ASEAN ENERGY

IN 2022

Key Insights
About the ASEAN
Energy Landscape
in 2022
ASEAN Energy in 2022 2

Copyright © 2021
All rights reserved. No part of this publication may be reproduced, stored
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mechanical without prior written notice to and permission from ACE.

Published by:
ASEAN Centre for Energy
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aseanenergy.org

Supported by:
ASEAN Climate Change and Energy Project (ACCEPT)
accept.aseanenergy.org

ASEAN Centre
for Energy
ASEAN Energy in 2022 1

ACKNOWLEDGEMENT

“ASEAN Energy in 2022” is a study that

provides key insights into Southeast
Asia’s energy situation in 2022. The
report was written by internal staff at the
ASEAN Centre for Energy (ACE).

The analysis was based on data and

information collected from various
reliable sources: official reports from
the governments of the ten ASEAN
Member States, the private sector and
international organisations, as well as
from discussions held during the annual
ASEAN Energy Outlook Forum. These
are all available from the ASEAN Energy
Database System (AEDS).

The key authors were Muhammad Rizki

Kresnawan and Beni Suryadi, supported
by Rika Safrina, Rizky Aditya Putra,
Silvira Ayu Rosalia and Dr. Zulfikar
Yurnaidi. Significant assistance was
provided by the interns at ACE, namely
Crescencia Valentina, Helena Aurellia
and Yuen Khiong Choo. Overall guidance
was provided by Dr. Nuki Agya Utama,
Executive Director of ACE.

This edition was supported by the

ASEAN Climate Change and Energy
Project (ACCEPT).

Contact: mpp@aseanenergy.org

February 2022
ASEAN Energy in 2022 2

INSIGHT 1
POST-PANDEMIC RECOVERY

The large drop in total energy consumption across the ASEAN Region in
2020 indicates how the COVID-19 pandemic impacted the economy. 1 To
help cope with the economic difficulties, the governments of the ten ASEAN
Member States (AMS) disbursed various economic recovery packages. Now,
with the coronavirus more and less under control, the economy is expected
to grow along with energy demand, and surpass the pre-pandemic level.

THE PANDEMIC INTRODUCED The significant drop in energy

ENORMOUS UNCERTAINTIES INTO consumption by both sectors was mainly
THE REGION’S ENERGY SYSTEMS, due to the mobility restrictions imposed
ON BOTH THE SUPPLY AND by the AMS governments. Energy
DEMAND SIDES consumption in the commercial and
agriculture sectors also dropped, but not
The pandemic caused a contraction as significantly. In contrast, residential
and slowdown in the economy in 2020. energy demand increased 0.8% in 2020
Energy demand from the transport and compared to 2019.
industrial sectors dropped 13 Mtoe
(8.8%) and 11 Mtoe (6.8%), respectively,
in 2020 compared with 2019.

