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#AEBF25 | Day 3 - Powering ASEAN Energy Transition: Connectivity, Financing, and Investment

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This event, focused on "Powering ASEAN Energy Transition: Connectivity, Financing, and Investment," highlights the UK's commitment to supporting ASEAN's shift to a green economy through the ASEAN UK Green Transition Fund (GTF). It emphasizes the critical need for investment, regulatory frameworks, and collaborative partnerships to achieve ambitious energy transition goals while ensuring energy security and affordability.

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Good morning, ladies and gentlemen.

We're about to start our event. Please

get seated. We still got some space in

Good day ladies and gentlemen. Uh

welcome to the parallel session 15

powering assean energy transition

connectivity financing and investment.

My name is Sidwan Kunyawan. I am the

ASEAN UK green transition fund uh fund

manager. Um GTF is UK climate flagship

program provided to ASEAN and we're

happy um so happy to host for today's

event with you. Um I will host this

session together with my esteemed uh

moderator Tamoji Chhataji from the uh as

a senior officer energy transition

policy and governance SC for all as well

as Ivana Deitrova lead energy advisor

for Southeast Asia UKF CDO. Today we

have a very packed agenda with key

thought leaders from UK and ASEAN

importly. Uh and obviously the theme is

powering ASEAN energy transition,

connectivity, financing and investment.

Uh this theme serve as a tagline of UK

commitment to support ASEAN in respond

to challenge of ASEAN energy

transformation as what we discussed the

whole in ABF. uh the imperative to

reduce carbon emission while maintaining

energy security and affordability. Today

we will debunk this with a lot of

sessions. We have two thematic

discussions, panels as well as

presentations from the esteemed speakers

uh both uh with UK expertise and

obviously the regional expertise in ASEAN.

ASEAN.

Now uh without further ado, let's just

start the sessions with an opening

session. I'm happy and pleased to

welcome um UK ambassador to ASEAN, her

excellency Helen Fazy for her to deliver

her remarks. Her excellency, please the

Uh good morning. Um, uh, Deputy Director

General Sulia Sang Dala Yong of the Lao

PDR Ministry of Industry and Commerce,

Head of the JTP Indonesia Secretariat,

Paul Bhuta BHA, head of ASEAN

Secretariat Energy and Minerals

Division, Yanova Fajari, um, and our

co-host and regional director of

sustainable energy for all, Jacqueline

Lamb. Ladies and gentlemen, uh good

morning and and welcome to this session

on powering ASEAN energy transition

where we're also excited to be launching

the clean and just energy transition

pillar of the ASEAN UK green transition

fund. We've got a stellar lineup of

speakers and panelists here today,

bringing experience and expertise, which

I'm confident will be part of a

compelling offer to support the just

energy transition in ASEAN. Today's

event is going to showcase how

investment and expertise provided under

the ASEAN UK green transition fund on

green grids on clean manufacturing and

public private partnerships will

strengthen partnerships with ASEAN

institutions and member states to meet

the challenges of the clean energy transition.

transition.

We'll also hear from experts in the UK

private sector about their views on the

challenges and opportunities in

regulation, financing and infrastructure

for development of the ASEAN power grid.

The UK and ASEAN are approaching our

fifth year now as dialogue partners. And

over the last four bit years, we've

developed our cooperation, deepened our

partnership on critical issues like

peace and security, economics and trade,

and climate and energy. And this green

transition fund is really central to our

partnership with ASEAN. It's underpinned

by a shared vision of a cleaner, greener

economy. driving sustainable and

inclusive economic growth. And the fund

aims to support a just and inclusive

transition to a green climate resilient

economy through leveraging expertise and

investment. It will invest widely in

climate policy, green finance,

sustainable cities and transport,

nature-based solutions, and as we're

marking today, the just energy transition.

transition.

The scale of the challenge is huge.

Southeast Asia is set to contribute more

than 25% of growth in global energy

demand over the next decade. ASEAN is

going to need five times the current

level of investment by 2035 to achieve

its climate goals. But the opportunities

of clean energy are real, too. This

region's green transition provides

significant opportunities for growth,

equivalent to 5% of its GDP. And the

UK's climate and energy partnership with

ASEAN underpinned by this green

transition fund aims to unlock the

investment needed to make that happen.

ASEAN member states are already raising

the bar in enhancing political

cooperation on ASEAN on on energy

transition and the UK is ready to bring

our own experience to work in

partnership with ASEAN on its clean

energy journey. As a nation that has

reduced our carbon emissions and grown

our economy continuously this century,

as one of the most internationally

interconnected nations in the world when

it comes to our energy supply and as a

home for businesses that bring

experience of building and financing the

energy transition such as M McDonald,

ARP, National Grid Ventures, Standard

Chartered and HSBC all of whom are going

to share their experiences and insight Today,

Today,

alongside the green transition fund,

there are other initiatives that we're

working with ASEAN partners on and

making an impact. The ASEAN power grid

financing initiative brings together the

Asia Development Bank, the World Bank,

the ASEAN Center for Energy, and the

ASEAN Secretariat.

The UK has contributed to a $6 million

package mobilized by the ADB that's

already enabling support for uh the

Sowak Singapore

um interconnector.

And in Cambodia, a UK contribution of

$12 million through the ASEAN Green

Climate Facility is directly supporting Cambodianmemes

Cambodianmemes

to secure funding to invest in energy

efficiency as part of a wider package of

investment and policy reform.

Working with ASEAN institutions and

like-minded partners, I'm confident we

can fuel the development of further such

projects in the future.

though uh I want to welcome you once

again to this event. I want to thank our

our friends and partners in ASEAN and to

those of you who will take forward the

exciting program of work ahead. Thank

>> Thank you Ambassador Helen. Let's

continue the sessions by um inviting

head of energy and mineral divisions Mr.

Yanoir Fajari representing the Asan

secretariat to respond the remarks from

the ambassador. Mr. Yanoir state is yours.

Uh very good morning uh his majesty

ambassador Helen Fzi, excellencies,

distinguished delegates, ladies and gentlemen,

gentlemen,

on behalf of the Asan secretariat, it's

my great honor and pleasure to join you

today at the launch of the ASEAN UK

green transition fund.

Let me begin by expressing our deep

appreciations to the government of the

UK and in particular his majesty

ambassador to Azan for your strong

partnerships and commitment in advancing

uh AAN's clean and just energy transitions.

transitions.

The timing of this launch could not be

more urgent as the ambassador mentions

earlier about the projections of the

energy demand in the coming years and at

the same times the gaps whether is it

technical financials

uh remains significant and closing this

gap will require stronger partnerships

and also effective regional cooperations.

cooperations.

uh this UK support is an important steps

in that directions. It will support the

projects that advance renewable energy,

grid interconnections and industrial decarbonizations

decarbonizations

and just as importantly it will help

ensure that the transition is inclusive

and just leaving no community behind.

And excellencies uh Azan is at at a

pivotal moment. Our region is one of the

fastest growing energy markets in the

world. The choices that we make today

will determine not only our economic

futures but also our climate and

sustainability pathway for decades to

come. And just yesterday, the AAN energy

min ministers endorsed the AEAN plan of

actions for energy cooperations or APA

for 2026 to 2030. It's the Assean

strategic plan in energy. Uh it brings

fresh ambitions anchored by new

aspirational targets for 2030.

Just to name a few, uh 40% reductions in

energy in intensity with the compared as

a baseline 2005,

30% renewable energy share in total

primary energy supply and 45% renewable

energy share in installed capacity.

These targets are ambitious but they

show Azan determinations to align energy

security, sustainability and also

inclusiveness under one common visions.

As you may know that this APAC or the

strategic plan in the energy sectors

built on seven priority areas and I

think UK supports uh relevant to these

seven priority areas

particularly the AEAN power grid, clean

coal transformations, energy efficiency

and conservations, renewable energy and

also renewable energy policy and planning.

planning.

These areas form the backbone of the

AEANS energy cooperations.

To make this succeed, we need the

continued support for the international

community and we are pleased that the UK

is part of this effort.

Colleagues, uh, excellencies, ladies and gentlemen,

gentlemen,

this launch is just the beginning of our

journey. It is an important milestone

along the way.

We look forward to working closely with

the UK and all stakeholders represented

here today. I believe that we can

deliver tangible impact, strengthen AEAN

energy resilience and contribute to our

region's long-term visions of

sustainability and shared prosperity.

Let me close by once again expressing

Azan sincerest appreciations for the

UK's continued support and for the

dedication of all our implementing and

Thank you for your remark Mr. Yan. Um

ladies and gentlemen, while we are

witnessing a clear UK commitment support

to ASEAN and it's exactly matched with

the API that soon to be launched um

seven pillar soon uh let's just um

continue with the launch the symbolic

launch of ASEAN UK green transition fund

pillar three the clean and just energy

transition portfolio. So I'm happy to

invite ambassador Helen and Mr. Yana if

We will have a symbolic handover of the

And ladies and gentlemen, please give

your highest appreciations with applause.

Thank you very much again with the

applause that we have. Um

just to be informed that the the booklet

is basically the support and the

detailed support that UK has already

provided and ongoing professions to

ASEAN. This is available in the website

of Asan UK GTF. If you just want to know

um download there.

So that is the end of the opening

session ladies and gentlemen. Um while

it's important right now we discuss to

the the key important discussions why

and how we can meet the challenge of the

Assean transition. Um I'm happy to

invite my colleague Tamojit to be the

moderator of the first panel. Tamojit please

the state is yours Tamojit.

>> Thank you so much Rwan and good morning.

Welcome everybody. Um without further

ado, I see that we are running a little

late. So let me already call the

speakers on stage. So we have a very

distinguished panel today. Uh I would

like to first call upon Huan Safhina

Salai, CEO of the Energy Commission

[applause]

Next, Mr. Scott Roberts, head of

Southeast Asia Green Finance Hub, Asian

>> Mr. Justin Woo, regional head of climate

And finally, Tuan Jacan, group vice

president, Solar West Holdings, Bhard.

Um, hoping that you're still in the

Good to have you on stage. Welcome and

looking forward to learning more about

how we can sort of power uh financing

and scale up u the

uh energy transition uh in the ASEAN

region. Um we of course have

perspectives from

uh the national level from the regional

development bank from commercial finance

and from private sector. Um I'll start

with you Pu and Safhina. Um so

regulatory certainty is consistently

cited as critical for investment decisions.

decisions.

Um, what specific regulatory reforms or

policy innovations has the energy

commission introduced that have

demonstratively increase private sector

confidence and investment flows into Malaysia?

Malaysia?

>> Okay. Um, thank you. Thank you very much

for the question and thank you to the

organizers for inviting me to this uh

panel which we will I think the topic

that we will be discussing on which is

energy transition investment is of

course a very key uh pillar in actually

uh making the energy transition a

reality um so so I'll start with this um

uh by the way so I I wrote a paper uh I

think was it last year or the year

before um I wrote a paper for the UN

conference of uh trade and development

uh specifically on renewable energy

development before this. Um I don't have

time to write papers now since uh taking

on this role. So uh I'll recap some of

the things that uh was mentioned in the

paper but also some of the things that I

realized you know is an uh uh

enhancement to the paper which I will

now share first time uh in this in this

particular panel.

So I think when it comes to regulatory

certainty u it's not about and and I'll

be very blunt about this. It's not about

fixing the price. Uh because although

the energy transition means that we're

moving away from very variable uh fossil

fuel prices uh to more fixed uh type

prices, you know, with the investments

that's required in energy transition, it

doesn't mean that the cost or the

underlying cost of those investments are

static, right? They will be dynamic and

they will continue to increase over

time. So you can't fix prices and that's

typically the kind of question or the

kind of proposal that we get. Um so I

would say that regulatory certainty

comes in two forms two elements that

I'll just highlight here. There are many

other elements but two elements. The

first element is really the the

certainty of principle. Uh for us when

it comes to the energy transition uh

what's important is that the regulations

are underpinned by three principles. The

first principle is the principle of

resilience. You cannot do energy

transition without ensuring that the

system is resilient overall. Um and

that's not just short-term resilience

resiliency, it's also long-term

resiliency as well, right? Um and that

means that uh in the case of the energy

transition, although everyone talks

about investment, you know, uh how much

does it cost, how much return we will

make, uh what's important is that you

need to understand that physics

supersedes economics in this sense. So

physics always comes first. I'm not a

engineer by the way but I'm learning a

lot of the engineering in power sector

now. Um so so that's the first principle

resilience. Second principle

equitability. I think you cannot do

energy transition without ensuring that

it's equitable for all the stakeholders

within the ecosystem and that means all

the stakeholders and in particular the consumers.

consumers.

So uh it means that the energy

transition whereas uh there are costs

involved must now be allocated not just

on a shared basis but allocated fairly

to each consumer allocated fairly to

those who actually want green energy at

this point in time who are willing to

pay who who can afford to pay and so on.

Right? So the principle of equitability

is very important underlying regulatory

uh mechanisms that we do. And finally

the third principle. The third principle

is that the energy transition is not a

sprint. It is a marathon. And that means

whatever we do in the regulatory

mechanism must also be something that is

sustainable. Must also be something that

is uh paced that is uh that that can

actually be continued on a momentum uh

and and you know uh will continue to

actually build the outcomes over a

period. So you can't expect that we will

get you know immediate results

overnight. So I think those are the

three main principles when we talk about

regulatory uh certainty. So second

element is how does this apply in the

mechanisms that we do. So there are

three pathways to implementation of

energy transition if you realize it

everyone implements it in different

sorts of programs but there are three

pathways in implementation. The first

pathway is that we green the grid,

right? That means we ensure that

whatever goes into the grid as a bulk

wholesale is actually greener, cleaner.

So and underlying that uh means that the

projects that are sourced uh by the grid

are actually uh based on uh the grid

being the offtaker and you can uh

basically create the contractual or the

commercial mechanisms as such and

typically they are lower in terms of

risk uh because it means that you can

contract it for the longer term. So you

green the grid you contract it for the

longer term now because I'll I'll link

that to the investment uh question. Um

second is that you bring in the

consumers. You bring in the consumers

because at the end of the day the

consumers should actually be an active

participant in the energy transition.

How do you do it? By encouraging and

incentivizing the consumers to actually

uh you know develop or produce their own

solar generation for example here uh and

at the same time for energy efficiency

as well. So how do you bring in the

consumers that's important? We designed

the programs as such and typically when

it comes to investment risk slightly

higher risk but not as high as because

you know specifically who will pay for

for all the investments that's required

there. Uh and third third is actually to

bring in the bigger consumers right the

the larger offtakers or the industries

etc. uh I was talking about proumers

before you know you produce and consume.

Now I'm just talking about straight uh

end consumers and that means those who

are perhaps uh contributing a lot more

to the GHG emissions should actually

invest a lot more therefore in the

energy transition. So then you design

mechanisms that will actually uh make

sure that we can incentivize and

motivate them to do so uh by changing a

few things like for example um what

we've did recently

uh is to unbundle the tariffs uh towards

uh ensuring that one is equitable.

Therefore if you're connected to a

certain voltage level this is what you

pay. Second is to ensure that you pay

your fair share of the fossil fuel cost

or the insurance cost of the

intermittency of any renewable energy

that is produced. Uh and that means you

pay at a higher level compared to the

those who can't afford it. Right? So you

can apply those principles uh even in

that particular implementation pathway.

