ASEAN BRIEFS

Special Volume / Vol.2 / September 2017

Renewable Energy Investment in ASEAN: Opportunities and Challenges

Arie Rahmadi, Hana Hanifah, Hadi Kuntjara

ASEAN Briefs is a regular publication about current developments on ASEAN regionalism, especially in the Political-Security, Economic as well as Socio - Cultural Pillars.

The Habibie Center -ASEAN Studies Program ASEAN Briefs

Project Supervisor: Rahimah Abdulrahim (Executive Director)

Head of ASEAN Studies Program/Editor: A. Ibrahim Almuttaqi

Authors: Arie Rahmadi Hana Hanifah Hadi Kuntjara

Finance and Administration: Mila Oktaviani Design and Publication: Rahma Simamora Tongki Ari Wibowo

Talking ASEAN is a monthly public dialogue held at The Habibie Center in Jakarta. Covering a wide array of issues related to ASEAN, Talking ASEAN addresses topics of: Economic Integration, Socio-cultural, & Democracy, human rights and regional peace, among others. Featuring local and visiting experts, Talking ASEAN is one of a series of twelve dialogues regularly held each month and open to a target audience consisting of ASEAN officials, foreign ambassadors & diplomats, academics, university students, businesses, and the media.

The Habibie Center was founded by Bacharuddin Jusuf Habibie and family in 1999 as an independent, non-governmental, non-profit organisation. The vision of The Habibie Center is to create a structurally democratic society founded on the morality and integrity of cultural and religious values. The mission of The Habibie Center are first, to establish a structurally and culturally democratic society that recognizes, respects, and promotes human rights by undertaking study and advocacy of issues related to democratization and human rights, and second, to increase the effectiveness of the management of human resources and the spread of technology.

About The Habibie Center

About ASEAN Studies Program

About Talking ASEAN

The ASEAN Studies Program was established on February 24, 2010, to become a center of excellence on ASEAN related issues, which can assist in the development of the ASEAN Community by 2015. The Habibie Center through its ASEAN Studies Program, alongside other institutions working towards the same goal, hopes to contribute to the realization of a more people-oriented ASEAN that puts a high value on democracy and human rights. The objective of the ASEAN Studies Program is not merely only to conduct research and discussion within academic and government circles, but also to strengthen public awareness by forming a strong network of civil society in the region that will be able to help spread the ASEAN message. With the establishment of ASEAN Studies Program, The Habibie Center aims to play its part within our capabilities to the ASEAN regional development.

Cover Image: Renewable Energy Windmillshttp://maxpixel.freegreatpicture.com

Check out our latest edition of ASEAN Briefs and download at

http://thcasean.org/publication

This particular edition of policy brief is supported by the Embassy of the Kingdom of the Netherlands

Introduction:

With an average economic growth of 5.1 percent per year from 1990 to 2013 and a combined GDP of USD 2.4 trillion in 2013,1 the energy demand in ASEAN can be expected to grow by up to 4.7 percent, from 619 Mtoe in 2013 to an estimated 1,685 Mtoe in 2035.2 The population is also expected to grow from about 615 million in 2014 to reach an estimated 715 million people over the next decade.3 This indicates that ASEAN in general is moving towards a more energy-intensive economy. This is particularly the case for Cambodia, Lao PDR, Myanmar, and Singapore. Meanwhile, countries such as Indonesia, Thailand, the Philippines, Vietnam, and Malaysia are experiencing a strong economic expansion that generally translates into increased energy consumption. Whilst ASEAN is known to be extremely rich in fossil fuel resources (i.e. oil, coal, and natural gas), there is a significant diversity in the energy landscapes across the ten ASEAN Member States (AMS) (refer to Table 1). Several countries are endowed with ample energy resources. Indonesia, Malaysia, and Brunei Darussalam, for example, have large reserves of fossil-fuel resources. As for other AMS, they are relatively poor in indigenous energy resources, and are much more reliant on energy imports. The combination of rapid economic growth and limited energy resources require the region to develop policies to ensure sustainable energy supplies.ASEAN in its 2010-2015 Plan of Action for Energy Cooperation (APAEC) has recognised such a potential. The latest APAEC 2016-2025 reaffirms a renewable energy commitment for ASEAN to secure 23 percent of its primary energy from modern and sustainable renewable sources by 2025. However, each country’s energy mix, energy policy, and renewable energy strategy vary from one another. This paper intends to identify the key opportunities and challenges in deploying renewable energy potentials in ASEAN and to suggest several recommendations to unlock such potentials.

