Three priorities for energy technology innovation partnerships
Authors: Jean-Baptiste Le Marois and Claire Hilton*
Governments around the world are setting increasingly ambitious climate targets while at the same time pursuing challenging national policy goals such as affordable and sustainable energy for all. In many cases, achieving these goals will require technologies that either do not yet exist, or are not yet ready for market, meaning innovation will be critical. Technology innovation can be a game changer across all sectors, including power generation, industry, buildings and transport.
Yet it is unlikely that any single country will be able to solve all of its energy and climate problems alone. International collaboration can help countries accelerate innovation processes by identifying common priorities and challenges, tackling pressing innovation gaps, sharing best practices to improve performance, reducing costs and reaching broad deployment of clean energy technologies. Given this massive potential, the fundamental question is not if countries should collaborate, but rather who should collaborate and how they can do so efficiently.
As part of the IEA’s efforts to support global energy transitions, we are working to help governments identify relevant collaborative partnership opportunities, engage with international partners and optimise possible synergies among existing initiatives. Our recent Energy Technology Innovation Partnerships report is a key step along this path, providing an overview of the global landscape of multilateral efforts relevant to energy technology innovation, and examining four selected collaborative partnerships. There are three key takeaways that highlight the challenges and potential of these efforts.
Enhancing collaboration among existing multilateral initiatives
International collaboration in the field of energy technology innovation is not new – many countries already participate in numerous multilateral initiatives, some of which have been active for decades, such as The Technology Collaboration Programme by IEA (TCP) which was established in 1974. Today, 38 independent Technology Collaborations operate under the TCP, made up of over 6,000 experts from nearly 300 public and private organisations based in 55 countries, who work together on topics ranging from renewable energy and smart grids to hydrogen and nuclear fusion.
Governments have launched several new partnerships over the last decade, such as the Clean Energy Ministerial (CEM) in 2009 and Mission Innovation (MI) in 2015, which both aim to accelerate international efforts to address climate change. The 27 members of CEM collaborate to promote the deployment of clean energy technologies through over 20 initiatives and campaigns. Similarly, MI counts 25 members who have pledged to double clean energy RD&D spending and co-lead activities under eight key innovation challenges, such as clean energy materials and affordable heating and cooling in buildings. Participation in Technology Collaborations, MI and CEM present a great degree of overlap, as countries tend to join the full suite of collaborative partnerships. In fact, 13 countries and the European Commission participate each in more than 20 Technology Collaborations, CEM and MI: the United States, Japan, Korea, Canada, China, Germany, Australia, France, Sweden, Finland, Italy, Norway and the United Kingdom. This “core” group of decision makers is in a strong position to pursue further synergies across partnerships.
There are also many relevant regional partnerships that are making valuable contributions to energy technology innovation, such as the European Technology and Innovation Platforms (EU-ETIPs), which bring together EU governments and companies to identify research priorities and relevant energy innovation strategies.
Other examples of regional partnerships include mechanisms under the African Union and other African regional partnerships; the Asia-Pacific Economic Cooperation and the Association of Southeast Asian Nations; various partnerships in the Middle East; and the Latin American Energy Organisation and the Organisation of American States. Many other partnerships focus on specific themes of interest, such as the Biofuture Platform, a group of 20 countries seeking to advance sustainable bioenergy and facilitated by the IEA.
As the global landscape of multilateral activities relevant to energy technology innovation becomes increasingly diverse and complex, it can be challenging for policy makers to identify which partnerships to engage with. In fact, despite the central role of innovation in energy transitions and the potential of international collaboration, there is limited information available on the full landscape of multilateral initiatives and how they interact.
Examining a selection of collaborative partnerships reveals that numerous initiatives focus on the same technology areas. Our own examination shows that in eight technology areas, at least three of the four selected partnerships have active initiatives: heating and cooling; carbon capture, utilisation and storage (CCUS); nuclear; bioenergy and biofuels; wind; solar; smart grids; and hydrogen. The overlap becomes even more apparent when including other global, regional and thematic partnerships: for example, Technology Collaborations, MI, EU-ETIPs, the Biofuture Platform and the Global Bioenergy Partnership all focus on bioenergy. More generally, recent trends suggest that partnerships are increasingly centring on low-carbon energy sources and cross-cutting themes including systems integration.
