ADVANCED BIOFUELS ALTERNATIVE IN SOUTH EAST ASIAN MARKET
I would like to bring this to notice that I have personally read, understood and developed my own research around the available data and insight on various energy sources alternatives especially Renewable Energy sources. In writing I have cited all published sources used including internet sources. This is my original work and is completely prepared, organized and assembled by me in accordance with the prescribed University guidelines. I may have discussed the paper with others and used advice and suggestions from others in writing this paper, but the paper presented is my original work and is neither copied from other sources without proper acknowledgement, nor written for me by another person, in whole or in part. If there exists a case of plagiarism, then I take full responsibility to correct and resubmit the work.
List of Tables Table 1: Renewable Energy Potentials by Country………………………. 27 Table 2: Renewable Energy Generation targets. 35 Table 3: Vietnam’s Master Plan for Renewable Energy………………. 36 Table 4: Capacity Generations from Renewable Energy Sources………………. 37 Table 5: Renewable Projects under Operation in Vietnam………………………. IRENA-International Renewable Energy Agency 6. IEA-International Energy Agency 7. UNDP-United Nations Development Programme 8. ASEAN-Association of Southeast Asian Nations 9. EVN-Electricity of Vietnam 10. Biofuels Potential: Promise or Peril? 14 1. Environmental Impacts 14 1. Food-fuel Conflicts and Resource Availability 15 1. 3 Poverty reduction and rural development 16 1. 4 Cost of Biofuels production and Costs 16 1. Technical challenges 30 2. 3 Economical Challenges 30 2. 4 Human resource and Information wise challenges 30 2. Policy responses in South Asian Countries 31 2. Establishment of renewable plan and target 31 2. Policies on Investment Encouragement 38 4. Incentives on taxes and fees 38 4. 4 Practical Implementation of renewable energy in Vietnam 39 4. 5 A Case Study of PetroVietnam Power Corporation (PV Power) 40 4.
2 Philippines 42 4. Weaknesses 53 5. Opportunities 55 5. Threats 58 5. Discussion: Renewable Energy Situation in Five South East Asian Countries 59 CHAPTER 6 62 CONCLUSIONS AND RECOMMENDATIONS 62 6. 1 Conclusions 62 6. Examples of the most commonly used are Biodiesel and Bioethanol. On the hand, second-generation Biofuels also known as advanced Biofuels are made from non-food sources especially wood and plant remnants. The ability of the Biofuels to contribute to minimized GHG emissions, provision of energy security, rural development and poverty reduction can elicit mixed reactions. Prior to use of Biofuels, fossil fuels were being used however the cost of Biofuels are high than the fossil fuels and whether it has cost benefits is an entire matter altogether. Adding to the list of questions being raised about Biofuels are resource availability, energy input required and arising food-fuel conflicts.
Big investments are being made by players in the energy industry to enable the conversion of biomass into advanced Biofuels. The Advanced Biofuels in the past has been hugely consumed because the fossil fuels were declining. The global advancement of second-generation Biofuels market is driven by the environmental impact factor. Advanced Biofuels releases emissions with a low concentration of greenhouse gases. The market is expected to swell because of the characteristics of advanced Biofuels; clean and sustainable source. Comparing the electricity production from solar cells and electricity from the grid, the solar cells electricity cost of production is still high. Nonetheless, many countries have started photovoltaic projects to enhance the electrification of remote areas. With regard to wind energy, India is leading with the utilization of wind energy with the total energy capacity stored being 820MWe.
China boasts of installed capacity of70MWe. Asian countries of India, China, Vietnam, and Nepal have significant programs on Hydropower with an installed capacity of 17, 000MW, 138MW, 64. The concerns are being raised on the adequacy of the Advanced Biofuels in the Asian market. This calls for alternative sources of energy to the Asian market. To that end, the thesis paper will evaluate the alternative sources of renewable energy and the continent’s potential to produce renewable energy. The general assumption was that Biofuels could be produced and consumed in large scales and could help enhance energy security in the Asian continent. Some of the countries expected that Biofuels could become the main source of exports while others thought that they would receive Biofuels as major imports especially from Southeast Asia.