OVERVIEW OF RENEWABLE ENERGY DEVELOPMENT IN ASEAN

Table 2 indicates that each AMS has different renewable energy target, preference, and installed capacity.

Generally speaking, progress in renewable energy development in ASEAN has been extremely diverse across AMS. In 2014, for example, the share of renewable energy sources accounted for only 9.4 percent of total primary energy supplies in the region. Based on the 2014 data, the latest APAEC targets, and policies being implemented by ASEAN Member States, renewable energy production in ASEAN can only be expected to reach around 17 percent by 2025, which means that there is a six percent gap to meet the original 23 percent target set for 2025.4

AMS that possess large areas and populations, as well as relatively large total GDP (i.e. Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, or the so called ‘big five’) have incorporated their renewable energy target into their national energy mix long before the 2010 APAEC. Such a drive was primarily due to easily available renewable energy resources, such as biofuel, sun, favourable wind speed, and considerable geothermal resources. In the case of biofuel, these AMS (the big five) often use this alternative fuel as a substitute for fossil fuel. These countries also support the production of agricultural commodities, such as sugar cane and cassava for the production of bioethanol, as well as palm and coconut oil to produce biodiesel. These AMS also provide various incentives, including Feed-in Tariff (FiT) and price incentives for electricity from renewable energy,as instruments to attract investors. As for the least developed economies of ASEAN, such as Lao PDR, Myanmar, and Cambodia, the energy sector is expected to play a key role in facilitating social and economic growth in these economies. Renewable energy policies in these countries are generally aimed at ensuring energy security for sustainable development and providing affordable and reliable energy supply to all the population. As they are still in the early stages of development, advanced regulations, such as FiT and a specific target to develop renewable energy, are still being studied.Other countries, such as Singapore and Brunei Darussalam, have different renewable energy conditions. They are of small geographical size, with high GDP per capita, but are challenged with high-energy consumption and low amount of renewable energy resources. The energy policies in these countries are usually focused around the objective of

Renewable Energy Investment in ASEAN: Opportunities and Challenges 2

ASEAN BRIEFS3

Table 1. Energy resources overview in ASEAN countries

ASEAN Country Overview of Energy Resources

Brunei DarussalamSignificant producer and exporter of oil and gas; energy policy is mainly focused on the oil and gas sector, and their conservation; most preferable renewable energy technology is solar energy

CambodiaLow levels of energy access and renewable energy use is promoted for rural electrification; biomass and oil are the main sources for energy supply; it has potential in hydropower, biomass and biofuel

IndonesiaThe most populous country and the largest energy consumer in ASEAN; world’s largest coal exporter and major LNG exporter; one of the countries with the highest geothermal potential globally

Lao PDRHydro and traditional biomass dominate energy supplies; significant hydropower potential with aims to export to neighbouring countries; most preferable renewable energy technology is small hydro

MalaysiaOil and gas are the main energy sources and the biggest contributors to the government’s revenue; hydro, solar, and biofuels are amongst the main renewable energy potential

MyanmarGovernment priority to improve domestic energy supply due to low levels of energy access; main supply of energy is waste and biofuels as traditional biomass; increasing domestic oil and gas production

the PhilippinesThe priority is to enhance energy security as it is currently heavily dependent on imports; world’s second-largest geothermal power producer; geothermal and hydro are the main renewable sources in energy supply

