Chapter 2 : Electricity Generation in ASEAN

Electricity is undoubtly the main energy supply for most of the household appliances and factory
machineries. However electricity does not come freely in the environment. It needs a different and
more apparent power sources like coal and oil to generate it.

Type of Energy Sources

1. Coal
 ASEAN depends heavily on coal to generate electricity and is expected to rise over the
next decade
 Cheapest and most convenient fuel to meet the expected surge in electricity demands
 Coal is the undisputed leader in dirty fuel as it more CO2 per unit of energy than oil and
natural gases.
 In terms of its lifecycle, the mining, transportation and burning of coal leads to major
environment and health hazards, from smog, acid rain, mercury pollution in rivers, to
asthma and other respiratory ailments.
2. Natural Gas
 ASEAN use more gas over the next decade to generate electricity
 It is cleaner fuel than coal
 Thailand and Singapore import large quantities while Malaysia, Brunei and Myanmar
export them
 IEA (International environment Agency) predicts that unconventional natural gas will
supply 40% of the increase in global supply and total gas resources could sustain today’s
production for 250 years.
3. Oil
 ASEAN will use less and less oil over the next decade to generate electricity as it is the
most expensive way to generate electricity
 It is a highly polluting to generate electricity, it is better to refine the oil and use the
petroleum, products in the transport sector
 Cambodia relies heavily on oil to generate electricity (diesel generators) because it does
not yet have coal or gas powered plants
4. Nuclear Power
Post-Fukushima:

 Vietnam has not changed its plans to build a nuclear power plant. It has signed
agreements with Russia and Japan to build 1000 MW reactors. Russia started the
construction of the first one in 2013
 Indonesia continues to discuss plans. Malaysia, Singapore and the Philippines have also
not discontinued studying this option.
 Thailand has put its nuclear on hold.
Major Advantages :
 Does not contribute to global warming and climate change
 ASEAN lacks adequate domestic coal, gas and oil
 Potentially volatile pricing of fossil fuel import ruinous to developing ASEAN
 Governments forced to subsides the cost of electricity

However, in 2009, ASEAN still remained as an energy surplus region. Despite the region
substantial and diversified energy resources ranging from fossil fuels, hydropower, geothermal, bio-fuels
and biomass and solar, the energy endowment of its countries differs very much countries such as
Thailand, the Philippines, Singapore and Vietnam being large energy deficient countries while Lao PDR,
Malaysia and Indonesia are in better position. Malaysia, Myanmar and Vietnam have significant oil and
gas reserves while Cambodia has the geological potential for oil and gas reserves. Currently Myanmar’s
proven reserves are only half those of Vietnam, however many areas of its offshore and onshore have
not been explored yet, but hold good potential to at least reach the level of Vietnam of 0.6 trillion cubic
meters of gas. There is also some possibility of oil or gas reserves in the South of Laos yet unexplored.

Most of the ASEAN countries have abundant water resources and large river basins that has
substantial hydropower capacity. The lower Mekong Basin has potential to generate between 50,000
and 64,000 MW. Overall only 6000 MW have been built so far. Vietnam has actual potential for 20,000
MW, Laos 26,500 MW, Cambodia 10,000 MW and Myanmar 25,000 MW. Substantial potential
hydroelectric generation also exists in Sarawak, Malaysia, Indonesia and the Philippines. While the
potential for hydropower development in ASEAN remains huge, resistance by civil society related to
growing environmental concerns and rising impact of changing weather patterns has demoted the
growth on hydropower availability. Hence, major reliance on hydropower for electricity generation is
considered highly risky, e.g: Myanmar.

Countries with a lot of volcanic terranes like Indonesia and Philippines, countries which are part
of the Ring of Fire have a huge potential in Geothermal power. Indonesia has the largest potential in the
world estimated at 28 Giga Watt (22,000 MW) with only 1.194 Giga Watt utilized (WWF, Igniting the
Ring of Fire, 2012) and yet much located in outer islands has not economically exploitable which . The
Philippines is the second largest geothermal energy producer in the world, with 1.8 GW installed
capacity producing over 17% of its electricity. In spite of its potential, geothermal power requires large
upfront risky investments in drilling and plant development. Plus, its viability obviously depends on
government tariff policies to reduce CO2 emissions.

ASEAN countries have good potential in other renewable energy sources, namely biomass and
solar. Laos, Myanmar and Thailand can also produce significant amount of bio-fuels without threatening
food production. All these sources of energy will however remain infinitesimal compared to
conventional sources.