Focusing on the same technologies across different partnerships may induce risks of duplication, thereby diluting policy maker attention and creating fundraising or political support challenges. That said, in some instances, activities may well address different aspects of the same technology area, justifying the overlap. Yet even in those cases, stakeholders have acknowledged that the perception of duplication may be enough to trigger a degree of competition between multilateral efforts. Policy makers would therefore benefit from identifying possible synergies between mechanisms to avoid replication of efforts while at the same time maximising complementarity.
Enhanced cross-mechanism collaboration may increase the impact of ongoing activities. For instance, co-locating stakeholder dialogue, events and roundtables may mobilise more actors and bring varied and valuable perspectives, attract attention from policy makers and enhance networking opportunities. Co-branding technology policy and market analyses may reveal new findings thanks to the combined experience, knowledge and networks of the initiatives involved. Collaboration between early-stage activities executing RD&D and initiatives providing competitive funding or grant opportunities may facilitate the development of energy technologies and their demonstration in real-life conditions or in strategic markets.
However, innovation stakeholders have also reported challenges in engaging with other collaborative mechanisms, in part because of a lack of systematic co-ordination processes. As a result, the number of interactions between existing partnerships, whether at the political or working level, remains low relative to the number of ongoing activities.
Despite these challenges, there are some initiatives that are already effectively collaborating across partnerships. For example, last year the co-leads of collaborative activities on smart grids under the International Smart Grid Action Network (ISGAN) (both a TCP and a CEM Initiative), identified a strategic opportunity to work more closely with the relevant Innovation Challenge under MI and formalised this co-operation.
Focus on emerging markets
Participation in collaborative partnerships continues to grow and diversify every year. IEA Members and Association countries currently account for the broadest participation in Technology Collaborations, CEM and MI, as illustrated by the “core” group of top-collaborators mentioned above.
While a strong central core of support is invaluable, an important trend for global innovation ecosystems is the increasing participation of emerging economies, such as China (currently a member of 23 Technology Collaborations), India (11), Mexico (10), South Africa (8) and Brazil (5).
Emerging market countries also tend to participate in regional partnerships, which allow governments that are not necessarily members of global efforts to benefit from international co-operation. The transition from regional to global collaboration is an encouraging trend for key emerging market countries, with which the IEA seeks to deepen engagement as part of the Clean Energy Transitions Programme (CETP).
Partnerships have made it clear that emerging economies are a top priority. As part of a survey conducted in 2019 by the IEA Secretariat, India was identified as a key prospective partner by 14 Technology Collaborations; Brazil by 12; Chile and China by 8; Mexico and Indonesia by 7. If prospective membership materialised, China would consolidate its high participation by holding membership in over 30 Technology Collaborations; India would join the “core” group of top-collaborative countries; and both Mexico and Brazil would be involved in over 15 Technology Collaborations.
Strengthening public-private cooperation
In addition to public agencies, private-sector actors play a critical role in RD&D and in ensuring key technologies reach markets. Examining both public and private contributions can help governments better understand the broader innovation ecosystem, engage with companies to leverage corporate expertise, influence and capital; and strategically allocate public funds in those energy sectors that remain underfunded or face financing access challenges.
While there is substantial interest from collaborative partnerships to deepen engagement with private-sector actors, this engagement is, at least for now, relatively uncommon. Among the four partnerships analysed in the report, only EU-ETIPs are co-led by industry stakeholders while some 80% of participants in Technology Collaborations are public bodies. For now, membership in MI and CEM is restricted to national governments, although engagement of private sector is actively sought and governments may designate in-country private sector experts to represent national interests in certain initiatives.
Different factors may be preventing companies from seeking engagement with government-led multilateral initiatives, including a lack of awareness of such programmes, differing working cultures between public and private actors, diverging priorities and little incentive to share information, and burdensome administrative procedures. On the other side, some stakeholders within collaborative partnerships remain reluctant to engage with industry, fearing the influence of corporate interests on their strategic decisions, work programmes or outputs. These reasonable concerns need to be overcome for effective public-private co-operation to take place.