FIGURE 1 ASEAN ENERGY CONSUMPTION BY SECTOR, 2019 VS 2020

SOURCE: AUTHORS’ CALCULATIONS BASED ON DATA SUBMITTED BY THE AMS

––––––––––––––––
1 This report is based on official 2020 data which was the latest available at the time of writing.
ASEAN Energy in 2022
In terms of the primary energy supply
mix, the share of fossil fuels decreased
from 82.6% in 2019 to 81.2% in 2020.
The challenges faced by the fossil fuel
industries, especially the oil and gas
industries, are expected to continue
after the pandemic has ended. However,
the analysis shows that these industries
are recovering well, though slowly [1].
FIGURE 2 ASEAN PRIMARY ENERGY SUPPLY BY TYPE OF FUEL, 2019 VS 2020
SOURCE: AUTHORS’ CALCULATIONS BASED ON DATA SUBMITTED BY THE AMS
THE ECONOMIC RECOVERY
PACKAGES, INCLUDING SOME
DEVOTED TO THE ENERGY SECTOR
HELPED STABILISE ECONOMIC
GROWTH
Several fiscal recovery packages were
provided by the AMS governments
during the pandemic. They included
tariff relief, investment stimuli, loans
and liquidity supports, as well as
tax exemptions and fee waivers. As
discussed by the ASEAN Centre for
Energy [3], various types of electricity
tariff relief and adjustments were
provided by the governments throughout
2020, especially for the most affected
community groups. Among the various
beneficiaries of these support measures,
the household sector received the most
economic assistance.
3
By contrast, the renewable energy (RE)
sector was surprisingly resilient during
the pandemic. The share of total RE
increased by almost 1.4% from 2019 to
2020. Due to this resiliency, renewables
have become the centre of attention as
well as the main driver in the government
stimulus packages [2].
In addition to the electricity relief,
the AMS governments also provided
different types of economic assistance
as part of the recovery packages. These
packages were intended to ease the
burden of the post-pandemic recovery
as well as accelerate the energy
transition in some AMS. Indonesia, for
example, drew up a National Economic
Recovery Plan in June 2020, which
allocated USD 49 billion to help the
economy recover from the financial
damage caused by the pandemic.
However, the allocations related to
the transition to RE were only 0.9% of
the total stimulus recovery plan [4].
Considering the importance of biofuels in
the country as the main alternative to oil,
the policymakers also allocated around
USD 2 billion in the form of biodiesel
incentives which were disbursed to
ASEAN Energy in 2022
biofuel companies [5]. The government
also provided capital injections to state-
owned enterprises in the energy sector,
including Pertamina (oil and natural
gas) and PLN (electricity), of around
USD 149 million [6] and USD 352 million
[7], respectively. In addition, these two
companies also received loans worth
a total of USD 127 million in 2020 to
support the shift to RE [8].
In Malaysia, the government allocated
USD 2.9 billion to energy projects in
2021, including energy efficient street
lighting and the installation of rooftop
solar panels, as part of its Covid-19
stimulus package [9]. The government
also extended the Green Investment Tax
Allowance (GITA) and Green Income Tax
Exemption (GITE) programmes until 2023
[10]. Similarly, the Monetary Authority of
Singapore (MAS) launched its Green and
Sustainability-Linked Loan Grant Scheme
(GSLS) in November 2020 which is
geared to accelerating more funding for
projects related to the energy transition
[11]. The funding also encourages banks
to create green and sustainable lending
FIGURE 3 VACCINATION RATE AMONG THE AMS [13]
4
frameworks in order to make such
financing more available to small and
medium-sized businesses (SMEs).
In July 2020, energy policymakers in
Thailand allocated a budget of around
USD 915 million to the Energy for All
Programme, which aims to promote
power plants that generate electricity
from RE [12].
THE PANDEMIC’S IMPACT ON
THE ENERGY SECTOR: CURRENT
SITUATION
As the vaccines were rolled out
worldwide in 2020, the vaccination rate
in the ASEAN Region also increased
significantly. The mobility restrictions
were loosened, especially for domestic
travel, and “new normal” protocols
became more common. As of 8 January
2022, about 50% of the population in
almost all of the AMS had had the first
vaccine dose. However, it is expected
that the coronavirus will remain a risk for
some time yet.
ASEAN Energy in 2022 5

According to the International Monetary Industrial sectors were hit hardest by

Fund (IMF) [14], the Region’s economic the pandemic and are slowly recovering.
growth will rebound to around 2.1% However, the energy rebound should be
in 2022, and is expected to steadily handled wisely if the AMS do not want to
increase in the following years. The become even more dependent on fossil
International Energy Agency’s [15], fuels in the coming years and decades.
Global Energy Review 2021 similarly
estimated that regional energy demand
will grow about 2% from the pre-
pandemic level. The transport and

