With a combined GDP
of $2.1 trillion in 2011, a wealth of natural resources and an enterprising and
increasingly well-educated work force, the 10 member-states that make up
the Association of Southeast Asian Nations (Asean) possess the necessary assets
to become a pillar of the global structure.
The world’s most
powerful economies are focusing increasingly on Asean’s excellent performance
and growth potential. There is one important and critical question coming up:
Can developing Asean secure the energy it needs to fuel the expected economic
expansion? And will Asean shift to clean and green energy sources so that the
conference of parties commitments can be fulfilled?
Energy security rests
on three pillars: the adequacy and reliability of energy supply, environmental
sustainability and affordable access. Failure on any of these fronts could
derail economic development and the desired inclusive growth. Asean has an
array of options to manage its energy appetite. But tackling issues, such as
outmoded subsidies, requires political will, and green innovation requires
imagination. Subsidies impose a tremendous burden on public budgets, exceeding
2 percent of GDP in Indonesia and Vietnam, and are undermining the desired
level playing field as Asean integrates. In previous Energy SMART conferences
organized by the European Chamber of Commerce of the Philippines (ECCP), we
raised the issue that the subsidies offered by other Asean countries need to be
addressed as soon as possible, as they undermine the competitiveness of the
Philippines. We will have this item on our agenda for this year’s Energy SMART
event again.
In the Philippines we
are looking forward to a deeper public-private partnership (PPP) (in its true
sense), which means that private and public stakeholders meet regularly to
discuss energy issues and jointly commit to contribute to solutions:
- The government should develop a sustainable-energy mix policy and feed-in tarrif implementation
In order to drive investments and look
sustainable feedstock, the government has to create a long-term vision on the
energy mix, looking at (less) coal, a natural-gas industry and renewable-energy
(RE) sources, involving geothermal, solar, wind, biomass, hydro, etc. We need a
road map; and the refiling the Downstream Natural Gas Industry Bill.
- Energy efficiency needs to become a national obligation, as 20 percent of energy consumption can be saved in lighting, cooling and with changing to high-efficient motors. ECCP’s cooperation with Philippine Economic Zone Authority is a best-practice case. We need the refiling of the Energy Efficiency and Conservation Bill.
- The approval process for generating new plants should be streamlined
Approximately 162
permits and signatures are required before a power plant can be built; this
means, in the Philippines it takes five years to get a plant on stream,
compared to three years in other countries.
- A comprehensive review of the energy service provision in remote and off-grid areas is needed.
That will entail
Portfolio Standards (RE minimum-capacity requirement; to be technically
simulated) and minigrid implementing rules and regulations.
- Waste to energy needs to be taken seriously to solve problems in many communities with communal waste and generate power at the same time. The Supreme Court has cleared the way by ruling that the emission values are important, not the process.
Let’s all agree that
we can address energy issues effectively in a PPP. We firmly believe that a National
Energy Council (like the National Competitiveness Council) should be formed now
so that the energy stakeholders can meet regularly and transparently to secure
energy at affordable prices. We have submitted an Executive Order draft,
which—unfortunately—has not been signed yet.
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