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Regional Energy Cooperation and theRole of the Private Sector in Asia andthe Pacific: Regional Cooperation in
Energy Security Issues
Weerawat Chantanakome, PhD
Executive Director, ASEAN Centre for Energy
Asia-Pacific Business Forum 2008
United Nations Conference Centre, Bangkok, Thailand,27 April 2008
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1970
2004
1990
1985
1980
1975
GLOBAL OIL
CRISIS
ASEAN ENERGY COOPERATION
1970
2004
1990
1985
1980
1975
APAEC (1999-2004 and 2004-2009)Establishment of ACE (1999)Hanoi Plan of Action / MOU on TAGPASEAN Vision 2020 (1999)ASEAN Program of Action on Energy Cooperation (1995-1999)ASEAN Energy Amendment (1995); AEMEC to AMEMPriority for ASEAN Power Grid, APSA and TAGP (1994)
Thai-Indo Coal Coop. (1990)AEEMTRC creation (1988)Phil – Indo Coal Coop. (1987ASEAN Energy Cooperation Agreement (1986)
ASEAN Petroleum Security Agreement (APSA, 1986)
1st Meeting of HAPUA (1981)Indonesia & Malaysia assisted other ASEAN Countries on
oil needs / 1st AEMEC (1980)ASCOPE’s Emergency Petroleum sharing scheme(1977)ASCOPE creation (1976)
ASEAN Emergency Petroleum Sharing SchemeSupplementary to ASCOPE’s (1983)
ASEAN Establishment (1967)
Gulf War (1990)
Iran – Iraq Tanker War(1981-1988)
2nd Oil Shock (1979)
1st Oil Shock (1973)
EN
ERGY
SECURITY
ASCOPE: ASEAN Council on Petroleum ; AEEMTRC: ASEAN-EU Energy Management Training and Research Centre;TAGP: Trans-ASEAN Gas Pipeline; AMEM: ASEAN Ministers on Energy Meeting
Introduction : Energy Security as Reason for ASEANEnergy Security as Reason for ASEAN
Energy CooperationEnergy Cooperation
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ASEAN HEADS OF
STATE/GOVERNMENT
ASEAN HEADS OF
STATE/GOVERNMENT
AMMSTOTHER
MINISTERIALMEETINGS
ASEAN
CENTRE
FORENERGY
(ACE)
COST
A M M ASEAN
S GA E M
OTHER
MINISTERIALMEETINGS
A S C S O M
ASCOPE
NRSE
SSN
EE & C
SSN
HAPUA
AEBF AFOCSCNCER
ASEAN
SECRETARIAT
A M E M
S O M E
LEGEND:
AEBF: ASEAN Energy Business ForumAEM: ASEAN Economic Ministers
AFOC: ASEAN Forum on Coal
AMEM: ASEAN Ministers of Energy Meeting
AMM: ASEAN Ministerial Meeting
AMMST: ASEAN Ministerial Meeting
on Science & Technology
ASC: ASEAN Standing Committee
ASCOPE: ASEAN Council on Petroleum
COST: Committee on Science & Technology
EE&C SSN: Energy Efficiency and
Conservation Subsectoral Network
HAPUA: Heads of ASEAN Power
Utilities/Authorities
NRSE SSN: New & Renewable Sources of
Energy Subsectoral Network
SCNCER: Sub-Committee on Non-Conventional
Energy Research
S G: Secretary General
SOM: Senior Officials Meeting
SOME: Senior Officials Meeting on Energy
REPP-SSN: Regional Energy Policy and Planning
– Sub Sector Network
REPP-
SSN
ASEAN Centre for Energy (ACE)ASEAN Centre for Energy (ACE)
NES
SSN
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Develop transparent legal,regulatory and technical
frameworks
ASEAN Plan of Action for EnergyASEAN Plan of Action for Energy
Cooperation (APAEC) 2004Cooperation (APAEC) 2004--20092009
A
P
A
E
C
Trans-ASEAN Gas Pipeline
ASEAN Power Grid
Coal and CCT
Regional Energy Policy &Planning
Renewable Energy
Energy Efficiency &Conservation
1. Trans-ASEAN Gas Pipeline
2. ASEAN Power Grid
3. Coal and CCT
6. Regional Energy Policy &Planning
5. Renewable Energy
4. Energy Efficiency &Conservation
Programs Approaches
narrow development gap
greater private sectorinvolvement and participation
capacity building
Develop and expand the energymix and supply source
1
2
5
3
4
7. Nuclear Energy Safety inAPAEC 2009-2014
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Increase in energy demand requires huge capital
Has potential to strain governments and financialmarkets
Guidance and direction to effectively mobilizeresources are needed
Concerted efforts and pursued collectivelyequates to more and solid chances to reducerisks of energy insecurity, economic vulnerabilityand ecological imbalance
Regional Cooperation in Energy Security IssuesRegional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
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COOPERATION what it is NOT Does not intend to undermine individual country’s goals and
strategies Does not advertently or inadvertently seek to beef up
readiness and competitiveness at the expense of the other
COOPERATION is continuum of d ist i nc t appr oaches and s t ra t eg ies by
individual countries, deployed at va ry i ng l eve l s of responsibilities, capacities and expectations yet bounded and
binded by shar ed goa ls and asp i ra t i ons in pursuing aco m m o n a g en d a
“Energy Security and Sustainable Development for A ll,Today and Beyond”
Regional Cooperation in Energy Security IssuesRegional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
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New Sustainable Energy Paradigm
Enhanced regional cooperation that is based on
shared visions Strengthened collaboration; energy is both a national
and regional security issue
Eliminates any fear or perceived fear that cooperationundercuts national interest or that a build up of cooperation initiatives, mostly overlapping, alreadyexists
COOPERATION is EVOLUTIONARY as much as theneeds are.