Um and so you know um I don't want to

take up too much of time. Uh I could go

on and on about how we do it with the

larger offtakers. In the third category,

the investment risk consideration is a

bit higher, right? And so therefore

different pathways, different risk

profile, different return expectations

and therefore all the regulatory

mechanisms are designed to incentivize

and to also allow those risk to be

shifted accordingly to the parties who

should uh basically be the ones carrying

those risk. Thank you.

>> Thank you Puan Safhina that was very

insightful. So energy transition is a

marathon not a sprint and especially

talking about risk allocation let me

bring in Scott um on the development

finance side and especially the green

finance hub that you're heading works at

the intersection of public and private

capital. Can you share an example of how

blended finance has successfully

transformed an unbankable project, quote unquote,

unquote,

um, into an attractive investment

opportunity? And especially in terms of

risk allocation, what were those

ingredients that made it work?

>> So, thanks for the question and and

first just congratulations to the UK for

the launch of this fund. uh this kind of

support is exactly what's needed where

we're actually moving projects forward

in this very operational nature

near and dear to our heart. Um I manage

the green uh the green finance hub of

Southeast Asia for ADB and really what

we're trying to do is to work with

public sector finance money to catalyze

private sector projects. So that's sort

of what MDBs like us try to do

generally, but this is very very focused

on high ambition climate projects and

making sure that every single public

sector intervention that we support um

really drives that private agenda. So um

a key focus of ours is to mobilize as

much attention as we can to early stage

project development. I'm pleased to say

that in the five years we've been

running, we've engaged uh or originated

50 different project concepts over $7

billion equivalent in project costs

financed of which 2.5 billion has come

from co-inancing partners. So the whole

idea here is to move as many people as

we can into the conversation as possible

and unlock that investment. Um and you

asked about uh an example. Uh it's hard

to pick a favorite, but given that this

is um an energy forum, um one that I

think is quite reflective of the way we

would like to work is something that's

coming through uh for for approval right

now, which is our it's in the

Philippines, which is the country where

ADB is uh headquartered. Um our

geothermal resource de-risking facility.

And just to lay out what that looks

like, um it's an old idea, but applied

with new partners in a new setting. The

idea is that um we have tremendous

geothermal resources in the Philippines.

The country is blessed. Um it's

indigenous. It is base load power. It's

zero emissions. And yet hardly any

development has happened since the

1980s. Um the resources that really run

the geothermal business in the

Philippines are from uh investments that

were made in the 70s and 80s under state

ownership. So we have what looks like a

market failure here. We have uh some of

the largest geothermal power projects in

the world operating in the Philippines

yet very old not a lot of private sector

players want to make early stage

investments particularly for exploration

drilling. So what do we do about that?

So um in this particular case, an

example of the sort of transactions we

tried to do was to create within a

national bank um in partnership with the

department of energy de-risking

in the form of sharing some climate

capital um taking on some of that risk

with the private sector. And the way it

works in this particular instance is

that 50% of that expiration drilling um

is uh risk borne by our facility where

if there is a dry hole, if the

expiration drilling does not um prove

fruitful, that's written off. It's

treated as a grant and yet if they're

successful, then it's converted into a

loan that's paid back from the revenue

proceeds of the project as it moves

forward. And what we've seen is just a

little bit of catalytic capital. uh it

might come from the UK in this

particular case. Uh 90 million for or so

could unlock uh a billion and a half of

downstream investment from the private

sector ultimately and deliver something

like 200 megawatts to 300 megawws out of

that program alone. Um so this is this

sort of jumpstarting process is really

where where we're focused. Um you asked

about the elements that we need. I mean

in this particular case we need um a

strong climate story so we can mobilize

money from the UK and others. Um we need

uh private sector uh interest um and uh

investors who are mindful of the market

failure but willing to crack it with us.

Um and a government that uh sees the

potential and is willing to share risk

>> Thank you Scott. That's very insightful.

Um and congratulations on sort of making

something unbankable sort of really work

on the ground. And I I would like to

bring private sector finance

perspectives um especially at this point

because you mentioned these three

ingredients specifically on willingness,

risk sharing and bringing in catalytic

financing that sort of then gives 10

times return with private sector coming

in as well. Right. So um Justin, private

capital represents 70 to 80% um of the

financing needed for ASEAN's green

transition. Um what specific risk

factors or market conditions would uh

use need to see uh to deploy sort of the

climate finance at scale in the region?

uh and if you can give us an example of

an innovative financial structure that

HSBC has used to mobilize uh this capital.

capital.

>> Sure. Um first of all, thank you for

inviting us to be a part of the

conversation. Um also like to join my

congratulations to the UK for launching

this fund. I think it's a really

important initiative. Um and I think

alongside with with Scott here, the

reason that um I'm here that we're here

is to actually to you know one of the

reasons is to signal that we are here as

private capital right that we are here

to support the energy transition in

Azion. Um and as everybody mentioned 70

to 80% is a significant number. Um so um

there's maybe two things I want to

tackle with that question right so first

of all is is is the context. Um there's

some data from Bloomberg NEF that says

that essentially Southeast Asia

attracted only about$8 billion dollars

of u investment into clean energy uh in

2024 out of a total of $2.1 trillion

globally. It's it's a fraction of that

number. It's it's a good you know it's a

good number eight billion dollars uh but

it's not nearly enough given the scale

and the ambition and the amount of

growth that we are seeing and you know

about to see in this region right so the

question is how do we catalyze more uh

into this um I think the tricky part

about a lot of the things that we want

to build in the energy transition is

that fundamentally they are risky at the

beginning because they require a large

input of upfront capital right and a

long payback period that's you know over

time so whether it's renewable energy

projects um I think the example of

de-risking geothermal the riskiest part

of that is actually when you do the

drilling um because you need to spend

quite a bit of capital similar of

offshore wind you know when you're doing

the wind resource measurement those

things are are risky at the beginning

but then once the project is built and

operates it's pretty stable revenue

after that um so I think when it when it

comes to sort of um um maybe examples.

I'll just offer two quick examples and I

won't get into too much detail but I'm

happy to to talk about a bit more. Um I

think the first example of um sort of

innovative uh financing that we've been

involved in um typically I would say one

is linked towards uh outcomes. So the

idea is okay how do we um you know u

develop some kind of financing

instrument that's more closely aligned

to outcomes. So obviously the green

finance market around bonds and symbol

link loans were kind of version one of

this right that everybody does but how

do we get a little more specific? So one

example that we did recently was around

uh outcome outcome linked bonds. Um this

was an example that um something we did

with the World Bank actually in Latin

America. But the idea was that um a

portion of the of the uh of the coupon

that normally investors to the bond

would would receive would actually go

off into Amazon reforestation projects.

So high and then these projects will in

turn generate highquality carbon uh

removal credits which are then sold uh

as an offtake to an offtaker and some of

that revenue from uh that offtake

agreement would then go back to you know

the investors right in place of the

coupon but they have to put something

upfront to to do that and of course

there's a whole uh you know bunch of

d-risking and etc structuring around

that to to make sure that everybody is

whole but essentially that is what an

outcome is but the more revenue you can

generate from these reforestation

projects uh as a result of uh generating

these removal credits, you know, the

better better of that outcome, right?

So, there's a there's a um outcome

linked to the to the U performance. And

the second one, you know, is the blended

finance uh piece that we we all talk

about. But I think just to re-emphasize

what Scott mentioned, the idea of

blended finance is actually to bring

together uh public, private, and

philanthropic capital together um to

sort of catalyze particular outcomes

particularly when you know you're doing

this upfront portion of of this um of of

these energy transition projects which

is the riskiest. Um and then the example

I would give here which probably you

know some of you have heard about this

is our joint venture atacc in Singapore

on pentagram capital uh which recently

uh uh actually um achieved the first

close of the green investment

partnership fund right which is one of

the u blended finance partnerships under

the Singapore's fastpe initiative. Um so

again that is um you know the beginning

of something that where we hope to uh

use that you know that fund to direct

towards um uh to well basically to

catalyze some of these uh uh uh

high-risk projects across Southeast Asia

to support uh energy transition investment.

investment.

>> Thank you.

>> Thank you. Thank you so much Justin. Uh

my apologies. We actually have uh Mr.

Leonqi Leu from Solar West, the

executive director and group strategy

officer. Um, we have the bankers in the

room early on. So, this is the time to

hear from the implementation side.

You're the one actually doing the hard

work uh in terms of what are the most

critical financing challenges you face

when structuring projects. And we've

talked a lot about risk here, but what

in your view are the current risk

sharing mechanisms that would need to evolve

evolve

um for the projects to be more bankable

um in in terms of your views? Yeah.

>> Yeah. There's uh actually supports my

colleague uh investment officer to join

but he was very sick yesterday. So I got

the invitation uh last night and that's

where I I'm a little bit sick not that

sick I still able to make it and uh a

bit background about myself uh I I I I

started from oil and gas trouble uh 8

years travel 50 countries drill for the

oil then I moved to Salawa Energy uh in

2017 I spent four years there in the

government for the policy making driving

the green energy transition in Salawa

energy and I have a lot of my ex-col

league there and four years ago I came

to solve. So solar uh I was in the

executive director and we drive the

business across uh eight countries in

Southeast Asia. So we we invest mainly

in solar. We start to explore into uh

other verticles like energy storage,

hydrogen research with Salawak

government etc. So solar is still the

key uh investment that we did. So a bit

lay man I'm not from the banker. So on

the on the observation that we see from

the eight countries that we invested I

think the

the invest investment criteria we see

the important is the

is the economy of the country the risk

versus reward. If you look at the

Southeast Asia I think Singapore

Malaysia and Singapore we are we having

the among the strongest economy for the

last few years. Just look at the

performance of the currency the ringit

how much it has appreciated and is also

contributed by the strong mandadi

government. I'm not politician I'm just

uh looking at the fact that how much the

economy have strengthened the last few

years in Malaysia. So currency play a

big factor in solar investment because

if you look at the each megawatt of the

solar farm we invested let's say about

uh 500,000 USD for each megawatt about

40% is coming from Pokemon and Pokemon

of the solar panel inverter mounting

structure etc it contribute about 40% of

the capex so Pokemon procuring we we

always import the item from China and uh

some a little bit some US etc. and the

in the strengthening of the ringit

ultimately reduce our capex

significantly any 10% appreciation of

the ringit we reduce our PPA rate by

about 4%. So it's quite quite

significant if you look at the ratio

between the currency economy strength of

a country to the capets of a project.

Other than the currency then the second

thing that affect the project viability

is about the interest rate. So Malaysia

should be having the the second lowest

interest rate for project financing in

Southeast Asia after Singapore. I think

Malaysia now our project financing

interest rate is below 4%. And because

solar investment at any power plant is

about long-term consumption there is up

to 20 to 30 years. So interest rate play

a significant role in the PPA tariff

when we go to competitive bidding and

Malaysia West Malaysia mainly handled by

energy commission. So very competitive

bidding that the price keep drop to the

to the very small margin that we have

and every 1% drop in the interest rate

it increase our equity return by 3 to

4%. because uh for solar fund we have

80/20 branding of uh financing and

equity. So the interest rate play a big

factor of the PPA rate and that's why

with the strong economy result in strong

currency and with the low interest rate

because of the low risk environment that

we have it result in a very low PPA rate

in Malaysia last few years for all the

solar fund we invested and the price is

still dropped and drop and dropping and

a little bit more details on the risk to

go into a one solar project I'll give a

bit more engineering details So solar

project start from the development

stage. So we have development risk, you

have a construction risk and then you

have uh operation risk. So the way that

we try to minimize the risk, it has to

come to the full cycle from the

development. You select the site that is

less risky. You don't select near to the

sea then you corro your panel etc. So

development play a big part of the role.

So it it has to be very reputable

developer that try to select to develop

a lowrisk project. Some of the solar

farm on the ground model you have

multaneous area that you need need to do

a lot of uh earth work. So that will

increase the risk significantly as well.

And some of the transmission project is

a bit far from the substation. If is 20

km versus 5 km your transmission line

have a risk of uh of uh you know

Malaysia have a lot of heavy rain and

then the tree drop your transmission

right also collapse. So that is a risk

of the transmission line interconnection

over 30 years of PBA. So development

play a key role and then followed by a

construction by a reputable EPCC. Yeah,

we we we built and then we are very

reliable solar. So we built and operate

more than two and three gawatt of solar

farm last two years. So EPCC for

engineering procuring then you procure a

high high tier of equipment not to

jeopardize the quality and then

construction and then you commission the

project and throughout the cycle

operation risk we try to manage with the

insurance. So now there's a lot of uh

insurance mechanism out there they not

only protect your equipment when your

equipment is down they protect your

revenue loss as well. So with the

insurance come into the picture I would

say the solar farm some of the good

solar farm develop is as safe as fixed deposit.

deposit.

>> Thank you Leon. Yeah.

>> Uh thanks that that's very insightful

and sorry to cut you off there but I I

think I wanted to come back to the

finance perspective especially in terms

of some of these big sort of pillars of

risk that you have identified and how

Solar West is sort of dealing with it.

Uh Scott if I could bring you in first.

I mean especially in terms of from a

regional f development bank perspective

um there's a lot that uh Leon was also

mentioning in terms of bankability

criteria for instance right um what what

kind of replicable finance structures do

you see that can be scaled across the region

so scale is the is the goal um you know

we see a financing gap of 200 billion um

per year in this region alone for the

climate agenda. Um and I think one of

the things that we we it's it's a bit of

a cliche and inside the house at ADB,

but we're really trying to work our way

out of a job by having the market do as

much as as it can. Uh and so for us that

means finding things that scale and then

for us to help launch them and then get

out of the way. And we do that through

private equity fund investments. We do

it through blended finance structures

where we have co-inanciers such as HSBC

alongside us. Um and then to document

and publicize and disseminate as much as

we can about those models. What we find

scales the biggest is um areas where a

dollar that's either our own or

mobilized from a partner like the UK um

is used for the market to work on its

own without financing from ADB. An

example of that is in debt capital

markets um where the biggest opportunity

for scale of all uh really is. So you

know in in my team we run a program uh

called the green social sustainable and

other thematic bond program. We've

advised now I think 4 billion of ASEAN

local currency GSS plus issuances to

market. Those issuances have been

followed on by secondary or third

issuances from the same player to the

scale of something like 13 or 14 billion

dollars equivalent again in local

currency bonds out of a total ASEAN

standard GSS plus market of something

like 70 billion. So it's been a

meaningful dent in the market. But if

you actually look at it from a banking

perspective, we put very little money at

all. Sometimes we're an anchor investor,

but more often than not, what we're

trying to do is to to help get the

system going, particularly with

signature issu issuances. First green uh

you know bond in country X or Y, the

first uh social sukok in Indonesia in

2023 by PTSMF.

Um the first uh sustainability linked

sovereign bond in Thailand, November

last year, I think it was 900 million um

and overs subscribed three times. This

is the kind of thing that we really need

to kind of build confidence with

signature issuances and then uh frankly

to get out of the way.

>> Thanks Scott. Um Justin, just to bring

you in especially in terms of this

emerging sort of trend that Scott was highlighting.

highlighting.

Um if you could just give us very

quickly which areas do you think still

require further support uh especially in

terms of green finance and what is the

role of a commercial uh bank in

supporting the transition?

