ASEAN’s Energy Situation and Growing Effort on CDM

A presentation for Workshop: Frontiers of Energy and Carbon Markets Studies

Singapore, 3 October 2014

Content

1. ACE Introduction

2. ASEAN Energy's Situation

3. ASEAN Energy's Cooperation

4. CDM Programme

ABOUT ACE

About ACE

The ASEAN Centre for Energy (ACE) was established on January 1, 1999 as an Inter-Governmental Organization, guided by a Governing Council composed of SOE Leaders of the 10 ASEAN Member Countries.

Envisioned as a technical catalyst for economic growth and development of ASEAN by initiating, coordinating, facilitating and disseminating all energy activities to the region and the rest of the world.

Follow the blueprint for ASEAN cooperation in the field of energy: The ASEAN Plan of Action for Energy Cooperation (APAEC) 2010-2015, theme: “Bringing Policies to Actions: Towards a Cleaner, more Efficient and Sustainable ASEAN Energy Community.”

Seven (7) Program Areas: (1) ASEAN Power Grid, (2) Trans-ASEAN Gas Pipeline, (3) Coal and Clean Coal Technology, (4) Energy Efficiency and Conservation, (5) Renewable Energy, (6) Regional Energy Policy and Planning, and (7) Civilian Nuclear Energy.

ACE in the ASEAN Energy Sector

ASEAN HEADS OF STATE/GOVERNMENT

OTHER MINISTERIAL

MEETINGS

ASEAN CENTRE

FOR ENERGY

(ACE)

RE SSN

EE & C SSN

AEBF AFOC SCNCER

A M E M

S O M E

LEGEND: AEBF: ASEAN Energy Business Forum AEM: 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

ASEAN SECRETARIAT

ASEAN SG

OTHER MINISTERIAL

MEETINGS

A E M AMMST

REPP-SSN

ASCOPE HAPUA

S O M A S C COST

A M M

NEC SSN

ENERGY SITUATION

ASEAN’s Profile

2013pl

Population: 625,096 thousand GDP (current price): 2,398,550 US$ million GDP growth: 5.1 percent GDP per capita (current prices): 3,837 US$ Sources: ASEANstats, ASEAN Secretariat

Energy Situation

Energy Situation

Renewable energy total installed capacity in the ASEAN increased significantly from 24,424.84 MW in 2006 to 39,097.58 MW in 2011.

Energy Situation

RE total generation increased from 91,986.58 GWh in 2006 to 132,412.3 GWh in 2011, while total generation from non-renewable sources increased from reached 567,297.9 GWh in 2011.

CO2 Emission from 1990 to 2030

Total CO2 emission in around 679 million tons of Carbon equivalent (Mt-C) - under Alternative Policy Scneario - to 895 Mt-C under BAU .

(Source: the 3rd ASEAN Energy Outlook.)

CO2 Emission Outlook

Finding & Implications

Finding and Implications:

As member countries continue to pursue their economic goals, primary energy consumption and CO2 emission in ASEAN will increase almost three folds in the BaU scenario – there will be increasing pressure on energy security and global environmental stability.

If current energy production levels in the region do not increase - the region will have to source out this additional demand from outside the region.

Appropriate energy efficiency and conservation programs, low-carbon technologies and increased shares of non-fossil fuels in power generation - would be needed to reduce carbon intensity and enhance energy security.

ENERGY COOPERATION

Ministerial Directive

The 32nd ASEAN Ministers on Energy Meeting (AMEM)

23 September 2014 in Vientiane, Lao PDR

“Power Integration for ASEAN Prosperity”

The need for a concerted effort to promote energy efficiency and conservation, develop and deploy renewable energy sources, and achieve interconnected

regional power systems to ensure sustainability of energy resources.

