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#AEBF25 | Day 1 - Paving Pathways to Scale Up Low-Carbon Energy Investment in ASEAN

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This content details the launch of two key reports, "ASEAN Energy Investment 2025" and the "ASEAN Capacity Building Roadmap on Energy Investment 2025," aimed at accelerating low-carbon energy investment and fostering sustainable financing mechanisms across the ASEAN region.

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Um again my name is Raal Takiara. I am a

junior associate officer from the energy

modeling and uh and policy planning

department from the Azan Center for Energy.

Energy.

And um now I will serve as your master

of ceremony for our third plenary

session today. Puffing pathways to scale

up lowcarbon energy investment in Azan.

the public launching of the Azan energy

investment 2025 and the AAN capacity

building roadmap on energy investment 2025.

2025.

For the next 60 minutes, the session

will be dedicated to the exclusive

public launch of the two of Assean

Center for Energyatic flagship reports

supported by our partner the energy

foundation China which aims to target

the financing aspect of energy.

Ladies and gentlemen, before we move to

the session, we will now hear welcoming

remarks from Dto Rajip, the executive

director of Asan Center for Energy. To Deto,

Deto,

Uh thank you um Madame MC.

This is my third time on stage this

morning. [laughter]

and very good morning or good afternoon

uh to all of you. Uh Mr. Zang Guaya

Yong, the executive directors for

international cooperation of uh EFC

and uh my friend from uh AA AIB

and distinguished delegates. Ladies and

gentlemen, uh it is my great pleasure to

welcome again all of you uh today uh to

the launch of the ASEAN energy

investment 2025

and the ASEAN energy capacity building

roadmap on energy investment.

These two important documents shall

support Assean toward a more secured and

affordable energy future through

innovative sustainable financing.

Indeed, this aspect is the bedrock of

our Assean energy cooperation for the

future. Excellencies, ladies and

gentlemen, without this innovation or

without this innovative and sustainable

financing mechanisms,

even the most promising project risk stagnations.

stagnations.

We must mobilize public and private

capital, mitigate investment risk, and

foster enabling environments that can

attract long-term commitments. and

financing is about trust,

vision and shared opportunity.

So this launch represent more than the

completion of two reports. It marks an

essential milestone in our collective

journey toward a sustainable, resilient

and integrated AAN energy future. Both

documents reflects our shared

commitments to enhancing corporations,

attracting sustainable investment and

empowering our people with the knowledge

and skills needed for the transition. uh

through stronger partnerships and and

unwavering commitments we can transform

our ambitions into reals impactful

actions but that benefits

citizens today and for the generation to

Thank you.

>> Thank you. Thank you so much Digwood for

your warm and [music]

um insightful remarks. Now um we will

also hear another welcoming remarks from

our honored guest Mr. Jang Hyong,

executive director of international

cooperation from the Energy Foundation

China. To Mr. Jung please. The stage is yours.

>> Okay. Uh good morning ladies, gentlemen,

especially uh our uh long-term partner

Du Razby Dawood, executive director of

Asia Center for Energy.

It's uh it's my great honor to stand

here uh to with all of us. Uh I just on

behalf of Andy Foundation China

uh to mark this official public uh

launch uh of the ACR uh and investment

2025 report and in and 2025 ACR capacity

building road map on energy investment.

Uh I would like to thanks Malaysia

government's hospitality. It impressed

me a lot about the today's meeting and

convention. Uh this significant event

brings together key stakeholders uh

dedicated to advancing uh sustainable uh

energy develop development uh in this

region. So over recent years, AIA has demonstrated

demonstrated

remarkable progress in expanding and sector

sector

uh fostering economic growth and

improving living standards.

However, these advancements also pose

new challenges

ranging from energy security and

affordability to the urgent need for

sustainable and renewable energy sources.

sources.

It's precisely with this context that

the insights and the strategies outline

in this report become critical.

Theas and investment 2025 report

provides a comprehensive assessment of

current investment trends, opportunities

and challenges.

It offer

valuable guidance for policy makers,

investors and industry players

to make informed decisions

that align with Assa long-term energy goals.

goals.

Meanwhile, the cap capacity building

road map serves as a strategic blueprint

to strengthen regional expertise

foster innovation and the developer

necessary skills to implement

sustainable energy projects effectively.

At this pivotal moment, the AEM plan of

action for anti-corporation

20 uh 26 to 2030 is being launched and

as we uh we approaching UN trip Flec COP

30, we believe this finding will offer

valuable guidance for AI stakeholders

and global partnersh

at any Foundation China. We believe that

reg cooperation, knowledge sharing and

capacity building are essential for

unlocking the full potential for Asia

energy sector. By working together with

governments, private sectors and

development partners, we can accelerate

the transition toward a resilient,

lowcarbon, and inclusive energy future.