FIGURE 4 ASEAN’S PREDICTED ENERGY DEMAND, PRE- AND POST-PANDEMIC

SOURCE: AUTHORS’ CALCULATIONS BASED ON DATA SUBMITTED BY THE AMS
ASEAN Energy in 2022 6

INSIGHT 2
PRE- AND POST-COP26

The agenda of the 26th United Nations Climate Change Conference of

the Parties (COP26) held in Glasgow in late 2021 necessitated significant
actions on the part of governments around the world. The updated
Nationally Determined Contributions (NDCs), signatories to the Glasgow
Climate Pact and the Global Coal to Clean Power statement became the
major outputs from the meeting and could become critical in attaining the
climate goals. The long-term strategies from all of the countries are intended
to delineate concrete actions that will increase the desire to go beyond the
NDC targets.

FROM COP26: UPDATED NDCS OF Apart from conditionality status and

THE AMS
Five AMS submitted their updated NDCs
before COP26 convened in 2020, while
the remainder completed theirs in 2021.
In this latest submission, nine AMS
set unconditional targets for reducing
the emissions. Cambodia has only a
conditional target [16].
In terms of the coverage of the sectors,
all of the AMS designated the energy
and agriculture sectors as the main
ones contributing to the emissions
reduction target. In addition, all of the
AMS, except Myanmar, designated
industrial processes and product use
(IPPU) and waste as other contributors.
For land use, land-use change and
forestry (LULUCF), only the Philippines
and Thailand did not designate it as an
emissions reduction contributor.
sectoral coverage, the NDCs also
set detailed coverage of greenhouse
gas (GHG) emissions. Malaysia and
Singapore have the most GHG coverage
in their submitted NDCs, namely,
carbon dioxide (CO2), methane (CH4),
nitrous oxide (N2O), hydrofluorocarbons
(HFCs), perfluorocarbon (PFCs),
sulphur hexafluoride (SF6) and nitrogen
trifluoride (NF3), in contrast with
Myanmar’s NDC that covers only CO2.
Aside from CO2 which was included in
all of the AMS’ NDCs, CH4 and N2O were
noted by nine AMS. Table 1 summarises
the NDC information submitted by the
AMS.
ASEAN Energy in 2022 7

TABLE 1 THE NATIONALLY DETERMINED CONTRIBUTIONS (NDCS) OF EACH ASEAN MEMBER STATE

Target
Country Sectors GHG Coverage Timeframe
Unconditional Conditional

Energy
20% GHG
Brunei IPPU Carbon dioxide (CO2)
emissions
Darussalam N/A Agriculture Methane (CH4) 2021 - 2030
reduction relative
[17] LULUCF Nitrous oxide (N2O)
to BAU by 2030
Waste

41.7% emissions Energy

reduction (of which IPPU Carbon dioxide (CO2)
Cambodia
N/A 59.1% is from Agriculture Methane (CH4) 2020 - 2030
[18]
FOLU) by 2030 LULUCF Nitrous oxide (N2O)
compared to BAU Waste

Energy
29% GHG
41% GHG emissions IPPU Carbon dioxide (CO2)
Indonesia emissions
reduction relative Agriculture Methane (CH4) 2020 - 2030
[19] reduction relative
to BAU by 2030 LULUCF Nitrous oxide (N2O)
to BAU by 2030
Waste

60% GHG Energy

emissions IPPU Carbon dioxide (CO2)
Lao PDR
reduction N/A Agriculture Methane (CH4) 2020 - 2030
[20]
compared to LULUCF Nitrous oxide (N2O)
baseline scenario Waste

Carbon dioxide (CO2)

Economy-wide Energy Methane (CH4)
carbon intensity IPPU Nitrous oxide (N2O)
Malaysia
(against GDP) N/A Agriculture Hydrofluorocarbons (HFCs) 2021 - 2030
[21]
reduction of 45% in LULUCF Perfluorocarbon (PFCs)
2030 Waste Sulphur hexafluoride (SF6)
Nitrogen trifluoride (NF3)

