ASEAN could take years to be ready for next major energy disruption: Philippine energy secretary

SINGAPORE: Southeast Asia’s efforts to prepare for another major energy disruption could take years, as countries work to strengthen their infrastructure and build up emergency fuel supplies, the Philippines’ Secretary of Energy Sharon Garin said on Tuesday (Oct 27).

Speaking to CNA on the sidelines of Singapore International Energy Week (SIEW), Ms Garin said that while the Association of Southeast Asian Nations (ASEAN) has an agreement for member states to assist one another during supply shortages, not all countries are ready to respond to another crisis.

The region is still grappling with uncertainty over energy supplies following disruptions caused by conflict in the Middle East.

“We're reacting to a recent crisis, and reactionary (approaches) cannot solve a long-term problem,” she said. 

“I think this is more of a wakeup call for everyone all over again.”

The Philippines, for instance, has begun constructing its first government fuel stockpiling facility and revising regulations to protect consumers from sudden price surges.

“We have to revise our laws, our infrastructure. We have to revise even our funding,” Ms Garin said.

She added that ASEAN would likely take several years to be better prepared for another major energy supply disruption.

ASEAN POWER GRID REQUIRES BILATERAL AGREEMENTS

Ms Garin also said that progress on the long-discussed ASEAN power grid would depend on individual countries reaching agreements on cross-border electricity connections.

ASEAN member states reached a consensus on an enhanced memorandum of understanding (MOU) for the regional power grid earlier this month. 

Ms Garin expressed hope that the document would be finalised at the ASEAN Summit in Manila in November.

She described the consensus as a landmark achievement but stressed that it did not mean construction of new connections would begin immediately.

“It's more of a political or a sense of community declaration, that we are all in agreement that we need an ASEAN power grid, that we need to share power among ourselves,” she said.

“But how do you implement the project? Basically, it has to be the relationship between one country and another. It is not just because we have an enhanced MOU that everybody will start building now.”

For the Philippines, this would mean negotiating bilateral agreements on potential electricity connections with Malaysia, Indonesia and Singapore. 

Asked about a potential undersea power connection between the Philippines and Indonesia, Ms Garin said differences in electricity pricing regulations would have to be reconciled, while both countries would have to agree on a suitable infrastructure route.

The project’s commercial viability would also be crucial, including determining which country would supply the electricity and which would purchase it.

“We have to make sure that for the developers, it's worth the investment,” she said.

LNG TO REMAIN PART OF PHILIPPINES' ENERGY MIX

Despite concerns over fuel price volatility, Ms Garin said liquefied natural gas (LNG) would continue to play a role in the Philippines’ energy mix as the country expands renewable energy generation.

She said LNG would provide flexible power generation capacity to support renewable sources.

“The more renewables we have, which are cheaper and more reliable in the sense that they're indigenous, we will need a certain technology that will follow the load,” she said.

“Because when there's no sun or there's no wind, something has to adjust.”

The Philippines aims to increase the share of renewable energy in its power generation mix to 35 per cent by 2030 and 50 per cent by 2040.

However, Ms Garin said the country’s use of natural gas is also increasing as it seeks to ensure a reliable electricity supply.

“We're not removing gas from our energy mix,” she said.

GREATER REGIONAL ENERGY COOPERATION NEEDED

Ms Garin said ASEAN has sufficient energy resources collectively, but greater coordination is needed to ensure countries can complement one another.

She pointed out that the region has diverse energy resources, with some countries rich in hydropower, gas or oil, while the Philippines has significant solar and geothermal potential.

She said she has asked the ASEAN Centre for Energy to assess the resources available in each member state and examine how countries could better support one another.

While agreements such as the ASEAN Power Grid could help strengthen and solidify regional energy security, Ms Garin said decisions on energy trade remain with individual governments.

“The behaviour of each country is their (own) autonomy. ASEAN as an institution cannot dictate over the sovereignty of its member states,” she said.