>> Yeah, sure. I I think um I think Scott

mentioned that you know the the job of

the ADB [laughter] is to get get out of

the way at some point when when things

are catalyzed. Um I think for us

probably is just to make sure that um

it's BAU right that what we do is um

doesn't require any sort of catalytic uh

financing and it just something that you

do um you know and I think that's

important when we think about the the

energy transition right um Azan has made

a lot of progress in this space right an

interesting data point that I I read

recently as well um is that the rate of

electrification in Azion countries such

as Malaysia Vietnam and the Philippines

is ahead of that of the US. So that

means that more of of the final energy

demand in Malaysia, Vietnam and the

Philippines uh is being met by

electricity than in the US. And that's

being driven by three major factors

actually that are key to the region's

economic growth. Electric vehicles, data

centers, and air conditioning, right?

Due to increased urbanization. So I

think at some point we just need to talk

about this as an economic growth agenda

not as something separate and that

requires quite a bit of obviously

investment um and you know we don't need

to call it anything separately hopefully

at that at that point. Thank you so much

Justin Puan Safhina I'll come to you for

the last word especially from the

national perspective we heard a lot

about electrification growing um and and

demand for it growing and one of the

things of course that has been the

flavor of the ABF has been the ASEAN

power grid um in in terms from a

regulatory perspective what this would

require a lot of harmonization

uh across the board so um h how are you

seeing the key governance structures

sort of evolving and if you could just

summarize maybe three key points that

you see uh which is needed to make the

energy markets function very effectively.

Um okay uh first and foremost uh the

the

APG or even you know regional

interconnection within Azan it's not new

right um so there are uh foundation

foundational elements of the governance

framework that we already have in place

with regards to how we operate um the

technical standards and so on. All of

that has uh is just really something

we're we're we're building upon. I think

what's really uh different um and what

we're trying to push now are actually

more of the expansion of the ASEAN power

grid especially the longer

interconnections that now need to be

built uh and quite critical to actually

focus or to actually evacuate the

renewable energy um from different um

areas right uh within the region and

those renewable energies are largely not

the same as just supplying dispatchable

uh fossil fuel fuel driven type of

energy. They're still intermittent and

hence some of the challenges that we

will have to work through. Um but I

think a large part of the um challenge

that has to be overcome is uh back to

financing uh because of the uh very

complex nature of the interconnections

that need to be built. Now we're talking

about 700 kilometer type of subc

interconnections, you know, um and so

on. uh the development risk is actually

very high. Um and this is where uh you

know different sorts of financing need

to come in, different instruments of

financing need to needs to come in to be

able to derisk uh some of the

development uh risk. That's number one.

But number two, uh because all of these

are largely being undertaken by private

as a private venture uh and it's not

necessarily, you know, the system that's

offtaking it. You've got specific

offtakers. So the demand slashrevenue

risk uh is also higher and we talked

about that before right um so we're very

glad that you know for uh in Malaysia we

have a very good partnership with all

the private sector hence we've got solar

vest investing in the system through the

bid exercise and so on you know it works

um because we've also helped the private

sector to derisk but in these kind of

projects we're talking about offtakers

that are not the system offtakers that

are not necessarily uh you know uh

having a specific power purchase

contracts that is um backed by the

government. Uh so how does that work? So

we do need to firm up on the offtaking

the offtaker uh and the requirement from

the offtakers and that I think is a very

crucial part of the uh ASEAN power grid.

Um and that's what we're trying to work

through now. How do we actually do the

commercial uh mechanisms, the market

mechanisms to actually make it work?

either it's a direct offtaker because

these are long gestation projects um but

also um whether they sell it through a

market uh or trading platform uh which

we do need to harmonize between the

regions. Thank you.

>> Thank you so much. I I think we could

continue this conversation, but I the

insights that are coming out of this

panel I think have set the stage really

well for our next segment on the green

transition fund and congratulations to

the UK and Azan again uh and speaking

about public private partnerships

specifically. So back to you moderator.

>> Thank you very much. Let's have a round

of applause for all the panelists and Tamojit.

And yes, as we continue with the closing

um connections with the need of the new

approach on financing APG and obviously

renewable energy is not focused with

only that but as well as the asset with

the right grid right. So we are going to

go to the deep dive sessions on the uh

next panel on uh second panel actually

on deep dive on APG. I would like to

invite our moderator Ivana Deitro lead

energy advisor Saudi Asia UKF co and

then as well as the panelists uh I would

h I'm happy to invite Mr. Rob director

of commercial customers and regulation

national grid

Mr. Doni Donosro CEO standard

Chatterbang Indonesia and as cluster

markets and board directors Mr. Philip

Nabia Mo energy sector leader M McDonald

Natasha Kai trade and economic counselor

UK mission tofo

and Dr. Jan Chan, Associate Principal,

>> So, um I realize we are running

dangerously close to lunch. So, thank

you so much for staying with us. And

quite conveniently we are continuing the

conversation and uh we will be taking a

deep dive pun intended into subc uh

interconnectors as uh a new asset uh

that ASEAN and the ASEAN power grid is

facing in terms of the challenges of

delivering. So we've assembled a stellar

cost list uh across the UK supply chain

and this uh panel will be very specific.

So it will focus on subc interconnectors

and spe and very specific in terms of

what it takes to deliver those projects.

So all of the panelists you see here

have worked across the entire value

chain from designing, developing,

delivering and building as well as

financing uh some of these assets. So

it's a very stellar cost list. Um and uh

I have to say a small disclaimer. So if

you hear names like Viking Link, Nemo

Link, these are not TV series or uh

Pixar characters. These are actually

names of UK interconnectors.

Uh just a slight warning there. Uh and

uh very quickly I have added up the

experience that we have here. So this is

an incentive uh for you to listen in

carefully. So a few dozen

interconnectors delivered across this

panel. uh well over 10 gigawatts of

interconnection capacity delivered by

this panel in some shape or form and

thousands of kilometers of subc cable

enough to stretch from London to KL. So

definitely pay attention. Uh let me dive

let me dive deep into then and continue

the theme of financing. So PDI from

standard charted surprise I will come to

you first. Uh so Pagdoni can you tell us

from a lender's perspective

why what are the main challenges and

risks you see in uh financing crossber

transmission infrastructure and to make

it very tangible for the audience can

you give us an example of where spec

specific financial solution like blended

finance has unlocked progress on these projects

projects

>> okay actually that's a very big question

but a very good morning and uh really

great to be here and congrat

Congratulations uh to the UK mission to

ASEAN for the launch of the fund and uh

as a UK financial institution we are

actually we are the only international

bank operating in all the 10 ASEAN

markets. So that kind of support as very

important for us and that really great

support by the UK government to ASEAN

you know uh goes a long way. Uh I think

to your question APG I was at the launch

of uh the APG financing initiative on

Wednesday. uh uh as I was saying at the

time that this is something that is

really very important very strategic for

ASEAN going forward. Uh the connectivity

of ASEAN power grids uh particularly the

renewable power grids actually is really

the uh will be the backbone of ASEAN

growth going forward. Having said that

of course uh crossber transmission

particularly if you talk about subc that

would add further. I know that we got

some engineers over here. Uh they will

talk I mean I'm not an engineer so I'm a

financier but I understand actually that

it requires an even more complex

arrangement to set up actually all of

those that leads actually to the

financing side as well. Now uh you see that

that

financials will only come in for

longdated assets as we call it or

projects if there is predictability or

um uh stability of the cash flow going

forward. So it's very important to see

actually that um the offtaking structure

uh is also something that is bankable.

Not all offtake actually is bankable uh

particularly when it comes to crossber

because you can have multi- countries

offtaking. So this adds further risk in

all of the assean markets. Some of these

markets are subinvestment grade that

lends uh another sort of layer of uh uh

viability gap if you will. Uh the other

thing is about uh the uh environment and

social risk uh standards. I think

look the the scale of APG would require

certainly PPP and blended finance. I

don't think actually that it can really

be you know done by any single financial

institution alone. Uh I know ADB has

committed $10 billion for that. Uh but

interestingly in the discussion earlier

today actually that World Bank still

can't finance

uh transmission that also carries fossil

fuel within it. Uh so that's a debate

actually we're still having right

[clears throat] for us I think actually

we see that you know this goes into

ultimately reducing CO2 emissions across

our markets that is a fair game because

it's part of the just transition so

there are a lot of risk actually

relating to that because ESG standards

that's very high long uh justation of

the projects uh the complexity nature of

the constructions and so on now how do

we do how do we get out of that or how

do we overcome all of those barriers? I

just wanted to say one thing all the

risk financiers work in the business of

risk. So that shouldn't deter any

financials whether it's public private

sector philanthropic uh to come into

that there's plenty and more than enough

instruments the risking instruments

credit enhancements whether viability

gap funding you got uh offtake uh uh

guarantees uh world bank group actually

has just announced the uh the guarantee

platform that combines IBRD you know uh

policy risk with MIGA's uh political

risk cover that is really great news

because we can cover all of

So there's horses for courses every

project would be very different but

there are enough or ample financing

structure that is out there and I'll

give you one example even some time back

this is not that recent it's about a

decade ago so we did a transaction with

the lead arranger for the Namturn

project this is one in Lao it's a hydro

uh electric power plant about just over

one gawatt with specific offtake from

Thailand uh energy uh authorities as

well as Achila. So 95% will go to

Thailand, 5% will go to Lao. It requires

about $1.4 billion uh that we Lao uh is

also a subinvestment grade country. Uh

but we coralled uh MDBs

uh ECAs, export credit agencies, you got

political cover. So World Bank ADB

provide the political cover uh about 35%

of that. uh then you also have some

concessional loans coming from the ECAs

uh and the likes of DFI's propakaco the

EGS and so on uh as well as the private

sector financiers in essence I think a

lot of things actually does work um it's

just a matter of actually getting into

that but one thing actually I just

wanted to highlight is that whenever

there's a visibility on a project you

got three aspects one is the technical

visibility that's for the uh uh uh

contractor factors actually to look into

the project developers. The second part

is the financial one but the third one

is the institutional feasibility.

We need to ensure that there is

harmonization of regulations between all

the countries. That is a very big

prerequisite and the power trading

mechanism between countries in ASEAN

that would have to be agreed. Uh the

standards that they have uh the

regulatory sort of alignment

interoperability that needs to be there

because otherwise that will introduce

further risk uh to the whole

interconnectivity of that uh of that project.

project.

>> Uh thank you Pakdani. So a very

encouraging message. The finan the

financing instruments are in place. The

financial structures are there and

capital financial capital is ready to

back those projects.

>> And may I add further actually that the

money is actually there.

>> The money is there.

>> There's a lot of people who are

competing. I mean some of the fellow

bankers who are there, we're all

competing in uh financing renewable

projects uh in Southeast Asia. And I

think actually we're really competing

very hard whether public sector or

private sector. So the money is there.

>> So the money is there. Listen carefully.

Are the projects there and are they

structured well enough to for finance to

flow? So maybe I'll go to the developer

uh first, Mr. Rob Rome from National

Grid Ventures. So Rob, you've you've

been in the business of developing some

of the largest subc links uh in the UK and uh Pagdoni mentioned technical

and uh Pagdoni mentioned technical feasibility uh and can you tell us a bit

feasibility uh and can you tell us a bit more about at the macro perspective

more about at the macro perspective first of all where do you see the

first of all where do you see the benefits of these crossborder links and

benefits of these crossborder links and in the at the micro level how do you

in the at the micro level how do you demonstrate these benefits to decision

demonstrate these benefits to decision makers to financiers

makers to financiers have you come across costbenefit

have you come across costbenefit analysis which has really convinced the

analysis which has really convinced the politicians and the financeers to come

politicians and the financeers to come behind those projects. Can you give us

behind those projects. Can you give us an example?

an example? >> Yeah, thanks Savannah. Yes, hello

>> Yeah, thanks Savannah. Yes, hello everyone. Yes, so we have um 8 gawatts

everyone. Yes, so we have um 8 gawatts of operational interconnectors uh

of operational interconnectors uh connecting the UK to our our European

connecting the UK to our our European neighbors and we've got two um

neighbors and we've got two um regulatory deals agreed by offjem for

regulatory deals agreed by offjem for our uh new what we call offshore hybrid

our uh new what we call offshore hybrid assets. So these are point-to-point

assets. So these are point-to-point interconnectors but with wind connecting

interconnectors but with wind connecting in the middle. Much more efficient for

in the middle. Much more efficient for onshore connections as you can probably

onshore connections as you can probably imagine. And those those two projects

imagine. And those those two projects are called line link the one connecting

are called line link the one connecting with the Netherlands 1.8 gaw due 2034

with the Netherlands 1.8 gaw due 2034 and the other one is Nautilus connecting

and the other one is Nautilus connecting uh Belgium with a 1.4 gawatt uh

uh Belgium with a 1.4 gawatt uh interconnector with wind in the middle

interconnector with wind in the middle also 2034. And of course when we create

also 2034. And of course when we create these projects you know they're

these projects you know they're developerled projects so the two grid

developerled projects so the two grid operators national grids and in those

operators national grids and in those two examples tenant from Netherlands and

two examples tenant from Netherlands and not and um Ilia from Belgium we get

not and um Ilia from Belgium we get together and we do uh create a cost

together and we do uh create a cost benefit

benefit and we need that to get the governments

and we need that to get the governments aligned to get the two regulators

aligned to get the two regulators aligned. Um it's absolutely essential

aligned. Um it's absolutely essential and it's very interesting because

and it's very interesting because you know each cost benefit shows an

you know each cost benefit shows an envelope of potential scenarios. Um and

envelope of potential scenarios. Um and let me give you an interesting story

let me give you an interesting story about the the lion like one. Um

about the the lion like one. Um the UK in the in the costbenefit

the UK in the in the costbenefit analysis is assumed to create a lot of

analysis is assumed to create a lot of offshore wind really really uh up its

offshore wind really really uh up its renewable um output and the Netherlands

renewable um output and the Netherlands also but less than the UK. So the cost

also but less than the UK. So the cost benefit guess the the base scenario had

benefit guess the the base scenario had the UK exporting to the Netherlands for

the UK exporting to the Netherlands for you know pretty much the 25 years of the

you know pretty much the 25 years of the the project. And of course, what does

the project. And of course, what does that do? It increases the prices for

that do? It increases the prices for consumers in the UK and it decreases the

consumers in the UK and it decreases the prices for the consumers in in the

prices for the consumers in in the Netherlands. And it was the first time

Netherlands. And it was the first time that any one of our projects showed an

that any one of our projects showed an increase to to consumer prices in the

increase to to consumer prices in the UK. And our regulator gem uh they

UK. And our regulator gem uh they weren't exactly happy about that. you

weren't exactly happy about that. you know, the affordability of of

know, the affordability of of electricity for for UK consumers is at

electricity for for UK consumers is at the top of the agenda at the moment, top

the top of the agenda at the moment, top of the agenda everywhere, I imagine. Um,

of the agenda everywhere, I imagine. Um, so what we had to do is we had to then

so what we had to do is we had to then talk about the strategic benefits of

talk about the strategic benefits of Lion Link to the UK. And of course, if

Lion Link to the UK. And of course, if if you've listened to any of my

if you've listened to any of my presentations, you'll hear me say that

presentations, you'll hear me say that when I was running the control center in

when I was running the control center in the UK, trying to keep the lights on

the UK, trying to keep the lights on during the energy crisis, all of our

during the energy crisis, all of our operational interconnectors exported to

operational interconnectors exported to our European partners for about 18

our European partners for about 18 months. But every single time for our

months. But every single time for our 2-hour demands peak in winter, which is

2-hour demands peak in winter, which is 5 to 7:00 p.m., every time we had a

5 to 7:00 p.m., every time we had a tight market in the UK, those

tight market in the UK, those interconnectors came all the way back in

interconnectors came all the way back in supporting the UK to keep the lights on

supporting the UK to keep the lights on and all the way back out. So, as well

and all the way back out. So, as well as, you know, an increase to consumer

as, you know, an increase to consumer prices, we had a security of supply

prices, we had a security of supply benefit. Very important. Another

benefit. Very important. Another strategic benefit was

strategic benefit was given the UK was um accelerating its

given the UK was um accelerating its connection of offshore wind. If we

connection of offshore wind. If we didn't have Lion Link, that extra route

didn't have Lion Link, that extra route to market 1.8 gawatt to the Netherlands,

to market 1.8 gawatt to the Netherlands, we would have to curtail our wind at

we would have to curtail our wind at great cost. So that was another

great cost. So that was another strategic benefit. and of course the

strategic benefit. and of course the decarbonization benefit of allowing uh

decarbonization benefit of allowing uh the the offshore wind in the UK to

the the offshore wind in the UK to generate to feed our own demand and also

generate to feed our own demand and also to export. So it's really really

to export. So it's really really important that the cost benefit covers

important that the cost benefit covers all of these strategic benefits you know

all of these strategic benefits you know producer surplus uh you know carbon

producer surplus uh you know carbon benefits not curtailing wind and

benefits not curtailing wind and crucially security of supply and

crucially security of supply and initially I have to say um offge gem or

initially I have to say um offge gem or regulator they weren't really in that

regulator they weren't really in that space uh but you know with the

space uh but you know with the tripartite of government regulator

tripartite of government regulator developer and having open uh

developer and having open uh conversations s uh we we got there and

conversations s uh we we got there and so we were able to get regulatory

so we were able to get regulatory approval uh based on the strategic

approval uh based on the strategic benefits that that the cost benefit

benefits that that the cost benefit showed.