Energy
244.52 million 414.75 million
Myanmar Transport
tCO2e emissions tCO2e emissions Carbon dioxide (CO2) 2021 - 2030
[22] Agriculture
reduction by 2030 reduction by 2030
LULUCF

Carbon dioxide (CO2)

2.71% GHG 72.29% GHG Energy
Methane (CH4)
Philippines emissions emissions Transport
Nitrous oxide (N2O) 2020 - 2030
[23] reduction by 2030 reduction by 2030 Agriculture
Hydrofluorocarbons (HFCs)
compared to BAU compared to BAU Waste
Perfluorocarbon (PFCs)

Carbon dioxide (CO2)

Peak emissions at
Energy Methane (CH4)
65 MtCO2e around
IPPU Nitrous oxide (N2O)
Singapore 2030, to achieve
N/A Agriculture Hydrofluorocarbons (HFCs) 2021 - 2030
[24] a 36% reduction
LULUCF Perfluorocarbon (PFCs)
in energy intensity
Waste Sulphur hexafluoride (SF6)
from 2005 levels
Nitrogen trifluoride (NF3)

Energy Carbon dioxide (CO2)

20%
20% (conditional) Transport Methane (CH4)
(unconditional)
Thailand GHG emissions IPPU Nitrous oxide (N2O)
GHG emissions 2021 - 2030
[25] reduction by 2030 Agriculture Hydrofluorocarbons (HFCs)
reduction by 2030
compared to BAU LULUCF Perfluorocarbon (PFCs)
compared to BAU
Waste Sulphur hexafluoride (SF6)

Up to 27% Energy
Carbon dioxide (CO2)
9% (unconditional) (conditional) IPPU
Vietnam Methane (CH4)
GHG emissions GHG emissions Agriculture 2021 - 2030
[26] Nitrous oxide (N2O)
reduction by 2030 reduction by 2030 LULUCF
Hydrofluorocarbons (HFCs)
compared to BAU Waste

Note: FOLU is Forestry and Other Land Use.

