Page 12 - AsiaElec Week 20 2021

AsiaElec NEWS IN BRIEF AsiaElec

surveys.

POLICY
Asia disputes IEA’s call

to curb new oil, gas, coal

investments

renewable energy the government’s ability to win the right Asian energy officials on Wednesday disputed
terms from developers. The key is to foster,
a call from the International Energy Agency
Vietnam’s Power Development Master Plan rather than eliminate, competition between (IEA) for no new oil, natural gas and coal
for 2021-2030 with a vision to 2045 (PDP8), renewable and fossil fuel players by taking the investments for the world to be able to reach
was expected to be signed off at the end of following steps: net-zero carbon emissions by 2050, viewing
March during the last days of Prime Minister that approach as too narrow, Al Jazeera
Nguyen Xuan Phuc’s administration, but it reported.
hit an unexpected delay. Rather than being The IEA, which has previously championed
a setback, however, this delay can be an WIND the oil and gas industry, this week outlined
opportunity for Vietnam’s policymakers a path to net-zero emissions that suggested
to reset and improve market structures, Ørsted, JWD and Eurus stopping new investments in oil, gas and coal
according to a new report from the Institute supply, retiring coal-fired plants in advanced
for Energy Economics and Financial Analysis to develop offshore wind economies by 2030, and banning sales of new
(IEEFA). internal combustion engine cars by 2035.
“The past 12 months have been a period farms in Japan Energy companies in Australia, the biggest
of intense activity for Vietnam’s power sector. carbon emitter per capita among the world’s
The planning process surrounding PDP8 Danish energy company Ørsted has partnered richest nations, and officials in Japan and the
has dominated headlines as project sponsors with Japan Wind Development (JWD) and Philippines said there were many ways to get
scoured the country to confirm business Eurus Energy to develop offshore wind to net zero, even as the IEA said its pathway
partners, project sites, and potential allies in projects in Japan’s Akita Prefecture, Reuters was “the most technically feasible, cost-
advance of a sign off that was expected at the reported. effective and socially acceptable”.
end of March,” says the report’s author IEEFA The partnership will combine JWD’s Akihisa Matsuda, the deputy director
Director of Energy Finance Studies for Asia, knowledge of the Japanese power market, of international affairs at Japan’s Ministry
Melissa Brown. Ørsted’s experience in offshore wind farms of Economy, Trade and Industry, said the
“The intensity of the lobbying process is development and Eurus Energy’s operational government has no plans to immediately stop
a fair reflection of the scale of the business track record in the Akita Prefecture. oil, gas and coal investments.
opportunities and the expectation that The companies are also planning to bid “The report provides one suggestion as
PDP8 will set Vietnam’s power development in Japan’s upcoming offshore wind auction to how the world can reduce greenhouse
program for the next 20 years. round, scheduled to close this month. gas emissions to net zero by 2050, but it is
“Vietnam remains South East Asia’s most Ørsted Asia-Pacific Region president not necessarily in line with the Japanese
attractive energy growth market, with 68GW Matthias Bausenwein said: “As a strategic government’s policy,” he said.
of new capacity expected to be added to the market for Ørsted, Japan has great potential “Japan needs to protect its energy security
system between now and 2030 under a base and optimal conditions to develop offshore including a stable supply of electricity, so we
case scenario.” wind. will balance this with our goal of becoming
The approval process for finalising PDP8 “Ørsted has a unique opportunity and carbon neutral by 2050.”
was extended through June, raising important obligation to be a catalyst for the green Japan was the region’s third-largest carbon
questions about how policymakers will transformation in Japan and can be a key emitter in 2019, after China and India,
contend with the rapidly shifting energy player in realising the cost-down journey for according to the BP Statistical Review of
sector landscape. offshore wind in the country.” World Energy.
The new report outlines the three key The three companies are currently Australia’s top oil and gas industry and
drivers of this process: a pivot from coal to developing two offshore wind projects, the mining lobby groups said there was “no one-
gas, the growing importance of renewables, Noshiro/Mitane/Oga and the Yurihonjo, size-fits-all” for decarbonisation.
and a sea change in funding patterns. The in the Akita region under Japan’s Offshore “The IEA report doesn’t take into account
report also outlines the opportunities that Renewable Energy Act of 2018. future negative emission technologies and
Vietnam has to use this delay to refine new These wind farms are currently progressing offsets from outside the energy sector — two
strategies and improve market structures. with necessary approvals. things that are likely to happen and will
Brown outlines the three basic steps Since 2017, the Noshiro and Yurihonjo allow vital and necessary future development
that the Ministry of Industry and Trade offshore wind sites have been developed by of oil and gas fields,” Australian Petroleum
(MOIT) can take that would put the PDP8 JWD, which has conducted site investigations, Production and Exploration Association Chief
process on a stronger footing and improve environmental impact assessments and seabed Executive Andrew McConville said.

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