This content discusses the critical role of credible Renewable Energy Certificate (REC) systems in accelerating renewable electricity trading and achieving net-zero goals, particularly within the semiconductor industry and the broader ASEAN region. It highlights the challenges and opportunities in scaling up renewable energy procurement through trustworthy and transparent mechanisms.
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A very good afternoon for everyone here.
Seeing everyone's is already well seated
for this session. I would like to again
reintroduced the second session of the
parallel meeting which will be entitled
designing effective crossber renewable
energy certificate systems to accelerate
renewable electricity trading. For this
1hour session, we will have a scene
setting presentation and then followed
with a panelist dynamic discussion. So
without any further ado, um may I
introduce myself? I'm Gadi Si and I will
be the MC for this session and I would
like to start the session with a very
insightful presentation of the scene
setting from Miss Jang Soyong as a
senior manager of energy consortium of
the semi to Miss Jang Soyong I would
like to present you to the floor. Thank you.
Okay, better. Okay, so um good morning
everyone. So um my name is So uh from uh
SEMI um you know semi we are the
industry association of the
semiconductor industries um uh I'm the
senior manager uh of the energy
collaborative and then consortiums. So
it's a very pleasure uh to share uh
today how credibilities enable you know
the scale renewable energy and why
building trustworthy uh energy mechanism
is essential for the semiconductor
industry clean uh energy transitions.
anyone can okay okay so um I think I
just want to uh give some short intro
about the semi so semi uh represent the
entire actually electronics uh the
manufacturing and design ecosystem of
the semiconductor uh value chain from
materials equipments and also to device
and system um manufacturing including
hyperscalers. So we have more than 3,500
member companies worldwide. Uh and then
uh we connecting and collaborating and
innovating across region including the
US, Europe, Japan and Korea and Taiwan,
China and South Asia and India. So uh
through this global reach the semi uh
you know the drives alignment on uh
sustainability technologies uh and then
uh the policy and the delivering the
world innovative industry uh opportunities.
Yeah. So in our ME in collaboration
platform um we have almost like more
than 100,000 100 program we have but we
also have a top priority uh so the
global advocacy sustainabilities and
also talent developments and also supply
Maybe someone can help to run this
slide. Okay. Yeah. So
in in our semi collaboration platform uh
you know there is a two of semilexship
leadership uh platform which will take
place uh you know in in December 2025.
So the first one the semi- international
policy summit uh will be held in
Singapore at December you know 11 to 12.
uh we you know we bring all the senior
executive and the policy makers uh to
address industry talent uh energy and
emissions and pas and supply chain um
you know resilience and another the one
is the global egg executive summit GS uh
we also follow in Tokyo December 15 to
16 so coed by the Google and uh together
with other hyperscaler together um
alongside the semicon Japan um the
focusing on energy emission and
efficiency. So you know together SES and
GS serve as a cornerstone um gathering
that bring industry uh leaders together
to share the insights and online uh
strategy and drive the collective action
toward a more resilient and sustainable
So these are uh some of the invitation
anyone interested please um you know
sign in um any questions so reach out to us.
So in semi uh sustainability as I shared
is one of our top priority and uh we
have a key four pillars one is AHS we're
more focusing on the regulatory and then
policy alignments and including the GH
and PAS and ESG we're driving water
waste and security uh initiative. Third
one is a semiconductor climate
consortium. So we focus on the scope one
two three and emission reporting. Uh so
these are the kind of our industry
decarbonization uh main um consortium.
So we almost cover the global
semiconductor emissions more than 70%.
So members join and we're driving uh
decarbonizations. The last one is energy
collaborative. So our main platform
driving the renewable energy uh
expansion across um Asia. So uh together
these pillars uh create a integrated
approach to overcome sustainability
challenge and translate industry vision
So you know the I just want to uh
highlight like you know um why actually
semiconductor we uh we are very focused
on the the energy topic. uh as I
mentioned you know we launched the
semiconduct climate consortium uh in
2023 and the following year 2024 we
launched the energy collaborative
because you know the first uh when we
started semiconductor climate consortium
the first our baseline study that more
than 80% of the emissions came from the
energy and then this energy topic we
have to handle separately and then it
has to work with the various ecosystem
partner and also has to rely on very you
know all the policy uh the topics together.
together.
So in here you can see that you know
almost 80% of our semic came from and
you know really this decarbonization
depends on the energy topic and we
really see that more than 40 gawatt gap
is existing especially in Asia side. So
you know in short net zero uh for the
semiconductor industry is very
fundamental. Electricity is a challenges.
So um this is kind of our energy
collaborative. So energy collaborative
we have like you know main uh
semiconduct leaders join and we drive it
uh this energy uh scaling up renewable
energy scaling up topic we cover. So we
EC brings together corporate uh also the
utilities regulators and then the
financer and technology provide together
to driving uh this scaling the renewable
energy topics. So uh we have more
focused countries Korea, Japan, Taiwan
and Singapore, Malaysia uh which is um
key our semiconductor regions. So uh by
sending unified the market signal and
fostering the public private uh
collaboration and partnership. So we EC
aims to unlock multi-gawatt renewable
energy uh capacity by 2030 ensure the
both you know fabs and supplier can
So through this our EC now is heading to
two years we identified each regions the
key policy barriers. So as you see that
the Korea side yeah we are very
challenging for the expansion. So not
much sourcing and we really strongly
advocate to the government uh as the re
expansion is essential and the
procurement uh topics uh you know in
Korea also the utility green tariff we
really you know pushing to uh capco
utility side and the Korea government to
endorse it this topic as well. Japan
yeah expanding solar and offshore wind
while improving the grid flexibility
also the you know better competitive the
procurement options. Taiwan um more
flexible uh the the procurement the
mechanism we needed and also the joint
procurement model we try to address as
well the Singapore um you know everyone
knows that uh crossber energy trading is
kind of key topic but uh international
recognition still is the issue so we
driving with the Singapore government
together uh this compliance recognition
topic as well so Malaysia um improving
crest transparency and then uh recent um
some of our winning sector charges was
the kind of a key topic. We had a very
good conversation with the Petra some of
the discounts we made it. So a little
bit our members a bit happy but you know
still far away we have to driving this
topic together but we hope that Malaysia
also have a more competitive renewable
advantage market as well. So you know
each program is co-developed with the
members and also local governments uh to
ensure that renewable assess align with
industry needs.