Thankfully, we are seeing some positive developments. For instance, over 100 private-sector companies are now participating in the technical work of CEM activities, resulting from both CEM stakeholders reaching out to companies, and vice versa. In collaboration with the IEA, CEM also leads an Investment and Finance Initiative (CEM-IF) to help policy makers mobilise investments and financing, particularly from private sources, for clean energy deployment. Policy makers, collaborative partnerships and energy innovation stakeholders may benefit from further research on private-sector participation, building on these encouraging cases, to find ways to best leverage corporate capabilities.
As we continue to enhance our efforts related to technology innovation to support global energy transitions, the IEA encourages broad international collaboration to tackle pressing innovation gaps, share best practices and accelerate the deployment of clean energy technologies. Enhancing collaboration between existing initiatives, engaging with emerging markets and leveraging corporate capabilities, are three areas of promising focus for policy makers looking forward.
*Claire Hilton, Energy Partnerships Analyst.
Nuclear Energy & Pakistan’s Economic Development
Pakistan is going through a tumultuous time. Its economic condition is deteriorating every day, and there are even concerns about Pakistan going towards default. However, the Pakistani finance minister vehemently denies Pakistan’s possibility of defaulting. However, to keep Pakistan out of economic turmoil and ensure economic security in the long term, a sustainable, cheap, and clean source of energy is required. Nuclear energy is a great source of clean and green energy.
In the book, “The Quest: Energy, Security, and the Remaking of the Modern World,” Daniel Yergin argues that nuclear energy creates an unbreakable link between energy and the economy. It empowers nations to achieve economic security by increasing industrial competitiveness, increasing jobs, and reducing dependence on costly imports. Pakistan can also utilize nuclear energy to ensure long-term economic security.
Nuclear Power Plants (NPPs) are already contributing to Pakistan’s economy. NPPs generated 2350 megawatts of energy from July 2020 to March 2021. There was a significant increase in the capacity of these power plants from July 2021 to March 2022. These plants increased their capacity from 2350 megawatts to 3550. Furthermore, during this period, NPPs produced 12 percent of countries’ electricity needs. Pakistan Atomic energy commission has targeted producing 8000-megawatt electricity by 2030.
According to the International Atomic Energy Commission, electricity through NPPs has shown positive results in Pakistan’s economy. Pakistan lacks money and energy, which hampers economic growth.
According to Bloomberg, factories in Pakistan were warned that they might be unable to sustain production due to high energy costs. It became impossible for 40000 factories in Karachi to keep working due to a power shortage. Poor energy supply worsens the firm’s productivity and profitability.
According to the study published in Energy Strategy Review, poor energy significantly impacts profitability and productivity. This study analyzed the impact of energy on the profitability and productivity of 424 non-financial listed companies in Pakistan from 2001-2017. Seven measures, in which four measures of electricity shortfall (i.e., neutral period (NP), increasing shortfall (IS), worst shortfall (WS), decreasing shortfall (DS), energy consumption (EC), energy price (EP), and access to electricity (ATE)) were used to examine the impact of energy on the profitability of these companies. During increasing shortfall, worst shortfall, and decreasing shortfall, companies’ profitability was reduced by 39 %, 36 %, and 33 %. Furthermore, this study also showed an increase in companies’ profit by 33 percent during the stable energy supply period.
This study highlights that a stable energy supply is important for economic security. Lack of energy leads to economic insecurity because when firms are not profitable, they will not fire people and incline to shut down their businesses. It will create unemployment as well as people’s purchasing power will decline. Furthermore, when domestic production declines, Pakistan will import the products to meet the need. It creates a balance of payment issue.
