By Dr. Shamshad Akhtar
BANGKOK, Jan 20 2017 (IPS)

The Asia-Pacific region is at a turning point in its energy trajectory. The energy solutions that have fuelled growth in the region over the past few decades are no longer compatible with the sustainable development aspirations of our nations and their people. In transitioning to a new era of sustainable energy, policymakers across the region face complex decisions. Supplies must be secure and affordable, and they must fill the energy access gap which leaves half a billion people across the region without access to electricity. At the same time mitigating the local impacts of energy generation and use will be vital in resolving problems such as the air pollution choking our cities and the global consequences of greenhouse gas emissions causing climate change. Solutions exist, but only through regional cooperation and integration can Asia and the Pacific transition to sustainable energy in time to meet the ambitious 2030 Agenda for Sustainable Development and its Goals.

Dr. Shamshad Akhtar

While some countries suffer from energy shortages which limit their economic and social development, others enjoy energy surpluses, such as hydropower and natural gas. Trading these resources through new cross-border power grids, drawing on renewable energy when possible, as well as gas pipeline infrastructures, can open up enormous opportunities for both economic growth and decarbonisation.

The energy technology renaissance already underway in some countries is playing a vital role in the transition. New technologies are reducing the cost of clean energy and renewable power. Smart grids and electric vehicles are rapidly gaining market share. Since 2010, the cost of solar power generation has declined by 58 percent, with the cost of wind power down by one-third. The International Renewable Energy Agency projects cost reductions of 59 percent in solar power and 12 percent in wind power within 10 years, edging below fossil fuel electricity costs in most Asia-Pacific countries. Advances in long-distance power transmission technologies enable the linking of renewable energy resource-rich areas such as the Gobi Desert, Central Asia and far eastern Russia, with distant population centers. Asia-Pacific has emerged as an engine for clean energy, both as a manufacturing center for renewable energy technologies and as the leading region for deployment, with $160 billion invested in renewables in 2015.

On the demand side, energy efficiency technologies have an important role to play in the energy transition. Better energy efficiency is a key driver in decoupling energy use and GDP growth in many economies. With 15 percent of the world’s electricity consumed by lighting, efficient LED lighting technology, which consumes up to 85 percent less energy, will make substantial savings. Energy storage technologies for vehicles and power applications have also leapt ahead, offering flexibility in power usage and balancing variable electricity generation from renewables. Here again, regional cooperation, technology transfer and south-south collaboration will play a vital role in the transition.

Despite these encouraging developments, the success of the energy transition will require sustained commitment at national and regional levels through better policies, incentives and allocation of investments. The inertia of the existing energy sector is considerable, with its long-lived assets and entrenched institutional arrangements. Regional cooperation, through sharing of policy experiences, building capacity and mobilizing finance can play a significant role in assisting countries to implement their own energy sector reforms and capture the many co-benefits. The importance of regional energy cooperation is evident in the transboundary nature of many prominent energy challenges – improving regional energy security, managing air pollution and establishing cross-border energy infrastructure. ASEAN, South Asian and Central Asian countries as well as China, Russia and Mongolia are already embracing cross-border energy connectivity. Initiatives such as the CASA 1000 and the ASEAN Power Grid will allow low carbon energy from gas, hydropower, solar or wind to be traded across borders. Long-term regional dialogue is required to further develop these complex and infrastructure-intensive initiatives.

Connecting countries, finding regional solutions and promoting regional standards and guidelines has been at the core of the work of the United Nations Economic and Social Commission for Asia and the Pacific for the past 70 years. We recognize the need for regional energy cooperation, and with the support of our member States established an intergovernmental Committee on Energy that will meet for the first time in Bangkok, 17-19 January. Through the Committee, countries will help to map out key regional energy solutions for the region such as accelerating uptake of renewables and energy efficiency, establishing cross-border energy connectivity, promoting regional approaches to energy security, and providing modern energy access throughout the region to ensure a sustainable energy future for all. Through regional cooperation and integration I am confident that the countries of Asia-Pacific region can transform their energy trajectories to better serve their people, the region and the planet.