So the here is um we each identify topic
and then we address this topic to the
government uh we hold it uh couple of
round table and addressed this topics.
So we are working in Korea side Mi and
now is a uh MCE and then the METI Japan
um MOA Taiwan uh MCMA in Singapore and
the Petra in Malaysia. We close work
with them and then address the agenda
and try to reshaping improving the
policy of the renewable energy.
So here you could see that the
semiconductor market is projected almost
like grow 2.5 times um is almost like
from the USD of 520 billion in 2023 uh
to 1.3 trillion by 2030. So the industry
is growing but um but at the end when
industry grow at the end our side is
like an electricity demand is gonna
growing together and at the end we have
to consider very aggressively about
decarbonizations. So renewable energy
capacity demand is getting higher and
higher but when we look into Asian
market the speed is not matching our
demand. Okay. So we are kind of key
advocating to the government when we
meet them we just urge them our target
what is demand uh collaborate with the partners.
So as you can see um here we see the how
our semiconductor companies scope 2
goals uh directly support uh their
customer scope 3 emissions. So for
example like TSMC, Samsung, Intel, ASML
are targeting 100% uh renewable energy
by 2030 between 2040 align with a
customers like Apple, Google, Microsoft
and Amazon uh who will seek the net zero
by 2030. But this alignment shows that
you know re renewable energy procurement
is not only corporate responsibility
it's it's not individual corporate it's
actually value chain expectation and uh
enabler of the global net zero uh progress.
So this chart actually highlight the how
regional you know a bit different of the
the energy mix part. So you know when
you could see that the Europe grid um
average 245
um the gram of the CO2 while Asia as a
key manufacturing hubs um you know
Japan, Korea and Taiwan remain still
very high um you know uh their you know
the the CO2 400 almost like 500 uh the
gram of the CO2 uh Malaysia Singapore is
more higher uh but this uneven uh you
know energy ICS it shows uh why policy
reform and also the great modernizations
and investment accelerations are the
essential to make the Asia's power
system compatible with the global um
you know we could see that actually
Malaysia we also have a lot of our
semiconductor value chain uh located um
so it's going to the industry is kind of
growing but we also could see that
Malaysia has also bunch of the potential
for the solar. So if actually we really
make the momentum, I think we can really
exit reach it the two 20 uh gawatt the
solar um certain by 2030. Um I think we
really wish it to kind of momentum in
Malaysia as well. And then Singapore the
renewable supply is actually uh is going
to be like projected 30 to 40 terow hour
by 2035 but actually the steel there's a
huge gap. So that's why we also advocate
to the government uh that what is how we
going to make it the gap um accelerate
as more renewable energy supply as well.
So I think today's the main topic is
about like how this credibilities you
know uh you know align with you know is
it matching to our uh renewable energy
expansion part as well. Uh but I want to
kind of emphasize that um scaling up the
renewable energy really depends on the
credibility I could say and how
trustworthy and transparent national
schemes are very important. It's
actually I just want to give you some
example in Malaysia and Singapore and
South Korea which is kind of main um you
know driver the procurements of the
renewable energy but still issue for the
credibilities. So that's why um we are
you know strongly advocate about each
Malaysia side is like the get you know
still I think the tracibility and
transparency issues uh you know our
members also concerned about this uh the
credits so and also some of the question
about whether this uh you know Malaysia
reg matching to the 100 compliance uh
recognitions so that's why this is one
of the agenda we also try to work with
the petra uh get the more compliance
recognition as and Singapore you know
the crossber energy trade framework I
think Singapore government is actively
leading uh building this framework
agenda but still um international
compliance recognition is still uh in
the process but uh our industry side you
know we needed more source but this
compliance recognition issue is not
solve it we can't really kind of take
confidently so that's why we addressing
this issue to the government um I think
the Singapore almost proactively uh
address it issue uh together with ASEAN
get the more clear market boundary as
well and South Korea side like green
premium is one of the most often use it
but still uh there's additionality issue
because previously also we address about
the transparency um and trace
traceability issues we address it uh
government side they actually improve it
kind of short period they do that but
still kind of additionality issues is
there so we also advocate how to improve
this one so like um I'd like to conclude
I think you know credibility I could say
that enables uh enables scale the
renewable energy. So the first regional
strengths and lessons like each country
offers valuable insights that
Singapore's cross world energy trade
framework demonstrate the highest
credibility potentials supported by the
treaty based compliance
recognitions and uh regional oversight
mechanism. uh Malaysia rack has a
simpler uh the structure but need more
know strength for the uh rack uh
auditabilities and more like
traceability issue has to be solved and
the Korea green premium uh I think you
know they're going to weigh to improve
the additionality improvements they're
going to do that so
but these are the kind of common um you
know some broken mechanism common kind
of gap is the credibilities issues they
have of course the reason two major
Issues remain consistent like weak
traceabilities, inconsistent retirement
systems and continue to undermine the
trust and lack of additional
additionalities uh where the premium or
tariffs uh fail to fund a new renewable
energy capacity and uh prevents this
program for delivering uh real
decarbonization outcomes. So third one
credibility as the foundation of the
scale. So credibility is not just a
compliance requirements. It's it's it's
a kind of a pre precondition for scaling
renewable energy. So uh when market
trust every rack or premium um directly
support the new capacity so we unlock
more confidently. So um
I often more the bankable uh the the
renewable energy source we can uh the
secure uh the the source. But lastly, I
think policy prioritize going forward.