Regional Cooperation in Energy Security IssuesRegional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
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4 Major Areas to Reinforce Cooperation:
I . Energy Infrastructure/ Energy Trade
ASEAN Power Grid, Trans-ASEAN Gas Pipeline,Trans-Asian Energy System (TAES)
Oil Stockpiling
Continued trust building to hasten energy trade
Regional Cooperation in Energy Security IssuesRegional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
8/3/2019 DrWeerawat Presentation UNESCAP Regional Energy Cooperation[1]
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ASEAN Power Grid(14 power grid interconnection projects)
ASEAN Power Grid (APG) to link the electricity grids in the region tooptimize the utilization of energy resources among the membercountries.
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10
The Rush to Consumer Market
Economy (2nd APAEC 2004-2009)
?
VerticallyIntegrated Unbundled
WholesaleCompetition
Full CustomerChoice
Brunei
Cambodia
Lao PDR
MyanmarVietnam
Singapore
PhilippinesIndonesia
Thailand
Malaysia
?
21
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11
The ASEAN Power Grid
The ASEAN Electricity Market to 2020
MYANMAR
THAILAND LAO PDR
VIETNAM
CAMBODIA
BRUNEI SINGAPORE
PHILIPPINES
BatamKalimantan
Java
Sabah
Sarawak
Peninsular
MALAYSIA
INDONESIA
Sumatra
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Subregional/Regional Energy Cooperation in
Asia: Trans Asian Energy System (TAES)
ACD – Asia CooperationDialogue
APEC – Asia PacificEconomic Cooperation
ASEAN - Association of Southeast Asian
Nations
BIMSTEC - Bay of BengalInitiative for Multi-
Sectoral Technical and
Economic Cooperation
ECNEA - EnergyCooperation in North-East
Asia
EurAsEC - EurasianEconomic Cooperation
GTI – Greater TumenInitiative
SAARC - South AsianAssociation for Regional
Cooperation
SPECA - UN SpecialProgramme for Economies
of Central Asia. . . . .
North – East Asia
South
AsiaWest&
Central
Asia
South-EastAsia
ACDAPEC
EurAsEC
SPECA
SAARC ASEAN+ 3
ECNEAGTI
ASEANBIMSTEC
ASIA
East AsiaASEAN+6
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4 Major Areas to Reinforce Cooperation:
II . Financial Mechanisms and RegulatoryFrameworks to Attract Private Sector
Investment decisions directed by clear, stable
policies and rules Removal of barriers to trade and regulation to
allow multinational firms to operate at the
international level CDM – regional cooperation assessing best
practices and lessons learned to synergizeinitiatives and boost carbon markets both as a
business investment opportunity and as aclimate change arsenal
Regional Cooperation in Energy Security IssuesRegional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
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4 Major Areas to Reinforce Cooperation (cont.)I I I . Capacity Building
Quantity and quality of the workforce involved in theenergy sector begging immediate attention
Shortage pushing the cost of production upwards Advent of civilian nuclear power exacerbates workforce
concerns
Abundance of skills mismatches and shortages in keyprofessions (Asian Development Outlook 2008)
Education departments or ministries and other educationalinstitutions to get on board in energy planning
IV. Information Sharing and Increased Dialogues Information age makes access easier also let loose variety of
dubious and low quality data
Sustained cooperation to ensure accurate, reliable and updatedinformation vital to policy and decision-making (IEA, APERC, etc)
Outreach to different stakeholders to erase anymisconception and misinformation and paves way for coalitionbuilding
Regional Cooperation in Energy Security IssuesRegional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
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Increasing Access to Energy and Targeting the Poor Set clear national targets to provide minimum, if not modern
energy service, to the poor under a specific time table andbringing to the regional arena as international commitmentscompletes the virtuous cycle of new sustainable energyparadigm
Equal rights to energy services and equal investments Increasing poor’s access to energy to be integrated in policy
planning
Specific and clear targets, mandated or otherwise, and other
interventions including short-term subsidies to enticeinvestors
Private sector to propagate off-grid solutions or distributedenergy systems, create research innovations on alternative
fuels, and commercialize efficient technologies and bestpractices
Regional Cooperation in Energy Security IssuesRegional Energy Cooperation and the Role of the Private Sector in Asia and the Pacific:
8/3/2019 DrWeerawat Presentation UNESCAP Regional Energy Cooperation[1]
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“ “ I t is timeIt is time…… ASEAN countries wokeASEAN countries woke
up to the imperatives of ASEANup to the imperatives of ASEANenergy cooperation.energy cooperation.
The key security risk of ASEAN isThe key security risk of ASEAN is…… ..
itsits En er g y Secu r i t y En er gy Secu r i t y ....” ”
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Thank You for Your Thank You for Your
Attention Attention
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