By Nadhilah Shani

Bangkok Post

22/02/2019

As Asean chair for 2019, Thailand is expected to excel in leading the grouping to collectively address regional issues. Announced by Prime Minister Gen Prayut Chan-o-cha last year, the current chairmanship theme of “Advancing Partnership for Sustainability” carries a significant message for the regional cooperation. The word “advancing” is selected to encourage Asean to continuously keep up with and adopt the disruptive technological development of the fourth industrial revolution (Industry 4.0). With the word “partnership”, Thailand wishes all Asean member states (AMS) to strengthen economic cooperation so Asean can play a bigger role in solving global challenges. “Sustainability”, on the other hand, reflects how all efforts at national and regional levels should be done in a sustainable manner for all economic sectors. But what does “advancing partnership for sustainability” mean for Asean energy cooperation?

The use of technology and the internet of things have become prominent in the era of Industry 4.0. To play an active role in this era, Asean should embrace these changes and start digitalising its energy sector for enhanced connectivity and increased efficiency. Emerging technologies such as blockchain should be seen as an opportunity for Asean to penetrate a dynamic market. Several AMS, such as Thailand, Singapore, and the Philippines have started to pilot trading platforms for renewable energy using blockchain technology. With the chairmanship this year, Thailand is expected to encourage its fellow member states to explore and implement digitalisation in the energy sector.

There is no better time than now for Asean to move as a unit, as stronger partnerships are key to solving not only national but also regional energy challenges. In terms of advancing partnerships, Asean needs to collaborate inward and outward, not only within the region, but also with neighbouring countries and other regions in order to increase global awareness to address global issues including climate change.

The Asean Centre for Energy’s joint study with the Global Energy Interconnection Development and Cooperation Organisation and the United Nations Economic and Social Commission for Asia and the Pacific, entitled “Energy Interconnection in Asean for Sustainable and Resilient Societies”, indicates that building energy interconnection in Asean and beyond is the key to advancing clean energy development.

Interconnection is crucial in achieving the regional target of 23% renewables share by 2025. Progress in connectivity will only happen if Asean puts partnership as a priority. In 2017, Asean set a good milestone through multilateral electricity trading under the Lao-Thailand-Malaysia (LTM) project. However, the region should continue to take the collaborative approach to solve the remaining legal, technical and policy issues related to regional interconnection.

Apparently, moving together is not enough to address regional energy issues. Asean needs to move in a sustainable manner to ensure that economic development is in line with efforts to reduce carbon emissions and conserve the environment. It is important for the region to move away from fossil-fuel dependence, and to unceasingly boost renewable energy.

Thailand could set an example for the rest of AMS. Thailand is well-positioned as a front-runner in bringing renewable energy in the region. With roughly 3 gigawatts of solar-installed capacity — which is still higher than the total solar capacity from the rest of AMS combined — Thailand is already halfway to reaching its solar target of 6GW in 2036. It is recorded that 10.2GW of Thailand’s electricity in 2017 was generated from various renewable sources.

According to its recently launched Power Development Plan (PDP) 2019, Thailand plans to continue its commitment in using more renewables, aiming to achieve 20.7GW of renewable power in 2037, which would account for 35% of the country’s total power capacity. Thailand also counts itself among the leaders of energy efficiency efforts, as it plans to reduce intensity by 30% in 2036 from 2010 levels. This number would significantly contribute to Asean’s energy intensity reduction target of 30% by 2025 from 2005 levels.

Thailand could also be a benchmark for Asean in creating innovation and adopting energy digitalisation since it launched the grand initiatives of Thailand 4.0, where smart cities and efficiency will become the main focus of the country’s economy and energy transformation. Thailand’s commitment and actions could motivate all AMS to follow the sustainable energy pathway.

As an Asean hub, Thailand is positioned to take a leading role in regional power interconnection. Among the 15 bilateral interconnection projects in Asean, Thailand is involved in nine power transmission projects. This is before counting its involvement in half of the 26 future interconnection projects. Considering Thailand’s strong vision, it is timely it to lead Asean to a sustainable and dynamic future with the theme “Advancing Partnership for Sustainability”, by continuing from Singapore’s chairmanship that led the region to be “Resilient and Innovative”.

Nadhilah Shani is a research analyst, Policy, Research and Analytics Programme, Asean Centre for Energy.