So government and utility must focus on
the two I think u core actions. So more
like guaranteeing the additionalities.
So by linking every corporate uh premium
or tariff directly new renewable energy
generations aligning national scheme
with a protocols um also 100 standards.
So ensuring the international
recognitions and transparency I think is
key issues. So in summary scaling
renewable deployment require a strong
traceabilities additionalities and also
alignment with the global uh standards. So
So
I I don't want to say like cred
credibility is only compliance one but
it's more like foundation for the scale
I'd like to say. So um
when credibility is a strong then it
builds the investor confidence and buyer
also confident but the enable the bank
bankable projects and unlock the you
know gigawatt the scale renewable
procurement across Asia. So uh the semi
uh you know we work with the industry
also developer and the government side
to scaling and improve the credibilities
in this market as well. Yeah thank you
Yes, a very round of applause for Miss
Jang Soyong for setting the clear scene
for our panelist discussion. So, we have
identified the prominent issues and
I would like to have a quick check on
whether on
anyone here um
who wish to maybe have a question.
If not okay then we can move on to the
next session which is the essential part
of this parallel session that will be
the panel discussion which for the floor
and the time I would like to present to
Dr. Tarin Supasa, the head of
sustainable and renewable energy
Thank you very much Kadis and thank you
Miss Suyong for very insightful and
happy to see a big gap 40 right that's
still the corporate need more green
electricity and also great to see a big
opportunity for 2.5 times that the uh
industry will expand by 2030 and that's
of course uh pressing some kind of gap
but also opportunity for Asia including
Southeast Asia as well. And yes, um now
I would like to officially start our
panel discussion and let me invite my um
panelists to join me here. So first uh
again I would like to invite again Mr.
uh Miss Suyong Jang from um Sei
Associations to join me here. And next
um yes again
next panelist come from the um solar
developer side. So Mr. Arjun
yeah chief executive officer from time
energy. So welcome to join us here.
So next panelist uh very popular.
So he's come from um TNBX of Malaysia.
So m welcome Mr. Mai Young
paid off sustainability solutions of TP
TNBX Malaysia.
Last but not least also very important
speaker for today. So I would like to
welcome uh under secretary Marlene Cop
Cop from the department of energy Philippines.
All right then we have quite variety of
panelists here from corporate from
policy maker developer and also utility
and then yeah I think I would like to
start from maybe um Miss uh Jong Suyong
again. So I already let you already
present us many insight from the
corporate and thank you for sharing that
and I think about the we are now aware
about the urgency and also necessary for
REC and also the advantage that ASEAN uh
will gain for activating the certific
uh in quicker and also in scale. So
again would like to hear from you uh
shortly from the corporate perspective
from semi perspective of the
representative of the global manufacturer
manufacturer
uh from electronic sector. So in your
experience from what you've been discuss
with um many and various stakeholder in
the regions. So what exactly the key
barrier that you face in sourcing the
Yeah,
I I I clearly uh you know uh mentioned
especially you know when we talk about
the crossber this energy trading rack um
because in Singapore so we have a lot of
like our value chain located and then we
will only kind of rely on I know
Singapore government also you know we're looking
looking
solar supply they planning but the
capacity really doesn't match our demand
so we also looking to uh CBT uh
implementation but important is uh like
compliance recognition is important
because most of our you know value chain
they are actually aligned with the
compliance internationally 100 members
they have to get this targets so you
know we really kind of raised this issue
last year when we started the government
round table with the Singapore
government actually they didn't really
realize it like how this issue is urgent
so at the beginning they thought that
you know Singapore we have a standard
you're based in Singapore you just
follow Singapore rule and the Singapore
standard. So they didn't really take it
as serious but you know when we have a
round table in October last year and
then we tell them why is it matter and
then I think it was a fully uh buy in
the Singapore government. So that's why
they decided um launching this uh you
know CBT rack framework template and
having very aggressively you know
communicating with other so they're very
supportive to you know get our
industries uh get the targets. So I
would like to say that now I think
Singapore government take the leadership
to prepare this um template get the more
credibility issue a solved uh but the
next step is important like assean
market boundary so that's why I think
Singapore government and Malaysia go
together take the more leadership get
the more clear market boundaries so when
this kind of issue is solved even 100
clearly actually you know advise us uh
this is kind of key condition they're expecting
expecting
then uh they can recognize this uh the
CBD rack as a compliance uh one of the
schemes. So uh actually our industry
side we are really waiting uh this you
know progress discussions uh because our
industry most of them I already shared
that we have a 2030 very early it's kind
of soon five years so we we hope that uh
this progress uh make it our alignment.
So yeah, this is kind of a still
challenging but we can see the progress
but we hope that other ASEAN u the
countries can make the more alignments
and the more make the clear market
boundaries and get the compliance
recognitions. Yeah.
>> Yes. Thank you. I think that's also
align with uh the ongoing discussion in
ASEAN and also um quite fit well with
when we have the discussion in this
especially event for the APG and also
moving next into the uh the framework
for ASEAN on the REC discussion. Thank
you. And then move to maybe utility
side. So as the energy utility
subsidiary who are working on expand
rate adoptions and then what challenge
that have you observed in the market for
the past five year and also how those
challenge actually uh affects the
utility ability to offer the credible
racks to the market.