ASEAN Power Grid (APG)

CAMBODIA

INDONESIA

SARAWAK

BRUNEI

P. MALAYSIA

PEOPLE'S REPUBLIC OF CHINA

YUNNAN

BATAM SINGAPORE

8

11

14

10

6

12

4 3

1

7

2

5

9

13

15

LAO PDR

16

SABAH

Earliest COD

1) P.Malaysia - Singapore (New) Post 2020

2) Thailand - P.Malaysia

• Sadao - Bukit Keteri Existing

• Khlong Ngae - Gurun Existing

• Su Ngai Kolok - Rantau Panjang 2016

• Khlong Ngae – Gurun (2nd Phase, 300MW) 2016

3) Sarawak - P. Malaysia 2025

4) P.Malaysia - Sumatra 2019

5) Batam - Singapore 2020

6) Sarawak - West Kalimantan 2015

7) Philippines - Sabah 2020

8) Sarawak - Sabah – Brunei

• Sarawak –Sabah 2020

• Sabah – Brunei Not Selected

• Sarawak – Brunei 2016

9) Thailand - Lao PDR

• Roi Et 2 - Nam Theun 2 Existing

• Sakon Nakhon 2 – Thakhek – Then Hinboun (Exp.) Existing

• Mae Moh 3 - Nan - Hong Sa 2015

• Udon Thani 3- Nabong (converted to 500KV) 2019

• Ubon Ratchathani 3 – Pakse – Xe Pian Xe Namnoy 2018

• Khon Kaen 4 – Loei 2 – Xayaburi 2019

• Thailand – Lao PDR (New) 2015-2023

10) Lao PDR - Vietnam 2016-2020

11) Thailand - Myanmar 2018-2026

12) Vietnam - Cambodia (New) 2020

13) Lao PDR - Cambodia 2016

14) Thailand - Cambodia (New) Post 2020

15) East Sabah - East Kalimantan Post 2020

16) Singapore – Sumatra Post 2020

Priority Projects

Northern

Southern

Eastern

Trans-ASEAN Gas Pipeline (TAGP)

The existing 3,020 km bilateral connections

12

CDM PROGRAMME 2009-2013 ASEAN+3 Mitigation Cooperation Programme

National’s Effort

(https://cdm.unfccc.int/Projects/projsearch.html as of September 2014)

Registered CDM projects in ASEAN

Regional Support

Cooperation Framework:

ASEAN+3 Mitigation Cooperation Programme

ASEAN+3 CDM Cooperation Program, as initially proposed by the Government of Korea through the Ministry of Knowledge Economy (now MOTIE: Ministry of Trade, Industry and Energy) at the 4th AMEM+3 in Singapore in August 2007, officially agreed at the 5th AMEM+3 meeting in Bangkok, Thailand on 07 August 2008 as the effort to widen opportunities for CDM projects in energy.

The objectives are to establish foundation for undertaking CDM projects for energy through capacity building and to include the participation from private sector in reducing GHG emissions and to continue to make an effort to respond to global climate change initiatives through information sharing and exchange on GHG emission reduction measures.

Major activities are: ASEAN+3 CDM Experts Capacity Building, Collaborative Feasibility Study on Priority Area of CDM Projects, and Workshop on the Promotion of CDM.

2009 CDM Programme

Programme

Activity Objectives Time

1. ASEAN+3 Region CDM Experts Capacity Building

To educate energy policy makers involved on CDM and CDM practitioners in the ASEAN+3 region through providing overall technical knowledge and know-how on CDM projects.

(1) August 24-28, 2009 in Seoul, Korea (2) September 28 to October 2, 2009 in Bangkok, Thailand

2. Study on Priority Areas and Exploration of new CDM projects by ASEAN+3 Countries

(i) To identify CDM project opportunities with joint research group consisting of ASEAN+3 CDM experts , (ii) To propose ways to develop CDM projects with research-priority areas of CDM projects in the selected 4 countries (Indonesia, Malaysia, Philippines, Vietnam)

July 2009 to December 2009

3. Workshop on CDM Promotion: Toward Sustainable Development through ASEAN+3 CDM Projects

To promote participation of private sector in ASEAN+3 CDM projects through sharing and exchanging of the outcomes of the ASEAN+3 CDM Cooperation Program.