showed. Thank you Rob. So you highlight two

Thank you Rob. So you highlight two important points. One of them is looking

important points. One of them is looking at the benefits of interconnectors in

at the benefits of interconnectors in the round. So it's not just about

the round. So it's not just about pricing but it's also about the system

pricing but it's also about the system benefits and another key point is about

benefits and another key point is about the operational collaboration at working

the operational collaboration at working level. So maybe let's dig deeper into

level. So maybe let's dig deeper into this and uh come to the engineers. So

this and uh come to the engineers. So Phil, I'll come to you first. So you've

Phil, I'll come to you first. So you've seen a dozen of subc interconnectors

seen a dozen of subc interconnectors move from concept to due diligence as

move from concept to due diligence as Rob describes. So let's assume that the

Rob describes. So let's assume that the costbenefit analysis, the strategic case

costbenefit analysis, the strategic case is well made if we've got the green

is well made if we've got the green light. But quite a few projects stumble

light. But quite a few projects stumble prefeasibility, feasibility, after

prefeasibility, feasibility, after feasibility. What is the most common

feasibility. What is the most common stumbling block and can you suggest some

stumbling block and can you suggest some leading practices and solutions be they

leading practices and solutions be they legal, commercial or financial to

legal, commercial or financial to unblock that progress?

unblock that progress? >> Yeah, thanks Savannah and it's a

>> Yeah, thanks Savannah and it's a pleasure to be here. Been a great week

pleasure to be here. Been a great week of discussions on the ACEN grid. Um,

of discussions on the ACEN grid. Um, so the project makes economic sense to

so the project makes economic sense to consumers. Let's assume also that the

consumers. Let's assume also that the regulatory framework is mature and and

regulatory framework is mature and and now now it's back to the engineers, you

now now it's back to the engineers, you know, can we make this project make

know, can we make this project make sense? Um the um and that feasibility

sense? Um the um and that feasibility study it gives us the chance to under

study it gives us the chance to under understand and demonstrate um what that

understand and demonstrate um what that means for a given um set of conditions.

means for a given um set of conditions. You know when we talk about um

You know when we talk about um installing a subc cable uh most of the

installing a subc cable uh most of the demand on that cable is about the

demand on that cable is about the environment you install it in. You know,

environment you install it in. You know, you you buy a cable from a manufacturer,

you you buy a cable from a manufacturer, it's a standard product, you want it to

it's a standard product, you want it to transfer a certain amount of power, but

transfer a certain amount of power, but can it transfer that amount of power and

can it transfer that amount of power and can it do it in a risk-free way? Depends

can it do it in a risk-free way? Depends on where are you installing it. What are

on where are you installing it. What are the geotechnical conditions? What's the

the geotechnical conditions? What's the water depth? How easy is it to land the

water depth? How easy is it to land the cables? Is the grid strong where you

cables? Is the grid strong where you bring it in? Um supply chain, um what is

bring it in? Um supply chain, um what is the lead time? What are the costs? Can

the lead time? What are the costs? Can you get the cables, the vessels, the

you get the cables, the vessels, the converters? So this is you know when we

converters? So this is you know when we talk about the feasibility study for a

talk about the feasibility study for a solar plant nowadays it's a pretty

solar plant nowadays it's a pretty simple exercise about a given site solar

simple exercise about a given site solar resource pretty standard costs when

resource pretty standard costs when we're talking about the feasibility

we're talking about the feasibility study for a subc interconnector there

study for a subc interconnector there are very few um precedents of private

are very few um precedents of private sector non-reourse financing so I mean

sector non-reourse financing so I mean that that's that's another consideration

that that's that's another consideration um the supply chain is very constrained

um the supply chain is very constrained so we have to engage with the supply

so we have to engage with the supply chain very early as part of the

chain very early as part of the feasibility what we can build would

feasibility what we can build would depend on that rapidly shifting supply

depend on that rapidly shifting supply chain dynamic, right? Um, and

chain dynamic, right? Um, and you know the techn the tangible

you know the techn the tangible technical parameters here are things

technical parameters here are things like what is our cable size, how are we

like what is our cable size, how are we rooting it, what's the burial depth, um

rooting it, what's the burial depth, um where should the onshore infrastructure

where should the onshore infrastructure be placed, um given the burial depth and

be placed, um given the burial depth and the technical conditions, what kind of

the technical conditions, what kind of vessel and burial tool are needed? Do we

vessel and burial tool are needed? Do we need to cut through rock? Do we need to

need to cut through rock? Do we need to inject very deep? So but um

inject very deep? So but um you know if we if we think about the the

you know if we if we think about the the fact that uh the APG is widely expected

fact that uh the APG is widely expected to be privately financed and that's

to be privately financed and that's quite unusual in transmission

quite unusual in transmission infrastructure still certainly in Asia

infrastructure still certainly in Asia even even even back in Europe certainly

even even even back in Europe certainly project finance um you know we we also

project finance um you know we we also have to look at you know what kind of

have to look at you know what kind of structure has worked for that and you

structure has worked for that and you know we've worked on the owner side on

know we've worked on the owner side on things like elect link um through the

things like elect link um through the channel tunnel on the lender side on No

channel tunnel on the lender side on No Connect and Green Link and you got those

Connect and Green Link and you got those precedents, you might have much more

precedents, you might have much more demanding requirements on the how proven

demanding requirements on the how proven the equipment is. For example, you may

the equipment is. For example, you may not be able to use a given cable

not be able to use a given cable supplier because they don't have

supplier because they don't have international track record at that

international track record at that voltage um with the private sector,

voltage um with the private sector, right? Um, also, you know, when we think

right? Um, also, you know, when we think about, um, the risk profile, um,

about, um, the risk profile, um, offshore wind, um, Rob probably does not

offshore wind, um, Rob probably does not welcome the impact of offshore wind on

welcome the impact of offshore wind on his insurance premium because there's

his insurance premium because there's been quite a few cable failures and that

been quite a few cable failures and that does speak to a level of risk in

does speak to a level of risk in offshore cable installation and

offshore cable installation and operation. Um um there's a stat which

operation. Um um there's a stat which you may have heard already from my

you may have heard already from my earlier session that if uh the offshore

earlier session that if uh the offshore the subc cable is 10 to 20% of the cost

the subc cable is 10 to 20% of the cost of an offshore wind farm it's 80% of the

of an offshore wind farm it's 80% of the value of insurance claims right and um

value of insurance claims right and um it is if it's not done well it can be a

it is if it's not done well it can be a relatively high risk so um there is

relatively high risk so um there is fortunately a lot of convergence on what

fortunately a lot of convergence on what is good practice in terms of cable

is good practice in terms of cable burial risk assessment accurate

burial risk assessment accurate assessment of those downside risks Um

assessment of those downside risks Um and that all requires good data. So

and that all requires good data. So getting that good data is a key thing.

getting that good data is a key thing. And interestingly, the offshore wind

And interestingly, the offshore wind projects we've seen in this region have

projects we've seen in this region have not always followed that standard

not always followed that standard international practice,

international practice, you know, if it's a simple project near

you know, if it's a simple project near toshore, simple conditions, maybe the

toshore, simple conditions, maybe the lenders can accept that. But if we are

lenders can accept that. But if we are talking about these very long links,

talking about these very long links, we're just going to have to follow the

we're just going to have to follow the follow the rules. You know, use use what

follow the rules. You know, use use what is best practice internationally. And

is best practice internationally. And that does require a certain level of

that does require a certain level of kind of maturity in the supply chain

kind of maturity in the supply chain providing that. Um last thing I'd just

providing that. Um last thing I'd just emphasize, you know, I mentioned that

emphasize, you know, I mentioned that early engagement with the supply chain

early engagement with the supply chain is key. Um and the lead times can be

is key. Um and the lead times can be very long and and Jan will come on to

very long and and Jan will come on to discuss some of the operational

discuss some of the operational considerations of that. But even in

considerations of that. But even in equipment selection that that can come

equipment selection that that can come in and it can it can mean a project may

in and it can it can mean a project may not work or may not work the way you

not work or may not work the way you wanted it to originally. Right? You

wanted it to originally. Right? You typically say that the the changeover

typically say that the the changeover point where it makes sense to go from an

point where it makes sense to go from an AC link to a DC link is between 50 and

AC link to a DC link is between 50 and 80 kilometers, but we're seeing 100

80 kilometers, but we're seeing 100 kilometer links going in with AC just

kilometer links going in with AC just because the DC supply chain is so

because the DC supply chain is so constrained and you can't get the

constrained and you can't get the equipment and you can just about make

equipment and you can just about make that work still. Um so uh there is

that work still. Um so uh there is definitely suppressed demand um but um

definitely suppressed demand um but um more capacity is coming online. So

more capacity is coming online. So that's a dynamic situation. Yeah, thank

that's a dynamic situation. Yeah, thank you.

you. >> Thanks, Phil. So we've got the

>> Thanks, Phil. So we've got the regulatory alignment, the data, the

regulatory alignment, the data, the cable route sorted. Uh, and we kind of

cable route sorted. Uh, and we kind of have a fairly good idea on this

have a fairly good idea on this hypothetical interconnector project

hypothetical interconnector project about the route and the equipment. But

about the route and the equipment. But now it comes to sourcing this and

now it comes to sourcing this and sourcing it and understanding the supply

sourcing it and understanding the supply chain. Uh, you mentioned some of the

chain. Uh, you mentioned some of the challenges around the cable and the

challenges around the cable and the vessels. So John, if I can come to you,

vessels. So John, if I can come to you, where do you see the current supply

where do you see the current supply chain bottlenecks especially AC on the

chain bottlenecks especially AC on the subc interconnector value chain and um

subc interconnector value chain and um do you have any suggestions for

do you have any suggestions for Southeast Asia developers on how to

Southeast Asia developers on how to manage these?

manage these? >> Thank you Ia and thank you Phil. So um

>> Thank you Ia and thank you Phil. So um when we talk about the supply chain um

when we talk about the supply chain um issues so um at the moment uh what we

issues so um at the moment uh what we are seeing is that you have roughly uh

are seeing is that you have roughly uh three biggest bottlenecks. So the first

three biggest bottlenecks. So the first one being the technology suppliers

one being the technology suppliers technology for subc cable or subc

technology for subc cable or subc interconnectors. The first thing is HVDC

interconnectors. The first thing is HVDC cables as well as HVAC ones. So uh we're

cables as well as HVAC ones. So uh we're seeing that many of these capacity has

seeing that many of these capacity has been taken up by uh global projects,

been taken up by uh global projects, European projects as well as regional

European projects as well as regional projects uh in offshore wind. So

projects uh in offshore wind. So although they are uh not interconnectors

although they are uh not interconnectors per se but um they are taking up the

per se but um they are taking up the same uh supply chain in Asia. So DC

same uh supply chain in Asia. So DC cable being the biggest one. The second

cable being the biggest one. The second um supply chain from a technology

um supply chain from a technology perspective I would say is um the HVDC

perspective I would say is um the HVDC converter station itself. So globally I

converter station itself. So globally I think there are only a handful of

think there are only a handful of reputable um converter supplier and um

reputable um converter supplier and um these are the ones that people would

these are the ones that people would tend to go for with um project

tend to go for with um project credentials with um bankable uh project

credentials with um bankable uh project experience. Hence uh it is a big part of

experience. Hence uh it is a big part of the uh issue from supply chain

the uh issue from supply chain perspective. I think the third part is

perspective. I think the third part is the what um Phil have already mentioned

the what um Phil have already mentioned installation vessels. So installation

installation vessels. So installation vessels um as well installation crew is

vessels um as well installation crew is a sort of like key consideration with uh

a sort of like key consideration with uh project scheduling and risk management

project scheduling and risk management and in particular for Southeast Asia

and in particular for Southeast Asia transportation uh vessel to get the

transportation uh vessel to get the cables from factories further a field

cables from factories further a field might be a big problem uh for Southeast

might be a big problem uh for Southeast Asia. Um in terms of construction wise,

Asia. Um in terms of construction wise, you need the specialized um cable crews.

you need the specialized um cable crews. to put down the cable to lay them

to put down the cable to lay them properly and the jointers um being

properly and the jointers um being particular um problematic given uh that

particular um problematic given uh that some of the cables might utilize um

some of the cables might utilize um technologies like uh MI cables so mass

technologies like uh MI cables so mass impregnated which requires um specific

impregnated which requires um specific skill set and there's only a handful of

skill set and there's only a handful of um experienced jointers uh around the

um experienced jointers uh around the world. So these are the supply chain

world. So these are the supply chain from a technology perspective. But when

from a technology perspective. But when we talk about um project um

we talk about um project um implementation

implementation um our engagement over here with

um our engagement over here with Southeast Asia developers, we've seen

Southeast Asia developers, we've seen con um EPC contractors. So we've met

con um EPC contractors. So we've met dozens of them and uh we c we can see

dozens of them and uh we c we can see that the technology for subc

that the technology for subc interconnector is so novel that many of

interconnector is so novel that many of the EPCs are actually doing it for the

the EPCs are actually doing it for the first time or doing it um with uh global

first time or doing it um with uh global expertise coming from Europe. So I think

expertise coming from Europe. So I think uh it's very important for uh developers

uh it's very important for uh developers to think about um engaging with um

to think about um engaging with um proper EPC contractors to make sure that

proper EPC contractors to make sure that okay you you take into account all the

okay you you take into account all the risk involved uh during project

risk involved uh during project implementation.

implementation. So um to answer your question about how

So um to answer your question about how Southeast Asia utilities could actually

Southeast Asia utilities could actually work on this. So early engagement is

work on this. So early engagement is one. The second thing is I'd say that um

one. The second thing is I'd say that um due to the procurement challenges um

due to the procurement challenges um it's better to have a more secure

it's better to have a more secure pipeline of project to sort of like give

pipeline of project to sort of like give the confidence for OEMs uh being it

the confidence for OEMs uh being it cables being it um converter stations to

cables being it um converter stations to have um the confidence of actually um

have um the confidence of actually um working together partnering with the

working together partnering with the project to implement it forward. Thank

project to implement it forward. Thank you.