>> Okay. Thank you. Thank you Dr. Tarinia.
Um very good morning to ladies and
gentlemen, fellow panelists. Um and
before I start would like to thank um
ACE for having me as part of panelist to
share the thoughts from TNB. So I'm from
I'm Mike. I'm from TMBB subsidiary which
is TMBBX. We have been working on
providing Rex to our consumers and one
of the few um pioneer rights in Malaysia
whereby we have started off providing
Rex since um 2020 right. uh we launched
the Malaysia green attribute tracking
system in Gen similar time um in 2019
almost 6 years ago um and that's where
after that we have started off providing
Rex for consumer um just like what um my
fellow panelist has shared now right
there's a rising need for um consumer to
go for green electricity and therefore
we see that SVT how can we provide our
consumers the green electricity they
need with the certification that uh they
require to meet their international
standard. So throughout the years we
have started off our journey whereby we
provide our consumers an unbundled rack
right meaning to say customers
purchasing the rack purely a certificate
itself and then they use that and match
to their consumption right and they make
their reportings and and um declare
their offsets using their market base emission.
emission.
Um we first started off whereby we have
about close to about 20 consumers. Then
as time passed by we work closely with
the regulator and also our ministry to
see how best we can then make this
offering more credible and hence from an unbund
unbund
from an unbundled Rex offering from 2020
to 2021 then we have the green tariff
program which is what that's known as
the green letter tariff program get
program right so this is a bundle
program the electricity coming together
with rec And that is where the consumers
are able to receive rack. So the rack
provided by us was not something that
TMB produce. We use an internationally
recognized registry the IRX standard and
that's where uh through using an IRX
standard itself provide that
traceability right uh as rightly pointed
also right uh by madame uh Jang that um
there are some highlights from the
industry right as you have uh
highlighted the challenges what the
industry needs right the credibility
part of it um and as we use the regist
indry from Iraq. That is where um those
who subscribed for the get program they
will receive an RC we call it we brand
it as a Malaysian rack and Malaysian
rack will entails where the source of
the rack comes from from which uh
particular solar farm or hydros right uh
when it is generated what which money
was generated and that's where they use
to match the electricity bill right they
also because it's a bundle program they
will have on their electricity bill
having the details of the uh GT how much
green energy they have procured and
that's where it um reflects on the green
legacy. So yes, we see that the consumer
demands changes and in fact we have also
ch uh challenges to somewhat meet the
requirement because requirement what we
find what I personally find is that the
requirement has become more stringent
over time and what it did not really met
on that requirement was the 15 years
repowering limit right in which we find
that the nature in Malaysia right and
probably in some countries in Southeast Asia
Asia
might not be suitable to meet on that
context, right? Because we have large
hydros large hydros quite a number of
them having more than 15 years in
peninsula Malaysia. You still probably
have some less than 15 years in the East
Malaysia side.
But as we move forward and look at how
the trend has as slowly changing to more
credible system that is where people are
now talking about green hydrogen and
having a more special temporal matching
right from uh annual matching or some
standards uses 24 months vintage
matching to monthly matching and also
hourly matching and without the hydro as
the base it's very difficult to meet
that right. So these are all some of the
challenges and hence why there still
consumer today has been subscribing to
GT program even though they know that
our GT program comes from the lushkill
solar and hydro but they're still able
to accept even though they are 100
members and complying it. So we see that
um the consumer demands has slightly
changes the international uh standards
has also changes and of course that also
give us an opportunity to improve our
services and GT has also then uh evolves
from time to time since it launch in
2022. So probably that's it for now.
>> Oh thank you Mike. Yes, of course. And
it's keep changing quite fast especially
from last year to this year, right? And
then we received a lot of insight and
also request from our member state like
maybe in ASEAN we should uh discuss how
how to utilize this platform to you know
uh strengthening the collaboration in
this issue and yeah so now I think we
hear from corporate sector we hear from
um utility side who do a hard job to you
know provide the credible rack to
support the corporate side. Then maybe
also would like to hear from the um re
provider you know the real let's say
hero who actually try to you know
producing the renewable energy
electricity to supply from us and
understanding there are also some let's
say pro and con dilemma because um let's
say speaking would like to hear more uh
insight for example once we now have the
market um you know available
Now and do you think kind of how the um
the scale that rake mechanism actually
provide the additional revenue for the
uh renewable energy project and also
accelerate the new renewable energy
growth and meanwhile you know we also um
aware about koi have to side and in
order for the developer to jump into you
know the rec market do you see any kind
of challenge or barrier that you are
facing as
All right. Thank you. Um, thanks
everyone. Um, I'm I'm probably the
newest guy in this renewable industry.
All right. So, I'm learning a lot in
this past like 20 minutes. Uh, I mean
when when I mean just to give some
background, right? So, when we uh we we
are I was time.com in Malaysia is a
telecom company. We are exploring into
going to energy, right? And then and we
saw Rex as a re as an additional revenue
stream right so uh the whole journey
right to understand Rex to understand
how it works and we're still learning
till today right it's a complex thing
okay that that it's very academic very
abstract very complex right uh and and
everyone wants more revenue I mean
revenue makes the the your XR looks
prettier like it looks more green right
it gets approval right but can I put in
that revenue into the Excel to my board.
Can it be defended? Right. Right. So, we
have the a big buyer here who says I
want X. Then we have the the real solar
here which is me and we we have Y. But
how do we transfer this benefits from
from the the the actual solar to the
buyer, right? And it's real. Everything
is real. There's real money transacted.