Excerpt:

The Asia-Pacific region is at a turning point in its energy trajectory. The energy solutions that have fuelled growth in the region over the past few decades are no longer compatible with the sustainable development aspirations of our nations and people. In transitioning to a new era of sustainable energy, policymakers across the region face complex decisions. Supplies must be secure and affordable, and they must fill the energy access gap which leaves half a billion people across the region without access to electricity. At the same time, mitigating the local impacts of energy generation and use will be vital in resolving problems such as the air pollution choking our cities and the global consequences of greenhouse gas emissions causing climate change. Solutions exist, but only through regional cooperation and integration can Asia and the Pacific transition to sustainable energy in time to meet the ambitious 2030 Agenda for Sustainable Development and its Goals.

Countries have committed to moving towards a more diverse and low carbon energy mix through the 2030 Agenda and the Paris Agreement on Climate Change. However, fossil fuels stubbornly remain a major part of the regional energy mix, making up three-quarters of electricity generation. Unless the region’s countries work together to accelerate the incorporation of sustainable energy into their strategies, business-as-usual approaches will result in a continuation of fossil fuel use and associated impacts.

While some countries suffer from energy shortages which limit their economic and social development, others enjoy energy surpluses, such as hydropower and natural gas. Trading these resources through new cross-border power grids, drawing on renewable energy when possible, as well as gas pipeline infrastructure, can open up enormous opportunities for both economic growth and decarbonisation.

The energy technology renaissance, already underway in some countries, is playing a vital role in the transition. New technologies are reducing the cost of clean energy and renewable power. Smart grids and electric vehicles are rapidly gaining market share. Since 2010, the cost of solar power generation has declined by 58 percent (http://www.irena.org/DocumentDownloads/Publications/IRENA_Power_to_Chang…. pdf), with the cost of wind power down by one-third. The International Renewable Energy Agency projects cost reductions of 59 percent in solar power and 12 percent in wind power within 10 years, edging below fossil fuel electricity costs in most Asia-Pacific countries. Advances in long-distance power transmission technologies enable the linking of renewable energy resource-rich areas such as the Gobi Desert, Central Asia and far eastern Russia, with distant population centers. Asia-Pacific has emerged as an engine for clean energy, both as a manufacturing centre for renewable energy technologies and as the leading region for deployment, with USD 160 billion invested in renewables in 2015.

On the demand side, energy efficiency technologies have an important role to play in energy transition. Better energy efficiency is a key driver in decoupling energy use and GDP growth in many economies. With 15 percent of the world’s electricity consumed by lighting (https://www.energy.gov/articles/rise-and-shine-lighting-world-10-billion…), efficient LED lighting technology, which consumes up to 85 percent less energy, will make substantial savings. Energy storage technologies for vehicles and power applications have also leapt ahead, offering flexibility in power usage and balancing variable electricity generation from renewables. Here again, regional cooperation, technology transfer and south-south collaboration will play a vital role in the transition.

Despite these encouraging developments, the success of the energy transition will require sustained commitment at national and regional levels through better policies, incentives and allocation of investments. The inertia of the existing energy sector is considerable, with its long-lived assets and entrenched institutional arrangements. Regional cooperation, through sharing of policy experiences, building capacity and mobilising finance can play a significant role in assisting countries to implement their own energy sector reforms and capture the many co-benefits. The importance of regional energy cooperation is evident in the transboundary nature of many prominent energy challenges – improving regional energy security, managing air pollution and establishing cross-border energy infrastructure. ASEAN, South Asian and Central Asian countries, as well as China, Russia and Mongolia are already embracing cross-border energy connectivity. Initiatives such as the CASA 1000 and the ASEAN Power Grid will allow low carbon energy from gas, hydropower, solar or wind to be traded across borders. Long-term regional dialogue is required to further develop these complex and infrastructure-intensive initiatives.

Connecting countries, finding regional solutions and promoting regional standards and guidelines has been at the core of the work of the United Nations Economic and Social Commission for Asia and the Pacific for the past 70 years. We recognise the need for regional energy cooperation, and with the support of our member States established an intergovernmental Committee on Energy that will meet for the first time in Bangkok from January 17-19. Through the Committee, countries will help to map out key regional energy solutions for the region, such as accelerating uptake of renewables and energy efficiency, establishing cross-border energy connectivity, promoting regional approaches to energy security, and providing modern energy access throughout the region to ensure a sustainable energy future for all. Through regional cooperation and integration I am confident that the countries of Asia-Pacific region can transform their energy trajectories to better serve their people, the region and the planet.