you. >> Thank you Jan. you've given us quite the

>> Thank you Jan. you've given us quite the list there. So, cables, converters,

list there. So, cables, converters, uh vessels, uh but also more

uh vessels, uh but also more importantly, you mentioned people and

importantly, you mentioned people and expertise and that this resides in

expertise and that this resides in Europe as well as the UK. And maybe if I

Europe as well as the UK. And maybe if I can come to our last panelist, Natasha.

can come to our last panelist, Natasha. So, I mean, Natasha, you've been at the

So, I mean, Natasha, you've been at the front line of connecting UK firms and

front line of connecting UK firms and people to ASEAN opportunities. And what

people to ASEAN opportunities. And what is the most promising area do you think

is the most promising area do you think for UK as collaboration on subc

for UK as collaboration on subc interconnectors?

interconnectors? >> Thank you Ivana and it's great to be

>> Thank you Ivana and it's great to be here today with representatives from

here today with representatives from fantastic British businesses. very

fantastic British businesses. very conscious of time so I'll try and keep

conscious of time so I'll try and keep this very brief but um I'm really

this very brief but um I'm really excited to just try and talk to you all

excited to just try and talk to you all about how the UK is a really strategic

about how the UK is a really strategic partner for ASEAN in the energy space

partner for ASEAN in the energy space and when we talk about subc

and when we talk about subc interconnectors and energy collaboration

interconnectors and energy collaboration we have a proven history that we want to

we have a proven history that we want to try and bring to ASEAN and we're not

try and bring to ASEAN and we're not just interested we're invested the UK is

just interested we're invested the UK is currently the fourth largest investor

currently the fourth largest investor into ASEAN and we want to deepen that

into ASEAN and we want to deepen that collaboration in the energy space too.

collaboration in the energy space too. Um, so there are three there are three

Um, so there are three there are three points I want to make today and I will

points I want to make today and I will keep it brief. So firstly, the UK has a

keep it brief. So firstly, the UK has a proven track record in subc

proven track record in subc interconnectors. We've been delivering

interconnectors. We've been delivering interconnector projects since 1986.

interconnector projects since 1986. Um, and we're proud to be one of the

Um, and we're proud to be one of the most interconnected energy markets in

most interconnected energy markets in the world. And our developers, our

the world. And our developers, our engineers, our financiers have been

engineers, our financiers have been doing this for over 40 years. and we're

doing this for over 40 years. and we're ready to bring that expertise and that

ready to bring that expertise and that experience to ASEAN when we're focusing

experience to ASEAN when we're focusing on the APG.

on the APG. Secondly, we have a private public

Secondly, we have a private public partnership that works and hope we've

partnership that works and hope we've been demonstrating that this week. We're

been demonstrating that this week. We're delighted to be bringing together the UK

delighted to be bringing together the UK public sector and our private sector

public sector and our private sector too. Our government is actively

too. Our government is actively supporting collaboration with ASEAN

supporting collaboration with ASEAN through schemes like the green

through schemes like the green transition fund which we've just

transition fund which we've just launched one of the pillars today. And I

launched one of the pillars today. And I think we've heard that our private

think we've heard that our private sector stands ready to deliver too. Um

sector stands ready to deliver too. Um we have the UK has a f a substantive

we have the UK has a f a substantive financial toolkit that includes support

financial toolkit that includes support from UK export finance as well which can

from UK export finance as well which can help to derisk projects and unlock

help to derisk projects and unlock capital for ASEAN partners and also we

capital for ASEAN partners and also we can utilize platforms like the UK assean

can utilize platforms like the UK assean business council to help bring the

business council to help bring the private sector expertise on this journey

private sector expertise on this journey with us too. And finally, we see big

with us too. And finally, we see big opportunities here and a shared vision

opportunities here and a shared vision between the UK and ASEAN. Um, not just

between the UK and ASEAN. Um, not just in inconnectors, but in grid resilience,

in inconnectors, but in grid resilience, offshore wind and clean energy

offshore wind and clean energy cooperation. The ASEAN power grid vision

cooperation. The ASEAN power grid vision aligns perfectly with UK capabilities

aligns perfectly with UK capabilities and we want to help make it a reality.

and we want to help make it a reality. And whether that's through feasibility

And whether that's through feasibility studies, regulatory support or project

studies, regulatory support or project delivery, the UK stands ready to deliver

delivery, the UK stands ready to deliver um across the whole energy value chain.

um across the whole energy value chain. So in closing, I think I'll leave it

So in closing, I think I'll leave it there and I hope we've demonstrated in

there and I hope we've demonstrated in many ways the UK can be a really helpful

many ways the UK can be a really helpful partner through this energy transition

partner through this energy transition with ASEAM. Thank you.

with ASEAM. Thank you. >> Thank you, Natasha. Uh and this brings

>> Thank you, Natasha. Uh and this brings us to a close and a final summary

us to a close and a final summary message. The UK is here ready to

message. The UK is here ready to partner. We've got the money, uh, the

partner. We've got the money, uh, the engineers, the developers, and now it's

engineers, the developers, and now it's all about bringing it all together and

all about bringing it all together and mobilizing behind a project and the

mobilizing behind a project and the ASEAN power grid. So, thank you very

ASEAN power grid. So, thank you very much for your attention and you know how

much for your attention and you know how to find those guys if you have any

to find those guys if you have any questions even if you're developing a

questions even if you're developing a multi-billion uh dollar interconnector

multi-billion uh dollar interconnector project. Thank you.

project. Thank you. >> Thank you everyone. Let's have a round

>> Thank you everyone. Let's have a round of applause.

And yes, as though this is the second panel discussion, it's not end here. We

panel discussion, it's not end here. We will still got some more to present. And

will still got some more to present. And I think yeah, I'm happy for all the

I think yeah, I'm happy for all the panelists and speakers to get a bit of a

panelists and speakers to get a bit of a photo first

photo first and then we

and then we continue to next sessions.

>> And yeah, well you hear that um in the first panel

first panel energy transition financing is what what

energy transition financing is what what we should accelerate and now we already

we should accelerate and now we already that the UK is there to support. Now

that the UK is there to support. Now let's see from the field right because

let's see from the field right because we got three um key players that right

we got three um key players that right now are working on um the area of the um

now are working on um the area of the um Asan energy transition. I really would

Asan energy transition. I really would so happy to invite Miss Nadila Shani

so happy to invite Miss Nadila Shani from Assean Center for Energy to deliver

from Assean Center for Energy to deliver her presentation. Ah there she is her

her presentation. Ah there she is her presentations on on the latest

presentations on on the latest cooperation in APG. Shani please go

cooperation in APG. Shani please go ahead.

>> Thank you Ritoan. So I think we've heard um a lot of um points raised uh on the

um a lot of um points raised uh on the discussions uh in the previous uh two

discussions uh in the previous uh two panels and I think I just want to

panels and I think I just want to highlight what we are cooperating with

highlight what we are cooperating with UK especially on helping addressing some

UK especially on helping addressing some of these um challenges. Can I have my

of these um challenges. Can I have my slide? Yeah. So um let's go to the next

slide? Yeah. So um let's go to the next slide. So I think uh in this week we've

slide. So I think uh in this week we've have we've heard a lot on APG and what

have we've heard a lot on APG and what are the benefits and I think I just uh I

are the benefits and I think I just uh I don't want to repeat what are the

don't want to repeat what are the benefits of APG in propelling the

benefits of APG in propelling the economic growth in ASEAN and how

economic growth in ASEAN and how basically it can be u of a tools for us

basically it can be u of a tools for us in um delivering uh energy more energy

in um delivering uh energy more energy security and also the um how we can um

security and also the um how we can um evacuate more renewable energy um shared

evacuate more renewable energy um shared benefit to uh all the member states. Uh

benefit to uh all the member states. Uh I just want to highlight on the uh the

I just want to highlight on the uh the investment that we are going to um need

investment that we are going to um need to uh actually um implement this. So

to uh actually um implement this. So this is a study from us that uh it will

this is a study from us that uh it will require 250 billions for both evacuating

require 250 billions for both evacuating the renewables potentials unlocking the

the renewables potentials unlocking the generations and also the transmissions

generations and also the transmissions built um under the APG if we want to

built um under the APG if we want to realize the full benefit of renewable

realize the full benefit of renewable energy in the regions. Next slide

energy in the regions. Next slide please. So this is uh we also look at

please. So this is uh we also look at how the current infrastructure um uh

how the current infrastructure um uh under the APG could evolve in the next

under the APG could evolve in the next um 10 20 years up to 2040. Uh in the uh

um 10 20 years up to 2040. Uh in the uh left side you see this is the existing

left side you see this is the existing one mainly this is a gridto- grid

one mainly this is a gridto- grid interconnections that we have between

interconnections that we have between countries and it's used not for um some

countries and it's used not for um some of uh most of it not used for commercial

of uh most of it not used for commercial purposes. So it means they're trading in

purposes. So it means they're trading in um for like a balancing and um sort of

um for like a balancing and um sort of like reserve sharing basis but um as we

like reserve sharing basis but um as we go that we hear a lot of um

go that we hear a lot of um infrastructure will be built a lot of

infrastructure will be built a lot of bilateral cooperations from country to

bilateral cooperations from country to country that's initiated

country that's initiated um this infrastructure or like how

um this infrastructure or like how interconnected ASEAN will look like in

interconnected ASEAN will look like in 2040 will be look like um um the figure

2040 will be look like um um the figure in in in your right so this is a

in in in your right so this is a potential where we actually could could

potential where we actually could could use this uh infrastructure to trade um

use this uh infrastructure to trade um commercially um power trade between

commercially um power trade between countries. Um and just to break down as

countries. Um and just to break down as well, one of the challenges is how we're

well, one of the challenges is how we're going to build this transmissions um

going to build this transmissions um capacity that we are going to use and

capacity that we are going to use and what kind there will be a different

what kind there will be a different projects uh including subc as well as a

projects uh including subc as well as a new transmissions uh project that we we

new transmissions uh project that we we need to build. Next slide please. So uh

need to build. Next slide please. So uh basically when we are look closer on um

basically when we are look closer on um how actually we going to build this

how actually we going to build this transmissions um um infrastructure uh

transmissions um um infrastructure uh especially the crossber interconnections

especially the crossber interconnections there are different projects I mentioned

there are different projects I mentioned overland line overhead line projects but

overland line overhead line projects but also subc um um projects as well and

also subc um um projects as well and this kind of projects of um transmission

this kind of projects of um transmission infrastructure asset is uh have a

infrastructure asset is uh have a different risk profile. I think previous

different risk profile. I think previous um panel has uh outlined what are the

um panel has uh outlined what are the sort of like different risk profiles uh

sort of like different risk profiles uh especially for subc um that needs to be

especially for subc um that needs to be addressed. Um and then basically uh we

addressed. Um and then basically uh we are uh for especially crossber projects

are uh for especially crossber projects we are um uh working with different um

we are um uh working with different um countries with different regulatory

countries with different regulatory regime as well and mostly in the regions

regime as well and mostly in the regions uh the transmissions asset is regulated

uh the transmissions asset is regulated business uh influenced by uh the fact

business uh influenced by uh the fact that uh the power market is also

that uh the power market is also different. So for that how we actually

different. So for that how we actually um uh built uh uh a business model an

um uh built uh uh a business model an innovative business model to fi finance

innovative business model to fi finance this um transmissions or crossber

this um transmissions or crossber interconnections project with different

interconnections project with different risk profiles.

risk profiles. So uh we've looked upon like different

So uh we've looked upon like different sets of business models that we can um

sets of business models that we can um adopt or like uh implement in the

adopt or like uh implement in the regions uh considering the different uh

regions uh considering the different uh national power market that uh each

national power market that uh each country have and different regulatory uh

country have and different regulatory uh framework that the Asan countries has.

framework that the Asan countries has. So we we have a range of different set

So we we have a range of different set of countries the like Singapore the one

of countries the like Singapore the one that is already um liberalized power

that is already um liberalized power market but also the countries like

market but also the countries like vertically um integrated and how they uh

vertically um integrated and how they uh the government or like the stakeholders

the government or like the stakeholders in uh approving this projects. I think

in uh approving this projects. I think we we've heard from Juan Safhina uh

we we've heard from Juan Safhina uh there are different considerations and

there are different considerations and especially like how the business model

especially like how the business model like oftake model for commercial trading

like oftake model for commercial trading would look like it really influence how

would look like it really influence how the transmissions uh or like

the transmissions uh or like infrastructure um projects uh will be uh

infrastructure um projects uh will be uh needed to finance. So next slide. So I'm

needed to finance. So next slide. So I'm highlighting what we are cooperating

highlighting what we are cooperating with the UK um currently. Um so we've

with the UK um currently. Um so we've learned a lot from the panel discussions

learned a lot from the panel discussions that led by Ivana uh uh previously that

that led by Ivana uh uh previously that UK has a lot of expertise in terms of um

UK has a lot of expertise in terms of um looking at different models uh for

looking at different models uh for transmission project including subc as

transmission project including subc as well. So we are now uh cooperating with

well. So we are now uh cooperating with the UK to look uh more closely what kind

the UK to look uh more closely what kind of uh business model that might work uh

of uh business model that might work uh to implement to different jurisdictions

to implement to different jurisdictions that we have in ASEAN uh to derisk um um

that we have in ASEAN uh to derisk um um this kind the different projects as well

this kind the different projects as well and how to finance it from different

and how to finance it from different type of um sources uh of financing. So

type of um sources uh of financing. So this is something that we are

this is something that we are collaborating with the UK and hopefully

collaborating with the UK and hopefully this is um can be a shared insights as

this is um can be a shared insights as well for uh the whole uh ASEN member

well for uh the whole uh ASEN member states so that we could implement some

states so that we could implement some of the lesson learned in the in the asen

of the lesson learned in the in the asen context. Thank you very much.

>> Thank you Shai and let's continue the next presentations once we see the

next presentations once we see the regional context. Now we are focusing on

regional context. Now we are focusing on the country context. I'm happy to invite

the country context. I'm happy to invite Ba Papar Bhutar head of Jetp Indonesia

Ba Papar Bhutar head of Jetp Indonesia Jetp secretariat the state issues. Let's

Jetp secretariat the state issues. Let's have an applause for papa.

Helen and everyone. Uh thank you for uh being invited here. Uh do I have much?

being invited here. Uh do I have much? Okay.

Okay. Uh I just want to uh to uh uh let's say describe what have been done

let's say describe what have been done uh under JetP. So uh as you know that uh

uh under JetP. So uh as you know that uh during G20 in Bali, this is the

during G20 in Bali, this is the agreement that uh that have been reached

agreement that uh that have been reached between uh Indonesia government and uh

between uh Indonesia government and uh the partners international partner

the partners international partner groups and G fans that we should limit

groups and G fans that we should limit the emissions uh to 20 290 by 2030 and

the emissions uh to 20 290 by 2030 and increase the uh uh renewable in in the

increase the uh uh renewable in in the energy mix and for that Indonesia will

energy mix and for that Indonesia will receive or the IPG and G fans will

receive or the IPG and G fans will mobilize up to 20 billion financing.

mobilize up to 20 billion financing. That's the promise, the pledge in 2020.