We have a hope. We have a solar system
here. We have things. But to transfer
the benefits from this person to this
person we have to run around in circles
jump up you know it's it's complex right and
and
like on our end we have a team look at
ESG as a group right even they don't
know right um right and and it was a
very interesting experience so rack is
fantastic right I mean it just it's
going to it's going to make uh adoption
faster right it's going to make things
better right but for us for for a
developer to seriously consider this as
a real revenue stream. It it has to be
predictable. It has to be simple, right?
You know, in in uh I was telling I was
telling my team the day, right? You
know, like like crypto cryptocurrency,
right? It's such a complicated
mathematics thing. So so complicated,
right? But you can download an app and
buy it in five minutes, but for me to
for me to do a rack, I I need to meet
maybe 30 people and discuss and
paperwork, right? So that is a viewpoint
right. Um it's a good tool right I think
it's a good tool to get people like like
your your buyers uh right who are the
demand who who will help the solar
adoption increase right and I mean this
the informed bias you you guys are ahead
of the curve compared to the typical
industry out there right you're very
environmental conscious right uh you you
ignore what the government what policy
say you focus on what is right so that's
that's that's amazing but how do we how
do we bridge these two these two parties
together Right. Right. Uh that that is
our big problem. All right. Uh we
I mean to give to give a perspective,
right? You know, right. So uh we have uh
from Tanaga here who who does Rex from
the large hydro, right? So if you look
at solar specifically in Malaysia,
right? And I I my numbers might be wrong
here. Over 40% of solar capacity in
Malaysia is from roof from from rooftops,
rooftops,
right? and they're generating solar
today, exporting to the grid, right?
That is a whole bunch of racks sitting
there. And if if you give them I mean
they never thought of rack as a revenue
stream. You give if you give you just
give them let's say 100 ringgit a month,
100 ringgit a year, they'll be happy. I
mean so if you want racks there 60,000
homes in Malaysia, right? But how do we
transfer uh this uh benefits from this
party to this party? And that's the
complexity and this to be uh we tried to
do something about 3 months ago. All
right. And when it when we saw the cost,
the paperwork and the complexity, we
just abandoned it. Right? I have a I
have a few thousand houses in my in in
my system. Right? Uh that's one, right?
So what let's look at the negative side,
right? So it's amazing positive. It's
going to it's it's there there's a no
loss thing, right? So the negative what
what we need is simplification,
right? something simple right I mean uh
from from being a telecom guy my first
question is why can't the inverter just
connects to come out with a standard
connects to a cloud and just push and
automatically he gets credit right one
or the other way we export the energy to
the the naga grid it should come the
rack should be automatically recognized
as exported to the to the grid right I
mean there's so many easy ways to uh to
generate a wreck than just to go through
uh the paperwork that we do, right? Uh
the last the last bit on the negative
bit, right, is that solar is a long-term
investment. It's like at 10 years at a
minimum, right? We need con we need
long-term investment needs long-term policies,
policies,
right? Predictable, right? So right uh
and policies goes across like it's
probably a generational at least a 10
years policy constant policy for us to
make it to make it tangible right it
cannot be like today it's valuable next
day it's not right so when like when
Singapore launched the thing right the
cross boundary and all that it's it's it
makes things complicated cuz I could be
I could have been accounting potential
sales to Singapore and Malaysia
Singapore launches some things now I
can't you know you right so this asan
asan rap is fantastic harmonize get
everyone and act together people who has
land can can generate generate generate
this uh green energy to people who don't
uh people who have resources can do and
everything will equalize right that
that's my thoughts
>> thank you yes I think it's complicated
yes and it's but yeah I think we are
working on it and at least we have some
we can consider the expert there. Yeah.
Incrementally learn from that and yeah I
think soon in ASEAN we also try to
strengthen the um the harmonizing of REC
to become increase the confidence for
the corporate sector and try to um
extract them to invest in the region as
well. Okay. Then maybe just follow to
what uh Mr. where Arjun just say maybe
just quick back to you again for the
utility side Mike and yeah because you
are you you you are working on the let's
say Rex in Malaysia quite uh a few years
and would like to hear a little bit more
insight about what experience of Rick
which is kind of really stimulating the
growth of IE project in Malaysia and
also additionally because we highlight
like the close border rig plans a lot
and it will be soon Malaysia and
Singapore right will be kind of the
first um let's say standards for the
crossber rake will happens and how let's
say utility work with developer and also
with the corporate sector to ensure that
you know we can supply break in both uh
credible and also scalable
okay thanks uh Dr. Tinia. Um so yes um
I'll probably break this uh my thoughts
in two parts. So we have um the domestic
um role right from utility to spur
that's where I have on my left I have
the consumer on my right I have the
asset owner or the re provider. Then the
next part will be probably on the cross
border a bit. Now on the domestic scene
itself right um from TMBBX perspective
um we understand that as how do we spur
this is that um we look at how we can
provide more values to our consumer
right um needing to achieve green
literacy target wanting RECC's so um the
key here is that we um approach
customers while we have the get program
we also approach customers and seek
their feedback Right. Um and that's
where um the the requirement was that a
lot of um companies organization wanting
to go for more solar right rather than
going for hydros they're not looking and
so forth and to match the issues and
challenges that was highlighted by Mr.