With that in mind, the GHG emissions could show a lower result in Asia because of less energy among other inputs when it comes to crop production. While in North America and Western Europe the average fertilizer use stands at 257 kg/Ha and 276kg/Ha respectively, the average use of fertilizers in Asia is 117kg/Ha. Therefore GHG emissions in Asia could be high because there could the insufficient use of energy for production. Another crucial factor not considered by the LCA studies is the impact of Biofuels feedstock cultivation on land usage particularly rainforest destruction and conversion of lands to arable cropping. One study related to the impacts Biofuels have on land use change suggests that if the impacts of Biofuels on land use change are considered then Biofuels results as high as 50% GHG emissions as compared to fossil fuels (Searchinger et al, 2007).
Also, jatropha does not require large amounts of water and fertilizer to survive but it needs them for increased yields. Current low production of jatropha will discourage its plantation in a high-quality land without government support and subsidy. While Asian countries populations are swelling it is distinctively difficult to ascertain the number of lands that are marginalized and unused. Adequate land, water, and resources needed to produce Biofuels may not be available in Asia, many areas of Asia are suffering from land shortages and water which may just prove the point that conflict may arise on the alternative use for them (Wiegmann, K. , Hennenberg, K. The government of India for instance in 2006 set the price of 0. 68 dollars per liter for diesel compared to retail price of 0.
76 dollars per liter of diesel oil (Ministry of Petroleum and Natural Gas, 2005). The difference in prices can be attributed to differences in feedstock prices, prices of fossil fuels and farm subsidies. If the fossil fuels prices will continue to rise, then Biofuels will increasingly become competitive and if the prices rise high enough then Biofuels will become profitable even without government interventions such as subsidies. However, productions from usable materials will be higher because they use lignocelluloses, meaning that the entire plant can be utilized for production of Biofuels and is not limited to just use of grains or oilseeds. Realization of the full potential of advanced Biofuels will require overcoming of various limitations. Among those shortcomings are the need to have enhanced research on Biofuels for improvement of conversion processes and feedstock, reduction of production costs and scale n production facilities.
Furthermore, although advanced Biofuels have the potential of minimized GHG emissions, they are not free from environmental effects. Advanced Biofuels are made from collecting residues and other organic matters which may lead to deprivation of soil fertility. Currently a near agreement on the need to adopt alternative sources of energy especially renewable sources exists. The UN committee on New and Renewable Sources of Energy together with the Department of Energy for Development has emphasized on renewable energy sources as the alternatives considered in the entire strategy on sustainable development. The committee has insisted that networking and giving out information on the characteristics and benefits of renewable energy sources remains a top-priority key area. The recent past has seen the development of renewable energy technologies as one way of reducing greenhouse emissions.
In South Asia, countries such as Pakistan, India, Sri Lanka, and Afghanistan are looking into durable and renewable alternative energy sources such as biomass, wind, solar and hydropower. While great interest and opportunities for Biofuels exist, short-term plant construction for Biofuels has reduced. The experience of double-digit supply that was there before 2010 is wearing off, showing the policy uncertainty that surrounds the main markets and the ever-growing structural challenges. The South Asian countries are now developing policies that will encourage individuals and industries will embrace and adopt renewable energy powered systems. This thesis paper will look at the alternative sources to Biofuels in the Asian market through assessment of its potential to utilize renewable energy sources available in the region. It will also provide a comprehensive description of energy status and challenges in Asian countries.
India and China are already making huge investments in renewable energy sources. However considering the use of technologies for renewable the leading countries in 2015 were China, Brazil, the US, and India according to Renewable 2016 Global Status Report. In our thesis, paper research will be based on the emerging countries of South Asian countries. For instance, India, solar energy is now cheaper than coal and many companies in the country are advocating for renewable over the conventional energy sources. Vietnam is another country that has utilized renewable. However, in other sectors such as marine aviation, Biofuels are seen as an alternative to fossil fuels (IRENA, 2016). Biofuels literature done by Life Cycle Assessment has pointed out the fact that use of alternative fuels can help reduce GHG emissions by 60-94% relative to fossil fuels (Highina et al, 2012).