Furthermore, the energy shortage also reduces foreign direct investment in Pakistan. In 2019, according to the World Bank Ease of Doing Business Index, Pakistan was ranked 108th out of 190 countries due to the energy crisis. When foreign direct investment is not coming due to the energy crisis, domestic factories’ profitability declines due to the energy crisis, and factories are also shifting their problems for Pakistan’s economy, which is already facing many challenges. This year, Pakistan also decided to close malls and businesses at 8: 30 pm because Pakistan wanted to save 60 billion rupees in terms of the cost of importing fuel to run electricity plants.
Therefore, Pakistan must start incorporating nuclear energy in its energy planning. The government has introduced different energy policies in the past, for instance, the power generation policy 2015 and the Alternative Renewable energy policy. Both of these energy policies talk about affordable and sustainable sources of energy. Nuclear energy is the cleanest source of energy as well as the most affordable form of energy after hydro. However, unlike hydro, whose production depends on the water and seasons, nuclear power is a stable energy source.
According to the achieve net zero targets, 100 billion dollars should be invested annually. Pakistan’s energy policy also wants to achieve sustainability. Therefore, Pakistan must invest in nuclear power plants to ensure economic security. Furthermore, according to the World Nuclear Association, the cost of building nuclear power is less competitive as compared to other forms of electricity generation. In addition, small modular nuclear reactors will completely transform the landscape of nuclear energy. Hence, Pakistan must invest in nuclear energy to ensure economic security. It will reduce the cost of electricity, make businesses competitive and ensure economic security.
African Countries Embarking on Nuclear Technologies Must Adopt the IAEA Approach Framework
With energy for both domestic and industrial use still in deep deficit, a number of African countries are looking to install nuclear plants as part of the energy mix. But the two principal setbacks encountered are (i) getting through the pre-installation technical stages or processes, (ii) identifying sources of finance for the construction and (iii) dealing with nuclear waste and employment of well-trained staff.
The International Atomic Energy Agency (IAEA) sets the principles and conditions for the facilities of a major nuclear power programme and for the choice of construction sites to att the technical aspects aimed at ensuring nuclear safety.
It sets requirements for controlling dangerous release of radioactive materials, in case of an unexpected catastrophic incident or crisis, for instance an attack of any kind from or against the plant, targeting the reactors, risky fuel storage and any other critical sabotage on the infrastructure.
The Chernobyl disaster in Ukraine and Fukushima in Japan, remind the world of the human and environmental costs of nuclear power accidents. Millions of people are still suffering from radiation and radiation related diseases till today.
Records show many African countries opting for building nuclear plants in order to find long-shelf solutions to chronic power shortages. Several agreements with Russia has not materialised primarily due to lack of funds. With training our research shows that since 2010 hundreds of students from Algeria, Ghana, Egypt, Zambia, Kenya, Nigeria, Tanzania, Uganda, Ethiopia and South Africa have received nuclear and related education at leading Russian educational institutions.
Adopting nuclear energy is a long process. Here is an example from Ghana. Under Nana Addo Dankwa Akufo-Addo’s administration, the roadmap of the nuclear power programme was planned to commence construction by 2023 and inject nuclear energy into the grip by 2030. Last May, Ghana completed phase two of nuclear power infrastructure development. As part of efforts to become a climate-resilient and zero-carbon energy country, Ghana has completed Phase II of the Nuclear Power Project, which includes the approval of a site for a nuclear power facility.
Deputy Energy Minister, Andrew Kofi Egyapa Mercer, announced this during a symposium on nuclear power infrastructure development. “We have currently received approval for the acquisition of our preferred and backup nuclear to host Ghana’s first nuclear power plant. And meeting our energy demand is necessary to sustain our industrial and economic growth, which is required for a middle-income economy,” he stated.
Mercer noted that the world is shifting to greener energy sources, and nuclear power is expected to be a significant source of energy. As a result, Ghana cannot afford to be left out of the global drive for energy security. “The world is migrating to cleaner sources of energy and nuclear is envisaged to be a critical source of energy. Ghana can therefore not be left out in this global search for energy security,” he added.
In 2022, President Akufo-Addo integrated nuclear technology into the country’s power generation mix. The president explained that this was consistent with the global collective commitment to the long-term availability of power and the peaceful use of nuclear energy for the benefit of society, to accelerate industrialization, and to push economic progress.
