Renewable energy whitepaper copy

The Future of Renewable Energy in Southeast Asia

An exploration into the capabilities, usage requirements, and untapped community-building potential of renewable energy sources in the ASEAN region.

Introduction & Project Scope:

Introduction & Scope

As the world grapples with the growing impact of global warming and climate change, it is clear that an increased focus on sustainability will define the coming decades. At the center of this global change will be a transition towards 100% renewable energy for all sectors. Scientists believe that this is possible, and can be achieved as early as 2050.^[1]

From a purely environmental outlook, the switch to renewable energy is a net positive – the main issues at stake are economic viability and performance capabilities. It is one thing for a small, sparsely populated, and wealthy country like Norway to become completely reliant on renewable energy – the journey away from coal and other non-renewable fuels is much more challenging in countries like Indonesia, Malaysia, and the Philippines.^[1] Coal might create a lot of pollution, but it also creates reliable power, lucrative exports, and a lot of local jobs.

We created a group to explore the multitude of ways that renewable energy can replicate these benefits for local governments and for the populations they serve. Made up entirely of long-time energy professionals with significant experience and expertise in the region, our team is committed to maximizing the benefits of renewable energy throughout ASEAN.

• Our Mission
  We are committed to supporting local economies, creating renewable energy jobs, and building critical infrastructure that allows ASEAN populations to benefit from the valuable natural resources within their regional communities.
• Our Vision
  We envision a future where the renewable energy projects we facilitate throughout Southeast Asia contribute to global and regional sustainability initiatives while creating local employment and investment opportunities.

In this paper, we will highlight the key benefits and untapped potential of renewable energy sources while also analyzing some of the primary risks.

Defining Renewable Energy

What is Renewable Energy?

Renewable energy is any type of energy source which can be renewed at the same rate at which it is used (or quicker). Some of the primary types of renewable energy are geothermal, hydropower, solar, wind, and biofuels. We’ll go over some of these types in more detail later in the document.

Key Advantages & Benefits

• Reduced Environmental Impact
• Infinitely Replenishable Supply
• Fewer Energy Imports
• Less Hazardous Waste
• Untapped Job Creation Potential

Key Challenges & Risks

• More Expensive than Fossil Fuels
• Limited by Geography
• Impacted by Environment/Weather
• Diminished Storage Capability
• Impacts Economy and Existing Jobs

Renewable vs Carbon Free – what’s the difference?

Though it’s not uncommon to hear people use renewable energy and carbon-free energy interchangeably, these terms refer to two different things. Though renewable energy is always carbon-free, the inverse is not true. Carbon-free energy sources like nuclear may produce zero emissions, but they are not naturally occurring nor replenishable. In the case of nuclear, this type of energy is costly and can also harm the environment via toxic waste.

Instead of asking whether we can afford to transition to renewable energy, we need to be asking whether we can afford not to.

Countries across the globe have become addicted to cheap energy and it’s not hard to see why: thinking short-term, coal, oil, and other non-renewable energy sources are profitable job creators that enable widespread energy access throughout previously underserved communities. The environmental science is clear, but it can be hard to justify pivoting away from something that has been successful and profitable for decades.

Here’s the good news: over the past few years, there have been some monumental improvements in the way the world accesses and monetizes renewable energy. In the next section, we’ll go over these developments on a case-by-case basis.

Renewable Energy Types:

Understanding the Different Types of Renewable Energy

There are several different types of renewable energy sources, each with its own strengths and weaknesses. Below, we’re going to take a look at four of the most relevant options for the ASEAN region.