Source: Authors’ compilation.
ASEAN Energy in 2022
GLASGOW CLIMATE PACT: WHAT
IS IT ALL ABOUT?
The COP26 agenda tried to highlight
the target to limit global warming to
1.5 degrees. However, there were so
many other urgent topics to cover.
Nearly 200 nations signed the Glasgow
Climate Pact [27] which agreed to
strong commitments in tackling climate
change. This accord became the first
climate agreement to specifically state
that unabated coal consumption should
be reduced. Some of the key messages
from the various thematic chapters were
as follows:
1. Science-based decision-making that
expands into large-scale policy making
is a key focus area.
2. With climate extremes being
experienced all over the world,
governments are urged to make
adaptation plans that are integrated
into local, national and regional
planning, coupled with a scaling up
of actions and support for finance,
capacity building and technology
transfer.
3. The Pact urges developed countries
to strengthen climate adaptation
finance through the Adaptation Fund
and Least Developed Countries Fund
in order to propel adaptation-based
initiatives in developing countries.
4. In order to prevent global warming
from exceeding 1.5 degrees, rapid,
deep and sustained reductions in
global GHG emissions must be made
through the acceleration of technology
deployment and dissemination,
as well as policy adoption. While
acknowledging each country’s
particular circumstances, the scaling
––––––––––––––––
2 According to the International Labour Organization, a just transition means “greening the economy in a way that is as fair and inclusive as
possible to everyone concerned, creating decent work opportunities and leaving no one behind.”
See https://www.ilo.org/global/topics/green-jobs/WCMS_824102/lang--en/index.htm.
8
up of clean power generation efforts,
phasing out of fossil fuel subsidies and
phasing down of unabated coal power
will be crucial.
5. Developed countries are urged to
provide enhanced support, including
financial, technological and knowledge
transfers to developing countries
in order to help them achieve their
mitigation and adaptation goals. An
annual USD 100 billion climate finance
fund is requested starting in 2025,
along with measures to simplify the
steps that developing countries to
need to take to access it.
6. With climate change already causing
severe damage and losses around the
world, it was noted that a broad range
of stakeholders, from the local to
the regional level must have a means
for working together to minimise the
predicted onset of worsening damage
and losses in the coming years.
7. The parties were urged to meet their
respective pledges and national
targets under the Convention. They
were also encouraged to take an
integrated approach when addressing
national and local policy issues, and
when making planning decisions
so as to ensure that just transitions
occur. 2 This can be done by providing
financial support to reduce GHG
emissions and ensure climate-resilient
development.
8. COP26 recognised the importance
of international collaboration and
cooperation in innovative climate
action, including technological
advancement while considering social
ASEAN Energy in 2022
aspects such as gender equality. It
also recognised the contributions
of civil society, indigenous peoples,
local communities, youth, children,
local and regional governments and
other stakeholders, and supported
youth and indigenous communities’
participation in multilateral, national
and local decision-making processes.
GLOBAL COAL TO CLEAN POWER:
ASEAN’S STANDPOINT
As numerous financial institutions
declared their intentions to halt their
funding for new coal plants due to their
major contribution to climate change
[28], many countries worldwide have
responded with efforts to transition
away from the use of coal. These
actions, reflected in the Global Coal to
Clean Power Transition Statement, are
another critical output of COP26. This
Statement underlined the urgency of
accelerating and scaling up the clean
energy transition efforts while fully
moving away from coal-driven activities
[29]. The four main commitments that
countries agreed upon in the Statement
were:
1. Rapid development of clean power as
well as significant increases in energy
efficiency measures.
2. Scaling up the technologies and
policies needed to transition away
from coal in the 2030s for major
economies, and 2040s globally.
3. Ceasing issuance of permits and
direct government support for, and
construction of new unabated coal-
fired power plants.
4. Strengthening efforts to provide
robust technical and financial
frameworks, as well as social support
to make a just and inclusive transition
away from coal.
9
At least five AMS have signed to the
Statement, namely, Brunei Darussalam,
Indonesia, the Philippines, Singapore and
Vietnam. However, not all of the clauses
in the Statement have been agreed to
by Indonesia and the Philippines [30].
Indonesia partially excluded the third
clause on ceasing issuance of permits
and direct government support for,
and construction of new unabated coal
power plants. However, as part of its
promise to attain net zero emissions by
2060, or sooner with international aid,
Indonesia will explore accelerating the
coal phase-down into the 2040s, subject
to extra international financial and
technical support.
Meanwhile, the Philippines has
apparently endorsed only the first clause
and parts of the second and fourth
clauses. The Philippines would like
to reiterate its call for climate justice,
noting that the Philippines is not a
major emitter of greenhouse gases but
is suffering badly from the worsening
effects of climate change. It emphasises
that energy security is paramount, and
that the energy transition will serve
as a means to improve the lives of
Filipinos and contribute to the economic
development of the country.
Under the conditionality agreement
of the clause, the AMS signatories to
the Statement have made a bold move
towards transitioning away from coal.
Aligned with the Paris Agreement, the
ASEAN Region is “walking its talk” by
phasing down coal power plants despite
being the world’s largest single coal
market.
ASEAN Energy in 2022
BEYOND NDCS: THE AMS’ LONG-
TERM STRATEGIES
Since the AMS’ NDC targets cover only a
certain implementation period, planning
beyond the NDC targets is important
in demonstrating the Region’s desire to
address global climate goals. Nine of the
ten AMS have committed to reaching the
net zero target as listed in the various
long-term strategy documents submitted
to the UNFCCC.
FIGURE 5 AMS’ NET ZERO TARGET YEAR
10
As countries move towards more
ambitious long-term goals, rapid
developments in technological innovation
are expected. These innovations will
undoubtedly require considerable
investment in the future. Thus, the
involvement of numerous stakeholders
will likely accelerate the achievement of
these long-term goals.
ASEAN Energy in 2022 11