The subsequent sections of this chapter will review the literature on alternative fuels. Alternative Sources of Electricity Many countries are now using technology in the electrical power sector to ensure the provision of clean, reliable and cheaper electricity to their consumers (Allison & Lents, 2002). This has led to increasing distributed power generation opportunities at small scale scenario with the requirements of households, communities and commercial centers being met in an efficient and effective manner. The government of India in 1982 created a separate energy ministry for promotion and distribution of energy (DNES, 1993; AHEC, 2003). To ensure that this goal was achieved since 1992 the Indian government created another separate ministry MNES that was responsible for new Renewable Energies generation. The Indian government plans to have Renewable energy contribute to 25% of the country’s energy by the year 2020 (Jebaraj & Iniyan, 2006).
The distribution of electricity in India has increased its capacity in that by the year 2010, renewable energies contributed 15597. 58 MW (MNES, 2010). However, the results showed that electricity would not penetrate deep without government interventions such as subsidy (Mathur, 2007). IRENA 10. 0 which is a commercial simulation tool was used to compare energy use in a base station of a global system for mobile telecommunications in the technology center in Turkey. The conclusions were the optimal PV area, wind turbine rotor swept areas, and battery capacity were 29. 4m2, 3. emd. dk). Software for energy alternatives is the Long-range Energy Alternatives Planning System (LEAP). It is a cased based environment energy simulation tool. Its cases are based on how energy consumption, its conversion process, and production. It is a fact that has been established that there are interests among different countries to adopt Renewable energy sources because of the increasing demand for energy and concerns that have been raised on environmental pollution and global warming.
Economic evaluation studies on penalties because of traditional energy generation, tax credits for embracing renewable energy sources, losses occurring because of transmission and distribution and credit on cost generation have been done (Devgan, 2001). Research papers have done on the policies adopted by developing countries in climate change negotiation. Some of these countries have had a lower CO2 emission than OECD countries. Kyoto protocol identified CDM s a tool for encouragement for developing countries to strive for clean energy sources through increased resource allocation and more participation in climate change negotiations. , & Gregory, K. Fossil fuels widespread use has been discouraged due to the environmental impacts by the GHG emissions. However, the use of technologies in the development of renewable energy has been encouraged; despite the fact that various renewable energies also have their environmental effects because of the materials being used and land usage utilization.
In India, the main challenge facing renewable energy is the high cost of investment by use of bagasse cogeneration which does not exploit the full potential of renewable in the country. This happens despite the government subsidy. There are calls for the development of new technology that can enable easy conversion process and the generated power to be environmentally friendly, more efficient and is compatible with various energy sources and Res sources. A research paper reported on an analysis of solar energy, wind power, and geothermal power. Renewable Energy Potential in South Asian Countries Countries in the South-Asian region possess a huge potential for renewable energy. For instance, Nepal alone has a massive hydropower potential of over 83,000 MW. Given that energy demand in Nepal will increase by 10% annually, the energy demand will be at 3500MW by the year 2025.
0 83,000 - Table 1: Renewable Energy Potentials by Country 2. Challenges facing Renewable Energy Development in South Asian Countries Although the South East Asian region has a huge potential for renewable energy, there are challenges that must be addressed. One of them is the need to have a large investment as initial exploitation of renewable energy sources can require large capital. Also, it takes time to realize the benefits from the projects. The challenges of renewable energy in South Asia countries’ are addressed as follows; 2. Establishment of renewable plan and target Processes to plan for energy usually involves studying the demand and supply of the sources, predictions and input and output items. All of these are based on the regional economics, models of technology and strategies put in place to bring about diversification of energy sources (Shukla, A.
K. , Sudhakar, K. , & Baredar, P. The depth to which energy impacts is great ranging from social, economic, agricultural development, education, health, access to clean water to electrification. The Millennium Development Goals (MDGs) cannot be met if the quality and quantity of energy cannot be enhanced (UNDP, 2011). Access to clean, adequate and affordable energy is vital in the economic development and transition of the conventional agricultural driven economies to a modern industry-driven society. However, energy serves as a mechanism to achieve greater goals. The major goals are having good health, sustainable development, and a clean environment and improved living standards. The major research question, therefore, will be, what are South East Asian counties and regional bodies doing to sustainably develop renewable energy as an alternative source of energy.
