the ASEAN Centre for Energy (ACE), has been established to facilitate and assist ASCOPE in the implementation of the MOU.

In the implementation of the ASEAN Plan of Action for Energy Cooperation, the ASEAN Centre for Energy continued to play an active role in providing assistance to the various ASEAN energy sub-sector networks and specialized bodies and in forging collaborative partnerships with international and regional organizations and with the ASEAN dialogue partners. ACE has an active presence in information media through the quarterly publication of the ASEAN Energy Bulletin and the Internet via its dedicated ACE Homepage. After its four years of existence, ACE has gained stature as a hub of international cooperation in energy in ASEAN, through coordination and facilitation of regional energy programs and activities in the region.

The leaders of ASEAN, China, Japan and the Republic of Korea have mandated the officials to pursue cooperation in the field of energy. This is reflected in the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China and in the Joint Declaration on the Comprehensive Economic Partnership between ASEAN and Japan. It is also included in the Final Report of the East Asia Study Group.

The First Senior Officials Meeting on Energy (SOME) + 3 Consultations was held in Bali in July 2002. The forum served as a valuable platform for the ASEAN countries, China, Japan and ROK to advance high-level policy consultations in the field of energy.

In September 2002, the ASEAN+3 energy ministers reached a common understanding on the five-point initiative for “Energy Cooperation among Japan, China, Korea and ASEAN.” This cooperation framework, which will be further discussed in the Second SOME + 3 Consultations, comprises the following: (a) creation of emergency network; (b) development of oil stockpiling; (c) joint studies on the ASEAN oil market; (d) improvement of natural gas development; and (e) improvement of energy efficiency and renewable energy.

An ASEAN+3 - International Energy Agency (IEA) Joint Workshop was held in Tokyo in December 2002, which developed the proposed Initiative for ASEAN + 3 Closer Energy Partnership. This workshop was a follow- up to the Seminar on Energy Security in Asia held in Tokyo in March 2002 earlier proposed by the Japanese Prime Minister at the Fifth ASEAN + 3 Summit in Brunei Darussalam in November 2001.

Cooperation with the Japan Ministry of Economy, Trade and Industry (METI) in the energy sector is now in its third year. Under the SOME-METI Work Program 2002-2003, the following activities were implemented: (a) Inception Workshop of the Promotion of Energy Efficiency and Conservation (PROMEEC) project; (b) establishment of energy database in ACE linked to the internet under the Energy Security and Supply Planning in the ASEAN Region (ESSPA) project; and (c) energy audits for industries in Cambodia (garments) and in the Philippines (steel) and for buildings in Myanmar and Viet Nam. METI and ACE co-organized the Japan-ASEAN Clean Development Mechanism (CDM) Seminar in January 2003 in Jakarta.

Significant progress has been made in the implementation of the ASEAN Plan of Action for Energy Cooperation 1999-2004. The European Union, Japan, Germany, Australia, and Switzerland and international organizations such as United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), International Energy Agency (IEA), and the Asia Pacific Energy Research Centre (APERC) provided technical assistance and support to ASEAN energy programs and activities in 2002.

Developments in the Energy Sector

Completion of the ASEAN Interconnection Master Plan Study (AIMS) in March 2003 under the auspices of Forum of Heads of ASEAN Power Utilities/Authorities (HAPUA);
Initiative to develop the ASEAN common policy on power interconnection and electricity trade;
Creation of the Trans-Borneo Power Grid Interconnection Committee, which will coordinate and oversee the implementation of the Borneo island’s power grid interconnection study;
Initiatives to develop the ASCOPE model gas sale and purchase and gas transport agreements and for the proposed establishment of the ASCOPE Gas Centre and studies towards the creation of Joint Venture Company for a “common carrier pipeline” interconnecting more than two ASEAN countries;
Updating/review of the 1986 ASEAN Petroleum Security Agreement;
Completion of the 2002 ASEAN Best Practices Competition for Energy Efficient Buildings and NRSE Project Competition, under the auspices of the ASEAN Energy Efficiency and Conservation (EE&C) and the New and Renewable Sources of Energy Sub-Sector Networks (NRSE) and the ASEAN Centre for Energy (ACE). The winners for the 2003 annual competition will receive their awards in the 21^st AMEM in Langkawi in July 2003;
Launching of the standard label to promote awareness on ASEAN energy efficient products;
Conduct of six energy audits in 2002; three for energy efficient building in Cambodia, Indonesia and the Philippines; and three for industries -- hydro power plant (Lao PDR), petroleum refinery (Myanmar), and porcelain factory (Viet Nam). A standard design one MW biomass energy conversion system was completed to demonstrate the use of municipal solid waste as a new source for power generation;
Development of clean coal cooperation project proposals as follows: a) Promotion of Small-Scale Clean Coal Technology for Rural Electrification; b) Greening of coal fired power plants in the ASEAN; and c) Coal Bed Methane Development;
Expansion of the Joint ASEAN Minihydro Program (JAMP) into a five-year multilateral program involving ACE and the other ASEAN member countries;
Implementation of the first set of 17 projects under the EC-ASEAN Energy Facility (EAEF), with total co-financing support of Euro 3.5 million;
Implementation of the Australian-assisted Energy Policy and System Analysis Project (EPSAP). The first set of national policy study for the five participating ASEAN countries and the regional policy study on the Trans-ASEAN energy network have been finalized. EPSAP has been expanded to cover the CLM countries under the AADCP Regional Partnerships Scheme;
Fourth ASEAN Energy Business Forum, Bangkok, 21-22 October 2002; and
Ongoing formulation of the ASEAN Plan of Action for Energy Cooperation (APAEC) for 2004-2009, with principal focus on sustainable energy development.