I would like to extend my heart

heartfelt gratitude to ASA center for

energy for your invaluable work in

producing this report, organizing IEBF

and this special uh session and

continually fostering renewable collaboration.

collaboration.

Your dedication and leadership are instrumental

instrumental

in shaping a sustainable and future for

AIA. We are grateful for this fruitful

partnership and your leadership and look

forward to deepening our cooperation in

the years ahead.

Finally, let me extend my

thanks to all partners, stakeholders,

and participants here today. Let this

launch inspire us to deepen our

collaboration, harness innovation and

invest wisely in a sustainable and

future for AIA.

Thank you for attention and

participation. I look forward fruitful

discussions and collective efforts

>> Thank you [music] so much Mr. Jang for

your um warm greetings and also sharing

the [music] remarks with us.

Distinguished participants, as the main

[music] objective of the session to

officially and publicly launch the two

reports on Azan energy investment 2025,

we will now showcase a short

Heat. Heat. Heat up

Please give a round [music] of applause

everyone for the launch of the two

report on AEN energy investment 2025.

This marks another milestone for the

region's effort in securing a

sustainable future in energy sector. And

to commemorate this momentum, I would

like to kindly ask several people to

come join us to the stage and take a

picture presenting the newly public

launch uh of the report. First, I would

like to invite Raud, executive director

Next, Mr. Jang [music] Hiong, executive

director of International Cooperation

Energy Foundation, China.

And then Mr. Rajat Misra, director

general, public [music] sector clients

department of region one from Asan

infrastructure [music] investment bank.

Next, Mr. Kohungan, chief operating

officer from Seda, Malaysia.

And last but not least, Dr. [music]

Zulfi as the manager of energy modeling

and policy planning from the Assean

The photo session will be assisted by

Thank you everyone for um commemorating

this um event um of public launch of the

two reports. We are very [music] honored

to have you here and you may now return

Ladies and gentlemen, we would like to

take a brief moment to express our

gratitude to Deto, the executive

director of Asan Center for Energy for

um sparing his time to um join us at

this plenary session and also sharing

his remarks. Um unfortunately after this

he will have to attend the uh another

official agenda and so uh we wish him

the best of luck for u his next um commitment.

commitment.

Now to move forward uh with our um

agenda, we would like to pre uh provide

a clearer and wider understanding of the

topic of energy financing

with presentations and then followed by

a panel discussion. The first to deliver

his keynote presentation will be Mr.

Rajat Misra, director general public

sector clients department of region one

Assean infrastructure investment bank.

Please Mr. Rajat Misra join us to the stage.

Uh thank you uh distinguished delegates,

ladies and gentlemen. Uh on behalf of

AIB, it's my honor to be speaking to all

of you uh on this very important topic

of AEAN energy. Um for those of you

unfamiliar with AIB, please allow me a

couple of minutes to introduce u our

organization. Uh we are the newest multilateral

multilateral

u we uh with more than 110 members right

now. Uh but uh the unique thing about

AIB is that is substantially owned by

Asian countries. So we are pretty much

your local global bank. Um we are u uh

into our 10th year of operation and in

these uh 10 years till now we have

approved uh more than 300 projects

aggregating about uh $65 billion of

investment uh which is um a commendable achievement.

achievement.

Um and of our thematic priorities there

are many which resonate with the theme

out here. For example, private capital

mobilization, green infrastructure,

crossber mobility, uh connectivity and

so on.

Now of the projects that you know I just

told you about 65 billion uh about uh

quarter of them are energy projects and

if you look at Azan alone we have

approved about a billion dollar worth of

projects uh um across uh six seven

projects and there are 14 more projects

in the pipeline and there is uh and

those are projects we're working on not

counting uh what we were discussing on

on other projects right now And one of

the key elements again uh which aligns

with our thematic priority is how can we

support Azan power grid uh which remains uh

very aligned with our thematic priority

of crossber connectivity.