SingaporeAlmost entirely dependent on energy imports, and the main energy supply is petroleum products; the government aims to become a regional leader in renewable energy research and development; most preferable renewable energy is solar energy

ThailandMain objective in energy sector is efficiency; main energy supply is fossil fuels; energy supply is increasingly imported; solar, bioenergy, and hydropower are amongst the most potential renewable energy

VietnamGrowing energy demand has led to increasing imports despite domestic production of fossil fuels; traditional biomass from waste and biofuels is commonly used in rural areas; it has potential in solar energy and hydropower

Source: Rahmadi, Hanifah, and Kuntjara (2017).

ensuring energy security by relying on stable supply of fossil fuel. Both countries thus understandably do not have a specific policy or mandate for biofuel or electricity from renewable energy as they do not rely on renewable energy to sustain their energy supply. Central themes of their renewable energy policy include energy efficiency and the use of renewable energy to reduce pollution and greenhouse gas emissions.

OPPORTUNITIES IN RENEWABLE ENERGY DEVELOPMENT IN ASEAN

ASEAN countries not only have significant potentials in terms of renewable energy sources, but the

governments are also increasingly aware to readjust and revise their energy strategy to include the promotion of renewable energy for various objectives. Although each AMS has different potential, the region in general has some key opportunities in renewable energy development.

Abundant sources of renewable energy

Southeast Asia is blessed with abundant and various sources for renewable energy. On the one hand, tremendous geothermal potential can be exploited in Indonesia and the Philippines. On the other hand biomass can be found in Thailand, and hydropower is vastly used in Cambodia, Myanmar, Lao PDR, and Vietnam.5 The region is also blessed with sun, which

Renewable Energy Investment in ASEAN: Opportunities and Challenges 4

Table 2. Present renewable energy target of ASEAN member states

Country Target Year

Renewable Energy Target

Most Renewable Technology Preference

Renewable Energy Installed in 2014 (MW)

Progress to target

Brunei Darussalam 2025 954 GWh* Solar Energy (954 GWh) 1.67 ** 0.20%

Cambodia 2020 2,241 MW* Hydropower (2,241 MW) 952 42%

Indonesia 2025 46,307 MW Hydropower (21,300 MW) 6,680* 16%

Lao PDR 2025 951 MW* Small hydro (543 MW) 3,348 5%

Malaysia 2050 21,370 MW Solar Energy (18,700 MW) 6,286 29%

Myanmar 2016 472 MW* Small hydro (472 MW) 3,204 N/A

The Philippines 2020 350 MWp* Solar Energy (350 MWp) 33.1* 9%*

Singapore 2030 15,306 MW Hydropower (8,937 MW) 5,898 38%

Thailand 2036 19,684 Solar Energy (6,000 MW), Biomass (5,570 MW) 7,901 40%

Vietnam 2030 45,800 MW Hydropower (27,800 MW) 17,140 37%

* Special renewable energy target, for Cambodia is for hydropower only, for Indonesia, it is excluding biomass, for Lao PDR, it is excluding large hydropower. For Brunei Darussalam and Singapore, they are only for solar photovoltaic (PV), for Myanmar the target is only for small hydro by 2016 and no data installed small hydro in

GWh., Source: Pranadi (2016).

shines throughout the year and is estimated to be in the range of 3.6 to 5.3 kWh/m2/day.6 Wind power development is also promising, and has become one of the most potential areas for investment. Most of these untapped renewable energy sources have the potential to supply the growing need of energy as the economies of AMS are progressing rapidly.

