Southeast Asia needs more energy to power its growth in the coming years. Turning to renewable sources of energy will make the growth sustainable for everyone in the region.
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As the world’s fourth-largest energy consumer, ASEAN’s energy demand, at 22%, has outpaced the global average of 16% since 2015. This appetite for energy will escalate in the coming years, as it braces for a period of rapid urbanisation and population growth.
The rise of AI has also triggered a scramble to build data centres in the region. In 2023, there are 352 data centres in Southeast Asia, more than in Japan or India. In Singapore, data centres accounted for 7% of the country’s electricity usage. At the global level, experts predict that data centres will consume more than 1,000 terawatt hours in 2026 -- roughly equivalent to the entire annual consumption of Japan.
At the moment, the region relies on fossil fuels to fulfil 80% of its energy needs. Unfortunately, Southeast Asia is extremely vulnerable to the effects of climate change, having experienced severe heat waves and floods in the past year alone.
There are growing calls for Southeast Asia to reduce its reliance on fossil fuels and tap on renewable sources of energy. The governments have acknowledged this call and pledged their commitments at COP28, also known as the 2023 United Nations Climate Change Conference.
Here are some highlights of COP28:
Indonesia aims to increase its renewable energy capacity to 480GW by 2060.
Vietnam wants to use renewable energy to generate 47% of its electricity by 2030.
Thailand hopes to have a capacity of 15.6GW of solar energy by 2035.
Malaysia promised to reduce its greenhouse gas emissions by 45% by 2030.
- Indonesia, with enormous renewable energy potential, aims to increase its renewable energy capacity to 480GW by 2060.
- Malaysia promised to reduce its greenhouse gas emissions by 45% by 2030 and achieve net-zero emissions by 2050.
- Thailand, not only commits to achieving net-zero emissions by 2050, also hopes to have a capacity of 15.6GW of solar energy by 2035.
- Vietnam, having emerged recently has a strong proponent of solar power, wants to use renewable energy to generate 47% of its electricity by 2030.
- While Singapore does not have the access to rich sources of renewable energy, it aims to tap on the ASEAN Power Grid to import 4GW of low-carbon electricity from Cambodia, Indonesia and Vietnam.
To support this ongoing effort, Hitachi Energy, a part of the Hitachi Group, is pledging US$6 billion from 2024 to 2027 globally to accelerate the clean energy transition. This investment will be directed into a multitude of efforts that include manufacturing, engineering as well as research and development.
In addition, Hitachi Energy is working together with the Indonesian government, having signed a Letter of Intent to support the development of clean energy technologies in 2023. This comes after Hitachi Energy’s efforts to support Bali’s energy needs during a G20 Summit in 2022. Working in a consortium with PT Surya Energi Indotama, Hitachi Energy deployed a microgid in Nusa Peninda, Klungkung to meet the island’s 20% surge in electricity.
Hitachi Energy deployed a microgid in Bali to meet the island’s 20% surge in electricity.
Hitachi was selected to deploy the battery energy storage solution and control system for Thailand’s largest private microgrid.
Hitachi is using HVDC Interconnections for a geothermal power plant on the island of Leyte.
Hitachi is also supporting Thailand to meet its ambitious target for renewable energy power. Hitachi was selected by Impact Solar Limited to deploy the e-meshTM PowerStoreTM battery energy storage solution (BESS) and control system for the nation’s largest private microgrid at the Saha Industrial Park in Sriracha. The microgrid will manage a total capacity of 214MW of renewable energy.
Hitachi is a pioneer in HVDC technology
Hitachi is also helping the Philippines with its renewable energy needs. On the Leyte island sits a geothermal power plant that is connected to the main island of Luzon using Hitachi’s High-Voltage Direct Current (HVDC) interconnection link, feeding the electricity generated into the grid in the Manila region.
– Anthony Smith, Country MD of Hitachi Energy, Singapore
Hitachi is a pioneer in HDVC, a highly efficient technology for transmitting large amounts of electricity over long distances. Having enabled over 200GW worth of renewable energy projects into the grid system, Hitachi’s HVDC also adds a stabilizing effect to AC networks, while connecting them to renewable energy sources. This technology will play a crucial role as the key enabler for a modern, carbon-neutral energy system.
Hitachi believes in technology and how it can bring sustainable energy to everyone in Southeast Asia.
This is social innovation in action.
Date of Release: November 2024
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