Jakarta – Up to USD 29.4 trillion in capital investment is required to realise the energy transition between countries in the ASEAN region by 2050, according to the International Renewable Energy Agency (IRENA) projections. The projection corresponds to a scenario to prevent a 1.5-degree Celsius rise in the earth’s temperature with a 100% renewable energy scheme.
In line with the IRENA study, Minister of Energy and Mineral Resources Arifin Tasrif, when opening the Sustainable Energy Financing And Mobilisation of Energy Investments To Ensure Energy Security And Achieve NDCs In ASEAN in Bali, revealed that the need for such funds is aimed at the development of renewable energy generation, transmission (national and international), distribution, and storage, biofuel supply, electrification (EV cars and EV chargers), as well as in considering a broader cost perspective that includes fuel, operation and maintenance costs.
Arifin added that several things need to be done in addition to funding a conducive environment for investors to mobilise green energy investment, including the provision of incentives, a clear and supportive policy framework, including long-term energy plans and regulations that can build investor confidence, and transparent investment procedures. (Hartatik)