Um and there are various ways in which

banks like ours and uh like other

multilaterals we are happy very happy to

join hands with World Bank and ADB on

this endeavor um um to support the

energy transition. Azan we've already

seen um you know some of the issues and

statistics presented out here and I'm

sure the the report will go into the

details but uh the numbers that are

being presented on the energy

requirements in Azan you know um the

energy requirement will be 2.6 six times

by 2050 compared to what it is now. The

annual energy investment may be more

than $200 billion. That's the annual

investment uh required and so on. So

what it really means is there's a huge

capital requirement uh that is acquired

for Azan energy sector and um which

means that every pool of capital will

have to be mobilized uh to help in this

uh endeavor which means that uh you know

uh of course the multilateral banks uh

which are there but it'll require other

than public financing require uh private

financing uh which mean includes

commercial banks uh pension funds,

insurance funds, private equity, philanthropics

philanthropics

uh and so on. And there are various

instruments uh to mobilize that. For

example, if you look at AIB, other than

direct lending that we do, we also have

like other multilaterals B loans to

mobilize private capital. We use

financial intermediaries very

effectively, you know, using uh local

banks and institutions to on lend. Uh we

have uh a robust capital market uh

division which does securitization and

essentially taking infrastructure assets

to the capital markets where pension

insurance funds can invest and so on. So

uh the idea is to pull every bit of

capital available to uh meet the

requirements of uh Azan energy

requirements. Now of course there are a

lot of challenges that we heard I mean

uh how would we

address for example regulatory issues

they're cross I mean especially in cross

border which domain um the legal

agreements what will be the offtake

payment security um dispatch uh

mechanisms and so on but then there are

enough examples from the world which

which are there and I hope we can uh we

can learn from them build on them and

get to actual projects uh very quickly. quickly

quickly

um and to I know we have a very

interesting uh panel discussion ahead so

I won't uh take much of the time but

from our side I can assure that AIB is

fully committed to uh partnering with

Azan countries uh in in um in ensuring

energy security and energy transition

and also a big thanks to APG we are as I

said we are fully committed to crossber

connectivity uh um themes which will

ensure that uh resourcerich uh uh

members are able to transmit energy to

where it's required and

you know when when we started AIB

we started working on projects right

from day one even before a lot of

policies in place and I think that's

probably one way of doing it that let us

identify a few priority sector projects

run with them and you know try to solve

issues as we go forward of course

getting them right is is is is very

important. Uh with that I'll uh thank

you once again for your attention and I

look forward to a very fruitful

discussion and hope that uh from AIB

side we are able to contribute

meaningfully to this uh exchange as

>> Thank you very much Mr. Rajat [music]

Misra for the very insightful um speech

that provides us a wider context of the

topic. It is indeed a very um relevant

information um for us to continue with

the discussion.

Therefore, we will now move to the next

agenda which will talk about the report

at a deeper level focusing on the key

insights of the Azan energy investment

2025 report and the 2025 AEN capacity

building roadmap on energy investment.

For this session, I would like to invite

Dr. Dr. Ambia Abdullah, senior

researcher of energy modeling and policy

planning, Asan Center for Energy. Dr.

Um, okay.

Uh, good morning distinguished uh,

guest, dialogue partner and participant.

On behalf of the Asen Center for Energy

team, it is great honor to join all of

you to public launch of our two critical

report on 2025

uh Asan energy investment and assean

capacity building road map on energy

investment. These two report are

critical because as mentioned by dato in

the morning in the opening remark that

now we are preparing for the upcoming

Assean plan of action for energy

cooperation 2026 2030.

2030.

finance uh is one of the key enabler

that Asan would need to achieve its uh

next five years uh target on

accelerating uh decarbonization

and enhancing energy security for a just

and inclusive energy transition. Uh I

think I have slide what somebody uh

okay yeah thank you yeah so in the

following slide I will highlight it the

key finding of these two report uh as

mentioned these two report are critical

and aligned with our upcoming ASEAN plan

of action for energy cooperation 2026

to 2030. These two report uh

complementing each other. So the

structure uh consists uh from the

current state and progress of the Asan

energy investment enabling policy key

barriers financing mechanism and we also

mentioned some uh global case study that

asan would need to learn from available

best practice at the global and also uh

the report proposed capacity building

priority for energy investment for the

upcoming Asan plan of action for energy cooperation

cooperation

and now let us look how is the progress

the state and progress of the Assean

member state on several indicators on

energy investment. So if we look like

half of the most uh half of the EMS

already achieve 100% of electrification

while other also uh show progressing u

uh good progressing on electrification

and energy access and if we look on the

target that uh AMS anon as of 2025

most AMS uh have set target to have

renewable energy share. in their power

generation uh around 40 to 51%

of of re share in power generation by

2035 and it increase up to 71% of the re

share in total power generation by 2050.

However, if we look on the on the gap of

the investment, I think DJ Rajab also

mentioned investment gap is still huge.

The ASEAN uh investment gap based on

several studies range from 68 billion US

dollar to 200 billion US dollar per year

is found as the energy investment gap

that Asan still facing and struggle to

solve the this problem. So if we look on

the problem why this huge and

significant investment gap happened in

Asan energy sector uh the key factor

range from the uncertainty of the policy

regulatory framework and an availability

to access to the finance are among the

key factor behind this investment gap as phase

phase

and then now let me share with you our

analysis finding state in our report in

2025 Asan energy investment. So this is

based on what we consult closely with

the representative from the Asan member

state regarding their view what would be

the most uh priority or urgent key

factors that cause this significant

investment gap in Asan. So we found that

in term of the key challenges legal and

regulatory risk are still few as uh one

uh most priority uh key factors behind

this and then also high cost of equity

shortage of bankable project is also one

of the key factors and then in term of

the financial instrument the asan member

state pointed out the rank the priority

of the blended finance and also So uh

public private partnership uh are

important to mobilize private sector or

private investment to to fill this

energy investment gap in ASEAN.

