As countries across Southeast Asia grapple with the urgency of transitioning to cleaner energy sources, a unique opportunity presents itself – harnessing the region’s abundant natural resources while fostering greater interconnectivity. This strategic approach could pave the way for a sustainable energy future that not only meets the region’s growing demand but also positions ASEAN as a leader in the global energy transition. 

One of the region’s greatest strengths lies in its diverse and plentiful energy resources. From Indonesia’s estimated 60-90 GW of hydropower potential and over 23 GW of geothermal capacity to Vietnam’s favourable wind conditions along its 3,260 km coastline, each nation possesses unique advantages. By strategically investing in and developing these resources, ASEAN countries can significantly reduce their reliance on fossil fuels while simultaneously driving economic growth and job creation. 

Compared to the rest of southeast Asia, “Indonesia is in the best position to take full advantage of the energy transformation,” notes Lee Mather, Director and Vice President for Black & Veatch, a global engineering and construction company. “With its wealth of resources like geothermal, hydro power, and solar, Indonesia has the potential to transition away from its current coal-dominant energy mix.” 

However, capitalising on these opportunities requires a collaborative and well-coordinated approach. “Coal energy is much cheaper” Mathers highlights, and as such, governments, energy companies, and international organisations must work together to create enabling policies, incentives, and financing mechanisms that encourage the adoption of renewable energy technologies. In Indonesia, the target to increase its solar capacity from the current 1 GW to over 100 GW by 2050 can only be achieved by adopting a new approach and novel instruments already in place in other countries, such as tax incentives and feed-in tariffs, among others. 

Interconnectivity holds the key to unlocking the full potential of ASEAN’s energy transition. By strengthening regional power grids and facilitating cross-border energy trade, countries can optimize the utilisation of their diverse energy resources. For instance, Indonesia’s abundant natural gas reserves could power LNG-to-power projects across the region, while Malaysia’s growing expertise in solar energy could be leveraged to meet the growing demand for clean electricity. 

“Interconnectivity will be a challenge,” Mather acknowledges. “The Indonesian power grid is currently set up for baseload power, but introducing renewable energy requires handling variability. However, with the right solutions like energy storage and smart grid technologies, the grid can become more resilient.” 

Moreover, interconnectivity fosters knowledge-sharing and technology transfer, enabling countries to learn from each other’s experiences and accelerate the adoption of innovative solutions. For example, the Lao PDR-Thailand-Malaysia power integration project facilitates the exchange of hydropower and other renewable energy sources, promoting regional energy security and sustainability. 

To navigate the complexities of the energy transition, ASEAN countries must embrace innovation and forge strategic partnerships. This includes collaborating with global energy companies that possess extensive expertise in renewable energy technologies, project development, and energy system integration. 

“We plan to be a trusted partner for our clients, helping them with the near-term strategy and the long-term roadmap to navigate the energy transition,” Mather states. “From conducting feasibility studies to implementing full-scale projects like the hydrogen-powered combined cycle power plant we’re developing in the United States, we can support them through every step of the journey.” 

By leveraging the knowledge and resources of international partners, ASEAN nations can gain valuable insights into developing comprehensive energy transition strategies tailored to their unique circumstances. From conducting feasibility studies and developing long-term roadmaps to implementing large-scale projects, these partnerships can provide the necessary support and guidance to navigate the complexities of the energy transition. 

The ASEAN energy transition presents both challenges and opportunities. By embracing the region’s abundant natural resources, fostering greater interconnectivity, and cultivating strategic partnerships, ASEAN nations can collectively pave the way for a sustainable energy future. This approach not only addresses the pressing need for clean energy but also unlocks economic opportunities, drives innovation, and positions the region as a global leader in the fight against climate change. 

To delve deeper into the intricacies of the energy transition in ASEAN, we encourage you to explore the original interview with Lee Mather, which offers a wealth of insights and perspectives from a seasoned industry leader.