INSIGHT 3
ACCELERATING TOWARDS THE ENERGY TRANSITION

After planning, the next step is implementation. Accelerating the energy

transition will require concrete efforts from each of the AMS. Indeed, more
countries are compiling new power development plans (PDPs) which make
way for more renewables starting in 2022. Efforts by the power sector are
crucial as ASEAN now has only three years to reach its regional targets
for the RE share in Total Primary Energy Supply (TPES) and for energy
intensity reduction. In 2022 the regulations for the world’s largest free trade
agreement, the Regional Comprehensive Economic Partnership (RCEP), are
also expected to be promulgated.

THE POWER SECTOR IN 2022

The power sector is expected to play a of power capacity were installed by
key role in the energy transition era. As the AMS, with approximately 22 GW of
reported in the ASEAN Power Updates capacity added in 2020 alone.
in 2021 [31], around 285 gigawatts (GW)

TABLE 2 ASEAN INSTALLED POWER CAPACITY IN 2020 (MW) [31]

Coal Oil Gas Hydro Geothermal Solar Wind Bioenergy Others TOTAL

89,451 11,925 88,234 59,451 4,058.7 22,942 2,665 5,969 393 285,089

Coal and gas contributed around capacity mix, followed by geothermal,

31.4% and 30.9%, respectively, while solar, wind, bioenergy and other RE
oil contributed around 4.2%. Of the RE sources together accounting for 12.5%.
categories, hydro became the largest,
accounting for almost 21% in the power
ASEAN Energy in 2022
FIGURE 6 SHARES OF INSTALLED POWER CAPACITY IN ASEAN IN 2020 [31]
According to the Cambodia Power
Development Plan 2021-2030 [32],
about 86% of the total capacity addition
in 2022 will come from renewable
sources. Indonesia’s recent PDP, the
Rencana Usaha Penyediaan Tenaga
Listrik (RUPTL) 2021-2030 [33], states
that the overall capacity additions of
RE throughout the period will result in
a 51% share, or slightly more than the
fossil fuel share at 49%. For 2022 alone,
it is expected that there will be about
647 MW of RE capacity plant actually
running.
Interestingly, according to the Report
on Peninsular Malaysia Generation
Development Plan 2020 [34], Malaysia
is planning to retire about 915 MW of
gas power plant while increasing the
capacity of RE to 72 MW [35]. Meanwhile
the Philippines [36] plans to install
28 MW and 21 MW of hydro and solar
power, respectively.
12
According to the Singapore Electricity
Market Outlook 2021 [37] new projects
there will result in an additional 300 MW
of capacity to handle the island-state’s
growing demand. The government
foresees that solar power will increase
gradually to reach 1.5 GWp by 2025. At
the same time, the remaining electricity
needs will be imported from the Lao
PDR-Thailand-Malaysia-Singapore Power
Integration Project (LTMS-PIP). Thailand
[38] plans to increase its power capacity
by 1,765 MW, mostly from renewable
sources. This additional capacity
includes the decommissioning of a
270 MW coal power plant in 2022.
Vietnam, which is finalising the draft of
its 8th Power Development Plan (PDP8)
is also planning for large capacity
additions. The PDP8 is expected to
include a target for an RE share of
53% by 2025. However, fossil fuels will
continue to be the backbone of the
ASEAN Energy in 2022 13

power sector for the short- to medium- plans to install more than 5.5 GW in 2022
term in many countries. Hence, to fuel [31]. Details about the capacity additions
the growing demand, especially for planned for 2022 are given in Table 3.
electricity, the Vietnamese government

TABLE 3 CAPACITY ADDITIONS IN THE AMS IN 2022 (MW)