And in term of the priority action for

the next five year, the ASEAN member

state uh view that the stronger

incentive and measure for enhance the

energy investment in Asan would be one

of the key priority.

Second having a robust market on

sustainable finance. I think at the Asan

level we already established and

progress significant one in term of the

sustainable finance. On this we have

also launched in 2023 Asan taxonomy on

sustainable finance. We also have Asan

guidance for energy transition and other

ongoing uh significant uh progress that

the region also uh done in the in the

Okay. Now coming to the conclusion and

policy recommendation based on our

finding that uh we feel that the to

address uh legal and regulatory risk to

streng investment con confidence to

invest in as an energy investment is a

must is the most priority that the

region need to take an action. The

second develop regional investment

database. This is important because uh

for the long term having a robust energy

investment database can facilitate the

region to match between supply and

demand on which sector still need the

investment to be filled. On another side

which are available uh finance uh

financial source that the sector could

attract to to finance in in the coming

next five years.

uh also uh having a continuous uh

knowledge sharing platform because as

data also mentioned uh we have uh 10 as

member state and now becoming uh 11 as

member state is quite huge and we have

diversifi diversification of the market.

So if we could come together and have a

knowledge sharing the struggle and the

challenge and the support each other

would be enhance the energy investment

in the coming next five years.

Okay, this is uh the one after having

the conclusion and also this is the one

the capacity building road map we

propose that the ASEAN would like to

focus in the next uh five years under

the ASEAN plan of action for energy

cooperation. One is 2026

is established energy investment pathway

pathway because in the coming uh year in

the next uh amm in IBF we will also

launch the Assean energy outlook 9

edition that having investment pathway

that cover all the key priority sector

under Assean energy sector would be also

critical for the region and also having

the linkage with the financial

institution is important. important

because uh after our consultation with

the Asan member state sometime no match

or mismatching the understanding between

the energy sector uh stakeholder and

also financial institution is seen as a

one of the key of the challenge that uh

Asan member state view at the moment and 2026

2026

the region need to focus on the

diversify and the risk financial

mechanism we aware that we have

implement several policy to the risk on

on the financial but to streng this kind

of the uh the risk financial mechanism

is also important and 2028

develop financial mechanism road map for

energy investment priority and 2029

enhanced carbon pricing mechanism.

carbon pricing discussion is ongoing

right now and then uh in 2023 is develop

net zero transition investment road map

for the Assean energy sector.

So before I close uh again on behalf of

the Asan Center for Energy, we would

like to say our or express our sincere

thanks to our uh partner energy

foundation China and Asan member state

and also dialogue partner for their

significant support that's making these

two important report uh happen

available. So we encourage all of you to

download of these two report either to

QR code or to this link. This report are

available online right now and to

explore the key finding and found the

opportunity how we could work together

uh as uh for the better of okay thank

you very much. This is the end of my

presentation. I look forward to working

>> Thank you very much Dr. Ambia for your

presentation and highlighting the key

points of the two reports launched today.

Ladies and gentlemen, now that we have

touched the base of the main topic of

this planner session, let us proceed to

expand our conversation today with a

panel discussion which will be led by

our moderator Dr. Zulfikaridi. Manager

of energy modeling and policy planning

Asan center for energy.

Dr. Zulfigar I will pass this session to

[music] you and esteemed participants

please enjoy the panel discussion. Thank you.

you.

>> Okay. Um good morning uh ladies and

gentlemen very close to lunchtime. So I

would like to directly call the four

panelists that we will have in the

today's sessions. So first I would like

to call Mr. Koken Sen the chief

operating officer from sustainable

energy development authority seda Malaysia.

Malaysia.

Second I would like to invite Mr. Chen

Gi the managing director Global

Institute of China International Capital

please [music]

Dr. Alan Wang executive director APAC

Power and Renewables SNP Global

Commodity Insights and last but not

least Dr. Shan, the chairman,

International Society for Energy

Transition Studies, please. Thank you

Uh, no, it's okay. Yeah. Yeah,

it's okay.

Okay. Please have a seat. Thank you very much.

So actually I got uh notified by the

organizer that we're a little bit short

of time. So I would like to uh directly

jump in into the questions and um I

think my first question uh will be

directed to uh Mr. Koken Sang. So uh as

we know uh we are currently under the

chairmanship of uh Malaysia in the ASEAN

which is uh having a theme of

inclusivity and sustainability and at

the same time we also endorse the theme

for the new API 2026 2030 which is to

advance regional cooperations in

ensuring energy security accelerating

the carbonization for a just and

inclusive uh energy transition. So on

this uh theme what will be the uh

opportunities that you can see

especially for the region in attracting

and scaling up the energy investment in

ASEAN and maybe related uh to that what

type of supports that we required from

our dialogue partners and international organizations.

organizations.