That's the promise, the pledge in 2020. And then we start uh working on how we

And then we start uh working on how we could do that, how we could limit the

could do that, how we could limit the the the emissions to uh to uh 290.

the the emissions to uh to uh 290. And then we we run our model uh and uh

And then we we run our model uh and uh we finally agreed that actually we could

we finally agreed that actually we could not reduce uh for the whole power sector

not reduce uh for the whole power sector to 290. But we we discussed about uh

to 290. But we we discussed about uh limit the emissions from on grid power

limit the emissions from on grid power to 250 uh uh million ton of CO2 by 2030

to 250 uh uh million ton of CO2 by 2030 and then increase the renewable energy

and then increase the renewable energy share by uh to 44%.

share by uh to 44%. But for that up to 2030 we will need

But for that up to 2030 we will need around 100 million US dollars. That's uh

around 100 million US dollars. That's uh what we uh what we need just for 2030 uh

what we uh what we need just for 2030 uh 2030 and uh with

2030 and uh with four key assumptions. The policy has to

four key assumptions. The policy has to be ready and uh financing has to be made

be ready and uh financing has to be made available as just as you can see the

available as just as you can see the pledge is only 20 billion but we need

pledge is only 20 billion but we need around 100 billion just for until 2030.

around 100 billion just for until 2030. [snorts] And then uh the the third issue

[snorts] And then uh the the third issue is uh as in in uh normal in in uh any

is uh as in in uh normal in in uh any project uh development. Then we should

project uh development. Then we should not expect uh any project uh pro uh

not expect uh any project uh pro uh problem during the implementation. And

problem during the implementation. And the the last point is actually that uh

the the last point is actually that uh PLN as a uh utility company should do

PLN as a uh utility company should do the procurement of the uh uh renewable

the procurement of the uh uh renewable energy uh quite consistently and uh

energy uh quite consistently and uh together with that uh then uh uh the PPA

together with that uh then uh uh the PPA a bankable PPA should be uh prepared.

Oops. Oops. Doesn't work.

Oh yeah. And then uh what you can see here is actually that's the pledge from

here is actually that's the pledge from each country. We we we took out the US

each country. We we we took out the US uh since uh they uh they withdrawn from

uh since uh they uh they withdrawn from uh jetp uh in March and the total uh uh

uh jetp uh in March and the total uh uh total financing now is actually uh uh 21

total financing now is actually uh uh 21 billion around uh it should be invested

billion around uh it should be invested in the six focus area. Uh we include the

in the six focus area. Uh we include the energy efficiency and electrification uh

energy efficiency and electrification uh transmission and distribution uh then

transmission and distribution uh then also dispatchable and variable renewable

also dispatchable and variable renewable and uh we also include the early uh coal

and uh we also include the early uh coal uh retirement because uh the fact is

uh retirement because uh the fact is that there is financing that has been

that there is financing that has been made available up to 2.5 billion for

made available up to 2.5 billion for early retirement and uh also we include

early retirement and uh also we include the development of renewable energy

the development of renewable energy supply chain. We really like to see that

supply chain. We really like to see that with the total uh renewable energy to be

with the total uh renewable energy to be deployed in Indonesia later on that

deployed in Indonesia later on that Indonesia should not only become the

Indonesia should not only become the market for the renewable energy

market for the renewable energy technology. So here uh to the number one

technology. So here uh to the number one we also include the electrification of

we also include the electrification of transportation. [snorts] So the the

transportation. [snorts] So the the initial uh uh financing was actually

initial uh uh financing was actually only after uh the US left the initial

only after uh the US left the initial financing was left about 19.6 6 billion

financing was left about 19.6 6 billion but for the electrification of

but for the electrification of transportation we received additional

transportation we received additional pledge from Japan to finance the MRT uh

pledge from Japan to finance the MRT uh in Jakarta. So uh it that the Oops.

in Jakarta. So uh it that the Oops. Yeah. So this is the total financing

Yeah. So this is the total financing now. So the approved project now is

now. So the approved project now is almost 2 billion that include actually

almost 2 billion that include actually the uh the financing for the MRT almost

the uh the financing for the MRT almost 1.8 8 billion and then there's a program

1.8 8 billion and then there's a program uh that include also uh result based

uh that include also uh result based lending that goes to PLN or or policy

lending that goes to PLN or or policy based lending that go to Minia Finance.

based lending that go to Minia Finance. Uh we still have uh uh we expect around

Uh we still have uh uh we expect around uh 6.2 2 billion uh projects uh as

uh 6.2 2 billion uh projects uh as financing in project pipeline

financing in project pipeline and so far we have almost 190 million uh

and so far we have almost 190 million uh of grants

of grants uh and then one billion guarantee from

uh and then one billion guarantee from uh the UK guarantee to do to the world

uh the UK guarantee to do to the world banks that we could use to finance uh uh

banks that we could use to finance uh uh uh energy transition projects.

Yeah. So what is missing actually from uh from

what is missing actually from uh from the uh uh or what we can learn from the

the uh uh or what we can learn from the uh jetp implementation in Indonesia.

uh jetp implementation in Indonesia. First is in the process. So when we

First is in the process. So when we start the process uh in 2023

start the process uh in 2023 uh we actually have a great great help

uh we actually have a great great help from a lot of parties. So from

from a lot of parties. So from government from uh civil society from

government from uh civil society from PLN from uh uh let's say international

PLN from uh uh let's say international uh think tank uh ADB World Bank and uh

uh think tank uh ADB World Bank and uh uh UKari and and others that help us in

uh UKari and and others that help us in actually in preparing all the analytical

actually in preparing all the analytical uh uh analytics of the uh of the uh JP

uh uh analytics of the uh of the uh JP how we could reach the 290 and so on and

how we could reach the 290 and so on and also to analyze what need to be financed

also to analyze what need to be financed and how much and so on. what is the

and how much and so on. what is the cost?

cost? Uh,

Uh, however,

however, the financing that we have seen so far

the financing that we have seen so far goes actually through traditional

goes actually through traditional financing. It's just like business as

financing. It's just like business as usual. If you look at the the financing

usual. If you look at the the financing from World Bank, from ADB, from uh or or

from World Bank, from ADB, from uh or or uh private uh or commercial financing,

uh private uh or commercial financing, the process is the same. So there's no

the process is the same. So there's no specific uh special treatment actually

specific uh special treatment actually for for JetP project. So we we

for for JetP project. So we we experience the same process and uh I

experience the same process and uh I cannot blame them for that. That's why

cannot blame them for that. That's why it is important actually if you really

it is important actually if you really want to move forward with the uh energy

want to move forward with the uh energy transition we expect uh let's say uh I

transition we expect uh let's say uh I would say uh uh innovative new financing

would say uh uh innovative new financing would be needed. So uh the the panel

would be needed. So uh the the panel before talking about the uh the uh

before talking about the uh the uh guarantee or so on that that would be

guarantee or so on that that would be the uh the thing that support the uh uh

the uh the thing that support the uh uh financing and then we agree with the

financing and then we agree with the government uh that part of the public

government uh that part of the public funding that has to be mobilized as as

funding that has to be mobilized as as part of the JP has to be used for

part of the JP has to be used for financing the grid interconnection and

financing the grid interconnection and uh because uh as me uh as presented by

uh because uh as me uh as presented by Anissa before so the connection between

Anissa before so the connection between Sumatra to batam, Sumatra to Java, Java

Sumatra to batam, Sumatra to Java, Java and later on from Kimanton to Java uh it

and later on from Kimanton to Java uh it would cost a lot but uh would only have

would cost a lot but uh would only have uh let's say very low return for PLN. So

uh let's say very low return for PLN. So that's why we need for specific project

that's why we need for specific project just like transmission a very low uh low

just like transmission a very low uh low interest rate financing and some of the

interest rate financing and some of the geothermal uh geothermal project

geothermal uh geothermal project actually we expect uh to get uh to get

actually we expect uh to get uh to get it financed uh through the concessional

it financed uh through the concessional loan

loan and then uh what is missing uh why for

and then uh what is missing uh why for example so far only a small uh small uh

example so far only a small uh small uh money has been mobilized and that's

money has been mobilized and that's actually because the fact uh when we

actually because the fact uh when we prepare at the the uh the jetp program

prepare at the the uh the jetp program there are not so many project that's

there are not so many project that's that is financial ready and that's one

that is financial ready and that's one of the problem so if we don't have

of the problem so if we don't have project ready then how can we ask the

project ready then how can we ask the financial institution to financial uh uh

financial institution to financial uh uh projects and that's always the the

projects and that's always the the problem in the in the uh uh financing

problem in the in the uh uh financing renewable we are always complaining

renewable we are always complaining about money is not sufficiently

about money is not sufficiently available but actually the problem is

available but actually the problem is the project is not uh not ready so

the project is not uh not ready so that's why one of the biggest problem

that's why one of the biggest problem that we see actually in the in the

that we see actually in the in the project development. If we if we look at

project development. If we if we look at this uh if you look at this uh uh

this uh if you look at this uh uh approved grant for example, we have

approved grant for example, we have committed almost uh get commit

committed almost uh get commit commitment for almost 190 million but

commitment for almost 190 million but none of them actually has been used for

none of them actually has been used for project preparation. So while for the

project preparation. So while for the procurement of the pro for procurement

procurement of the pro for procurement of the project by by utility company by

of the project by by utility company by PLN it needs preparation we need to to

PLN it needs preparation we need to to have PLN prepared the physibility study

have PLN prepared the physibility study or the project developers prepare

or the project developers prepare prepare physibility study that is

prepare physibility study that is bankable that is really suitable for the

bankable that is really suitable for the for the uh uh uh tender but we don't

for the uh uh uh tender but we don't have that money so we have discussed

have that money so we have discussed with uh with uh IPG and G fans whether

with uh with uh IPG and G fans whether they could actually reallocate the the

they could actually reallocate the the the grant here uh so that it could be

the grant here uh so that it could be used for financial ing uh project

used for financial ing uh project preparation but unfortunately no one

preparation but unfortunately no one would uh would be willing to finance

would uh would be willing to finance this kind of uh uh preparatory uh study.

this kind of uh uh preparatory uh study. So that's that's one of the the uh I

So that's that's one of the the uh I would say one of the the biggest

would say one of the the biggest challenge that we see on the jetp people

challenge that we see on the jetp people always uh ask us why the financing of uh

always uh ask us why the financing of uh why the promised uh uh financing uh has

why the promised uh uh financing uh has not been mobilized massively and that's

not been mobilized massively and that's actually the problem. So we don't have

actually the problem. So we don't have enough uh project because it is not

enough uh project because it is not prepared uh uh properly

and uh also one of the one of the problem that we see uh as part of the

problem that we see uh as part of the commitment from or or pledge from uh jet

commitment from or or pledge from uh jet uh from IPG and and G funds is actually

uh from IPG and and G funds is actually that funding is only for large scale

that funding is only for large scale projects. No not uh not much funding

projects. No not uh not much funding available for uh energy efficiency and

available for uh energy efficiency and so on. That's why uh we are happy to to

so on. That's why uh we are happy to to let's say get support from UK uh in 2023

let's say get support from UK uh in 2023 we asked UK whether they could actually

we asked UK whether they could actually prepare a kind of uh let's say

prepare a kind of uh let's say facilities to finance energy efficiency

facilities to finance energy efficiency and they answer that with the financing

and they answer that with the financing of uh some uh uh let's say uh effort in

of uh some uh uh let's say uh effort in energy efficiency for ASCO and so on and

energy efficiency for ASCO and so on and uh also no financing for uh community

uh also no financing for uh community level projects and that's one of the

level projects and that's one of the biggest complaint that we got from civil

biggest complaint that we got from civil society because IPG or JP is only for

society because IPG or JP is only for large scale only only for large uh let's

large scale only only for large uh let's say uh project developers and no uh non

say uh project developers and no uh non for community based that's why last time

for community based that's why last time we asked uh uh C for all whether they

we asked uh uh C for all whether they could help us in getting financing for

could help us in getting financing for let's say uh uh offgrid projects and uh

let's say uh uh offgrid projects and uh they will start with some projects uh I

they will start with some projects uh I I hope that it could materialize soon I

I hope that it could materialize soon I could uh let's say see investment in

could uh let's say see investment in community based project later on I would

community based project later on I would stop here thank you very

Thank you very much, Pa Po. And then that's that's lesson learned from

that's that's lesson learned from Indonesia. And we still got one more

Indonesia. And we still got one more lesson learned from Lao PDR. Let's

lesson learned from Lao PDR. Let's welcome Mr. Solia Singalong, Deputy

welcome Mr. Solia Singalong, Deputy Director General of the Department of

Director General of the Department of Energy Policy and Planning, Ministry of

Energy Policy and Planning, Ministry of Industry and Commerce, Lao PDR.

Industry and Commerce, Lao PDR. The state is yours, sir.

Good afternoon, distinguished guest, ladies and

distinguished guest, ladies and gentlemen. I'm the lucky person because

gentlemen. I'm the lucky person because I'm the last speaker, I think. Uh thank

I'm the last speaker, I think. Uh thank you very much for staying with us here

you very much for staying with us here during the lunch time. Of course I have

during the lunch time. Of course I have invited to talks about the uh success

invited to talks about the uh success story and listens in the power

story and listens in the power development and financing energy for

development and financing energy for energy transition in the at the national

energy transition in the at the national level especially uh the LA PDR and of

level especially uh the LA PDR and of course I

Oh, sorry.

sorry. And I have only five minute to present

And I have only five minute to present you about uh what we have done in LA

you about uh what we have done in LA PGR. So, and of course I would like to

PGR. So, and of course I would like to next please. I would like to start from

next please. I would like to start from uh introduce about the economy and uh

uh introduce about the economy and uh foreign direct investment and of course

foreign direct investment and of course uh Laia is the main the main industry is

uh Laia is the main the main industry is the electric city and mining is the

the electric city and mining is the about the 30% is the electric city and

about the 30% is the electric city and mining is about the 22% and the less for

mining is about the 22% and the less for the service and agriculture. This is a

the service and agriculture. This is a very important uh sector for

very important uh sector for uh our countries. Next please. And of

uh our countries. Next please. And of course uh the government has very uh

course uh the government has very uh special

special uh uh set up the special uh sachi and

uh uh set up the special uh sachi and policy uh for foresting the uh in uh

policy uh for foresting the uh in uh foreigner in investment and of course uh

foreigner in investment and of course uh especially for the energy check sector

especially for the energy check sector such as uh hydrop power project

such as uh hydrop power project development uh we provide with very low

development uh we provide with very low uh yity rate late is about 1% only and

uh yity rate late is about 1% only and of course with the long-term period it's

of course with the long-term period it's about 25 to 30 years for the contract

about 25 to 30 years for the contract and there are uh incentive is the the

and there are uh incentive is the the free uh equipment import tax and extra

free uh equipment import tax and extra this is the one of the special policy

this is the one of the special policy and strategy for the LA government to

and strategy for the LA government to foresting the investment

foresting the investment please And this is also would like to

please And this is also would like to show you the the some project the big

show you the the some project the big project uh for the linear airboard

project uh for the linear airboard development in LA PDR. And of course the

development in LA PDR. And of course the in the coming years uh those project

in the coming years uh those project will be uh COD especially the uh monsoon

will be uh COD especially the uh monsoon project. This is the big project for the

project. This is the big project for the wind wind farm project in La Vida.

wind wind farm project in La Vida. Next please. And this is also some uh

Next please. And this is also some uh big project in the northern of LADR uh

big project in the northern of LADR uh in invest by the uh China company,

in invest by the uh China company, Chinese company for the solar PV and uh

Chinese company for the solar PV and uh this is also one of the target for the

this is also one of the target for the LA government to have the uh uh the

LA government to have the uh uh the power supply in the northern of Lao and

power supply in the northern of Lao and also export. Next please.

also export. Next please. And this is some the

And this is some the uh right to

uh right to uh as you may know the La Pedia is the

uh as you may know the La Pedia is the uh electricity export countries almost

uh electricity export countries almost 70% of electricity generation are export

70% of electricity generation are export to neighboring country like Thailand,

to neighboring country like Thailand, Vietnam, Cambodia, Singapore, China and

Vietnam, Cambodia, Singapore, China and so on. Next please. This is the I will

so on. Next please. This is the I will show you some the number of the export

show you some the number of the export that we have already uh signing the MOU

that we have already uh signing the MOU between the neighboring countries. Next

between the neighboring countries. Next please. And this is also I would like to

please. And this is also I would like to present you about the power sector

present you about the power sector organization structure. This is uh why I

organization structure. This is uh why I showing you because this organization is

showing you because this organization is very important sector for moving the

very important sector for moving the energy transaction development in in in

energy transaction development in in in our country and and of course the in the

our country and and of course the in the Asan uh country as well. Next please.