Regionally endorsed renewable energy development through ASEAN

ASEAN has developed various instruments to guide and support the development of renewable energy in AMS. From the Agreement on ASEAN Energy Cooperation in 1986, and the establishment of the New and Renewables Sources of Energy Sub-sector Network (NRSE-SSN) in 1995, renewable energy has been one of the top priorities of energy cooperation between AMS. ASEAN even has set ambitious targets through the ASEAN Vision 2020 in 1997, including the establishment of interconnecting arrangements for electricity, natural gas, and water within the region

through the ASEAN Power Grid, the Trans-ASEAN Gas Pipeline, and the Water Pipeline, as well as the promotion of cooperation in the development of new and renewable energy resources. Furthermore, the ASEAN Center for Energy, which was established in 1999, has been serving as the energy sector think-tank for ASEAN and support AMS to ensure their energy policies and programmes are in harmony with the region’s economic growth and environmentally sustainable.

The ASEAN Plan of Action for Energy Cooperation (APAEC) serves as the main guide for the implementation of various ASEAN energy cooperation programme in the region since 1999. Presently, the APAEC 2016-2025 has a specific target for renewable energy development. According to the document, ASEAN has identified a collective target to increase the component of renewable energy in the region’s energy mix to 23 percent by 2025. Although each AMS has their own priority and capacity, various kind of incentives and supporting mechanisms have been in place in AMS to achieve the regional goal.

ASEAN BRIEFS5

ASEAN is also becoming more integrated and the ASEAN Economic Community (AEC) has the potential to open up investment opportunities in renewable energy. AEC supports the realisation of a free and open trade and investment for renewable energy by facilitating free flows of energy-related goods, technologies, labour, and capital. Furthermore, it also gives ASEAN an impetus to promote its vision to create an open and competitive region based on sustainable and renewable energy.

Renewable energy cost reduction and capital availability

The trend of cost reductions driven by increasing economies of scale, more competitive supply chains, and technology improvements has the potential to raise capacity and reduce installation costs to accelerate renewable energy deployment. According to a report by IRENA, the cost needed to increase the renewable share to reach ASEAN’s 23 percent target would only be USD 1.9 per MWh of final renewable energy in 2025.7 Furthermore, benefits due to lower levels of air pollution and CO2 emissions could potentially result in savings equal to between 0.2 and 1. 0 percent of ASEAN’s GDP in 2025.8

The trend for renewable energy investment in Southeast Asia has also been improving. Between 2010 and 2015, investment in renewable energy across the region increase at a 19 percent compound annual growth rate, and amongst all the sources, solar and wind accounted for almost two-thirds of the investment.9 International investment is reported to be increasingly involved in the investment of renewable energy in ASEAN, and investors from European countries are increasingly exploring this market, especially because the European market has almost reached saturation.10 Furthermore, there is also a growing demand from investors to invest in mature technologies in the clean power sector worldwide. In 2015, such investment reached around USD 110.3 billion, which indicates a 17 percent increase.11

KEY CHALLENGES IN DEPLOYING RENEWABLE ENERGY IN ASEAN

Despite the opportunities partly created by appropriate policies, there are challenges that need to be resolved by the region as a whole. Each AMS has unique challenges, but, in general, there are common problems shared by all AMS.

• High cost to develop renewable energy projectsFor most ASEAN countries, the development of renewable energy projects can be expensive endeavours to pursue. This situation, unfortunately, is not matched with adequate policy support. Financial access is especially important since most of the renewable energy projects are usually capital-intensive. Currently, there is also a lack of experience and expertise in some AMS, particularly in Malaysia, Indonesia, and Vietnam, in evaluating the risk of renewable energy investment.12 To a large extent, the lack of financial support and channels, including the availability of public funding support,13 has made the renewable energy sector a relatively an unattractive sector to invest in. This is particularly so for the development of solar power in the region despite the projection from the International Energy Agency (IEA) of a declining trend in PV module cost towards 2035. Whilst alternative financing arrangements, such as crowdsourcing options,14 are available to support solar PV projects globally, such mechanism is not yet well developed, preventing potential investor’s access to much needed capital in solar development.15

