Jurisdiction - Singapore
Reports and Analysis
Asia Pacific – Clean Energy Update.

1 April, 2014

 

Legal News & Analysis – Asia Pacific

 

With energy demand projected to almost double in the Asia and Pacific region by 2030, there is a critical need for innovative ways to generate power while at the same time reducing greenhouse gas emissions. 


Leading the charge is Asian Development Bank (ADB), whose energy efficiency initiatives have been responsible for the rise in ADB’s clean energy investment to a billion dollars a year. ADB’s revamped Clean Energy Program focuses on supporting clean energy in developing countries and facilitating the adoption of low carbon technologies throughout thefocused initiatives aim to increase the amount of solar and wind power generated in the region and to accelerate the transfer of low carbon technology through a private-sector market model.


Despite being one of the world’s top three export refining centres and the world’s busiest marine bunkering centre, Singapore is committed to developing alternative energy verticals, including biofuels, solar, wind and fuel cell technologies. Strong R&D capabilities are being developed to support industries in these areas, and Singapore also aspires to create solutions to meet the region’s energy needs. Cleantech has been identified as a key economic growth driver, and this sector is set to contribute SGD 3.4bn to
Singapore’s gross domestic product (GDP) and provide 18,000 jobs by 2015.

 

Thailand’s 20-Year Energy Efficiency Development Plan (2011-2030) targets to reduce the national energy intensity by 25% in 2030 compared with the 2010 base year, accounting for energy demand reduction by at least 38,200 ktoe. The development framework targets all its major economic sectors, i.e. the transportation, industry, large commercial building, without losing sight of small commercial buildings and residential sectors. However, given the present political turmoil, it remains to be seen if these plans will mature further. 


Philippines is stepping up investments in renewable energy to meet its increasing energy demands. With its Renewable Energy Act and other regulations such as the feed-in tariff, net metering, a renewable portfolio standard and an exemption for the import of components for renewable energy systems, the Philippines has an attractive legal framework for increased investment in photovoltaic and other renewable energies, and is on track to increase its installed capacity of renewable energy from the current 5.4 GW to 15.6 GW in 2030. 


Not to be outdone, Malaysia is also seeing a surge of RE projects, having approved renewable energy applications with a total installed capacity of 484 MW since the implementation of the FIT mechanism on 1 December 2011. Solar PV in particular, is enjoying a steady growth in Malaysia and bags the highest percentage for approved applications (39.7% of installed capacity as of October 2013). This compares with biomass at 31.5%, small hydro at 23.8% and biogas at 5.01%. The government is also actively encouraging the development of grid-connected PV systems via financial incentives and development programs. 


As developing countries in Asia push ahead with aggressive economic plans, the challenge is to achieve growth without further compromising the environment. There is certainly tremendous room in Asia for clean energy deployment.

 

ATMD Bird & Bird

 

For further information, please contact:

 

Sandra Seah, Partner, ATMD Bird & Bird
sandra.seah@twobirds.com

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