Yeah, this is some uh listen learn about uh the financing energy transaction in

uh the financing energy transaction in Lao PDR. Of course uh at I mentioned uh

Lao PDR. Of course uh at I mentioned uh the

the we we have a very special

we we have a very special uh

uh polit uh have special strategy and here

polit uh have special strategy and here is some reason for the financial uh

is some reason for the financial uh energy transition in the national level

energy transition in the national level and I happy to share with you uh the the

and I happy to share with you uh the the uh this one because uh of course there

uh this one because uh of course there are some lesson in LAR maybe not uh uh

are some lesson in LAR maybe not uh uh fits to your uh country but it depend on

fits to your uh country but it depend on the strategy and policy difference uh

the strategy and policy difference uh for the country but of course LADR we

for the country but of course LADR we have uh at I mentioned we the power

have uh at I mentioned we the power development projects almost in LA is the

development projects almost in LA is the project finance and equity is about 20

project finance and equity is about 20 or 30% and def

uh at I mentioned We also uh have the IP project. This is the one of

have the IP project. This is the one of the key that we uh have the IP project

the key that we uh have the IP project in in our country and uh of course most

in in our country and uh of course most project is B.

project is B. Next please.

this is the uh

uh just uh two month or three month ago.

just uh two month or three month ago. Yeah, this is the in order to promote

Yeah, this is the in order to promote the energy transaction development in

the energy transaction development in our country. The government uh

our country. The government uh authorized to the promotion bank to

authorized to the promotion bank to establish the green bond is armed to uh

establish the green bond is armed to uh bibili uh moilize the capital for

bibili uh moilize the capital for sustainable project development such as

sustainable project development such as uh the

uh the uh the hydro door project solar wind and

uh the hydro door project solar wind and other clean transportation. This is also

other clean transportation. This is also one uh the important for the uh

one uh the important for the uh financial for the trans energy

financial for the trans energy transition in allow

transition in allow and of course we also now work work out

and of course we also now work work out with the many uh financial international

with the many uh financial international uh organization uh which the this is

uh organization uh which the this is also we uh work closely with the finance

also we uh work closely with the finance institute

institute to carry out the uh the the

to carry out the uh the the uh financial clean financial uh uh in

uh financial clean financial uh uh in our country and of course uh I think the

our country and of course uh I think the most important things uh in order to

most important things uh in order to achieve the national regional level

achieve the national regional level solution for the mobilized uh private

solution for the mobilized uh private finance for the energy transaction

finance for the energy transaction I think first uh the innovation

I think first uh the innovation financing model suggest the uh green

financing model suggest the uh green brain finance and consal loan and to

brain finance and consal loan and to bridge the gap between the electricity

bridge the gap between the electricity demand and supply chain capital and the

demand and supply chain capital and the second the legional risk mitigation

second the legional risk mitigation mechanism is to address the private

mechanism is to address the private investment address concern over the

investment address concern over the currency functional fun

currency functional fun for proceed

for proceed uh uncertain and long-term bankability

uh uncertain and long-term bankability of the power purchase agreement and the

of the power purchase agreement and the final I would like to say is the uh

final I would like to say is the uh strengthening multilateral cooperation

strengthening multilateral cooperation among Asan member state development

among Asan member state development partners and the private sector will be

partners and the private sector will be a a key to ensuring that the energy

a a key to ensuring that the energy transaction project will be uh

transaction project will be uh both the finance and viable multi uh

both the finance and viable multi uh bit. So yeah, this is some information I

bit. So yeah, this is some information I would like to share with you here. Thank

would like to share with you here. Thank you very much for your kind attention.

you very much for your kind attention. Thank you.

Thank you very much, ladies and gentlemen. And as we're almost go to the

gentlemen. And as we're almost go to the lunch time, but we still get one more

lunch time, but we still get one more important thing and this is get back to

important thing and this is get back to the point of the launch of um portfol

the point of the launch of um portfol green fin uh energy transition portfolio

green fin uh energy transition portfolio of of GTF.

of of GTF. We have uh one more presentation then

We have uh one more presentation then fireside chat and this is all about that

fireside chat and this is all about that decarbonization and pushing the uh

decarbonization and pushing the uh transitions again. I'm happy to invite

transitions again. I'm happy to invite Abishakuma

Abishakuma uh from KPMG Malaysia to present his

uh from KPMG Malaysia to present his point. Bishek that is yours.

>> Thanks. Good afternoon everybody. Uh ladies and gentlemen, uh thank you for

ladies and gentlemen, uh thank you for the opportunity. Okay, I'll make it

the opportunity. Okay, I'll make it quick. I'm very hungry. So let's start

quick. I'm very hungry. So let's start with uh the point over here. Um our

with uh the point over here. Um our project

project work package 3.1 under the green

work package 3.1 under the green transition fund scheme. Okay, UKAC. So

transition fund scheme. Okay, UKAC. So our project is called green grids

our project is called green grids rising.

rising. What is it? There are three main

What is it? There are three main components. Number one, coal plant

components. Number one, coal plant repurposing.

repurposing. Number two, how ASEAN power grid can

Number two, how ASEAN power grid can support in that how renewables can

support in that how renewables can contribute to the objective. And number

contribute to the objective. And number three, smart grid. how smart grate

three, smart grid. how smart grate solutions can support variable renewable

solutions can support variable renewable energy integration as well as bringing

energy integration as well as bringing flexibility to coal plants. Those are

flexibility to coal plants. Those are three things that we will we are going

three things that we will we are going to address in the overall engagement.

to address in the overall engagement. Now when we talk about coal plant

Now when we talk about coal plant repurposing is quite unique for ASEAN.

repurposing is quite unique for ASEAN. It's a young coal plants are young here

It's a young coal plants are young here less than 10 years around 60% of the

less than 10 years around 60% of the capacity which is there for about 43 40%

capacity which is there for about 43 40% of the generation mix in ASEAN is from

of the generation mix in ASEAN is from coal it is it is import it's uh the

coal it is it is import it's uh the security of supply is maintained through

security of supply is maintained through the coal plants that are in operations

the coal plants that are in operations so any repurposing decision needs to

so any repurposing decision needs to take into account the reliability

take into account the reliability security affordability for the consumer

security affordability for the consumer consumers in ASEAN and that is objective

consumers in ASEAN and that is objective our study how we are going to address

our study how we are going to address that. Next slide please.

Okay. So in that three components that are we are going to look for when we

are we are going to look for when we talk about repurposing step one abating

talk about repurposing step one abating the emissions from the coal plant that

the emissions from the coal plant that could be putting in new technologies

could be putting in new technologies co-firing with alternate fuels. Number

co-firing with alternate fuels. Number two, rather than having coal plants as

two, rather than having coal plants as base load, can it be used for operation

base load, can it be used for operation flexibility? Introduce technologies for

flexibility? Introduce technologies for that. And finally, maybe they can become

that. And finally, maybe they can become museums in the future, shopping malls.

museums in the future, shopping malls. Thus, we call it repurposing,

Thus, we call it repurposing, replacing with new alternate uses.

replacing with new alternate uses. Next slide, please. Okay.

Next slide, please. Okay. The role of ASEAN power grid to provide

The role of ASEAN power grid to provide renewable energy as a potential to

renewable energy as a potential to replace what is the base coal supply

replace what is the base coal supply that is there. What are the key

that is there. What are the key um uh governance mechanism that needs to

um uh governance mechanism that needs to be put in place to allow that to happen

be put in place to allow that to happen where renewable energy is transferred

where renewable energy is transferred across the region to replace the base

across the region to replace the base load that the coal provides and that in

load that the coal provides and that in that essentially creates a larger

that essentially creates a larger cleaner energy market.

cleaner energy market. So to sum it up, last slide please.

So to sum it up, last slide please. There are four more four components that

There are four more four components that we are we are going to produce. Number

we are we are going to produce. Number one, preparation of guidelines for rapid

one, preparation of guidelines for rapid assessment for coal plant repurposing.

assessment for coal plant repurposing. Number two, institution and governance

Number two, institution and governance models for core crossber exchange. Focus

models for core crossber exchange. Focus on renewable energy dispatch.

on renewable energy dispatch. Number three, transition credits. We all

Number three, transition credits. We all have heard about carbon credits, trans

have heard about carbon credits, trans transition credits, how that can be

transition credits, how that can be generated and utilized for crossber

generated and utilized for crossber exchange.

exchange. And finally, the fourth one is about

And finally, the fourth one is about smart grid knowledge capacity building

smart grid knowledge capacity building for to use smart grid solutions for

for to use smart grid solutions for variable renewable energy as well as for

variable renewable energy as well as for flexibility for coal plants. Okay, that

flexibility for coal plants. Okay, that thank you very much.

Thank you Abishek and again the support of UK is actually beyond APG. We still

of UK is actually beyond APG. We still get one more area which we want to show

get one more area which we want to show which is industrial decarbonization. I'm

which is industrial decarbonization. I'm happy to invite in our fireside chat um

happy to invite in our fireside chat um speakers uh Miss Jaclyn Lamb regional

speakers uh Miss Jaclyn Lamb regional director of Asia sustainable energy for

director of Asia sustainable energy for all and as well as Miss Ranguin uh head

all and as well as Miss Ranguin uh head of international program and engagement

of international program and engagement and climate work center.

and climate work center. The state is yours.

>> Great. Happy for you to start.

Thank you very much. Good afternoon colleagues. It's a really um it's it's

colleagues. It's a really um it's it's such a pleasure to be here um and very

such a pleasure to be here um and very happy to be supporting of course the um

happy to be supporting of course the um UK Azan um green transition fund. Um

UK Azan um green transition fund. Um maybe I'll do a really quick uh

maybe I'll do a really quick uh introduction of um sustainable energy

introduction of um sustainable energy for all. Uh of course my colleague

for all. Uh of course my colleague earlier had um moderated the panel. Um

earlier had um moderated the panel. Um we're working on the energy transition

we're working on the energy transition and investment for green value chains um

and investment for green value chains um in Azan and this is really uh you know

in Azan and this is really uh you know very closely linked to a large uh

very closely linked to a large uh component of the Azan green transition

component of the Azan green transition fund um energy sector support which is

fund um energy sector support which is absolutely crucial given the

absolutely crucial given the intersection of um of course delivery of

intersection of um of course delivery of SDG7 for clean and affordable universal

SDG7 for clean and affordable universal energy access uh in relation to SDG13 on

energy access uh in relation to SDG13 on climate action as well. Um now a lot of

climate action as well. Um now a lot of the work that is uh currently taking

the work that is uh currently taking place um through our program in Azan is

place um through our program in Azan is to really look at how the energy sector

to really look at how the energy sector is a key is going to be a key enabler

is a key is going to be a key enabler for the decarbonization of multiple

for the decarbonization of multiple sectors from road uh to buildings to

sectors from road uh to buildings to industrial activities and then also to

industrial activities and then also to use that to map the potential renewable

use that to map the potential renewable energy demand and of course the

energy demand and of course the potential for manufacturing of renewable

potential for manufacturing of renewable energy components in order for Azan to

energy components in order for Azan to fully optimize its manufacturing

fully optimize its manufacturing capabilities to support also the

capabilities to support also the deployment of renewable energy within

deployment of renewable energy within the region. Um so this is being done

the region. Um so this is being done through our um sustainable energy for

through our um sustainable energy for all energy transition uh model which

all energy transition uh model which really looks at the least cost

really looks at the least cost optimization of current um available

optimization of current um available solutions in order to support the uh

solutions in order to support the uh clean energy transition while also

clean energy transition while also mapping this into potential critical

mapping this into potential critical minerals demand of which uh we are also

minerals demand of which uh we are also separately working with the Azan

separately working with the Azan workstream on uh minerals to look at

workstream on uh minerals to look at both the trade and investment potential

both the trade and investment potential components related to critical minerals

components related to critical minerals in uh including value addition

in uh including value addition investments uh manu manufacturing

investments uh manu manufacturing capabilities related to renewable energ

capabilities related to renewable energ uh renewable energy manufacturing as

uh renewable energy manufacturing as well as critical demands uh critical

well as critical demands uh critical minerals demand

minerals demand um and then of course how to better

um and then of course how to better leverage the integrated trade and um

leverage the integrated trade and um value trade and supply value chain that

value trade and supply value chain that already exists within Azan but to also

already exists within Azan but to also fully leverage um the existing for

fully leverage um the existing for example Azan trade agreements as well as

example Azan trade agreements as well as renewable energy manufacturing value

renewable energy manufacturing value chains and to optimize them um across

chains and to optimize them um across the region for a fully integrated uh

the region for a fully integrated uh green value chain as well. So these were

green value chain as well. So these were uh these are some of the key comparative

uh these are some of the key comparative advantage areas that we have already

advantage areas that we have already identified through um an initial study

identified through um an initial study that was done in 2023 looking at um

that was done in 2023 looking at um solar PV electric two and three-wheelers

solar PV electric two and three-wheelers as well as battery manufacturing as some

as well as battery manufacturing as some of the key areas for renewable energy

of the key areas for renewable energy manufacturing that um Azan member states

manufacturing that um Azan member states have comparative advantage in producing.

have comparative advantage in producing. Thanks.