• Geographical and technical conditionsProject developers must consider the challenges of geographic and spatial diversity in building renewable energy plants, which can add to the cost of generation and transmission investment. The lack of proper policy to regulate land use and environmental impact of renewable energy technology production is also considered as one of the challenges in developing renewable energy projects in ASEAN.16 Land issue and the lack of grid electricity access, especially in rural areas, also increase the transaction costs in the region. Another related concern is the lack of standards for renewable energy equipment and technologies that can be deployed in the region.Specific to Indonesia and the Philippines, limited infrastructure capacity hinders effective renewable energy deployment, particularly with regard to electricity transmission. Due to both countries’ archipelagic nature, the electrical grid systems in the two republics remain fragmented. Currently, the electrical grid systems of the two countries are mostly concentrated in the major islands. This barrier has made it difficult for Indonesia and the Philippine to connect its major power grid to various renewable energy potential that exist throughout both countries.

Renewable Energy Investment in ASEAN: Opportunities and Challenges 6

• Insufficient regulatory framework and complex bureaucracyInsufficient regulatory framework often serves as a barrier to the development of renewable energy projects. Brunei, for example, presently does not have a clear specific policy framework that regulates renewable energy development, with initiatives to develop such a regulation currently only being studied. In Lao PDR, the lack of coordination amongst government agencies, as well as those between the government and the private sector in handling incentives related to renewable energy development, tax exemption for example, hinders effective implementation of the country’s renewable energy priorities and policies.Complex bureaucracy, also discourages potential investors to consider investing in AMS’ renewable energy sector. This is certainly the case for Vietnam and Indonesia, in which the Electricity of Viet Nam (EVN) and the State Electricity Company (PLN – Perusahaan Listrik Negara) of Indonesia monopolises the transmission, distribution and system operation of electricity, and dominates the electricity generation market in both countries. Due to the State Owned Enterprise’s (SOE) existing market advantage, those enterprises often dominate the process of Power Purchase Agreement negotiations, which is conducted between the SOEs as energy producer and investors as energy buyer to create an agreement for any power generation project. A similar challenge also occurs in Thailand where, despite the existence of various renewable energy-related development plans, the country lacks a clear mechanism to ensure that the targets set in these plans are met. Moreover, political interference and the emphasis on top-down policy planning also prevent inputs from relevant stakeholders to be incorporated effectively in the country’s renewable energy policy.17

• Conventional energy subsidyEnergy subsidy for fossil fuel is also one of the challenges for renewable energy development. Whilst several AMS, such as Vietnam, Thailand, and Singapore, do not provide subsidies on conventional energy resources, several other AMS do exactly the opposite for various reasons. The Malaysian government, for instance, currently subsidises the 95-octane gasoline, diesel, liquefied petroleum gas (LPG), and electricity.18 Despite

various strategies to remove energy subsidies, the existing plans of the Malaysian government are still focused on reducing the state’s budget deficit, rather than on the promotion of renewable energy development.19 Similarly, Indonesia is also subsidising electricity in some categories. The latest MEMR ministerial regulation No. 12/2017 also discourages renewable energy developers, particularly those in geothermal and solar PV development, to commence their projects in major regions, such as Java, Bali and Sumatra.20 The government of Brunei also subsidises the price of electricity, which, according to a report from the IEA in 2013, was the highest in Southeast Asia on a per capita basis.

• Import tariff for renewable energy technologyAlthough relatively low, some AMS still implements import tariff for renewable energy technologies. Malaysia, for instance, imposes up to 4.8 percent of import tariff for renewable energy technologies.21 A similar policy is also imposed in Brunei in which the average import tariff for renewable energy technology or component is imposed at 0.8 percent. Indonesia also imposes local content rules to protect the local solar industry, thereby increasing the cost for renewable energy projects that use foreign technologies.22

• Lack of awareness and public supportDespite the increasing publication and information dissemination concerning sustainable development issues, a large portion of the public remains unaware about renewable energy and its potentials. Minimum use of renewable energy technologies is particularly apparent amongst, for example, land and building owners, industrial players, private car owners, and so on. This problem hinders greater support for the deployment of renewable energy in ASEAN countries. In some AMS, such as Lao PDR, Cambodia, and Myanmar, the lack of awareness about renewable energy potential remains rampant amongst policy-makers and the public. The same also applies concerning the public’s awareness about the potential benefit of renewable energy production to conserve the environment. Another area of concern is the lack of renewable energy specialists who are capable of promoting reforms in the energy sector.