budget from developer side is that the
whole thing looks complex. How do we
simplify it? Right? Um because the whole
carbon thing is also relatively new,
right? We have some other section
talking about carbon pricing and all
that. Some talking about MRV, right? You
need to measure, report and then verify
and and that all this element comes into
it to make it credible. So yes, so in
order to do that that's where um we
existingly have our platform called MGUS
the Malaysian green attribute trading
system and moving forward I think as we
hopefully you see by next year we will
something that is the asset owners and
re developer whereby we will able to
aggregate lease of rooftops and and
other options that you have and
hopefully with this will gives you more
newer um racks that is commission you
will aggregate it and provide to the
consumer right. Um that is one context
and with that there will be more options
for consumer and just to share right
when we talk about additionality that
consumer needs to understand where do
the proceeds go especially for the likes
of the GT program we have a program
called the solarist program solar
incentive scheme um where new consumers
new domestic consumers who put up solar
rooftop on your roof they get additional
incentives right coming from these gap
proceeds. So that way it goes back to
first plow more rooftops because
rooftops are there. So if it's not
utilized then it's a bit waste that you
can actually put solar panel you
generate green electricity and you get
the racks. So Solaris was there to plow
back and I believe that uh moving
forward then the uh ministry the policy
makers will probably have more
incentives to spur green right so that's
one of example how the GT's addition
goes back to growing in a bigger picture
while while individual companies from
the demand side looks at additionally
from the plan itself to to grow the AR
developers then this from the bigger
bigger picture itself so uh we from the
perspective We hope that uh you know we
will come some solutions right that
could probably hopefully bridge some
gaps right and um spur more rec um
volume supply to meet the demands
required and indirectly meeting the standard
standard
as for cross border the challenges that
we have right so the key thing is in
cross border we have internationally
recognized standards such as area now
does not recognize Malaysia example
Malaysia and Singapore because they are
two different region. I think efforts
are being done between the G2G and also
with a lot of um um I guess um probably
consultant advisers and so forth are
looking at how do we harmonize all this
right because if you look at documents
that has been issued out by CDP they
outline three things for seabbat to be
recognized right crossber be recognized
one they talk about the presence of a
physical electricity flowing over So
unprex you can borrow everywhere right
but there's no physical electricities
right and there's a need to have
physical electricities next you must
have an instrument right or mechanism to
verify that that green lyricist and
that's where you um you have um uh like
the likes of Iraq Tigr and so forth and
third then definitely there will be that
accounting part right how do we then if
the racks go cross border then uh how
are the emission accounting goes for
between both countries. So I believe
that all these are going through by
within cross bordering countries. So
while we not we do not have the direct
answer now but we already have like
pilot platforms with the likes of energy
exchange Malaysia Energy which is done
by single buyer that allows um first
allow the capability part of it green
letter from Malaysia goes to Singapore.
So you have that energy then now I think
the effort should be on harmonizing the
standards convincing the major reporting
standards to accept such mechanism and
later on um going through sorry opening
up to more countries like those in APGs.
So that's some thoughts on it. Thank you.
you.
Yes, thank you Mike. And I think yeah
because according to the ASEAN so
leaning towards APG of course and I
think for Singapore and Malaysia will be
the first pilot
um REC project that we could learn and
also could be a good knowledge sharing
to the other the other member states
later on as well. Thank you very much
and move to U policy maker side maybe um
and secretarette Marlene. So I would
like to hear from the policymaker
perspective some sort of what roles
should government pay to support the rec
mechanisms effectively to boost up the
renewable energy supply investment as
well as to unlock the challenge that has
been kind of facing by the developers
the decoder.
>> Thank you Dr. Terrenia and uh good good
morning everyone. Um it's it's nice to
be part of this panel on the renewable
energy certificate and how to we can
move forward. Actually the Philippines
is in the process of implementing um the
renewable energy certificate. In fact um
uh we have uh two enabling laws that uh
would facilitate such. One is the
uh electric power industry reform act or
EPIR and then the renewable energy act
of 2008. The government of the
Philippines has set a target of
attaining 35% renewable energy share in
the power generation. Right now we are
at 22%.
So on the context of the Philippines uh
status in implementing that uh we came
up with uh what we call the compliance
market where in uh under the um
renewable energy act we provided the
mandatory policies in which electric
power industry participants will be
mandated to procure certain percent of
their renewable energy supply to their
captive market because the Philippines
is one of those market
uh in fact one of the two who is a
privatized and restructured. The other
one is Singapore. The Philippines has
been uh long restructured and private
sectordriven. So you just imagine the
the challenge of putting up the
necessary policy transparency in
promulgating this uh um mechanism in
which we can increase the renewable
energy share. So um
we have set the compliance market and we
are now uh like the renewable forfall
standards and to support that renewable energy
energy
uh certificate generation.
uh we have set uh the what we call the
contestable market. We meaning these are
corporate entities uh wanting to procure
uh you know uh re generation for their
uh respective sustainability program and
those generate electric uh electricity
uh and as well as renewable energy
certificate. So we're now in the process
of establishing what we call the
voluntary re market but right now we are
in transition so that all the Rex
generated from the consumer procurement
under the green energy option program uh
uh is uh allotted to the mandated
participants which right now are the
distribution utilities in the
Philippines. The distribution utilities
are those that are mandated
to serve certain percentage of re in
their customer. So right now it should
be at 19%.
