ASEAN looking at renewable energy sources on oil worries<\/p>\n
Mynardo Macaraig
\nAgence France-Presse
\nManila<\/p>\n
Rising oil prices have prompted ASEAN members to take a
\nserious look at renewable energy sources, despite concerns over
\nthe cost of developing such resources.<\/p>\n
Renewable energy was among the key topics raised at a forum of
\nenergy ministers of ASEAN and Pacific Rim countries held in the
\nPhilippine capital this month to discuss ways of dealing with the
\nhigh price of imported fuel.<\/p>\n
The 10 members of ASEAN, the Association of Southeast Asian
\nNations, all have various energy programs involving geothermal,
\nhydroelectric, wind and solar power and even vegetable-based
\nfuels from palm or coconut oil.<\/p>\n
At the end of their conference, ASEAN and its East Asian
\ntrading partners issued a joint statement saying they would
\n"encourage the development and wider use of renewable energy for
\nenergy security, the sustainability of the environment and to
\nenable more people to enjoy the benefits of energy."<\/p>\n
The Philippines has one of the most ambitious plans. It wants
\nto double its capacity for renewable energy from the present
\nlevel of 4,500 megawatts or 37 percent of the total to 9,000
\nmegawatts or 60 percent of the total by 2013.<\/p>\n
Energy Secretary Vicente Perez said this would involve wider
\nuse of geothermal energy, with the Philippines eventually
\novertaking the United States as the world's biggest producer of
\nsuch energy.<\/p>\n
The Philippines also aims to be the biggest producer of wind
\npower in Southeast Asia by the end of the decade and a leading
\nproducer of solar cells, while further tapping energy from bio-
\nmass or organic waste materials like rice husks and sugar cane
\nscraps.<\/p>\n
Other ASEAN countries have their own programs ranging from
\nLaos's plan to sell hydroelectric power to its neighbors to
\nThailand's subsidy for renewable energy producers and Malaysia's
\npromotion of photovoltaic cells.<\/p>\n
But energy experts concede that even with an intensive
\ncampaign to tap renewable energy, they will still barely keep up
\nwith the growing demand in the region for power of all types.<\/p>\n
Guillermo Balce, outgoing head of the Jakarta-based ASEAN
\nCenter for Energy, said a study he had conducted found that
\nASEAN's demand for renewable energy was estimated at 68 million
\ntones of oil equivalent (MTOE) in 2005 or about 1.8 percent of
\ntotal energy demand.<\/p>\n
By 2020, demand for renewable energy was expected to rise to
\nonly 74 MTOE or 12 percent of the total. In contrast, demand for
\noil is expected to shoot up from 166 MTOE in 2005 to 292 MTOE in
\n2020.<\/p>\n
Even under ASEAN's energy plans, investment in renewable
\nsources from 2001 to 2020 will only amount to about US$15.44
\nbillion or barely two percent of all ASEAN investment in the
\npower sector, the center said.<\/p>\n
In contrast, investment in natural gas will hit $85 billion or
\nabout 43 percent of the total in the same period, its figures
\nshowed.<\/p>\n
Rowaldo del Mundo, an energy program coordinator with the
\nstate-run University of the Philippines, said a study showed that
\nASEAN countries would remain dependent on attracting independent
\nproducers to invest in power projects including renewable energy.<\/p>\n
But such "green" energy projects are "still struggling in
\nspite of numerous policy studies, demonstrations, projects and
\navailable financing support," he said in a report at a business
\nconference held on the sidelines of the ASEAN energy ministers'
\nconference.<\/p>\n
Under ASEAN's plans, the grouping's members are scheduled to
\nhave a total of 27,467 megawatts of installed capacity in
\nrenewable energy by 2010 with Indonesia, the Philippines and
\nThailand leading the way with more than 4,000 megawatts each, del
\nMundo said.<\/p>\n
Malaysia, Thailand and the Philippines offer the most
\ncomprehensive packages to private investors in renewable energy
\nincluding cash incentives, assistance in grid connection and
\npower purchase agreements, he said.<\/p>\n
Del Mundo said studies showed energy from renewable sources
\nwas often slightly more expensive than those from conventional
\nsources.<\/p>\n
He remarked that none of the ASEAN countries had policies
\nproviding investment incentives in exchange for the environmental
\nbenefits of such green projects. Instead, they were treated
\nlargely like other power programs.<\/p>\n
"Green power development can compete in the long term," but it
\nneeds such incentives to attract private investors, del Mundo
\nsaid.<\/p>\n
The ASEAN countries -- Brunei, Cambodia, Indonesia, Laos,
\nMalaysia, Myanmar, the Philippines, Singapore, Thailand and
\nVietnam -- must come up the proper policy instruments "to create
\nmarkets for green independent power producers," he warned.<\/p>",
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