ASEAN BRIEFS7

CONCLUSION AND RECOMMENDATIONS

Generally speaking, ASEAN and its AMS are committed to develop renewable energy as a solution to reduce fossil fuel consumption, improve energy security, reduce global greenhouse gas emissions, and preserve the ecosystems, human health, as well as livelihoods in the region. However, diverse economic developments, political systems, and regulatory frameworks have made energy policy coordination amongst AMS relatively difficult. Despite this, all AMS have one thing in common, which is a large availability of various renewable energy resources. At the same time, they also need to reduce their dependence on fossil fuels, improve energy supply to ensure energy security, and reduce greenhouse gas emissions to preserve the environment and mitigate the impacts of climate change. Whilst opportunities in developing renewable energy are immense, each country has unique characteristics in terms of renewable energy development. Notwithstanding these potentials, the majority of AMS are presented with common challenges in developing renewable energy, and these include high cost in developing renewable energy technologies, geographical and technical conditions, inadequate regulatory framework, persistence subsidy on conventional energy sources, import tariff on renewable energy goods, and the lack of public awareness and support. In view of these challenges, the authors propose the following recommendations:• Fully examine the capacity of energy related

institutions in meeting AMS’ renewable energy targets. The ministries that are responsible for energy planning and environment often set ambitious targets without realising the difficulties in implementing such target. The burden of the implementation often fall to technical institutions, such as electricity and fuel companies, ministry of industry, ministry of transportation, and ministry of forestry. The ministries responsible for energy and environment policy planning should include the aforementioned implementing agencies, and electricity as well as oil and gas related SOEs, in designing renewable energy target and its execution. This is especially important to integrate environmental goals and renewable energy target into power and fuel sector planning. This initiative will support the establishment and enhancement of national renewable energy targets that is in line with power, oil, and biofuel refinery development plan.

• AMS to streamline national and regional regu-latory frameworks. AMS should streamline their regulatory framework and provide policy consis-tency to assure investors’ confidence. An idea of a single window for renewable energy permits would be desirable, as numerous permits have to be obtained by renewable energy investors, such as land use permit, energy production and distribution permit, and business permit. They may come from different ministries, and con-sidered to be costly in terms of resources and time for renewable energy project development. Therefore, it is advisable for the governments of AMS to simplify the regulations and institutions involved in the process in order to encourage more investment.

• Clarification of land rights and prices. AMS should clarify land rights and land prices to en-sure the process of land acquisition from local communities to develop renewable energy can be done efficiently and effectively. Such regu-lations should also be based on human rights principle, which seek to ensure the protection of local communities’ rights. In the case of In-dependent Power Producer (IPP) projects,23 the issue of land right permits from line ministries and land-owners have to be resolved before the projects are tendered.

• Raise public awareness on renewable energy. This could be achieved through public cam-paign, education, or institutional trainings. This is to ensure sustained political commitment in developing renewable energy.

• Mobilise public and private investment to pro-mote the use of renewable energy. Renewable energy project developers often face financial and regulatory challenges as they receive less interest than capital investments in conventional energy resources. Long-term support by gov-ernments for renewable energy in the form of loan guarantee to lower the risk for investors is required. This will provide signals to the banks so that they could assign more resources to fi-nance more renewable energy projects.