Geothermal

Geothermal energy is renewable energy that is stored within rocks and fluids in the earth’s core. This energy source was created from heat during the planet’s formation, as well as the continued radioactive decay of materials. Though geothermal energy has been used for thousands of years going back to the Paleolithic era, more recent technological advancements have made it more practical and affordable. Instead of relying on hot springs and other naturally occurring sources, modern science gives us the ability to harness energy via power plants at roughly $0.05/kWh.^[1]

• Environmental Impact
  Geothermal energy has low emissions, making it a great option when looking at the environmental impact. Binary geothermal plants emit excess steam, but no air or liquid. Some facilities do produce sludge that can be easily recycled – the zinc, silica, and sulfur can actually be sold for a profit. Geothermal energy production is somewhat limited by geographical restraints, but this is a boon for certain markets in Southeast Asia – Indonesia and the Philippines are currently ranked second and third in global geothermal installed power generation capacity.^[2]
• Societal Impact
  Even with recent scientific breakthroughs, geothermal energy can be prohibitively expensive to initiate. The majority of this is tied up in drilling costs, which are risky and costly. With that said, geothermal plant operation creates numerous high-skill jobs that can be beneficial to emerging markets in the ASEAN region. The Philippine Energy Plan 2012-2030 aims to achieve 70% utilization within the next few years.^[1]
• Projected Demand
  Demand for geothermal energy has grown considerably in recent years, with the main obstacle being the associated costs. As evidenced by the long-term success in the Philippines and more recent developments in Indonesia, Southeast Asia has the capacity to meet this demand with adequate investments of time, money, and resources.

Hydroelectric Power

Hydroelectric power leverages hydropower dams to generate electricity and is currently the most widely used form of renewable energy. It is one of the most efficient and secure ways to create clean power. Though typically created via conventional dams and reservoirs, power can also be generated via run-of-the-river hydroelectric stations and tidal power.

• Environmental Impact
  Once operational, a hydroelectric power plant produces no waste and has significantly lower greenhouse gas impacts than other forms of electricity. With that said, dam construction can have a big impact on the local ecology and environment of the area. Flooding also poses a significant risk.
• Societal Impact
  The biggest advantage of hydroelectric power is flexibility. Power can be created quickly based on demand.
• Projected Demand
  As of 2020, hydroelectricity generated one-sixth of the world’s power, trailing only coal and natural gas. It supplies more power than nuclear, as well as all other forms of renewable energy combined.^[1] The demand for this useful energy source is already high and as the world transitions from environmentally unfriendly options like coal, it will continue to grow. Hydropower currently generates aroundAs of 2020, hydroelectricity generated one-sixth of the world’s power, trailing only coal and natural gas. It supplies more power than nuclear, as well as all other forms of renewable energy combined.^[1] The demand for this useful energy source is already high and as the world transitions from environmentally unfriendly options like coal, it will continue to grow. Hydropower currently generates around 15% of the power in South and Southeast Asia, but the region’s rainfall and unpredictable/extreme weather patterns make increasing this capacity difficult.^[2]

Solar

One of the fastest-growing and most affordable forms of renewable energy is solar. Harnessing the immense power of the sun, solar power is widely relied upon for residential water heating, HVAC systems, and water treatment. More recently, it has become viable as a source of electricity production – within a generation, solar power has evolved from prohibitively expensive to arguably the cheapest energy source in history.^[1]

• Environmental Impact
  The driving factor behind solar energy’s explosion in popularity has been its positive environmental impact. On average, solar facilities produce significantly fewer lifecycle carbon emissions than both coal and natural gas, but the manufacturing and maintenance process does require the usage of some hazardous chemicals.^[2] Additionally, utility-scale solar requires a lot of land and water to operate. Though this can impact the surrounding habitat, the overall environmental impact is a net positive.
• Societal Impact
  The biggest societal impact of solar is the increasingly low cost of utility-scale deployment. Access to this renewable energy source is no longer capped by high costs, making it a great solution for emerging economies looking to transition toward cleaner energy. As mentioned above, solar does require significant land use. This can present a challenge within geographically constrained, densely populated ASEAN countries.
• Projected DemandSince the Paris Agreement was signed in 2015, solar has gone from producing 1% of the world’s power to roughly 5%.^[1] The International Energy Agency predicts that this number will reach 20% of energy consumption by 2050, thus establishing solar as the largest electricity source on the planet.^[2

Biofuels

Biofuels are energy sources that are created from plant-based materials and/or bio-waste. This renewable liquid or gaseous fuel is typically used for transportation – two of the most common types of biofuels are bioethanol and biodiesel. These are created via fermented starch crops (bioethanol) and oils and fats that undergo transesterification (biodiesel).