The Director of the Nuclear Power Institute, Professor Seth Kofi Debrah, says developing an attitude of consistency will aid in the nuclear plant process to become successful. The long term plan was evident when Ghana began its nuclear energy journey in the 1960’s until it was truncated. Ghana is anticipated to completely switch to nuclear energy by the year 2070, however, this will cost $581 billion.
Ghana’s nuclear programme has justified the need for alternate baseload power for industrialisation, limited hydro sources, postulated decline of gas, tariff reduction for industries, desalination, employment creation and climate change commitments.
Prof. Debrah said four candidate sites were initially selected for the construction of the nuclear power plant and after further studies by Ghanaian researchers, the team ranked the sites to settle on the first and the second being a backup. “We need approval report from the regulator by the end of Phase II. We also want to have a site evaluation report for construction permit at the end of Phase II. Construction will start at the end of Phase II,” he said.
Prof. Debrah said the team was working on a report on the preferred vendors and was hopeful that the report would be completed and submitted for consideration by Cabinet. It was necessary for the country to add nuclear energy to its energy portfolio to become a baseload energy source to support massive industrialisation in the wake of the dwindling traditional energy sources.
As of 2021, hydro accounted for 38 percent of the country’s energy generation portfolio whiles thermal accounted for 60 per cent (making it the baseload). Solar and biomass contributed 1 per cent each to the energy mix. Experts have raised concerns about the cost of power from thermal sources and there are fears that electricity prices may continue to go up if the country did not adopt cheaper energy sources. It is estimated that 40 per cent of the production cost of industries goes into electricity tariffs.
South Africa could not pursue its nuclear power simply because of the opacity in the deals signed by the former President Jacob Zuma with Russia. There is only one nuclear power plant on the entire African continent, namely, Koeberg nuclear power station in South Africa. Commissioned in 1984, Koeberg provides nearly 2,000 megawatts, which is about 5% of installed electricity generation in South Africa.
The South Africa $76 billion deal with the Russians to build a nuclear power plant collapsed along with the Government of Jacob Zuma that negotiated the deal in secrecy, in fact when such corporate projects have to be discussed by the parliament and necessarily have to pass through international tendering process. Russia and South Africa concluded an intergovernmental agreement on strategic partnership in the nuclear sphere in 2014. The agreement provided in particular for construction of up to eight NPP power units.
Rwanda’s annual budget stands at US$3 billion while the construction of the nuclear power plant would cost not less than US$9 billion which is equivalent to Rwanda’s entire gross domestic product. Talks are underway on the construction of a nuclear power plant in Burundi, Ethiopia, Ghana, Mozambique, Nigeria, Tanzania and Zambia.
Shadreck Luwita, Zambian Ambassador to the Russian Federation, informed that the processes of design, feasibility study and approvals regarding the project have almost been concluded. The site of the project is yet to be designated as it is equally a process and it is envisaged that construction should commence, in earnest, not later than the second half of 2018.
In addition, he affirmed that the Russians envisaged technology transfer in the development of this massive project by way of manpower development capacity. For now, there are only a few Zambian nationals, who are studying nuclear science in one of the Russian universities in Moscow.
The Zambian Government hopes that upon commissioning of this project, excess power generated from this plant could be made available for export to neighbouring countries under the Southern African Development Community Power Pool framework arrangement.
In the case of Egypt, the agreement was signed in 2015, and it was only in 2022 that Russia granted a load of $25 billion for the four plants. The total cost of construction is fixed at $30 billion. El-Dabaa is the first nuclear power plant in Egypt and the first major project of Rosatom in Africa. After several years of delay, however, Rosatom began laying the concretes for the El Dabaa units. According to the project estimates by Rosatom, construction of all four NPP units is planned for completion by 2028-2029.
Many other African countries are already working on joining the atomic club in one form or another, whether it be the construction of a Nuclear Power Plant or a research reactor or the development of nuclear infrastructure or the training of professional personnel. Russia has agreements with Algeria (2014), Ghana (2015), Egypt (2015), Ethiopia (2019), Republic of Congo (2019), Nigeria (2012, 2016), Rwanda (2018), South Africa (2004), Sudan (2017), Tunisia (2016), Uganda (2019) and Zambia (2016). Memoranda of Understanding (MOUs) were signed with Kenya in 2016 and Morocco in 2017.