The writer is a Under-Secretary-General of the United Nations (UN) and the Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP).

This story was originally published by The Daily Star, Bangladesh

By Dr. Shamshad Akhtar
Bangkok, Oct 26 2016 (IPS)

The emergence of new ideas, technological advancements and innovative market-driven financing solutions has lent confidence to the idea that universal access to energy services is attainable. This is particularly good news in the Asia and the Pacific region, where, despite making significant contributions to global growth and poverty reduction since 2000, nearly half a billion citizens still have no access to modern energy, principally in rural and far-flung areas. Three-quarters of these people live in South Asia alone. Some 70% of the Pacific island households are un-electrified, a level similar to sub-Saharan Africa. The lack of electricity and clean cooking options marginalizes predominantly remote and slum communities who are trapped in energy poverty, preventing them from stepping on the first rung of the ladder to prosperity.

Dr. Shamshad Akhtar

In many countries of Asia and the Pacific, the decentralized power option offers lower costs than extending the grid into remote locations, which influences long-term energy planning scenarios of countries. These options include mini grids, hybrid systems, biogas and micro-hydro power, depending on costs, local geography and resource availability.

Reliability and scalability require an enhanced role of the private sector to find the most suitable local energy access solutions and to mobilize innovative finance and business models. Energy access solution providers already promote creative solutions, however the private sector’s role in the provision of energy access has been limited, accounting for only 18% of total investment. To bring private capital, technology and expertise to energy access, partnerships between public sector and multilateral financing agencies need to offer the right enabling policy environment and a combination of incentives including risk mitigation frameworks, loan guarantees and other supportive credit enhancements.

The potential of private investment in the promoting energy access should not be underestimated. The so-called “bottom of the pyramid” energy users currently spend $37 billion on energy services(2) such as kerosene, batteries or candles, which are often inefficient and more costly than clean alternatives. Many pioneering private sector firms have developed low-cost energy systems at household or village scale such as solar lanterns, biogas or micro-hydro systems and are rolling out business models with product, process and distribution innovations. Across the Asia-Pacific, rural micro-credit is funding energy access including Bangladesh’s Grameen Shakti which has funded half a million solar home systems.(3) Development of indigenous technology capacity in Nepal has lowered equipment costs for biogas and micro-hydro systems. India has leveraged public-private partnerships in its rural electrification efforts, bringing electricity to 32 million households over the last decade.(4) Local provision of energy can have a catalytic effect, leading to economic growth and increased demand for other products and services that can be met by these companies, leading to growing business opportunities.(5)

Realizing the goals of poverty eradication is critically linked to enhancing energy access to the poor. The recent adoption by G20 Ministers of the Action Plan for Enhancing Energy Access in Asia and the Pacific, supported by ESCAP, will assist the region in adopting the appropriate policy framework to scale-up the private sector’s role in enhancement of energy access. As a follow-up to the G20 Action Plan on Energy Access, ESCAP, with the Energy Market Authority of Singapore, is co-organizing an Energy Access Forum at the Singapore International Energy Week in October 2016. The Forum will provide insights on the challenges and opportunities for countries to enhance energy access.

1. In April 2016, in Dubai a consortium led by Masdar won a renewable energy auction with a bid of 2.99 cents/kWh over 20 years. In September 2016 Marubeni and Jinko Solar won a solar auction in Abu Dhabi at 2.42 cents per kWh. This broke the previous record set in Chile in August 2016 of 2.91 cents per kWh.

5. World Economic Forum / PriceWaterhouseCoopers, Scaling Up Energy Access through Cross-sector Partnerships, https://www.pwc.com/gx/en/sustainability/publications/assets/pwc-wef-scaling-up-energy-access-through-cross-sector_partnerships.pdf

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By Dr. Shamshad Akhtar
BANGKOK, Oct 5 2016 (IPS)

Advances in Information and Communication Technology (ICT) have been instrumental in shaping and leading socioeconomic transformations across Asia and the Pacific. One key to this transformation is the technology bundled around the “Internet of Things” (IoT), which enables billions of devices and appliances to connect over the Internet for more accurate, real time data collection and analysis in an unparalleled scale. For instance, through Internet-connected sensors attached to equipment, facilities and infrastructure, early-on maintenance alarms can be raised for potential problems, such as defects or wear and tear, thereby potentially saving the lives of those using them. Another example is devices on farms that remotely monitor soil conditions, weather and pesticide use for more rapid and better-informed decision making.