• Environmental Impact
  The environmental impact of biofuels depends on several specific conditions, but in general, these carbon-neutral fuels emit much fewer greenhouse gasses than fossil fuels. As with other forms of renewable energy types, one of the most significant environmental impacts is the change in land use and ensuing biodiversity loss.
• Societal Impact
  Biofuels have the potential to drastically impact the world’s economy by reducing the reliance on foreign oil and increasing the demand for other raw materials. In Southeast Asia, Malaysia identified biodiesel as one of the 12 National Key Economic Activities and began implementing a nationwide program in 2015.^[1] Biodiesel is also an important export and job creator for Indonesia and other regional countries.
• Projected Demand
  The International Energy Agency wants to see biofuels make up 64% of the world’s transportation fuels by 2050. As of 2019, the number was just 3% for road vehicles and even less for aircraft.^[1] To get back on track, demand will need to increase significantly over the next several decades.

ASEAN Outlook:

Renewable Energy Outlook for Southeast Asia

Over the past few years, we have seen ASEAN countries take significant steps towards improved sustainability. One of the primary ways this has been accomplished is via a transition towards renewable energy sources.

Whether it’s Indonesia and the Philippines establishing themselves as global leaders in geothermal energy exploration and utilization or Malaysia developing forward-thinking, climate-conscious initiatives like its recent Green Sukuk bonds, it’s clear that the region is heading in the right direction. At [group name], we want to leverage our international and regional experience and expertise to help ensure that this transformation toward clean energy benefits everyone in the community.

What are Green Sukuk bonds?

Green Sukuk is an Islamic bond that enables countries and investors to invest in green, sustainable development without violating shariah law’s restrictions on interest collection. Of the estimated 1.5 trillion dollars in investment capital Asia required to meet its sustainable infrastructure development needs at the time of the first Green Sukuk in 2017, only ~800 billion was readily available. These bonds were created to help bridge the gap.^[1]

The Ten Principles of the UN Global Compact:

The Ten Principles of the UN Global Compact

To ensure that our renewable energy collaborations promote sustainability and equitable community development we abide by the Ten Principles of the UN Global Compact. These principles, which incorporate human rights, labour rights, environmental concerns, and anti-corruption initiatives, align perfectly with our company mission and vision.

1. Businesses should support and respect the protection of internationally proclaimed human rights.
2. Businesses should make sure that they are not complicit in human rights abuses.
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
4. Businesses should uphold the elimination of all forms of forced and compulsory labour.
5. Businesses should uphold the effective abolition of child labour.
6. Businesses should uphold the elimination of discrimination in respect of employment and occupation.
7. Businesses should support a precautionary approach to environmental challenges.
8. Businesses should undertake initiatives to promote greater environmental responsibility.
9. Businesses should encourage the development and diffusion of environmentally friendly technologies.
10. Businesses should work against corruption in all its forms, including extortion and bribery.

Conclusion:

Report Conclusions

Over the next 10 years, the energy projects undertaken and energy policies implemented are going to have monumental importance in the world’s long-term ability to mitigate the impacts of global warming and climate change.

Nowhere is that more evident than in Southeast Asia, where unpredictable and extreme weather patterns and rising sea levels have an outsized impact on people’s day-to-day life. The good news? Federal, state, and municipal governments throughout the region have taken notice and are actively taking steps to reduce their reliance on coal and other high-emission fossil fuels. Whether it’s Indonesia’s ongoing plan to move over 11 million people out of Jakarta by 2035 or Malaysia’s attempt to bring traditional finance, Islamic finance, and climate-change initiatives together via Green Sukuk bonds, there is an overwhelming desire for transformative change.

At [group name], we combine over [x] years/decades of renewable energy expertise with a unique commitment to investing a portion of our proceeds back into the community. One of the defining characteristics of 20^th-century energy was an exploitative, unbalanced relationship between nations – the global transition towards renewables gives us a once-in-a-lifetime opportunity to create new energy partnerships based on collaboration, trust, and community-building.

We look forward to taking the next steps toward an equitable, equal, and sustainable energy future. Are you ready to join us? Contact Us Now