January 18-22, 2010, in Korea

2009 CDM Programme

Identified CDM Projects

Sector Indonesia Malaysia Philippines Vietnam Total

Fuel cell 1 1 - - 2

Fuel conversion - - 1 - 1

Biomass 1 1 1(1) 4(2) 7(3)

Small hydropower - 1(1) 3(2) 2(2) 6(5)

Geothermal 3(3) - - - 3(3)

Wind - - - 1(1) 1(1)

Waste - 1 - - 1

Methane capture

Landfill - 1(1) 1(1) - 2(2)

Waste water

- 3(2) 1 3 7(2)

Mining - - 1(1) - 1(1)

Waste energy recovery(heat/gas)

- 1 2 - 3

Energy efficiency 1 1 1 - 3

Total 6(3) 10(4) 11(5) 10(5) 37(17)

2009 CDM Programme

KIC’s Interest

Country Projects

Philippines (4)

Da-an Hydropower

Linao River 9MW Mini-Hydropower

Cabuyao Landfill methane recovery & power generation project

Mine site methane capture for flaring and/or power generation

Vietnam (4)

Rice husk power plan project

Drang Phok small Hydropower

Phu Tan 2small Hydropower project

Phu Lac Wind power project

Malaysia (1)

Biogas captured for electricity generation for own consumption

Indonesia (1)

Indonesia Cisolok-Sukarame Geothermal project

2010 CDM Programme

Programme

Activity Theme Time

1. ASEAN+3 Region CDM Experts Capacity Building

Methodology for Project Development and F/S, Methodology for Project Finance, Utilization of CDM project insurance, Case study for Biomass project F/S, & Site-visit

November 22-27, 2010 in Incheon, Korea

2. 2009 Green Business Forum “Climate change, change business" July, 16-17, 2009 in Seoul, Korea

3. 2010 Green Business Forum “Challenging, Creating the Carbon Market in Asia“ 9 Projects announced: Indonesia: 3 (Geothermal power) Malaysia: 1(Bio) Philippines: 3(Bio, Geothermal, Hydro) Vietnam: 2(Bio, Hydro)

December 23-24, 2010 in Seoul, Korea

2010 CDM Programme

Identified CDM Projects

Gorontalo Geothermal

Surabaya Geothermal

Sumatra Geothermal

Indonesia Biogas Captured for Electricity

Generation for Own

Consumption Project

Malaysia

Pacuan-Ginobaab Hydropower

Project

Biliran Geothermal

Aklan Biomass Power

Philippines

Baggasse and other biomass

cogeneration power plant

Project

Drang Phok small Hydropower

Project

Vietnam

2011 CDM Programme

2011 ASEAN+3 CDM Cooperation Program Title

April. 2011 ~ Feb. 2012 Period

To gather, analyze and provide credible data and information in developing candidate projects, which were developed during 2009 and 2010 ASEAN+3 CDM Cooperation Program, into actual stage

To develop more candidate CDM projects

To promote cooperation between Korea and ASEAN region in the area of CDM

Purpose

Operation of 4 CCBs (CDM Cooperation Bodies) which were established in 2010, and establishment of 2 more CCBs in Cambodia and Thailand

Data and information sharing among stakeholders

Collaborative survey and research

Promotion and linking of candidate projects to Korean companies through match-making events or forum

Activities

2011 CDM Programme

Identified CDM Projects

Cambodia 1) DZIMA Rice Mill Biomass Project(1.6MW) 2) Nicolin Rice Mill Biomass Project(2MW) 3) W2E Siang Phong Biogas Project(1MW) 4) Jumbo Commodities Biogas Project(1-2MW)