Fuel BN KH ID LA MY MM PH SG TH VN ASEAN

Coal 133 2,444 220 -270 1,800 4,327

Oil 5 5

Gas 1,822 -915 443 738 3,300 5,388

Hydro 350 207 7 486 28 514 1,592

Solar 32 450 287 21 200 990

Wind 2 488 490

Geothermal 108 108

Biomass and
43 65 100 783 1,091
Others

TOTAL 32 933 4,918 220 -843 1,029 49 300 1,765 5,588 13,991

WITH ONLY THREE YEARS TO GO,

THERE IS PRESSURE TO ACHIEVE
THE REGIONAL TARGETS
The year 2022 could be a turning point to rise towards the 23% target for 2025.
in terms of the ASEAN Region’s energy In the power sector, the share of RE
transition efforts. More of the AMS are installed capacity has already reached
aligning their national energy targets 28.7%, not far from the 35% target for
with their submitted NDCs. The share of 2025 [39].
RE in TPES is reportedly progressing. In
2019 it reached 13.94% and continues
ASEAN Energy in 2022 14

FIGURE 7 ACHIEVEMENT OF RE SHARE IN TPES

Note: AEDS is ASEAN Energy Database System, ATS is ASEAN Target Scenario and APS is APAEC Target Scenario

FIGURE 8 ACHIEVEMENT OF RE SHARE IN INSTALLED CAPACITY [31]

ASEAN Energy in 2022 15

ASEAN successfully achieved a 21.8% measures, notably in the building,

energy intensity reduction in 2019
relative to the 2005 level [39]. There is
still an approximate 10% gap that must
be handled by the Region. However,
as apparent from the more ambitious
energy transition plans of some AMS,
the Region is “walking its talk” towards
attaining the regional target.
transportation and industrial sectors,
can assist in reducing energy usage and
emissions while boosting energy security
and overall economic productivity in a
cost-effective way. Hence it is expected
that more and more innovations are
needed to achieve the regional target.

As mentioned in the Joint Ministerial

Statement of the 39th ASEAN Ministers
on Energy Meeting (AMEM), adoption
and extension of energy efficiency

FIGURE 9 ENERGY INTENSITY REDUCTION IN TPES RELATIVE TO THE 2005 LEVEL

Note: AEDS is ASEAN Energy Database System, ATS is ASEAN Target Scenario and APS is APAEC Target Scenario.
ASEAN Energy in 2022 16

LONG-AWAITED REGULATIONS
AND WORLD’S LARGEST FREE
TRADE AGREEMENT
The year 2022 is expected to be critical
for long overdue regulations such as
the passage of Indonesia’s RE bill.
Currently, the bill is a priority for the
national legislation programme which
is expected to be completed in 2022.
With the issuance of the New and
Renewable Energy Law, Indonesia can
at least provide business certainty in
terms of legal stability for RE investors.
In addition, ratification of the RE law
will also demonstrate the government’s
commitment to the energy transition.
of alternative scenarios for energy
growth, including a greater emphasis
on renewables. The year 2022 is also
significant in that it marks the launching
of the world’s largest free trade
agreement, the Regional Comprehensive
Economic Partnership (RCEP). Deals
among the member countries will likely
leverage investment to assist with the
energy transition.

Similar to Indonesia’s RE bill, Vietnam’s

new PDP regulation is expected to be
published in 2022. In order to gather
inputs and comments from the public,
a draft of the PDP8 regulation was
disseminated in February 2021 by
Vietnam’s Ministry of Industry and Trade
(MOIT). The plan contains a number