>> Okay. Um thank you Dr. Zufika. Uh very

good afternoon ladies and gentlemen. I'm

happy to be here to share some insights

on today's topic together with my fellow

esteemed panelists here today. Um so

coming back to the questions uh let me

break it into two parts. Let's talk

about the opportunities first. Um for

those that might not be familiar with

Apayak or actually Assean plan of action

for energy cooperation there are

actually seven uh program areas under

API. uh we are currently at Apayak phase

two towards the tail end and we're going

to start uh phase three uh starting next

year. So when we go into this uh seven

program areas right in terms of

opportunities I think there's uh

tremendous opportunities. So let's go

one by one. Uh so in essence of time let

me go quickly one by one uh for program

area one let's talk about as power grid.

I think there's not much more that I can

add because I think earlier sessions

today we have talked in length about uh

what kind of investments required for

Asian power grid. So when we look at the

opportunities let's think about billion

dollar kind of uh mega project

investments technology that is required

the infrastructure that is required the

studies that is required um you know

smart grids everything is required under

the power grid kind of uh program. Now

next program area two let's talk about

you know uh trans assean gas pipeline.

So it's basically infrastructure

infrastructure infrastructure

infrastructure. All right program area

three clean coal technology uh

regardless of uh current opinion on

coal. Uh we still have to acknowledge

the fact that some of the SM member

states still uses coal as the main

source of power generation. that is

until they can transition into cleaner

options. So that is why I think uh it is

crucial that as as we start

transitioning uh while we are still

having you know coal plants still uh you

know generating power there's a need for

more um you know using technologies to

decarbonize for example carbon capture

or you know um using you know more

efficient kind of uh equipment. Uh

fourth uh we are talking about energy

efficiency and conservation. So this is

where then you see um there are

potential opportunities and investment

for energy services companies in terms

of giving uh solutions to industries to

end users to to be more efficient uh

also in terms of manufacturing of uh

energy efficient kind of u equipments.

So that is for program area four. Okay,

program 85 is about renewable energy. So

this is something that is quite close to

my heart and also um you know let me

give some examples especially closer to

to to hometown which is here in in in

Malaysia. So if you look at uh you know

ASEAN all the ASEAN member states right

um we have uh mostly net zero kind of as

aspirations for Malaysia we are talking

about net zero by 2050 and to achieve

that net zero by 2050 we are talking

about 70% renewable energy in our

capacity mix by then so that is only one

country so what about the rest of the

Assean member states so can you imagine

the the amount of investments uh you

know future plan up kind of um you know

in terms of technology that is required

uh and other than technology other than

the typical technology of solar biomass

bio gas more hydro geothermal wind then

there's the need for emerging

technologies such as batteries to come

into play because example uh for

Malaysia's example we do not have much

wind here so we are reliant mostly on

solar and as everyone knows know solar

is uh you know the the characteristics

is a bit uh on the intermittent side. So

that is why there's need for emerging

technologies like you know batteries and

some people are not talking about

hydrogen you know those kind of things

that is required right u next uh program

area six we're talking about regional

energy policy and planning uh this is

where I think there's a need for you

know studies to be to be done uh

consultants with uh you know with uh

some uh good best practices in terms of

policies that can be adopted uh on on assean

assean

Um you know especially you know in terms

of our markets, carbon markets talking

about u you know harmonization of uh you

know of all the standards grids

everything comes under program area six.

Then last but not least program area 7

where we are talking about civil

civilian uh nuclear energy. This is

where then you know uh for certain

states certain countries is about you

know doing the prelim studies capacity

building kind of thing. Okay. So that is

basically on the opportunities on the

second part we are talking about now

what can the direct partners offer. So

very straightforward simple first

technology transfer. So when we talking

about technology transfer then you know

as I mentioned there's the need to ramp

up a lot of investments uh in in

Malaysia or in in ASEAN. So that is

where then newer technologies is is

required in a sense that you know when

when we talk about you know emerging

technologies again batteries, hydrogen

you know smart grids kind of uh you know

technologies this is where required and

with this emerging technology then comes

capacity building where then upskilling

of uh you know of people the employees

that required to understand the

technology to understand the the the to

how to operate the the new modernized

technology AI coming into picture. So

these are are the things that required

third we're talking about policy

support. So as you can see in terms of

assean level there are different

countries have different kind of

policies. So this is where maybe where

collectively there should be you know

some sort like a best practice kind of

you know policies where it can be

adopted on assean level so that you know

everyone is is talking on the same page

instead of different different uh you

know uh uh uh levels and last but not

least the most important one will be

funding. So this is where I think uh um

in addition to funding the more

important one will be cheap funding. So

the cheaper the funding that that that

can be can be you know obtained uh then

I think it will definitely help uh in

terms of energy investments in ASEAN

right thank you. Yeah, thank you. I mean

I cannot explain better on the seven

program areas required investment on

each and then we have uh four supports

required from the dialogue partners and

with that I would like to go to our

second speaker Mr. Cheni. Um so uh as

mentioned before by Mr. that finance is

of course one of the key challenges in

scaling up investment in Assean but

currently we noted that maybe only 20%

of uh investment in the region coming

from international uh financial

institutions so uh the question is what

needs to be prepared by ASEAN to attract

the significant capital investment from

international financial uh sources

especially for us in meeting our energy

transition and also climate target.

