ENERGY



At the 19th ASEAN Ministers on Energy Meeting (AMEM) in Brunei Darussalam in July 2001, the Ministers reaffirmed the important role of an integrated trans-ASEAN energy network of power grid and gas pipelines in creating sustainable energy supply, security, and trade among ASEAN countries. The Ministers agreed to continue liberalizing the energy markets to ensure affordable energy prices and to attract investments in the development of energy infrastructure with due recognition to the environment.

In March 2002, the EC-ASEAN Energy Facility, a joint energy cooperation programme between the European Commission and ASEAN, was launched. This five-year facility will cover assistance to five energy sub-sectors: electricity, natural gas, clean coal technology; energy efficiency; and renewable energy.

The EC will provide technical assistance to the programme valued at Euro 18 million, the ASEAN Centre for Energy will provide in-kind contribution worth Euro 0.51 million, while individual project partners will contribute Euro 13 million to co-finance 50 to 60 projects in joint activities covering increasing market awareness, adopting institutional frameworks, conducting feasibility studies and implementing projects to demonstrate proven European technologies in those five energy sub-sectors.  The ASEAN Centre for Energy will facilitate the implementation of this program.

The ASEAN Ministers on Energy concluded the Memorandum of Understanding on the Trans-ASEAN Gas Pipeline Project in July 2002. The MOU is a framework for ASEAN member countries to cooperate towards the realization of TAGP project to help ensure greater regional energy security.  It covers the study of cross border issues relating to security of supply and emergency supply arrangements, access and use of the pipelines, and financing of the construction, operation, and maintenance of the pipelines among other things.

The master plan study for the Trans-ASEAN Gas Pipeline identified seven new possible gas interconnections covering a length of 4,500 kilometers, with total investment requirements of US $ 7 billion. The TAGP project would optimize the utilization of natural gas by linking gas demand and utilization centers with a pipeline infrastructure tapping the gas fields of the Andaman Sea, the Gulf of Thailand, the South China Sea, and Kalimantan and Sumatra in Indonesia.  The major gas demand centers are Bangkok, Kuala Lumpur, Singapore, Batam, Jakarta, Surabaya and Manila.

The Heads of ASEAN Power Utilities/Authorities have adopted a roadmap towards regional power interconnection and promotion of electricity trade.  The master plan study to establish the ASEAN Power Grid is expected to be completed in March 2003.

The ASEAN Energy Awards 2001 for energy efficiency and conservation were handed out at the 19th AMEM in Brunei Darussalam. The awardees were the Securities Commission of Malaysia and the Urban Redevelopment Authority of Singapore in the new and existing building category; Mike Shopping Mall of Thailand and the Sultanah Zanariah Library of the Universiti Teknologi Malaysia for retrofitted buildings; and the Bonifacio Gas Corporation Building of the Philippines in the special innovation category. The coverage of the annual ASEAN Energy Awards was expanded to cover energy-efficient buildings, energy-efficient magnetic ballasts, and renewable energy projects.

The ASEAN Forum on Coal (AFOC) has endorsed the following project proposals: Feasibility of Small-Scale Clean Coal Technology for Rural Electrification; Coal-bed Methane for Sustainable Energy Development; Developing National Capacity to implement Industrial Clean Development Projects; and Status of Coal Power Plants in ASEAN and their Greening Possibilities.

ASEAN member countries continued to exchange technical information on policies, projects and plans on renewable energy. The ACE homepage (http://www.aseanenergy.org) provides information on renewable energy sources, policies, programs and contacts   in five ASEAN countries (Indonesia, Malaysia, Philippines, Thailand, and Vietnam) under the Promotion of Renewable Energy Sources in Southeast Asia (PRESSEA) Project.

The ASEAN Centre for Energy (ACE), on its third year of operations, provided key facilitation support to the ASEAN energy sub-sector networks and organizations towards the expeditious implementation of the ASEAN Plan of Action for Energy Cooperation 1999-2004. It continued to focus its programs on regional energy planning, policy formulation, infrastructure development, and promotion of renewable and environment-friendly energy systems. The Centre has also been actively involved in technical coordination, project preparation activities, and exploring technical and financial assistance for the six program areas under the ASEAN Plan of Action for Energy Cooperation.

Major ongoing projects under ACE include the SOME-METI Energy Work Program, the Joint ASEAN Minihydro Program in cooperation with Switzerland and Germany, and the ASEAN Australian Economic Cooperation Program Phase III: Energy Policy and Systems Analysis Project which was reactivated in February 2002.

The Climate Change Information Center was launched as a nodal network of ACE in October 2001 during the ASEAN Senior Officials on Energy Workshop in Cebu.  The Center supports the ASEAN energy cooperation activities by providing data and information on climate change research, mitigation and adaptation of strategies, climate-friendly technologies, and policy issues.  It was created under the USAID-assisted Philippine Climate Change Mitigation Program.

The ASEAN Centre for Energy, in conjunction with the BIMP-EAGA Business Council, organized in August 2001 the first meeting to plan the trans-Borneo power grid interconnection.

Within the framework of the Initiative for ASEAN Integration, several proposals for CLMV energy development are being developed, namely strengthening of institutions and harmonizing the legal, regulatory, and commercial aspects; identifying the capacity building requirements in order to fast-tract the implementation of Trans-ASEAN Energy Network to ensure energy security in CLMV; and identifying private sector participation in energy development activities.