ASEAN’s cross-border green ‘super grid’ drive
By Nikkei Asia
Key Concepts
- Nepal Tourism Impact: Youth-led protests causing significant financial losses to Nepal's tourism sector.
- Nintendo's Southeast Asia Expansion: Nintendo establishing a local entity in Singapore and considering Thailand to boost its regional business.
- China's Pre-made Meal Regulations: An influencer's negative review leading to online debate and new government rules for pre-made meals in China.
- Myanmar's Mining Security: Military deployment of drones, ships, and paragliders to protect Chinese-run mines for foreign exchange.
- Japan's Foreign Worker Policy: Strong agreement among Japanese business leaders on expanding foreign worker acceptance and integration.
- Indonesia's Tobacco Surplus: Declining cigarette company stocks due to a massive tobacco surplus and economic crisis.
- Thailand's Clean Air Act: Political turmoil delaying the passage of a crucial law to combat smog, with debates on victim compensation and polluter accountability.
- Mumbai's Urban Biodiversity: Discovery of hidden marine and wildlife pockets within Mumbai, highlighting resilience despite urban challenges.
- ASEAN Decarbonization and Super Grid: The region's drive to shift from fossil fuels to renewables, aiming for an integrated power grid, with the Monsoon Wind Power Project as a key development.
- ASEAN Energy Demand Growth: Southeast Asia's projected significant increase in energy demand, second only to India, and its ambition for net-zero targets.
- Investment in ASEAN Renewables: Substantial annual growth in foreign investment in the renewable energy sector across ASEAN.
Nepal's Tourism Sector Disrupted by Protests
Youth-led protests in Nepal have severely impacted the country's tourism industry, occurring just as it was preparing for the peak auto trekking season. These demonstrations, which lasted for two days in September, resulted in an estimated loss of 25 billion Nepali rupees, equivalent to $177 million, according to the Hotel Association of Nepal.
Nintendo Expands in Southeast Asia
Nintendo is actively pursuing business expansion in Southeast Asia. The company has established a local entity in Singapore and is also evaluating the possibility of doing so in Thailand. This strategic move aims to accelerate its operations and market presence within the region.
China's Pre-made Meal Regulations Sparked by Influencer Review
An online debate concerning food quality in China was ignited by a negative review of a prominent restaurant chain by an influencer. This incident has prompted authorities to announce new regulations specifically for pre-made meals, addressing concerns raised by the public and the review.
Myanmar's Military Protects Chinese Mines
Myanmar's military has reportedly deployed a range of assets, including drones, ships, and armed soldiers utilizing motorized paragliders, to secure the operations, output, and expansion of two Chinese-run mines. This protective measure is aimed at safeguarding one of Myanmar's few significant sources of foreign exchange.
Japan's Business Leaders Support Foreign Worker Expansion
A survey conducted by NIK reveals that nearly 98% of business leaders in Japan concur with the government's policy to increase the acceptance of foreign workers. Respondents emphasized the critical role these workers play and the importance of facilitating their integration into Japanese communities.
Indonesia's Tobacco Industry Faces Surplus and Decline
Indonesia's cigarette company stocks are experiencing a sustained downturn. This decline is attributed to a substantial tobacco surplus within the country, compounded by an ongoing economic crisis that has presented challenges for policymakers and left tobacco growers struggling to find solutions.
Thailand's Political Turmoil Delays Clean Air Act
Political instability in Thailand has cast a shadow over the long-awaited passage of a law designed to combat smog. The smog season in Bangkok this year led to school closures, a work-from-home directive from the city's governor, and free public transportation to reduce road traffic. Despite decades of deteriorating air quality, public outcry has driven the push for Thailand's Clean Air Act. After extensive legal deliberations and the consolidation of multiple drafts, a single version of the act is being considered. Key debates revolve around compensation for victims and mechanisms for holding polluters accountable. While Thai officials remain optimistic about the act's potential impact, the removal of Prime Minister Peton Shinuat in late August has cast doubt on its timely enactment before the next dry season. The ongoing political maneuvering ahead of elections raises concerns among proponents that continued infighting could lead to indefinite delays.
Mumbai's Hidden Green Oases and Marine Biodiversity
Beyond the bustling urban landscape of Mumbai, characterized by traffic, crowded trains, and skyscrapers, lie pockets of wilderness offering moments of connection with nature. These areas reveal sea anemones in tide pools, leopards in city forests, and flamingos in creeks. The city's shoreline, often overlooked by beachgoers, hosts a remarkable diversity of marine life, including sea urchins, moray eels, hermit crabs, and coral colonies. These intertidal zones demonstrate resilience despite pollution, sewage runoff, and construction. The "Marine Life of Mumbai" initiative, launched in 2017, aims to showcase this biodiversity through guided shore walks at low tide, exploring mangroves and rocky coastal areas.
ASEAN's Decarbonization Drive and the "Super Grid" Dream
Main Topics and Key Points:
- Fossil Fuel Dominance: Currently, 90% of the ASEAN region's energy mix is derived from fossil fuels, with a strong desire to transition to cleaner sources.
- Momentum for Change: Despite decades of discussion, the decarbonization drive is gaining momentum, partly due to the operationalization of significant renewable energy projects.