Supply portfolio. Now in the context of
having that uh we came out with what we
call um virtual power supply agreement
BPPA wherein you don't need to be
physically connected to a particular
consumer but you have this contract for
difference we have a market that would
uh process or that will dispatch the
energy generation coming from that
renewable energy project. We have the
green energy auction program wherein the
government uh centrally procuring on
behalf of the mandated participants just
to assist them in complying with their
mandates under the RPS. Um eventually
there are
nonRPS eligible because the RPS eligible
are those that have uh uh commercial
operating uh since uh 2008 or 2009. So
they generate Rex but we have legacy
hydro and legacy geothermal and uh they
do transact business internationally
under IRE or TIGR. So we're heavy on
that. So um recently we came up with a
policy on the energy carbon uh carbon
markets and carbon credits as well as
the energy certificate. These two
certificate outlines the difference
between the two because it's been a
question whether or not you can use
carbon market or carbon certificate with
that of the renewable energy
certificate. So we we clarified that in
the the position we have now in the
context of having an crossber
transaction. The Philippines has been uh
through the private sector initiative
been transacting internationally.
uh but we set the policy that if the
wreck or the re project uh forms part of
the compliance market they cannot sell
it's their risk no so uh that that
clarifies and for the voluntary market
um they they will have their uh
eventually uh renewable energy
certificate and make it as their
compliance to their sustainability
um programs. Now the challenge is how to
make it um credible or how the betting.
So in the context of Asan power grid
maybe we can up uh slowly if uh uh
Malaysia and Singapore will be starting
maybe slowly other Asian members uh will
will go into that but there should be
one rule uh one standards and there
should be a one issuer or a recub uh
that will manage uh these. So as long as
there is that uh policy that framework
uh each country can pretty well serve
their own respective mandates and
targets but uh in support of the private
sector investment in the growth of
renewable energy then uh it should no
allow each asan member state to do their
own thing because they have their
respective but we we we look towards one
direction only as far as that. So we're
looking at uh working on a crossborder
standards, one policies, one framework
as a government and uh of course uh
again how we move forward uh with the
current situation we have now because uh
right now uh let's uh say that we're
kind of fragmented. So we we each aan
member state have their own policies,
programs, uh design. No. So eventually
we look forward to that day wherein
we'll have one voice as far as the wreck
as far as the re and sustainability
program is concerned. Thank you.
>> Yes. Thank you. uh the secretarate
marine that's too because currently uh
you will see like in upcoming years of
ASEAN we also uh prioritize the let's
say a single standards for ASEAN as well
when we are speaking about the crossber
and of course as mentioned before I
think the insightful from uh Singapore
and Malaysia could be a good experience
and then uh can facilitate the
discussion among member And at the end
because I think when we're speaking
about the Assean power grid, it's kind
of leaning into medium and also
long-term but at the end I think at
least by this two years in the head we
should uh already have a single
standards a cloud member state because
when you are now developing more let's
say standards on uh residual mix or MPVE
and it should be leaning toward the same
and single uh standard which align with
APG. So um yeah I I now just would like
to have a last questions to all my
panelists here. A simple question but
not sure is it simple to answer.
So I think in your let's say perspective
because we are now will announce the new
Apayak or the ASEAN uh energy action
plan for the next five year that we as A
asan country will push our collective
efforts to work together and I would
like to know like if you can imagines in
from now to the next five year. So how
does the successful and effective
crossber border rake system in ASEAN
Yeah, definitely my side in the success
looks like should be yeah recognized by
the compliance. So can be 100 so our
value chain can claim the CBT rack uh
they're in counting. So um and
definitely if it's very clear pathway
our industry going to do the more you
know uh confidently
oftake and then they're going to invest
it because only this issue is not solve
it that's why they cannot actually put
it the long-term investment. So uh
honestly we're kind of pushing them like
you know our target is 2013 this one has
to happen before that. So we are kind of
pushing them this can happen maybe I
hope next year. So, so you know through
this kind of compliance issues solve it
within one or two years and then uh you
know our industry also more confident to
invest in take it and the more scalable
CBT we could see that and definitely as
this is very important our emerging
market for our industry. So um our
industry can more you know look into uh
more industry growth in this reason. So
um and you know we are the industry but
why put ourself in this energy topic
very proactively because we also see
that like you know even though we are
self is buyer but we saw that you cannot
just wait it so that's why it was very
interesting comment what we got it last
year when we first engaging with the
Petra and then we put it the long list
of recommendation to improve this
renovance market and then first comment
what we received from the petra they
said you're the buyer but why you put
all the recommendation for the developer
They said because you know because
actually we cannot source because no
project no permitting you know not prove
it then we cannot get it that's why we
put oursel more proactively this issue
has to solve then now we can get the
credits so that's why we explain that
why we are doing this one so it was very
well bind and then we could hear the
from the petra side and very active you
know communicate with them so we try to
work you know in ecosystem together so
we you know sometimes we represent the
developer their issue to the government
to change the issues as well. So we hope
that this collaboration can make the
this Asia markets better moving forward. Yeah.
Yeah.
>> Okay. So as for me right um playing the
devil's advocate
um is that one of the key thing that I
would love to see is that how we can
harmonize better with all these major
reporting standards. Okay. Why um we've
heard of how REund CDPs um they made
regulations uh they made guidelines
technical guidelines for our end
customers to comply right so they have
to comply to this but what I personally
on personal context I see that CDPs are
more towards um situation that is out of
Southeast Asia right we are not a
country whereby sorry we are not a
region with I think 10 plus one now in
whereby we have renewable penetration up
to 100%.