To answer this question, this thesis paper will study the implementation of the strategic development of renewable energy to identify the reasons as to why renewable energy development has not developed as anticipated. Aim The aim of this paper is to analyze the current state of renewable energy in South East Asia, its potentialities, challenges, and factors that are influencing the development of renewable energies and give recommendations on solutions that could be implemented to enable sustainable growth of this source as an alternative source of energy. The research will also be aimed at identifying the existing gaps in renewable energy research and propose recommendations for its support. CHAPTER 3 METHODOLOGY 3. The appropriate research method applied to such research is qualitative research (Hancock, 2001).
Furthermore, Paul, J, and Anne D noted “applying a management-by-objectives model, tempered with a commitment to the fostering of mutual interest, assessment entails the generation of empirical data to determine whether resources expended in the implementation process were sufficient enough to achieve the goals and whether the goals were met. The analysis also needs to be qualitative”. The use of Petro Vietnam Power Corporation as a case study also prompts the use of qualitative research. This approach is supported by (Starman, 2013) “we must also recognize that a case study is more than just a type of qualitative research. Apart from that, the ministry is responsible for regulation of energy prices, monitoring, controlling and checking power supply and demand, licensure and supervision of the market.
Vietnam power sector comprises of three sections, power generation, power transmission, and power distribution. Power generation was put into the market with the involvement of many companies. However, Electricity of Vietnam (EVN) together with its subsidiaries owns the biggest proportion of the national capacity (61%). Furthermore, EVN still retains a monopoly in power transmission and distribution. 4 Table 2: Renewable Energy Generation targets Accompanying the strategy, are related policies and guidelines to enhance renewable energies in the country. Policies on power tariff The policy preferred on power tariffs states that the selling price is dictated by the characteristics of the region where the power is generated and the type of technology used. This is aimed at promoting the development of renewable sources and making sure that the investors recover their capital and attain reasonable profits.
Also, re-adjustment of electricity prices should be done depending on the development of technologies utilized. Moreover, development of renewable energy projects should be done to align with the national electricity system and other substantive costs associated with the connection are included in distribution costs, therefore, the projects do not have to bear these costs. The reassessed Master Plan would set specific targets such as giving priority to the development of renewable energy sources, increasing the amount of energy generated from renewable sources to 7% in 2020 and over 10% of electricity production by 2030. The table below illustrates the statistics of the master plan. Power source 2020 2030 Installed Capacity (MW) Percentage of total capacity (%) Total electricity output (%) Installed Capacity (MW) Percentage of total capacity (%) Total electricity output (%) Coal-fired power 25,620 42.
2 Natural gas and LNG thermal power 8,940 14. 8 Hydropower 18,060 30. Regarding biomass and other related renewable including wastes and co-generation biomass, the total energy capacity stands at 255 MW. This elaborated data points to one direction; that there is a wide gap between the actualization efforts that have been made and the set targets for the renewable energy and calls for much to be done at the national level. 5 A Case Study of PetroVietnam Power Corporation (PV Power) PV power was formed in 2007 by the Vietnam government to address the issue of electricity production, distribution, and trading. As of 2016, the company owned and operated power plants generating about 4802 MW reflecting about 12% of the total installed capacity in the country. In 2016, the company supplied to the national grid over 21 billion kWh of electricity which translates to 13% of the electricity output.
5 MW of Nam Cat Hydropower plant). The PV Company’s annual report showed that PV Corporation operated an off-grid wind plant with a total installed capacity of 6. 2 MW In the South of Vietnam. However, the development plan of the Corporation shows that it will not invest in renewable projects in the short term. This shows the existing gap between the development strategies and the actual implementation of renewable projects in Vietnam. This has remained a top priority for the government. From medium and large-scale sources, Philippines can technically produce 11,223 MW of hydropower while at small scale it can produce 1847 MW and a further 27 MW from a micro-scale. Furthermore, the Philippines can produce 20 MW of biomass electricity. However, despite increased demands for energy and fossil fuel consumption, renewable energies use has declined since 1995 where it stood at about 30% to currently less than 20%.