- Monsoon Wind Power Project: Southeast Asia's largest onshore wind farm, located in the highlands of Southern Laos, is a key development.
- Capacity: 600 megawatts (MW) installed capacity.
- Cross-border Transmission: Transmits electricity 27 kilometers to Vietnam.
- Consortium: Operated by a Thai consortium, with contributions from Japan's Mitsubishi and construction by China Power Construction (Power China).
- ASEAN Power Grid ("Super Grid"): A long-term vision for an integrated power grid across ASEAN to facilitate energy sharing and enhance reliability.
- Challenges: Historical impediments include differing government policies, lack of unifying technologies (e.g., varied grid systems and power levels), and insufficient political will.
- Drivers: The need to attract high-energy-consuming industries like data centers and semiconductor manufacturers is a significant push factor.
- Political Will and Leadership: The lack of political will has been a major obstacle. However, Malaysia's chairmanship of the ASEAN summit this year, coupled with its ambition to become a semiconductor hub, is expected to boost efforts towards grid integration.
- Investment in Renewables:
- Growth Rate: Investment in ASEAN's renewable sector has grown by 15% annually since 2020.
- Total Investment: Reached $43 billion in 2022, a growth pace exceeding most regions.
- Key Investors: China remains the largest investor, with significant contributions also coming from Japan, South Korea, and other major regional economies.
- Regional Energy Demand: Southeast Asia is projected to account for a quarter of global energy demand growth through 2035, second only to India. Regional energy demand is expected to surpass that of the EU by mid-century.
- Net-Zero Targets: Many countries in the region are actively working towards achieving net-zero emission targets.
- Transmission Infrastructure: The critical importance of transmission infrastructure for energy transition is highlighted by the statement, "There will be no transition without transmission."
Step-by-Step Processes/Methodologies:
- ASEAN Power Grid Development: This is a multi-decade, complex process involving:
- Policy Harmonization: Aligning diverse national energy policies and regulations.
- Technological Standardization: Developing common standards for grid systems, power levels, and interconnection protocols.
- Infrastructure Development: Building and upgrading transmission lines and substations to connect national grids.
- Investment Mobilization: Attracting both domestic and foreign investment in renewable energy generation and transmission.
- Political Commitment: Securing sustained political will and cooperation among member states.
Key Arguments/Perspectives:
- Economic Imperative: The need to power growing economies and attract high-tech, energy-intensive industries is a primary driver for decarbonization and grid integration.
- Environmental Responsibility: The pursuit of net-zero targets and the mitigation of climate change impacts are crucial long-term goals.
- Interdependence: The success of individual nations in achieving their energy and climate goals is increasingly linked to regional cooperation and infrastructure.
Notable Quotes:
- "There will be no transition without transmission." - Attributed to someone working with Sowek Energy, emphasizing the necessity of robust transmission infrastructure for the energy transition.
Technical Terms/Concepts:
- Energy Mix: The combination of different energy sources used to meet a region's or country's energy demand.
- Decarbonization: The process of reducing carbon dioxide emissions.
- Onshore Wind Farm: A wind power facility located on land.
- Installed Capacity: The maximum output a power plant can produce.
- Cross-border Transmission: The transfer of electricity between different countries.
- Super Grid: A large-scale, interconnected electricity grid spanning multiple regions or countries.
- Net-Zero Target: A commitment to balance greenhouse gas emissions with removals from the atmosphere.
Logical Connections:
The discussion on ASEAN's decarbonization drive logically connects the current reliance on fossil fuels with the future vision of a "Super Grid." The Monsoon Wind Power Project serves as a tangible example of progress, demonstrating the feasibility of cross-border renewable energy projects. The challenges of technological standardization and political will are presented as hurdles to achieving the Super Grid, while the economic demand for power from data centers and semiconductor industries is highlighted as a strong incentive. The growth in renewable investment and the projected increase in regional energy demand underscore the urgency and scale of the undertaking.
Data/Research Findings:
- 90% of ASEAN's current energy mix is from fossil fuels.
- Monsoon Wind Power Project has an installed capacity of 600 MW and transmits electricity 27 km to Vietnam.
- Investment in ASEAN renewables has grown by 15% annually since 2020.
- Investment in ASEAN renewables reached $43 billion in 2022.
- Southeast Asia is on track to account for a quarter of global energy demand growth through 2035.
- Regional energy demand is expected to surpass that of the EU by mid-century.
Synthesis/Conclusion
The NIK Asia News Roundup highlights critical developments across Asia, from the economic disruptions in Nepal and Indonesia to strategic business expansions by Nintendo and technological advancements in Myanmar. Thailand's political landscape is impacting its environmental policy, while Mumbai showcases surprising urban biodiversity. A significant focus is placed on ASEAN's ambitious decarbonization efforts and the vision for an integrated "Super Grid." Despite historical challenges, the region is witnessing growing momentum, driven by increased investment in renewables, the operationalization of large-scale projects like the Monsoon Wind Power Project, and the economic imperative to power future growth industries. The success of these initiatives hinges on overcoming technological and political hurdles, with a strong emphasis on the need for robust transmission infrastructure to support the transition.
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