Thank you very much. Um and thank you

for the invitation. Uh it's very

interesting that you mentioned um very

specific number the 20%. Um I think

that's from um IEA report um a couple of

years ago. Um it's very interesting

figure because if you deep dive into

that figure you will see um the IEA is

talking about the total energy

investment not specifically for the

clean energy investment. So if if you

take that into account that means

um they're talking about the investment

to fossil fuel to power transmission

lines all these kind of infrastructure

and of course the generation the clean

power generation

and EV etc. So it it basically include

everything that related to energy um

from the supply side to the consumption

energy efficiency.

If if you take that into account you

will see um 20%

really makes sense because

for example if you talk about the

infrastructure right that's by nature

should be invested in most the economies

by either state-owned companies or the

physical budget from the government

and and you can't rely really rely on

the international finance to some extent

because it will as national security

issue uh things like that. So

let me place the 20% of of Asian

situation into a bigger picture and

throw you some numbers here. For Latin

American that share is roughly in the

range of 25% to 35%.

And for Africa it's 30% to 40 40%.

And for India it's 50% to 25%. And for

China is less than 5%.

So it really depends on lot of things

and really starting from the financial

regulation regulatory framework to the

um the structure of your economy right

for example in China uh it's basically

dominated by the stateowned uh company

investment particularly in the energy sector.

sector.

So um what I'm trying to say is you

can't simply say 20% is a good thing or

bad thing. But of course as um what the

report that you released mentioned

there's a very big gap investment need

gap for country in this area. I think

what we are trying to um talk about here

is the clean energy section.

Um so if you narrowed it down to that

there's another figure that I want to I

want to quote is if you look at the

emerging economy as a whole but exclude

China because as I mentioned China less

than 5% right if if you take China out

the average um share of um private

investment in the energy sector is 50%.

For the emerging economy,

what does that mean? It means that by

nature the clean energy investment

is can be dominated by the private

sector and it's happening in many

emerging companies even in China. So um

I said I what I'm trying to say is

there's a hope that we will attract more

um private sector private finance

but the topic here the question that you

to me is about international finance we

need to break it down into two right the

international public finance the

international private finance um I think

just like what AIB colleagues uh

mentioned um they are bas basically talk

about the international public finance.

I think we should be very specific or we

should be aware that the role of

international public finance

um and the international private

finance. The role of international

public finance is of of course is a um

uh catalytic

role that the public finance need to

play to derisk all the most of the risk

so that the private finance can can be

crowded in

and for the international private

finance I think the role for for example

for asan economy is that it can bring

technology of because of the uh more

finance and of and I think what is also

important is can bring the efficiency of

the system. So I think we should be very

clear what kind of role that

international finance can can play. I

will stop here.

>> Thank you. Uh thank you very much. um

starting with you know dissecting again

the 20% and also comparing with the

share from other countries and also how

we can differentiate between the uh

international public and private finance

and how to attract those I think uh it

will be very great lessons especially

related with the report that we just uh

launched and I'm moving to Dr. Alan

Wang. So in relation with the investment

uh that was uh just discussed in our

report we noted that three risks

perceived by the private sectors are the

uncertainty of project revenue, high

cost of equity and also the shortage of

uh bankable projects. So how do you

think we can explore uh mechanisms so we

can address uh this risk and maybe

especially I also want to hear your

thoughts about uh renewable energy

certificates in its potential in

addressing these uh issues. Thank you.

Okay. Um thanks for the question and

thanks for having us at this uh panel

discussion. Um just to add on uh what

our speaker just mentioned um I think

from my side I do see another aspect for

emerging market is for our energy

transition we have another layer which

means we have very strong demand growth.

So our energy transition we are trying

to capture this very fast GDP growth and

high power demand growth while we're

doing energy transition. That's another

dimension of the challenge. So that's

the first thing I want to add on. And uh

regarding to that question, I think all

the three challenges you mention is all

around the project monetization and the

profitability or bankability. Um if we

look at Asan countries in the last few

months, we do see even more ambitious

and the stronger willingness to do

energy transition. For example, if you

look at the Vietnam PDP8 revision, if

you look at Indonesia, the new version,

all these countries, they show even

stronger willingness to push their

renewable or clean energy forward.

