– Decarbonising ASEAN’s energy supply could result in $800 billion in cost savings through regional collaboration in power interconnectors, hydrogen networks, and energy storage infrastructure
– DNV’s study models three scenarios for decarbonisation in ASEAN: individual approach, moderate interconnection, and regional cooperation
– Regional cooperation can cut costs significantly compared to individual or moderate interconnection approaches, leading to faster energy transition and reduced costs for consumers and the environment
DNV’s study on decarbonising the energy supply in ASEAN member states highlights potential cost savings of $800 billion through regional collaboration in power interconnectors, hydrogen networks, and energy storage infrastructure. This approach aims to optimize resource utilization, reduce land footprint requirements for renewable energy development, and minimize the levels of renewable generation and energy storage needed to achieve net zero emissions.
The study explores three scenarios for achieving a decarbonized ASEAN power sector by 2050. The individual approach involves countries working independently to decarbonize, while the moderate interconnection scenario includes limited cross-border power interconnectors without a hydrogen network. The regional cooperation scenario envisions full resource sharing between countries, incorporating power interconnectors and hydrogen networks.
DNV estimates that regional cooperation could reduce the overall net present cost of ASEAN decarbonization by $800 billion compared to the individual approach and $300 billion compared to moderate interconnection. This collaboration is seen as essential for accelerating the energy transition, reducing costs for consumers, and achieving environmental sustainability.
Mats de Ronde and Brice Le Gallo from DNV emphasize the importance of cooperation in addressing the global challenge of decarbonization. They highlight the benefits of moderate interconnection in terms of cost savings and resource efficiency, advocating for cross-border interconnectors as a crucial step towards achieving decarbonization in the ASEAN region.