Thailand When it comes to energy distribution, Thailand stands as one of the most successful countries as 100% of the urban population and 99% of rural population have access to electricity. As for hydropower, Thailand can produce 700MW of hydropower in micro-scale. However, currently, it produces only 139 MW of that potential distributing it to its network. Also, for biomass, the country has the potential to produce 7000MW but only 1610 MW is produced from the biomass at present. Compared to other countries in the region such as Indonesia and Philippines, Thailand has a huge potential for geothermal power (Lidula, N. W. For these targets to be achieved, the government implemented the following policies and incentives. • In 1992, the Thailand government introduced a programme known as Small Power Producer (SSP programme) that forced the power distribution authorities to purchase power from renewable sources.
By then the potential capacity that was eligible for this program was 90 MW. A similar program was initiated in 2001, this time targeting even smaller power productions (VSPP). • Feed-in-tariff (FiTS) also known as adder was a policy introduced in 2007. RE Technology Technical Potential (MW) 2008 Capacity (MW) 2021 Target (MW) Solar 50,000 32 2,000 Wind 1,600 1 1,200 Small/micro hydro 700 56 324 Biomass 4,400 1610 3,630 Table 7: Renewable energy potential, 2008 capacity, and 2021 alternative development plan targets 4. Malaysia The total electricity in Malaysia is 13 GW. 84% of the total capacity is generated from thermal power plants while the remaining 16% is generated from hydropower (Lidula, N. W. A et al, 2007). In Indonesia, 94% of its urban population has access to electricity while the rural electrification sees only 32% of the population access electricity. The average amount of electricity being utilized by a conventional Indonesian is approximately 566 KW/h.
Hydropower sources generate 10% of the total electricity in the country, 27% of the total electricity comes from renewable sources while the rest comes from thermal power plants. Averagely, solar radiation has the potential to generate 4. 8 KW/h/m2/day in Indonesia. Unlike biomass energy where the plans are in place to develop and generate electricity, geothermal energy is not in the plans of the Indonesian government and no plans have been made for the large production of power from geothermal sources. Although energy generation from renewable sources has increased in recent years, power generated from this source has seen a slight decrease. Singapore Singapore has the smallest population as compared to other countries under study. The entire population in Singapore has access to electricity.
The annual per capita income in Singapore is 8514 KW/h. Hydro-Energy Lighting, agricultural processing Less GHG emissions and land protection Improved social resilience Increased agricultural yields Wind energy Power generation, crop processing, irrigation, and water pumping Reduced CO2 emissions, less dependence on wood and biogas Low cases of water scarcity, more agricultural choices through irrigation Improved quality of life, income generation, reduced risks of water-borne diseases, improved water supply/ food security Biomass Electricity generation and heat Reduced use of charcoal and wood fuel, less pressure of natural resources Reduced deforestation and desertification Reduced indoor air pollution, and respiratory infections, the creation of jobs and opportunities Table 8: Benefits of Renewable Energy Technologies Negative Impacts Types of Energy Negative Impacts Solar Power System Requires sizeable amount of land Possesses environmental effects if the production process is not well handled Hydro Population displacement Soil erosion Reduced agricultural land Ecosystem disturbance Wind Consequential noise because of the rotating wind turbines Eyesore to the landscape Electromagnetic interference to radio signals Biomass Requires large land for production and wastes Affects surrounding biodiversity Emission of GHG, methane, and CO2 Table 9: Negative impacts of Renewable Energy technologies 4.
Costs With good resources, geothermal just like biomass and hydropower can be the cheapest forms of energy generation with costs of as low as USD 0. 04 KWh when it comes to the most competitive projects. Between the year 2007 and 2014, the levelized cost of energy when it came to geothermal power varied from USD 0. 04 KWh to USD 0. 05 KWh. When it comes to the total capacity, the capacity costs for the total installed hydropower projects range from as low as USD 1000 KWh TO USD 3500 KWh. However, it is very unusual to find hydropower projects ranging outside these costs. Solar power resources are available in each country with both Photovoltaic and Concentrated solar power technologies being utilized. Solar PV deployment has undergone significant development hitting 291 GW at 2016 while CSP power is still at initial development stages with its deployment at 5GW.