Malaysia's 31% target this year 35% and
so forth. Right? So the renewable energy
penetration is still growing. Right? So
when AR00 has a lot of long list of
technical guidelines to adhere to are
very much customized to what it's over
out of Southeast Asia. So we can have
this more um collaboration or
harmonizing with them and have our own
context with the renewable sources that
we have so that we look at long term
right in the long-term journey even in
in Europe they are also they are talking
about full disclosure right you have to
disclose your source of energy not just
from green but even brown right giving
credibilities as we talk about
credibility so so I hope that if this
can materialize and we have our nature
of the Southeast Asia region nature and
this also benefit the end consumers uh having in their investment in Southeast
having in their investment in Southeast Asia countries and as we harmonize
Asia countries and as we harmonize between countries to to have like a
between countries to to have like a single harmonized framework so that it's
single harmonized framework so that it's a long journey like like five years or
a long journey like like five years or or my my my end goal target but I do
or my my my end goal target but I do wish to see this coming to fruition at
wish to see this coming to fruition at stage by stage right so ARund will
stage by stage right so ARund will recognize the Southeast Asia's model as
recognize the Southeast Asia's model as for Southeast Asia's uh investment and
for Southeast Asia's uh investment and all the operating in Malaysia sorry in
all the operating in Malaysia sorry in Southeast Asia right uh rather than just
Southeast Asia right uh rather than just blindly adopt the area which is
blindly adopt the area which is customized for the west right so that's
customized for the west right so that's my point thank you
um well I think simplification right right that that's right simplification
right that that's right simplification right I I think What the a lot of people
right I I think What the a lot of people don't appreciate that there's so much
don't appreciate that there's so much renewable resources in the whole region
renewable resources in the whole region that probably can mult can probably
that probably can mult can probably generate five times more wreck than you
generate five times more wreck than you need right you know there's so much but
need right you know there's so much but all these conversations we're having
all these conversations we're having today makes it difficult like different
today makes it difficult like different standards different credibility right
standards different credibility right credibility should not be a discussion
credibility should not be a discussion topic right I mean it should be and it's
topic right I mean it should be and it's coitized right? And it's like you know
coitized right? And it's like you know automated, right? Um so it's like you
automated, right? Um so it's like you know you know it's like currency. We
know you know it's like currency. We never really like in Malaysia we never
never really like in Malaysia we never really say that is a currency rail. We
really say that is a currency rail. We just accept it's rail right. There's a
just accept it's rail right. There's a trust right. Uh what I think that in 5
trust right. Uh what I think that in 5 years it's simplify right democratize
years it's simplify right democratize that if I have a 1 kilowatt system I can
that if I have a 1 kilowatt system I can still participate in the rack as I'm
still participate in the rack as I'm having a 100 megawatt system right make
having a 100 megawatt system right make it cheap right and allow allow everyone
it cheap right and allow allow everyone to be part of the system. Right. Right
to be part of the system. Right. Right now when we when we see the the rack
now when we when we see the the rack ecosystem it's very skewed towards uh
ecosystem it's very skewed towards uh utility companies large scale solar
utility companies large scale solar farms right which is only maybe in any
farms right which is only maybe in any country is 100 people right right so
country is 100 people right right so democratize it everyone gets involved
democratize it everyone gets involved simplify right that's
>> yes last but not least um under secretary my
secretary my >> uh in the context of the apaya the new
>> uh in the context of the apaya the new APA um and the crossber
APA um and the crossber physical interconnection.
physical interconnection. I guess the Philippines will be not yet
I guess the Philippines will be not yet incorpor uh integrated uh within the
incorpor uh integrated uh within the 5-year program but as a new or the
5-year program but as a new or the incoming chair of the ASA next year we
incoming chair of the ASA next year we can facilitate this discussion. Uh right
can facilitate this discussion. Uh right now there is what we call discussion
now there is what we call discussion between uh Brunai, Indonesia, Malaysia
between uh Brunai, Indonesia, Malaysia and the Philippines uh for some um
and the Philippines uh for some um interconnection challenge. But there are
interconnection challenge. But there are challenges now to that. Um in the next 5
challenges now to that. Um in the next 5 years uh we see a more competitive
years uh we see a more competitive uh wreck transactions as we venture into
uh wreck transactions as we venture into a lot of uh generating uh Rex uh
a lot of uh generating uh Rex uh initiatives like we have the distributed
initiatives like we have the distributed energy resources. Uh Arjun has discussed
energy resources. Uh Arjun has discussed about if you have 1 kilowatt or one one
about if you have 1 kilowatt or one one megawatt you be part of the market and
megawatt you be part of the market and we it's it's currently open in the
we it's it's currently open in the Philippines. Uh so that's why the the
Philippines. Uh so that's why the the target is we can do a crossber
target is we can do a crossber transaction but not physically
transaction but not physically connection. Uh we have our internal uh
connection. Uh we have our internal uh programs our targets uh within the
programs our targets uh within the Philippines and uh we continue to pursue
Philippines and uh we continue to pursue uh as we move towards the chairmanship
uh as we move towards the chairmanship uh next year on that fight. Thank you.
uh next year on that fight. Thank you. We look forward to working on this in
We look forward to working on this in the future. Thank you.
the future. Thank you. >> Yes. Thank you very much and I think
>> Yes. Thank you very much and I think sorry about a bit uh overtime but I
sorry about a bit uh overtime but I think this is very insightful from
think this is very insightful from really diverse perspective. So we are
really diverse perspective. So we are now aware about the urgency from the
now aware about the urgency from the demand and also um the ongoing
demand and also um the ongoing discussion from utility and also from uh
discussion from utility and also from uh developer and policy maker side. And of
developer and policy maker side. And of course this topic will uh will actually
course this topic will uh will actually become more and more important in ASEAN
become more and more important in ASEAN in the coming years that we can expect
in the coming years that we can expect uh at least in the new API uh on the
uh at least in the new API uh on the energy plan and yeah so I think I would
energy plan and yeah so I think I would like to conclude the sessions and a
like to conclude the sessions and a photo session. Okay. Then thank you very
photo session. Okay. Then thank you very much for our panelists here.
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