Thanks. >> Thank you Jack. And that's uh the focus

>> Thank you Jack. And that's uh the focus of of um in industry in the green value

of of um in industry in the green value chain. But let's get back to Trang uh to

chain. But let's get back to Trang uh to the climate works work in regards to the

the climate works work in regards to the how can then somehow because the

how can then somehow because the industry while we want to decarbonize

industry while we want to decarbonize still need to be competitive and what

still need to be competitive and what will be the approach uh that somehow are

will be the approach uh that somehow are so supported by the GTF um program. Ran.

so supported by the GTF um program. Ran. >> Yeah, sure. Thank you. Uh, Redwan, um, I

>> Yeah, sure. Thank you. Uh, Redwan, um, I think in terms of the, um,

think in terms of the, um, decarbonization challenges, um, I think,

decarbonization challenges, um, I think, um, probably let me just set the context

um, probably let me just set the context a little bit, uh, in terms of how we

a little bit, uh, in terms of how we approach the program. I think the global

approach the program. I think the global context um, I'm not sure whether going

context um, I'm not sure whether going to show slides or not. Yeah.

to show slides or not. Yeah. Yeah. So, this is the global context. Um

Yeah. So, this is the global context. Um one of the slides shown by ma um one of

one of the slides shown by ma um one of um our colleagues from mission possible

um our colleagues from mission possible partnership who is our implementing

partnership who is our implementing partner. Um at the moment one of the uh

partner. Um at the moment one of the uh China or EU and US continue to be one of

China or EU and US continue to be one of the largest investor in the global

the largest investor in the global pipelines for clean industries. But

pipelines for clean industries. But however there is a new emerging blocks

however there is a new emerging blocks of countries who are attracting new

of countries who are attracting new clean investment wi which account for

clean investment wi which account for around 60% of the total global vi

around 60% of the total global vi pipelines and this block called the new

pipelines and this block called the new industrial sunb belt and this industrial

industrial sunb belt and this industrial sunb belt basically um indicate that the

sunb belt basically um indicate that the shifting of manufacturing sectors and

shifting of manufacturing sectors and future industry are shifting to the

future industry are shifting to the countries that have a lot of renewable

countries that have a lot of renewable resources and a lot of them are actually

resources and a lot of them are actually in emerging markets and you can see from

in emerging markets and you can see from the picture ASEAN is in the center of

the picture ASEAN is in the center of this industrial sunb belt. So the

this industrial sunb belt. So the there's a lot of opportunity for um

there's a lot of opportunity for um ASEAN and the region to build the

ASEAN and the region to build the industrial competitiveness from the

industrial competitiveness from the renewable energy potential. So that's

renewable energy potential. So that's where we approached the program. Um

where we approached the program. Um however but also it's a lot of speakers

however but also it's a lot of speakers today have recognized a lot of

today have recognized a lot of challenges and for example uh investment

challenges and for example uh investment financing is one of the biggest

financing is one of the biggest challenges. Uh I look at the stats

challenges. Uh I look at the stats yesterday. Um in order to decarbonize uh

yesterday. Um in order to decarbonize uh Vietnam and Indonesia, it will take

Vietnam and Indonesia, it will take around uh 120 billion or 130 billion in

around uh 120 billion or 130 billion in itself to get to net zero in industrial

itself to get to net zero in industrial sectors and that doesn't include like

sectors and that doesn't include like for example upgrade the grids and

for example upgrade the grids and solution related to the power sector. So

solution related to the power sector. So the the investment is large. So a lot of

the the investment is large. So a lot of other uh speakers today already talk

other uh speakers today already talk about that and it's very important to

about that and it's very important to address these uh investment challenges.

address these uh investment challenges. So the second slide please. So the way

So the second slide please. So the way we um we approached the program. So

we um we approached the program. So first of all we do believe that there's

first of all we do believe that there's a strong case for a coordinated ASEAN

a strong case for a coordinated ASEAN clean manufacturing strategy. um one

clean manufacturing strategy. um one that integrates the region industrial

that integrates the region industrial competitiveness and the decarbonization

competitiveness and the decarbonization opportunities in the region. So we

opportunities in the region. So we really look forward in the next uh few

really look forward in the next uh few months work uh working with the UK

months work uh working with the UK government with the ASEAN secretariat as

government with the ASEAN secretariat as center for energy paladium uh to work on

center for energy paladium uh to work on a strategy that sort of um synchronize

a strategy that sort of um synchronize the industrial competitiveness but also

the industrial competitiveness but also the the climate outcomes, industrial

the the climate outcomes, industrial decarbonization outcome. And we look at

decarbonization outcome. And we look at it through the very sector specific

it through the very sector specific focus um and provide a very sector

focus um and provide a very sector specific detail solutions uh using

specific detail solutions uh using things like cost competitive analyszis

things like cost competitive analyszis uh and understanding what is the margin

uh and understanding what is the margin no abayment cost um to to really

no abayment cost um to to really prioritize the opportunities and uh what

prioritize the opportunities and uh what are the enabling policy needed. And then

are the enabling policy needed. And then we go to the further level which is the

we go to the further level which is the technology level. And um what we learn

technology level. And um what we learn is that technologies for example with

is that technologies for example with the same technology uh level of

the same technology uh level of readiness when it come to different

readiness when it come to different context the cost of adopting that

context the cost of adopting that technologies can be very different. So

technologies can be very different. So we really want to bring out some of the

we really want to bring out some of the specific case study in terms of what is

specific case study in terms of what is the cost curve of deploying this kind of

the cost curve of deploying this kind of technology in certain context and

technology in certain context and certain country. And the last one is

certain country. And the last one is about the governance and partnership

about the governance and partnership recognizing the the strong potential of

recognizing the the strong potential of ASEAN being uh having foster the trade

ASEAN being uh having foster the trade mechanism um and uh fostering a lot of

mechanism um and uh fostering a lot of partnership not within the region but

partnership not within the region but also with the existing dialogue partners

also with the existing dialogue partners 11 dialogue partners and um as Natasha

11 dialogue partners and um as Natasha say from interest to invest so how to

say from interest to invest so how to foster that uh relationship which is

foster that uh relationship which is very important. I'm going to pause

very important. I'm going to pause there. Thank you. Thank you Trang. So I

there. Thank you. Thank you Trang. So I think we got two um you know one focus

think we got two um you know one focus on industrial car but two different

on industrial car but two different approaches um that GTF offer like the

approaches um that GTF offer like the first one is pretty high level on the

first one is pretty high level on the value chains how would then we are

value chains how would then we are seeing the potentials of the the green

seeing the potentials of the the green value chain SAN would develop and then

value chain SAN would develop and then focus specific sector then in an

focus specific sector then in an industry how would then we able to

industry how would then we able to provide um solutions there. So I'll get

provide um solutions there. So I'll get back to Jack um in the sense of of how

back to Jack um in the sense of of how then um the program that we are working

then um the program that we are working on together um in the following years

on together um in the following years will then able to let's get back to the

will then able to let's get back to the green value chains right because you say

green value chains right because you say that as what mentioned ASEAN is a new

that as what mentioned ASEAN is a new industry growth and ASEAN should be able

industry growth and ASEAN should be able to build its own value chain actually

to build its own value chain actually with the model that you uh plan in um so

with the model that you uh plan in um so how would then actually the things would

how would then actually the things would be able to manifest for for for its own

be able to manifest for for for its own asan benefit Thank you very much. Yes.

asan benefit Thank you very much. Yes. So, uh there is what we want to try and

So, uh there is what we want to try and do with with our initiative is to really

do with with our initiative is to really look at um at along the different parts

look at um at along the different parts of the value chain along the different

of the value chain along the different steps of manufacturing from and and

steps of manufacturing from and and really looking at a life cycle analysis

really looking at a life cycle analysis of where the critical minerals come from

of where the critical minerals come from where the potential components uh for

where the potential components uh for manufacturing are going to uh for them

manufacturing are going to uh for them uh be contributed into. And we also want

uh be contributed into. And we also want to look at exploring for example the end

to look at exploring for example the end of life cycle management of uh for

of life cycle management of uh for example uh end of life cycle of battery

example uh end of life cycle of battery components, solar PV components and the

components, solar PV components and the potential therefore for recovery of uh

potential therefore for recovery of uh critical minerals and other you know

critical minerals and other you know metallic elements for example from um

metallic elements for example from um each of these components. So really

each of these components. So really identifying for example in the case of

identifying for example in the case of Indonesia where there is comparative

Indonesia where there is comparative advantage obviously in the nickel

advantage obviously in the nickel production but downstreaming um in

production but downstreaming um in Indonesia but also looking at uh

Indonesia but also looking at uh advanced manufacturing for example of

advanced manufacturing for example of the battery components which requires a

the battery components which requires a significant uh level of precision in in

significant uh level of precision in in the manufacturing and where there are

the manufacturing and where there are also existing um capabilities uh that

also existing um capabilities uh that reside in Malaysia and Vietnam in

reside in Malaysia and Vietnam in Thailand for example and so how uh Can

Thailand for example and so how uh Can Azia member states then integrate uh

Azia member states then integrate uh some of these uh regional value chain um

some of these uh regional value chain um activities and practices across the

activities and practices across the board and where battery recycling is a

board and where battery recycling is a fairly new activity. Looking ahead 10

fairly new activity. Looking ahead 10 years ahead you know uh for when end of

years ahead you know uh for when end of life cycle electric vehicles and

life cycle electric vehicles and electric two-wheelers start to come into

electric two-wheelers start to come into play. Where should some of these

play. Where should some of these resource uh recovery and recycling

resource uh recovery and recycling facilities where can where in Azan can

facilities where can where in Azan can some of these facilities be be

some of these facilities be be established in order to really um fully

established in order to really um fully for for the member state to fully

for for the member state to fully leverage um their respective comparative

leverage um their respective comparative advantages and capabilities within that

advantages and capabilities within that supply chain space. So this is um what

supply chain space. So this is um what the the study and the activities in this

the the study and the activities in this project will seek to unpack as well.

project will seek to unpack as well. Thanks.

Thanks. >> Super. And then once the study we got

>> Super. And then once the study we got the final green value chain analysis

the final green value chain analysis where it's actually the the the

where it's actually the the the potentials there you know we want to

potentials there you know we want to build a lot of renewable power with

build a lot of renewable power with solars but then obviously mineral

solars but then obviously mineral processing is needed and mineral

processing is needed and mineral processing is at hard to abate industry.

processing is at hard to abate industry. Thus Cact is trying to offer something

Thus Cact is trying to offer something there. So would would you be able to

there. So would would you be able to elaborate more on you know what how then

elaborate more on you know what how then at least the impact will be able to

at least the impact will be able to support they have to obey the industry

support they have to obey the industry um decarbonization um with your

um decarbonization um with your technological solutions that you somehow

technological solutions that you somehow touched a bit. Yeah, thanks Redwin. So

touched a bit. Yeah, thanks Redwin. So we see technology I mean a lot of people

we see technology I mean a lot of people have done a lot of technology toolkits

have done a lot of technology toolkits like if you Google technology for green

like if you Google technology for green steel you will have a long list of

steel you will have a long list of technology that being available at

technology that being available at different level tier one tier two tier

different level tier one tier two tier three tier four. The most important

three tier four. The most important thing when we talk about technology is

thing when we talk about technology is that how technology in a context being

that how technology in a context being applied and again I cannot stress enough

applied and again I cannot stress enough how important that needs to be put in

how important that needs to be put in the local context policy people. Um I

the local context policy people. Um I think in order to enable that I just

think in order to enable that I just think about let's say um I know

think about let's say um I know diplomats like three points I just say

diplomats like three points I just say four points four Ps um policy people

four points four Ps um policy people pipelines and partners. So I think

pipelines and partners. So I think that's the four key elements which are

that's the four key elements which are very important to to for industrial

very important to to for industrial decarbonization. Um so on the policy

decarbonization. Um so on the policy side and again there's a hundred of

side and again there's a hundred of policy we can talk about but I think

policy we can talk about but I think normally we see it as um the sub supply

normally we see it as um the sub supply demand and supply chain. So the on the

demand and supply chain. So the on the supply side of course it's very

supply side of course it's very important to recognize that the uh clean

important to recognize that the uh clean power generation is very important and I

power generation is very important and I know that a lot of other colleagues like

know that a lot of other colleagues like uh ECA and KPMG and other colleagues are

uh ECA and KPMG and other colleagues are tackling this challenges and it's

tackling this challenges and it's extremely important for industrial

extremely important for industrial decarbonization on the and then we also

decarbonization on the and then we also work a lot on natural industrial

work a lot on natural industrial precinct which is a plexbay approach um

precinct which is a plexbay approach um to to demonstrate how a plex like for

to to demonstrate how a plex like for example clean energy the supply clean

example clean energy the supply clean energy hub can leverage uh

energy hub can leverage uh infrastructures uh coordinated

infrastructures uh coordinated infrastructure in a place to help the

infrastructure in a place to help the demonstrate the manufacturing of that

demonstrate the manufacturing of that facilities on the demand side. Um so a

facilities on the demand side. Um so a if countries can ask oh if we do a lot

if countries can ask oh if we do a lot of effort so to manufacturing clean

of effort so to manufacturing clean products where we going to export what

products where we going to export what what we going to use that for. So demand

what we going to use that for. So demand side is equally as important as policy

side is equally as important as policy on the supply side and demand side there

on the supply side and demand side there are long lists again of policy that need

are long lists again of policy that need to be considered put into context and

to be considered put into context and understand the the the cost and benefits

understand the the the cost and benefits um standardization public procurement

um standardization public procurement and then how to integrate the supply

and then how to integrate the supply chain um with other countries like for

chain um with other countries like for example intra trade within ASEAN is

example intra trade within ASEAN is around 25% but then there's a lot of um

around 25% but then there's a lot of um a lot

a lot uh opportunity to tackle in demand

uh opportunity to tackle in demand central in for example Japan, Korea and

central in for example Japan, Korea and also how to build the existing leverage

also how to build the existing leverage partnership to build that supply chain.

partnership to build that supply chain. Uh yeah and then people is very

Uh yeah and then people is very important um uh and people is we can

important um uh and people is we can talk about technology but a lot of if we

talk about technology but a lot of if we don't have the right skill set to

don't have the right skill set to actually understanding the adoption of

actually understanding the adoption of those technology calculate the

those technology calculate the investment in the technology is very

investment in the technology is very important. So again, that's another

important. So again, that's another element and then I'm just going to pause

element and then I'm just going to pause there. I know we run out of time.

there. I know we run out of time. >> Thank you. It's a bit unfortunate with

>> Thank you. It's a bit unfortunate with that we're closing to lunch time and and

that we're closing to lunch time and and how important this discussion is

how important this discussion is actually uh when people are so excited

actually uh when people are so excited about uh you know potentials there,

about uh you know potentials there, finance there for the grid and renewable

finance there for the grid and renewable energy. But in the end, industrial

energy. But in the end, industrial legization is the one um serving the

legization is the one um serving the backbone on what value chain we need to

backbone on what value chain we need to build. Uh what need to do in the

build. Uh what need to do in the industry sector that so then it's still

industry sector that so then it's still hard to bait um and then you know can be

hard to bait um and then you know can be decarbonized. But anyway uh we're almost

decarbonized. But anyway uh we're almost closing. So thank you. Let's have a

closing. So thank you. Let's have a round of applause for Trang and Jacine

round of applause for Trang and Jacine everyone. Uh

everyone. Uh [applause]

so yeah we are on the uh end of the sessions and uh we would really love to

sessions and uh we would really love to extend our gratitude um for you

extend our gratitude um for you attending this uh launch and and the the

attending this uh launch and and the the sessions on powering as energy

sessions on powering as energy transition. Um just to inform that this

transition. Um just to inform that this is not the end of GTF. GTF consists of

is not the end of GTF. GTF consists of five pillar. This is the third pillar

five pillar. This is the third pillar and we will see the next launch in the

and we will see the next launch in the Asan business investors mammit for on

Asan business investors mammit for on energy finance pillar next week in Kale

energy finance pillar next week in Kale and Metek. So let's uh let's see you

and Metek. So let's uh let's see you soon and yeah I'm happy to uh have a

soon and yeah I'm happy to uh have a discussions later if you want to know

discussions later if you want to know more about the green transition fund uh

more about the green transition fund uh the third pillar as well as the second

the third pillar as well as the second pillar and yeah thank you everyone and

pillar and yeah thank you everyone and yeah have a nice um lunch and have a

yeah have a nice um lunch and have a nice day.

nice day. >> [applause]

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YouTube Transcript:#AEBF25 | Day 3 - Powering ASEAN Energy Transition: Connectivity, Financing, and Investment