12 KWh USD depending on the region of generation. However, these costs could be as low as USD 0. 03 KWh for the competitive projects not receiving financial support. The prices are expected to continue dropping because of the pressure on wind turbine prices, technology improvements in swept areas and growth in hub heights. For the offshore winds, the prices are a bit higher with prices ranging from USD 0. Discussion: Petrovietnam Power Corporation Analysis and Findings. As mentioned earlier, our documentation methodology involved exploring literature and documentation. All the information collected on Petrovietnam Power Corporation will be categorized into strengths, weaknesses, opportunities, and threats. This is aimed at achieving utilization of SWOT analysis as is the preferred method of understanding both the internal as well as external environments (Poister, T.
H. Through understanding the importance of renewable energies in achieving energy sustainability, the government of Vietnam has shifted a lot of attention to the development of renewable energies. The government has provided its support through incentives and policies. Evidence of this is the “development strategy” and the revised master plan and even policies that are preferential in the development of these renewable sources of energy through a legal framework. For example, Law that was established in 2005 regarding Environment Protection states that individuals and organizations interested in investing in renewable and clean energy are entitled to tax support from the government for building facilities. In a bid to encourage investment in renewable energy, the Vietnamese government has provided incentives to investors through exemption of applicable land rates and taxes.
This trend in prices also further explains why EVN, the second largest power generator in Vietnam suffers from a dip in their profits. Another challenge is the issue of science and technology, it is known that Vietnam does not manufacture equipment used in the development of renewable projects; instead, these equipment are imported therefore raising the investment cost. Meanwhile, the initial investment capital for power plants is large. Therefore, this scenario forces investors to seek help through borrowing from financial institutions, especially those investors interested in renewable projects. Also, a technology constraint is a major challenge for the development, low availability, and efficiency of renewable energy. Opportunities As seen in the structure of Vietnam Power Corporation coal-fired and gas-fired thermal power represents the biggest proportion of the country’s energy output equivalent to 55% of the total output or total installed capacity.
If the Revised Development Plan is anything to go about, then it can be observed that the demand for thermal power in 2017 was 55. 2 million tons with coal electricity taking a large proportion with 39 million tons equivalent to 71% of the thermal power. In 2020, the demand for thermal power will be 86. 5 million tons with coal power accounting to 64. 6 GW in 2005 to 34. 1 GW in 2014 reflecting an average growth rate of 12. 6% annually. According to the predictions contained in the Revised Power plan 7, the energy demand in Vietnam will reach 265 billion KWh in 2020. This reflects great opportunities to develop alternative sources of energy such as renewable sources. The same is expected to be realized in the LCOE of offshore wind with forecasts predicting an incredible 71% dip by 2040.
For offshore wind, it is expected that this turn of events in the LCOE will be influenced by shifting economies of scale, competition, and development of bigger projects and larger turbines. The cost of onshore wind is expected also to realize a 30% drop in LCOE resulting from better turbines and streamlined operations. The same predictions are shared by the Asian Development Bank (ADB) and IRENA. “Like solar PV panels a decade earlier, battery electricity storage systems offer enormous deployment and cost-reduction potential, according to this study by the International Renewable Energy Agency (IRENA). Technical upgrades accompanied by huge investments are required to ensure that renewable sources are connected to the national grid. However, this is not a one country scenario and as explained by the (UNEP REPORT, 2015), “there are also structural challenges in the electricity system as grids and utilities in many Countries struggle to cope with the increasing penetration of wind and solar in the generation mix.
Coping with 25% or more variable generation is more difficult for grids and utilities than managing a 5% proportion. Governments have often struggled to produce policy measures that keep up with the advance of renewable power and its knock-on effect on the rest of the electricity system”. The report is in agreement with one scholar-researcher (Lerch, 2010, p. Malaysia’s potential of generating 4. 5 KWh/day/m2 is equal to 140 MW of solar energy which surpasses that of Thailand and Philippines. On the other hand, although Indonesia and Malaysia have the potential to produce a lot of electricity from biomass sources, Philippines producing 1610 MW, is the leading country in generation capacity from biomass sources. The same can be deduced for geothermal power, while Indonesia has a rich potential for geothermal power, the Philippines produces twice as much as Indonesia.