Dr. Shamshad Akhtar

A fundamental challenge related to new business opportunities and innovations that IoT and other ICT advancements generate is how to best connect those who are still unconnected, so that they too can reap the benefits of these advances. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) underscored the need to address this challenge in a recent report entitled the State of ICT in Asia and the Pacific 2016: Uncovering the Widening Broadband Divide. The report highlighted the alarming disparity in broadband connectivity within Asia-Pacific, with high-income countries experiencing a higher growth rate of broadband penetration relative to other countries. Twenty countries in the region have only 2% of fixed broadband subscription per 100 inhabitants, while ICT champions such as the Republic of Korea, enjoy over 40% broadband penetration. Further emphasizing regional disparities, 75 % of fixed broadband subscriptions were registered in North and North-East Asia, mainly in the People’s Republic of China, the Republic of Korea and Japan.

Broadband connectivity, especially reliable, affordable and resilient fixed broadband infrastructure, is a critical foundation which supports various applications and initiatives that are essential for the achievement of the SDGs, ranging from traffic and transport management, smart power management, trade facilitation, disaster management and financial inclusion, to name only a few. ICT is not only a growth sector which creates value-added services, products and employment opportunities, but it also acts as a development enabler which can accelerate efforts towards the implementation of the SDGs.

While success stories in e-commerce abound, such as China’s Alibaba, less is known about the use of ICT for socioeconomic benefits, such as mobile money in Pakistan and the Philippines where salaries and remittances are sent over mobile phones. Farmers and rural residents increasingly use the Internet, allowing them to gain unparalleled access to information and knowledge and helping to further develop multiple sectors, such as agriculture, education and health. ICT also plays a crucial role in disaster management. When a disaster strikes, it is the telecommunications infrastructure which provides the platform to communicate with those in need of help and collect and analyze data on losses and damage to facilitate disaster response and reconstruction. Moreover, ICT can facilitate social integration of marginalized groups, such as people with disabilities, by providing them with more effective means to communicate and engage in a wider variety of socioeconomic activities. At the same time, however, the region needs a development pathway to the digital economy and future prosperity for inclusive and sustainable development.

While significant efforts have gone towards expanding broadband connectivity at national and sub-national levels, the Internet is inherently regional as well as global, therefore affordable and reliable connectivity to regional and global telecommunications networks are indispensable for narrowing the digital divide through better connectivity. The Asia-Pacific region is particularly impacted by the widening digital divide due to its vulnerability to frequent catastrophic disasters, which cause massive destruction to life and property. Earthquakes, for instance, have disrupted submarine cables and subsequently access to the Internet among densely populated coastal areas and cities. Learning from the lessons and moving forward, the region urgently needs to improve, enhance and expand its broadband connectivity to provide alternative routes and networks to build greater regional resilience to disasters.

In this context, ESCAP supports the Asia-Pacific Information Superhighway (AP-IS), a regional broadband connectivity initiative mandated by member countries that aims to enhance connectivity from Turkey to Kiribati in a holistic manner, with four pillars of enhancing physical connectivity, effective Internet traffic management, e-resilience and inclusive broadband access. Given the regional and global nature of the initiative, ESCAP provides an inter-governmental platform for member countries to discuss the regional cooperation framework and implementation of the AP-IS Master Plan to further deepen regional connectivity and maximize the socio-economic benefits for all.

ESCAP’s Committee on Information and Communications Technology, Science, Technology and Innovation, scheduled from 5 to 7 October 2016 in Bangkok, is one such regional platform to engage member countries and other stakeholders in discussions contributing to a regional vision of what ICT can and should do for the region’s future. It is imperative that we enhance connectivity, since without effective and viable “people connections,” the region’s full potential will not be realised.

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