That's a very um very clear sign we have

seen on the market. And back to Asia,

the first thing I want to back to

asseen, the first thing I want to

highlight is the policy support is still

not outdated because when we talk to the

market, we feel like okay, we for the

especially for solar and wind

development, we moving away from fit to

competitive tenders. Does that mean we

don't need any government support? It is

actually note. If you look around the

global market in the North America we

have a PTC ITC tax incentive in Japan we

have LTDA and in Australia we have a

capacity investment scheme CIS. All

these government incentives are very

important to provide additional policy

support and the revenue stream to the

renewable and clean energy technology

projects. So that's very important. And

I don't think the government's role is

like a fading out and uh getting weaker.

It's even stronger. We need more

support. Especially for those more

expensive and new technologies, we need

extra support. If you look around like a

Japan Ltda, they're focusing on long

duration battery longer than six hours.

If you look into South Australia, by end

of these months, there's going to be a

special tender called FM. It's going to

be targeting eight hours duration

battery. So you can see all these

emerging technologies more expensive

ones we need additional support from the

policy side from government and then

another thing I want to mention is the

policy is always a matrix it's not only

giving subsidies it's creating multiple

rows for example if you look around the

renewable tenders cross asen so we are

still trying to compare like local

content requirement any foreign

ownership cap and uh does we sign PPA

using USD as indexation. So all these

bring up together to affect the final

profitability of each of the project. So

that's the second thing I would like to

mention. This is the metric thing. Um

I'd like to give you example. Um I have

some numbers from Australia market for

2024 from our research all the utility

level battery storage how they get the

revenue 70% of the revenue is coming

from the engine market price arbitrage

6% revenue coming from the negative

price when they charge they get paid 3%

of the revenue coming from the

regulation FCAS frequency regulation and

then another 21% coming from the

emergency or contingency

F-class market you will see the market

set up multiple monetization stream to

the battery projects and on top of that

for the new round of tenders we have CIS

capacity investment scheme to give you

additional uh benefit for each of the

project. So that's the to answer your

question that's the first level I want

to say about the policy support. The

second thing is um a very very strong or

even stronger willingness to purchase

green power from the corporate or we can

call it a corporate PPA. We can call it

a corporate green energy demand. Um as

in Malaysia we have seen this kind of a

very booming data center new build

create additional power demand growth

based on our organic growth as

additional and all these tech companies

they seeking for greener or cleaner

power supply. So they're willing willing

to sign corporate PPA from the number we

track from 2019 at that time for that

year the whole ASEAN countries we signed

300 megawatt corporate PPA and in 2023

the whole region signed 1.8 gawatt it's

not enough we still see a lot of room to

sign more corporate PPAs and to sign

more deals. The good thing is we have

seen some of the policy change. If you

look around in Malaysia, we have CGP and

then now crest. In Vietnam, we have DPPA

pilot. Now, Vietnam announced willing

charge for third party access to the

grid. Thailand also announced willing

charge for third party access to grid.

So, which means we're supporting those

bundled CPPA deals. So, that's a very

important part like you mentioned for

green energy certificate. The second

thing is the unbundled ones. The

unbundled ones is actually I want to

mention about the pricing because each

market we have a different supply demand

situation that give us totally different

IRA price. If you look at the Malaysia

maybe around5 to$6 but if you look at

Singapore I can show you a number in the

January of Singapore uh Iraq price that

was about 95 S dollar but last months it

dropped to about $40 S dollar. It's

highly dynamic and driven by the

corporate willingness to sign unbundled

deals. And uh back to Malaysia, another

number I'd like to share is that in 2023

before we have CGP, I think nearly half

of the rack was trading with unbundled

deals. But we now we have support from

CGP project commissioning and we have

CRS. We're willing to see more projects

going through these bundled deals. So

that's the second thing I would like to

mention about the how to monetize the

rack. The third thing is the final thing

I would say price. Price is highly

different across different market. My

last example I want to share with you is

so we did the break even calculation for

all the projects the recent announced

import project from Indonesia to

Singapore. If we assume they built about

70 kilometers under sea cable, the

landing price in Singapore is about $300

and it is 17% higher than the Singapore

retail price. And then on top of that,

the benefit you get is it's a green

power compared to the rack price in

Singapore. $300 not too expensive.

That's we we're going to see that kind

of price level from the Indonesia side.

>> Thank you.

>> So yeah, that's what I want to share all

together. three part together is how to

get the policy support and monetize

better of the projects.

>> Thank you. Thank you very much uh Dr.

Alan and I'm going to my last uh

panelist. Uh and the question is would

be what innovative financial mechanisms

that can be export as to finance energy

transition and carbon neutrality

including power grid interconnection and

just inclusive energy transition. Okay,

thank you very much uh for these uh very

good question and first of all like to

uh uh congrelate today we see that two

important reports is uh one is about the

uh investment 2025 and the second one is

about the road map uh for the uh uh this

investment. I think these two reports

are very good and also uh by these two

report we can see that there is a big

gap for the investment for the financial

support to finish such a uh excellent

the uh blue print for our near future.

