Enhancing seamless connectivity in the Asia‐Pacific region
Energy Working Group Outline
Draft
Overview
1. Introduction
2. Energy development in Asia‐Pacific
3. Role of regional energy cooperation and connectivity
4. Subregional developments
5. Gaps in regional energy connectivity
6. Recommendations in moving forward
1. Introduction
• APEF Ministerial Declaration and Plan of Action on Regional Cooperation for Enhanced Energy Security and the Sustainable Use of Energy in Asia
• ESCAP regional energy initiative ‐ the Asian Energy Highway (AEH) ‐ endorsed in 2011 under Resolution 68/11
• Focus for the report is upon energy trade of oil, gas and power sectors with a view to identify the role and gap in regional energy connectivity.
2. Energy development in Asia‐Pacific
2.1. Intro to energy development and Asia‐Pacific
– The energy trilemma – energy deficits need to be balanced in a cost‐effective manner that considers broader sustainability issues
– Energy development is a moving target – influenced by technological developments in terms of resource potential (e.g. shale gas and renewables), financial capacity and commodity price movements, and changing social and environmental attitudes and associated government policies.
2.2. Regional energy demand growth projections
– Present forecasts on energy demand growth for region
– Over 11 trillion dollars of investment in energy infrastructure required by 2035 in meeting energy demand requirements (ADB).
2.3.
Sectoral overview
Oil sector
– Growing dependence on Middle East for supplies ‐large growth in China and also India
– ASEAN projected to be net importer
– Known bottlenecks in Straits of Hormuz and Malacca
Gas sector
– Sector undergoing significant changes in recent years as technological developments in gas extraction, especially shale gas, have significantly expanded the technical reserve potential of global gas reserves
– LNG shipping vs pipelines
– Pricing and markets
Power sector
– Range and efficiency for transmission has improved ‐ supergrids
– Regional grids enhance the opportunity for integration of renewable energy alternatives
– Energy pooling can lower energy production cost through centralized dispatch and decrease need for overall infrastructure investment
3. Role of regional energy cooperation and connectivity
• Regional cooperation and connectivity in energy trading is built upon the premise of mutually beneficial gains in terms of resource distribution and infrastructure investment • Regional connectivity creates mutual dependencies, giving countries a stake in the political and economic stability of one another.
• Energy connectivity should not the panacea for achieving energy sustainability and universal energy access
3.1 Energy security through regional connectivity defined
– Energy security through regional connectivity implies a capacity for states to protect their economies from supply disruption through diversified and mutually beneficial supply alternatives.
– Energy security versus sustainable energy security
3.2 Regional scope for energy cooperation
– Subregional developments are laying the foundations of broader regional energy architectures – establishing various levels of depth in cooperation and industry harmonization
– Can a regional plan be designed? – Opportunity to look for complementary development paths that would reduce long‐term costs in an evolving regional energy grid
– The identification of specific projects and gaps between subregional initiatives could be more pragmatic, feasible and cost‐effective allocation of resources
4. Subregional developments
• Discuss initiatives and associated opportunities and challenges per subregion
– ENEA
– NCA
– SSWA
– SEA
– The Pacific
5. Gaps in regional energy connectivity
• Strong movement towards regional integration of energy infrastructure in the Asia‐Pacific, as evidence by developments to date at the subregional level
• A regional agenda can set a consistent framework for subregional initiatives to evolve within.
• Opportunity to commence broader regional harmonization of technical and regulatory issues
• Financing gaps – role of PPPs and IFIs
6. Recommendations in moving forward
6.1.
Enhancing coordination and cooperation
– Knowledge exchange between subregions
6.2.
Intergovernmental support
– regulatory frameworks and technical operating codes and standards) to accelerate integration strategies
– establish common best practices and standards in terms social and environmental policies
6.3.
6.4.
Countries with special needs
Closing infrastructure gaps
Key Issues Graphics
Oil and gas pipelines in Asia (2008): http://www.theodora.com/pipelines/asia_oil_gas_and_products_pipelines.html
http://www.smartplanet.com/blog/bulletin/asias‐supergrid‐gobi‐desert‐wind‐farm‐in‐the‐works/
South Asian Super Grid The proposed draft model of the Supergrid for the Indian subcontinent
Farhan Beg (2014) Supergrid Modeling for the Indian Subcontinent. Global Energy Network Institute
Central Asia – South Asia Power Transmission Project (CASA‐1000)
World Energy Charter Secretariat – Current Members (Dark Blue) and Observers (Light Blue)