A nuclear power program is a complex undertaking that requires meticulous planning, preparation, and investment in time, institutions, and human resources. The development of such a program does not happen overnight and can take several years to implement. All countries, which embark on the path towards the peaceful use of nuclear technologies, do so by adopting the IAEA Milestone Approach framework.
In conclusion, African countries considering adding nuclear power to the energy mix to enhance economic development and provide a stable and affordable supply of electricity for the people must have the necessary funds and be ready to pass through step-by-step technical procedures. Alternatively, the renewable energy potential is enormous in Africa. Grand Inga are the world’s largest proposed hydropower scheme.
It is a grand vision to develop a continent-wide power system. Grand Inga 3, expected to have an electricity-generating capacity of about 40,000 megawatts – which is nearly twice as much as the 20 largest nuclear power stations. Another great resources is the Grand Ethiopian Renaissance Dam on the Blue Nile River in Ethiopia under construction since 2011. Researchers and Experts strongly believe and further estimate that the cost of building nuclear power does not make any sense, when compared to the cost of building renewables or other sources of energy, by pulling all those financial resources together in the continent, to solve energy shortages across Africa.
Strategic Partnership Opportunities among ASEAN countries towards Renewable Energy
Quoting from Singapore’s Prime Minister, Lee Hsien Loong, during his plenary speech at the 42nd ASEAN Summit in Labuan Bajo (Wednesday, May 10, 2023), which promotes other ASEAN countries to have a joint power grid (based on an article published by Channel News Asia). This statement is highlighted after the success made by the Lao PDR-Thailand-Malaysia-Singapore project in supplying renewable energy. In recent years, the importance of renewable energy has become increasingly apparent as countries worldwide seek to reduce their carbon footprint and address the impacts of climate change. The ASEAN region, comprising ten Southeast Asian countries, is no exception towards the movement. As a region with a rapidly growing energy demand, ASEAN countries are looking to renewable energy as a critical solution to address their energy needs while mitigating climate change by shifting towards renewable energy. In this context, strategic partnership opportunities among ASEAN countries can be crucial in accelerating the Sustainable Energy Transitions Initiative.
Renewable Energy Opportunities in the ASEAN Region
The ASEAN region has diverse renewable energy resources, including solar, wind, hydro, geothermal, and biomass. According to the International Renewable Energy Agency (IRENA) in 2018, wind energy is potentially growing in the Philippines, Indonesia and Vietnam because the wind speeds are between six to seven metres per second. On the other hand, IRENA and ACE (2016) highlighted geothermal potential in Indonesia and the Philippines. Besides, Indonesia, the Philippines and Singapore also have opportunities to explore ocean energy since the geography position is an archipelago (ASEAN RESP, 2016).
However, despite the potential of these resources, the region still relies heavily on fossil fuels, particularly coal, to meet its energy needs. According to the study “The ASEAN Climate and Energy Paradox” by I.Overland, H. F. Sagbakken, H. Chan, M. Merdekawati, B.Suryadi, N. A. Utama & R. Vakulchuk, the energy demand from fossil fuels between 2000 to 2018 resulted to 85% while the share of renewable energy in the energy mix remained. This reliance on fossil fuels contributes to climate change and exposes the region to energy security risks and price volatility. As a result, there is a growing recognition among ASEAN countries that renewable energy can play a critical role in reducing dependence on fossil fuels and achieving sustainable energy systems.
Countries Strategic Partnership
ASEAN countries can accelerate the deployment of renewable energy technologies and overcome common challenges. Some countries have already made significant progress in developing their renewable energy sectors, while others are still in the early stages of deployment. By working together, countries can learn from each other’s experiences and leverage their strengths to achieve renewable energy goals.