FIGURE 10 MEMBERS OF RCEP

ASEAN Energy in 2022 17

Photo by Jason Blackeye on Unsplash

ASEAN Energy in 2022 18

INSIGHT 4
ASEAN ENERGY COOPERATION MILESTONES IN 2022

EYES ON THE CAMBODIA

CHAIRMANSHIP IN 2022
The ASEAN Chairmanship was very
ably handled by Brunei Darussalam in
2021. Cambodia is now at the helm, and
in the spirit of “Addressing Challenges
Together”, it intends to strengthen the
essence of togetherness and encourage
action-oriented collaboration to provide
real results within the three pillars of
the ASEAN community, namely political
and security cooperation, economic
cooperation and socio-cultural
cooperation.
economy-wide energy efficiency (see
Chapter 3 therein). Renewable energy
efforts and energy efficiency measures
will continue to be the main priority for
the Region. The setting of clear targets
is seen as beneficial in that they can
serve as guideposts for potential energy
investors. Moreover, the clear targets
make it imperative that the best possible
regulatory environment be in place to
enable investors to collaborate with the
AMS easily [40]–[49].

ASEAN energy cooperation, which MOVING FORWARD TOGETHER

comes under the ASEAN economic
The COVID pandemic undoubtedly
cooperation pillar, will enter the second
caused painful declines in ASEAN’s
year of the ASEAN Plan of Action for
economic growth and the demand for
Energy Cooperation (APAEC) 2016-
energy in certain sectors. However, on
2025: Phase II 2021-2025. This Plan of
the positive side, renewable energy
Action will drive ASEAN’s energy sector
proved its resilience amid the bleak
strategies which are divided into seven
period. As the AMS slowly recover from
programme areas, namely, the ASEAN
the pandemic, strong fiscal mechanisms
Power Grid, Trans-ASEAN Gas Pipeline,
for providing green recovery packages
Coal and Clean Coal Utilisation, Energy
are expected to be pivotal in helping
Efficiency and Conservation, Renewable
the economy and energy sector bounce
Energy, Regional Energy Policy and
back while still aligning with climate
Planning and Civilian Nuclear Energy.
goals.
All eyes are on Cambodia right now,
The year 2022 is expected to be a
watching how its leadership will drive
turning point for the ASEAN Region
the prioritisation of the transition to
in terms of its energy transition. The
cleaner energy use. The biannual
AMS’ updated NDCs are expected to
flagship publication of the ASEAN Energy
bring more ambitious strategies. This
Outlook (AEO) is expected to carve the
is evident by the statement under
pathway for ASEAN’s long-term energy
the Glasgow Climate Pact and the
transition through enhanced efforts to
Global Coal to Clean Power Transition
increase the share of RE and improve
ASEAN Energy in 2022 19

Statement. In addition to this, the AMS the regional targets in 2025. Also, 2022
also set their long-term strategies to will see the long-awaited regulations for,
reach net zero emissions, which are and launch of the world’s largest free
beyond their NDCs target. trade agreement, the RCEP. Lastly, under
Cambodia’s chairmanship of ASEAN in
In the power sector, the newest PDPs
2022, the energy transition spirit will
indicate that significant increases in
continue under the theme, “Addressing
renewable power generation are being
Challenges Together”.
planned in the next few years. The year
2022 is expected to be a stepping stone
towards greater RE penetration in the
power sector and towards filling the
remaining gaps necessary to achieving

source: asean2022.mfaic.gov.kh
ASEAN Energy in 2022 20

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ASEAN Energy in 2022 23

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ASEAN Energy in 2022 24

This Report is a product of the ASEAN Climate Change and Energy Project (ACCEPT)

ACCEPT is funded by the Norwegian Government under the Norwegian-ASEAN Regional Integration Programme (NARIP) and is jointly implemented
by the ASEAN Centre for Energy (ACE) and the Norwegian Institute of International Affairs (NUPI). The project includes the active involvement of
key ASEAN stakeholders, and helps enhance modelling, analytical and regional policy planning capacities within ASEAN.

ACE is an intergovernmental organisation within ASEAN structure that represents the 10 ASEAN Member States’ (AMS) interests in the energy
sector.

NUPI carries out research on international issues of importance to Norway and the world.

accept.aseanenergy.org @ASEAN_EnergyCC @asean_energycc

ASEAN Centre for Energy The views expressed in this policy brief are those of the
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Member States/Institutions/Individuals, or partner institutions.
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