• The need to assess grid infrastructure to facili-tate the development of renewable energy. AMS need to assess their existing grid infrastructure by aligning the development of variable renew-able energy (VRE) with the transmission and distribution planning. Consider the potential of energy storage for the smoother integration of VRE, and introduce priority dispatch for renew-

Renewable Energy Investment in ASEAN: Opportunities and Challenges 8

able energy generation by changing the structure of non-renewable energy power producers. As off-grid areas have been identified to have great potential for solar PV to electrify remote villages, it is suggested that AMS should establish larger off-grid working areas that include multiple vil-lages to achieve economies of scale. It is also important to consider the expansion of the major utility company’s responsibility to build and own distribution networks that involve local commu-nities in these areas. This is particularly attractive for countries with many islands, such as Indo-nesia and the Philippines. This initiative will help establish a stakeholder collaboration process for renewable energy development zone in the re-gion.

• AMS to develop comprehensive bio-energy programme. This is particularly relevant for rich biofuel resources countries, which often set the biofuel mandate too much too soon. Indonesia, for example, has set the bioethanol mandate of 5 percent in the transportation sector by 2016 and 10 percent by 2020, whilst there is still an issue with bioethanol supply as well as the relatively higher biofuel price compared to gasoline. Rel-evant stakeholders’ involvement on the supply and demand sides is therefore necessary.

• ASEAN and its AMS need to look into the re-duction of non-tariff barriers to facilitate trade in renewable energy technologies. An example of such a barrier is the unrealistic local content mandate and national standard imposed on re-newable project. Indonesia, for example, im-posed a 40 percent local content rule for Solar PV project. This regulation would add to the al-ready high final cost of renewable energy proj-ect. The reduction in non-tariff barrier would help to lower overall renewable energy development project cost. Barrier such as the local content requirement might be enacted gradually once re-newable energy project has developed relatively well or has reached a certain target set by the government.

Endnotes

1. HV, Thompson, and Tonby (2014). 2. ACE (2015, p. 17).3. IRENA & ACE (2016, p. 26).

4. Ibid., p. 25.5. Rahmadi, Hanifah, and Kuntjara (2017).6. Asian Power (2016).7. IRENA & ACE (2016, p. 69-70).8. Ibid.9. Bird & Bird and Clean Energy Pipeline (2015, p.

2).10. Ibid.11. Frankfurt School-UNEP Centre/Bloomberg New

Energy Finance (2017, p. 11). Poh and Kong (2002).

12. Poh and Kong (2002).13. Public fund refers to the sum of money

generated by the government, usually from tax, non-tax revenue, and other forms of financing, which is used for public benefit, , such as renewable energy development and energy efficiency innitiative. An example of this is the Massachusetts Renewable Energy Trust Fund, which is supported by a non-bypassable surcharge of $0.0005 per kilowatt-hour (0.5 mill/kWh), imposed on customers of all investor-owned electric utilities and competitive municipal utilities in state of Massachusetts. More information about this can be accessed on: U.S. Department of Energy (n.d.), “Renewable Energy Trust Fund,” retrieved from: <https://energy.gov/savings/renewable-energy-trust-fund>.

14. Crowdsourcing is the practice of engaging a crowd or group for a common goal, such as innovation, problem-solving, or efficiency. Powered by new technologies and social media, it has become an innovative resource mobilization method to support the implementation of projects.

15. Tongsopit, et al. (2015: 14).16. Ibid., p. 16.17. Ibid., p. 13-14.18. Adam and Pakiam (2014).19. IEA and ERIA (2013: 25).20. Wulandari (2017) argued that the MEMR

Regulation No. 12/2017 results in more than 50 percent tariff reduction from the previous feed-in-tariff (FiT) for solar PV technology.

21. WTO (2013).

ASEAN BRIEFS9

22. Ministry of Energy and Mineral Resources of the Republic of Indonesia (2013).

23. Independent Power Producer (IPP) Project is a power related project owned or carried out by an independent power producer (IPP) or non-utility generator (NUG). The IPP itself is an entity, which is not a public utility, but which owns facilities to generate electric power for sale to utilities and end users

References

ACE (2015), The 4th ASEAN Energy Outlook 2013-2035, Jakarta: ACE, retrieved from: <https://app.box.com/s/tzjb0tc2yoam6tonjv0ujx0xbhnwug3z>.