The unprecedented COVID-19 pandemic has highlighted the importance of resilience and sustainability in the energy sector. The pandemic has disrupted energy supply chains, and more demand for renewable energy will rise in 2020. The key players in the energy sector should form more strategic partnerships to encourage energy trading in response to the high demand for electricity across the region in the future.
As a result, strategic partnerships among ASEAN countries can help accelerate the transition to renewable energy and create a more resilient energy system that can withstand future shocks. In February 2023, the Electricity Generating Authority of Thailand (EGAT) and Tenaga Nasional Berhad (TNB) entered into a Memorandum of Understanding (MoU) to conduct a feasibility study to enhance the interconnection of the power grid between Peninsular Malaysia and Thailand.
Benefits of Building Strategic Alliance
The development of regional energy infrastructure can significantly impact regional energy infrastructure development. Establishing interconnectors and cross-border electricity trading can enable ASEAN countries to share renewable energy resources and optimise their use. This can address the issue of intermittency, which is a common challenge for renewable energy sources. Through diversification of renewable energy sources and sharing resources, ASEAN countries can create a more stable and resilient energy system by diversifying renewable energy sources and sharing resources.
In addition to sharing knowledge and infrastructure, strategic partnerships create opportunities for joint investments in renewable energy projects. By pooling their resources and expertise, ASEAN countries can undertake more significant and complex projects which require more work executions and upskill their employees through tacit knowledge. Most of the electricity firms in the ASEAN region are state-owned companies and require endless government support. For instance, governments can collaborate to develop large-scale renewable energy projects, requiring substantial capital investment and technical expertise. Joint assets can attract private sector investment and reduce the financial risks associated with renewable energy projects.
A strategic partnership can promote the adoption of policies and regulations that support the growth of renewable energy. ASEAN countries can develop common standards and rules for deploying renewable energy technologies, such as feed-in tariffs and tax credits. ASEAN countries can create a more predictable and stable policy environment for renewable energy investment.
Future of Renewable Energy
Other than the potential benefits of strategic partnerships, ASEAN countries may need to construct more institutional mechanisms to facilitate regional cooperation on renewable energy. There are existing platforms for cooperation among ASEAN countries, such as the ASEAN Centre for Energy and the ASEAN Power Grid. These platforms are more targeted initiatives. ASEAN countries shall also focus on renewable energy and facilitate collaboration among relevant stakeholders, including government agencies, industry players, and civil society organisations.
One notable initiative is the recent launch of the ASEAN Catalytic Green Finance Facility (ACGF), which aims to mobilise private sector investment for green infrastructure projects in the ASEAN region. The ACGF, which the Asian Development Bank (ADB) supports, will provide loans and technical assistance to project developers and financial institutions to support the development of renewable energy and energy efficiency projects. This initiative is an example of how strategic partnerships between governments and international organisations can help to catalyse private sector investment in renewable energy. According to ADB’s website, realising the shortfall of green infrastructure at $100 billion per year, private capital should consider grasping the opportunities to fill the gap to accelerate renewable energy growth.
The development of offshore wind projects requires significant technical and financial resources. Countries can address these challenges through strategic partnerships by pooling resources and expertise to develop large-scale offshore wind projects. For instance, several countries, such as Vietnam, Thailand, and the Philippines, are exploring offshore wind’s potential as a key renewable energy source. Based on the article published by Nikkei Asia entitled “Vietnam Offshore Wind Power Sparks Influx of Foreign Investment”, during the COP26 United Nations Climate Summit 2021 in Glasgow, the Vietnamese Prime Minister, Pham Minh Chinh mentioned the government’s commitment to shifting to renewable energy through the wind power in which accounts for about 5% of energy on a power generation capacity at the moment and the government plan to raise till 30% by 2025 despite the challenges faced.
In conclusion, strategic partnerships among ASEAN countries towards renewable energy have the potential to accelerate the transition to a low-carbon energy future, promote regional energy security, and support sustainable economic development. However, realising this potential requires more institutional coordination, financial resources and inclusive stakeholders’ involvement to address the future landscape of renewable energy. By working together and leveraging their strengths, ASEAN countries can create a more sustainable energy future that benefits people and the planet.
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