Asia’s Shift to Green Energy: ‘The Newspapers Are Asking Questions’

Reporting on the Renewable Energy Transition in Southeast Asia
Heng Dean Law of climate investment firm Pollination explains the push - and roadblocks - of switching to renewables in Southeast Asia.
by Madeleine Sherer, National Press Foundation
When it comes to bringing sustainability to the Southeast Asian energy sector, Heng Dean Law knows that the opportunities are there. It’s just a matter of managing availability, supply and demand.
“You need to connect places where you have the renewables to the places of demand, and usually they’re not next door,” Law said.
Law is the managing director of the Singapore-based climate change investment and advisory firm Pollination. He spoke to NPF’s International Trade Fellows about things to keep in mind for their stories on renewable energy in Southeast Asia.
Fossil fuels dominate in Southeast Asia
“The current situation we are facing now is that the grids in Asia are predominantly fossil fuels. That means it could be coal, it could be natural gas, and to probably a lesser extent, oil as well,” Law said.
Singapore, for example, gets almost 100% of its energy from natural gas. Still, Southeast Asia is making efforts to move toward renewable energy. The main issue is not about the availability of renewable energy - Singapore has plenty of access to wind power, and its proximity to Australia could lead to a steady source of solar power for the region; the difficulty is transferring that energy to the populations that need it.
One solution that could help with the access issue is the ASEAN Power Grid, which would build interconnectors that would allow energy to flow easily between the different countries. A project like this can be a challenge in an island-heavy region like Southeast Asia, but Law said that it could strike a needed balance in the supply and demand for energy.
Southeast Asian countries are moving toward green energy
Law notes that both governments and companies are investing in renewables in the region - to the tune of $76 billion by 2025.
“The companies are increasingly aware that, look, the customers are asking questions, the regulators are asking questions, the newspapers are asking questions,” Law said. “The resources are there. The question is how do we manage them effectively?”
One element pushing Southeast Asia toward renewable energy is the European Commission’s Carbon Border Adjustment Mechanism. This regulation puts a price tag on the amount of carbon emissions produced during the manufacturing process of certain imports. Law said it has done much in the way of moving Southeast Asia toward renewable energy.
“Starting from 2026, they have to start paying the European carbon tax in order to get access to European markets. So that has led to some of the manufacturers, be it domestic or international, located in the Southeast Asian countries to think about, ‘Look, I need access to renewable energy,’” Law said.
The difficulties of decarbonization
The process of decarbonization comes with its own set of challenges.
Some countries in Southeast Asia, like Indonesia and the Philippines, are focusing on geothermal energy due to the heavy volcanic activity in the region. However, the issue of access arises again.
“Geothermal is also quite a challenging area because you drill down, if there’s no water here, then it’s a bit of an issue,” Law said. “That’s why the success rates can be quite limited.”
European regulations on deforestation represent a net good for the planet, but they can be difficult for small farmers. Law said that about 40% of palm oil comes from small suppliers that depend on their farms for their livelihoods. However, Law said that if people put effort into reaching out to these small farmers and understanding their needs, their productivity will increase in the long term under renewable energy.
There is also the matter of the coal plants that currently exist throughout much of Southeast Asia. One company in the Philippines agreed to close out one of their coal plants earlier than initially planned. This is not necessarily a tenable option for the entirety of Southeast Asia though. Many coal plants in the region are relatively new, with several decades left to their expected lifespans. Owners are reluctant to close them early.
Speaker: Heng Dean Law, Managing Director, Pollination Group
Transcript, summary and resources: nationalpress.org/topic/south...
This fellowship is part of an ongoing program of journalism training and awards for trade coverage sponsored by the Hinrich Foundation.
This video was produced within the Evelyn Y. Davis studios. NPF is solely responsible for the content.