Thailand 1) Vithai Biomass Power Project(9.5MW) 2) NTL Bio Energy Biogas Power Project(1MW) 3) Palm Power Green Power Project(3MW) 4) Ruangsiriwan PV Proejct(1.2MW) 5) Mit Prasong Green Power Biogas Power Project(1MW) 6) Thai Palm Development Biogas Power Project(1MW)

Indonesia 1) PT. Indah Kiat Pulp & Paper(IKPP) Waste Heat Recovery Project 2) PTPN V Palm Oil Biogas Project(1MW) 3) Geothermal Project(No information has been provided)

Philippines 1) ATN Solar PV Project(30MW) 2) Aklan Minihydro Power Project(15MW) 3) Serin Rice Husk Power Project(10MW) 4) Claveria Wind Power Project(15MW) 4) Biliran Geothermal Project(20-40MW)

Vietnam 1) Tr’Hy Minihydro Power Project(30MW) 2) Bao Nhai Minihydro Power Project(14MW) 3) Biogas Generator Project in Pig Farm(25kW)

Need a new direction for ASEAN+3 CDM Cooperation Program to respond to the global challenges.

COP 17 in Durban, Nov. 2011 : Decided to maintain Kyoto Mechanism until 2020 - Durban Package : Start the mitigation mechanism from 2020 both developed & developing countries are participating in

From 2013, only LDC CDM credits will be able to traded in EU-ETS, the biggest buyer of CERs at present.

2012 CDM Programme

CDM Cooperation

(Cambodia, Myanmar)

• CDM Road Show

• CDM Capacity Building

• Project development &

On-site visit

• Match-making to KICs

• National CDM Report

(Myanmar only)

NAMA Cooperation (Indonesia, Malaysia, Philippines, Thailand,

Vietnam)

• NAMA Workshop

• NAMA Capacity Building

• Pilot Project (Energy

Auditing & Inventory, etc.)

• National NAMA Report

Common

(All)

• Inception Workshop

(3-4 May. Siem Reap)

• Capacity Building (26-

27 Sep. Seoul)

• NAMA Forum (25 Sep.

Seoul)

• Final Workshop (12-13

Dec. Boracay)

2012 CDM Programme

Date : September 25, 2012

Venue : Grand InterContinental Hotel, Seoul, Korea

Participants : 250 participants from various areas (incl. Public, Academic, Industrial sectors, etc.)

Speakers : ACE, UNESCAP, UNEP, World Bank, Point Carbon, IGES, Myanmar, Sri Lanka, Tanzania, etc.

Purpose :

- Share information and views on NAMAs and Climate Change

- Introduce the activities of International Organizations and Developing Countries on Climate Change and NAMAs

2012 CDM Programme

2013 ASEAN+3 CDM Cooperation Program Title

July. 2013 ~ Dec. 2013 Period

Strengthen the cooperation of ASEAN+3 Member states in CDM/NAMA

Capacity building and information sharing on CDM/NAMA

Set up the basis for common NAMA system in the ASEAN+3 region

Objective

Capacity Building Program for Energy Financing & MRV in Korea

- Utilizing ODA funds in Korea and MDBs for ASEAN CDM/NAMA projects(July)

- MRV methodologies of Korea and AMSs(October)

Investment match-making for the identified projects

- Finding more business opportunities between Korea and AMSs

- Engaging KICs with the promising projects in AMSs

Collaborative research & Information sharing

Participation on NAMA Seminar and Korea Energy Show in Korea(October)

Activities

Project Outline

2013 CDM Programme

Conclusion

• ASEAN Member States - as National and Regional - are embarking the clean energy policy in various level.

• The ASEAN+3 CDM/NAMAs Cooperation Program has been implemented successfully since 2009, wherein 32 potential CDM projects were identified and several capacity building activities were conducted which contributed to strengthening the regional cooperation on exploring CDM opportunities and to tackle the climate change.

• The cooperation programme is now geared towards enhancing the understanding on energy project financing, especially utilizing Korea’s ODA funds.

Thank You

www.aseanenergy.org

contact at: benisuryadi@aseanenergy.org