Also, areas in South East Asia have rich potentials of electricity potentials yet in reality, these potentials have not been explored. Geographical posture, distribution of population, political and the economic stability together with the government’s commitments are all important factors that determine energy distribution. There is a direct relationship between the energy consumption from renewable sources and the purchasing power in the five countries under study. Increasing the purchasing power shows an increase in energy consumption. Finally, contrary to the beliefs that using conventional energy sources such as fossil fuels increase the rate of CO2 emission, consumption of fossil fuels has no relationship with CO2 emission. For instance, Singapore which is the most polluted country among the five does not have energy generations from coal industries.
Also, the Wind Power projects development owners in Vietnam continue to sell electricity at temporary prices because it had lacked subsidies from the Environmental Protection Fund. When it comes to feasibility, the development strategy being used in Vietnam is aligned with the energy needs of the country. As evidenced in our research paper, Vietnam still faces power shortages to the point that it even imports from China. This shows that the energy demand is high than the supply. Therefore it validates the goals that have been set out in the Development Strategy as being realistic. Also, it is necessary to have a system of indicators or a framework with guidelines that guide renewable projects. Although manuals have been introduced for biomass projects, similar guidelines should be introduced for other types of renewable.
The role that green economic methods contribute to the development of renewable energies is huge. In fact, the countries that have successfully developed renewable projects have adopted green economic methods as an efficient way of providing support to these projects. Enterprises have been shown to pay attention to the economic benefits of renewable projects and chose to neglect social and environmental impacts caused by renewable projects. Despite all the potentials in Malaysia for renewable sources coupled with the government efforts, energy generation from renewable remain at the lowest rate. Thailand’s growth rate in renewable energy has been surpassed by the annual energy consumption rate indicating how slowly development of renewable has been. While this is expected to continue for South East Asian countries, the Philippines can be considered as it has the highest rate of energy generation from renewable sources.
In the Philippines, it is imperative to have more energy regulations and policies to ensure that the share that renewable sources have been maintained. From these scenarios, it can be concluded that the development of renewable energies in developing nations is difficult but one that has to be undertaken. The governance of renewable globally has advanced with different institutional frameworks being conceived. Examples are the UNFCCC Kyoto protocol. Since 2010, a fully functional renewable energy governing body, IRENA, has been established. It is complemented by other international institutions such as GWEC and IEA. The success prospects of renewable energies will be further enhanced if the issues surrounding this sector will be incorporated into global policies on climate change such as UN-related processes.
These policies can include site clearance policies, compensation policies, and negotiation Power Purchase Agreements (PPA). Recommendation 2: Economics and Finance Since renewable energy projects require a lot of initial startup capital and implementation costs, the governments should support the domestic and foreign investors access low-interest loans from domestic financial institutions as well as foreign banks and also provide guarantees for these loans. On the other hand, the investors should be aware of the interest rates or the exchange rates to ensure that the capital is invested in an effective and viable manner. India, for instance, has set up a Money Guarantee fund through the implementation of a term contract that allows currency swap agreement and project developers can borrow money from international financial institutions without being faced by the challenge of currency change risks or minimal take risks.
The current condition in South East Asia paints a picture of governments having inadequate funds to invest in renewable energies and thus the renewable energy sector will receive a boost if the governments will be able to attract private investors. The government role is to formulate frameworks through which cooperation with foreign equipment manufacturers is enhanced through training, human resourcing, researching, and technology transfer to a particular nation. In the process of doing project formulation, project developers should focus more attention on surveying and selection of project sites taking into account the possibility of technology application in the selected project site. Selection of competent and qualified consultants in the field of renewable energy is also imperative. This ensures that minimal risks are encountered during the implementation of renewable energy projects.
The process of renewable energy connection to the national power grid should also be smoothened to ensure that the renewable plants are connected as soon as possible thus reducing the time for paying interest rates and start energy revenue generation. Thesis Contribution This research thesis will be a major contribution to the development of renewable energy. This study proposes the adoption of renewable energies which are more environmentally friendly (No GHG emissions and other greenhouse gases) as compared to fossil fuels and Biofuels. If this research is successfully implemented, it will bring about a premise of green, cheap and sustainable renewable energy development. Also, it will enhance energy security for the South East Asian countries which are undergoing industrialization, the creation of job opportunities as well as improving environmental landscapes.
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