So by on such a u uh the uh situation

I'd like to uh offer some my personal

comments uh for these the uh uh discussions.

discussions.

uh first of all I feel that uh in order

to further improve this investment and

also facilitate this infrastructure

connections and the construction so I

think the first one is the how to

strengthen the policy support and the

coordinations and just now some of the

panelist also mentioned that this issue

uh for the policy and this because you

as a 10 country now and also uh the

other neighboring countries so because

all these cross border uh the

corporation so needs a government

involvement and also needs a policies.

Yeah. Because the cross borders too that

each country have a different uh

policies and regulations. So this I

think are really important. So for this

meeting is very important because all

these the uh uh decision makers sitting

together to discuss all these uh issues. So

uh by this I think the uh uh so

encourage uh this the u uh the uh

coordination and support. The second one

I think how to attract diverse

investment entities. Uh this meeting I

see some of the uh uh gentlemen from

banks uh also this investment only from

the government and the banks not enough.

Yeah. also needs the investment from the

private and for uh other uh the

international institutions. So by this

also I think [clears throat] uh see uh

important for the uh uh issue to solve

this the gaps for the future of this

investment and uh there so one I feel

that that is important to have uh the

innovate the financial tools and the

mechanism. So by this uh no any of these

investors want to lose money. Yeah. So

when they bring the money invest for any

of the product they want to make money.

Yeah. So how to set up a kind of tool to

prepare this kind of the uh the models

or the mechanism to attract this

investor to come to invest and not only

they make money but also is benefit the

uh project benefit the country for this

infrastructure construction. So that to

uh to uh become a wing ming uh model a

wing ming situation that I think is very

important because uh uh I joined the

three times of these as the uh

investment these meetings uh energy

forum already. I feel that talking is

not enough. Yeah. Needs actions and uh

and how to uh uh start to implement uh

these of the uh the actions. I think the

most important to set up a model, set up

a mechanism for all the participants,

stakeholders to have a uh uh positive

encouragement situation. So I think that

is very important.

The uh number four my command is to pro

promote the regional cooperation and crossber

crossber

in investment because you know each

country has its uh the strengths and how

to uh to uh uh merge and the uh to uh to

have this kind of the strengths together

for a one of the other partners. I think

this uh the uh important part because uh

uh if uh we cannot have this the regional corporation even we need the

regional corporation even we need the financial money we need the uh high-tech

financial money we need the uh high-tech technologies and also we need the uh the

technologies and also we need the uh the uh the uh experienced the people uh for

uh the uh experienced the people uh for the uh uh the uh uh the high-tech people

the uh uh the uh uh the high-tech people to for training and others. So far I

to for training and others. So far I think this needs a kind of the regional

think this needs a kind of the regional cooperation and uh of course I I see

cooperation and uh of course I I see some of the Chinese company here but I

some of the Chinese company here but I think not enough because of for the any

think not enough because of for the any transition and also clam issues because

transition and also clam issues because uh China really good in this uh uh the

uh China really good in this uh uh the wind and for the offshore wind and for

wind and for the offshore wind and for solar and for EV cars. uh so I think

solar and for EV cars. uh so I think more involvement and then there will be

more involvement and then there will be huh for this uh the road map of this

huh for this uh the road map of this 2024 investment. So the last one is a

2024 investment. So the last one is a leverage c uh markets and international

leverage c uh markets and international the uh investment corporation I think uh

the uh investment corporation I think uh this we need the to set up this car

this we need the to set up this car market uh so uh time wise I just uh they

market uh so uh time wise I just uh they mention this few of the comments thank

mention this few of the comments thank you

you >> thank you very much uh Dr.

>> thank you very much uh Dr. I apologize for the panelist that due to

I apologize for the panelist that due to the time limitation we cannot go further

the time limitation we cannot go further on the discussions but I would like to

on the discussions but I would like to close the panel discussion of now and

close the panel discussion of now and then maybe big applause to our uh

then maybe big applause to our uh panelists and I will give the microphone

panelists and I will give the microphone back to our MC. Thank you.

back to our MC. Thank you. >> Thank you. Thank you so much um our

>> Thank you. Thank you so much um our esteemed uh panelist and also u our

esteemed uh panelist and also u our moderator Dr. Zulfika for the um very

moderator Dr. Zulfika for the um very insightful uh panel discussion

insightful uh panel discussion and um ladies and gentlemen this marks

and um ladies and gentlemen this marks the end of the plenary session three and

the end of the plenary session three and now I will pass back the mic to Miss

now I will pass back the mic to Miss Deafne as the plenary MC. Thank you.

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YouTube Transcript:#AEBF25 | Day 1 - Paving Pathways to Scale Up Low-Carbon Energy Investment in ASEAN