ASEAN needs to expedite energy transition to avoid losses due to coal dependence

Jakarta—The Institute for Essential Services Reform (IESR) Executive Director Fabby Tumiwa stated that maintaining coal-fired power plants will keep ASEAN countries trapped in a difficult-to-break carbon cycle. He said ASEAN must immediately plan for the transition away from fossil energy, especially coal, to avoid greater economic and environmental risks.

Although the ASEAN Centre for Energy (ACE) recommends maintaining coal with Carbon Capture Storage (CCS) and Carbon Capture Utilization and Storage (CCUS) technologies, IESR stated that this step is ineffective and high-risk.

“Recommending technologies (CCS and CCUS) solely to maintain PLTU operations and perpetuate the dependence of several ASEAN countries to import coal is unwise advice. The implication is that the acceleration of cheaper, affordable, and low-risk renewable energy to reduce carbon emissions to prevent temperature rise above 1.5°C,” Tumiwa said in a written statement Thursday, June 27.

Since 2017, coal imports from Southeast Asian countries have increased from 60 million to 120 million tons. Air pollution from power plant activities can potentially increase the risk of premature death by 70,000 per year by 2030.

ASEAN’s high renewable energy potential

If developed consistently, ASEAN has about 17 TW of renewable energy potential, enough to meet energy needs. Renewable energy development can also open up investment opportunities, increase competitiveness in the international market, reduce the cost of producing electricity, and reduce economic and social losses due to air pollution.

IESR Research Manager Raditya Wiranegara said that ASEAN needs to seriously pursue renewable energy development targets with a renewable energy mix of 57 per cent by 2030 and 90-100 per cent by 2050.

“The economic benefits of coal will erode along with the energy transition prioritising renewable energy in various countries. The commitment to early and planned operational termination of coal power plants taken by AMS will attract investment in renewable energy development,” he explained.

Arief Rosadi, Coordinator of the Climate Diplomacy Project, stated that developing renewable energy in the ASEAN region is more beneficial for the economy. According to an IESR study, Southeast Asia is an exporter of solar panel modules with a capacity of 64 GW by 2023. Vietnam, Malaysia, and Thailand produce about 11 per cent of the global supply. The increasing demand for solar PV in Southeast Asia to support the clean energy transition could provide an opportunity for developing solar cell and module supply chain manufacturing in Indonesia to meet the demand in the region.

“The demand trend for solar modules in Southeast Asia is increasing. ASEAN countries can utilise this momentum to make Southeast Asia the centre of the regional solar supply chain (solar hub) by considering the economic advantages of each country,” he said. (Hartatik)

Like this article? share it

More Post

Receive the latest news

Subscribe To Our Weekly Newsletter

Get notified about new articles