Adam, S. and R. Pakiam (2014), ‘Malaysia Scraps Fuel Subsidies as Najib Ends Decades-Old Policy,’ Bloomberg, 21st November, retrieved from: <https://www.bloomberg.com/news/ar-ticles/2014-11-21/malaysia-scraps-fuel-subsi-dies-as-najib-ends-decades-old-policy>.

HV, V., F. Thompson, and O. Tonby (2014), ‘Understand-ing ASEAN: Seven things you need to know,’ re-trieved from: <http://www.mckinsey.com/indus-tries/public-sector/our-insights/understanding-asean-seven-things-you-need-to-know>.

IEA and ERIA (2013), Southeast Asia Energy Outlook 2013, Paris: OECD/IEA, retrieved from: <https://www.iea.org/publications/freepublications/publication/SoutheastAsiaEnergyOutlook_WEO2013SpecialReport.pdf>.

IRENA and ACE – International Renewable Energy Agency and the ASEAN Center for Energy (2016), Renewable Energy Outlook for ASEAN: a Remap Analysis, Abu Dhabi and Jakarta: IRENA and ACE, retrieved from: <http://www.irena.org/DocumentDownloads/Publications/IRENA_REmap_ASEAN_2016_report.pdf>.

Ministry of Energy and Mineral Resources of the Republic of Indonesia (MEMR) (2013), “MEMR Regulation No. 17, 2013,” retrieved from: <http://prokum.esdm.go.id/permen/2013/Permen%20ESDM%2017%202013.pdf>.

Oxford Business Group (2017), ‘Brunei Darussalam Priorities Renewable Energy to Confront Climate Change’, retrieved from: <https://www.oxfordbusinessgroup.com/analysis/embracing-

renewables-confronting-reality-climate-change-has-become-priority-sultanate>.

Pranadi, A. D. (2016), ‘The Current Status of RE and Its Targets in ASEAN Member States’, ASEAN Center for Energy Blog, 15th September, retrieved from: <http://www.aseanenergy.org/blog/the-current-status-of-re-and-its-target-in-asean-member-states/>.

Poh, Koh Mok and Hoi Why Kong (2002), ‘Re-newable Energy in Malaysia: a Policy Anal-ysis,’ Energy for Sustainable Development, Vol. VI, No. 3, retrieved from: <http://citese-erx.ist.psu.edu/viewdoc/download?doi=10.1.1.203.3018&rep=rep1&type=pdf>.

Tongsopit, S., S. Chaitusaney, A. Limmanee, N. Kittner, and P. Hoontrakul (2015), Scal-ing Up Solar PV: A Roadmap for Thailand, Bangkok: British Embassy in Bangkok, Energy Research Institute, and the Depart-ment of Alternative Energy Development and Efficiency of the Ministry of Energy of the Kingdom of Thailand, retrieved from: <http://www.dede.go.th/ewt_dl_link.php?nid=42059>.

Wulandari, M (2017), ‘Renewable Energy Power Pricing in Indonesia,’ <http://www.aseanen-ergy.org/blog/renewable-energy-power-pricing-in-indonesia/>.

WTO (2013), ‘Integrated Trade Database,’ retrieved from: <https://www.wto.org/english/news_e/news13_e/stat_24oct13_e.htm>.

To download our

visit the following link:

Renewable Energy in ASEAN: AN INVESTMENT GUIDEBOOK

bit.ly/RenewableEnergyinASEAN

w w w . t h c a s e a n . o r g

ASEAN Studies Program - The Habibie Center

The Habibie Center Building - Jl. Kemang Selatan No.98, Jakarta 12560Tel: 62 21 781 7211 | Fax: 62 21 781 7212 | Email: thc@habibiecenter.or.id

facebook.com/habibiecenter @habibiecenter

@habibiecenter