By Sheldin Joy Talavera, reporter
SINGAPORE – Capital to develop energy-transition projects in Asia is unevenly distributed, hampering the industry's efforts, analysts said at the Asia Clean Energy Summit here on Tuesday.
“Really the main question is, is enough money going into the right projects? Are they going to the right places? And overall, are we contributing to change where we should?” According to Diana Parusheva-Lowery, managing director and head of public policy and sustainable finance at the Asia Securities Industry and Financial Markets Association.
“Wealth flows are not equally distributed,” Ms Parusheva-Lowery said.
He said each of the industries involved should work with the financial sector to identify where the technological opportunities lie.
“I think the bottom line is that within the government and policy framework, you can create enough supporters, and we still live in a world where there are bank-quality investee projects that everyone knows about, and we have a lot of competition out there,” she said.
Jun Wei Ong, vice president of Asia private credit at Allianz Global Investors, said the global investment management firm focuses on India and Saudi Arabia, but there are very strong markets such as the Philippines and Thailand.
The Philippines has set an ambitious target to increase the share of renewable energy to 35% by 2030 and 50% by 2040.
“The Philippines has become a regional example – proof that an emerging economy can commit to and achieve the energy transition,” said J. Joel L., vice president and head of strategy and planning at First Gen Corp. Soriano said.
He highlighted geothermal as “the most reliable clean energy of all” because it can run 24 hours a day, seven days a week.
“Yet geothermal is often overlooked and undervalued. Why? Because it is underground – literally three to four kilometers below us – and because regulations and incentives were designed to support the latest technologies like solar and wind,” Mr Soriano said.
To include more geothermal energy capacity in the power mix, Mr. Soriano said regulations should recognize the characteristics of the industry, such as large upfront capital intensity, baseload reliability and long service life.
“When the framework recognizes that all clean technologies have a role to play, capital will flow and the potential for a 24/7 clean and renewable energy future will open up,” he said.
First Gen, one of the Philippines' leading renewable energy firms, controls a portfolio of 1,300 MW of renewable energy capacity from geothermal, solar and wind. It also has interests in gas-fired power plants in Batangas with a combined capacity of 2,017 MW.
To unlock the region's renewable energy wealth, Singapore's Minister of State for Foreign Affairs and Trade and Industry, Gan Siew Huang, said the ASEAN Power Grid will play a key role in enhancing energy access.
“I am pleased that this vision is not only shared within ASEAN, but there is also strong interest from governments, financial institutions and companies outside our region,” he said during his inaugural address.
The ASEAN Power Grid aims to connect member countries' electricity networks, enabling cross-border electricity trade by 2045.
“We are making progress on rail projects that will become the building blocks of the ASEAN Power Grid,” Ms Huang said.
He highlighted Singapore's grid interconnection with Malaysia, which allows bidirectional flow of electricity. The two countries will soon begin a detailed feasibility study for a second power connector with a potential capacity of up to 2,000 MW.
“Building connectivity is not just about physical interconnectors between countries. It is also about collectively enhancing our knowledge and skills and investing in human capital,” he said. “This is to ensure that our region’s energy transition is inclusive and people-centred.”
