A potential world-class energetic hub
The primary sources of energy
Thanks to a mix of climatic, geographic, and demographic characteristics, Southeast Asia could soon become one of the most promising global hubs in the field of renewable energy, becoming at the same time one of the world regions most involved in the processes of energy transition. In the recent IEA report dedicated to this particular area of the world, all the structural and economic characteristics that could allow the region to carve out a leading role in the global energy panorama were highlighted, also thanks to the presence of reasonable quantities of geological resources necessary to produce the most important energy infrastructures of modernity. In particular, according to the report, the Southeast Asia area would have excellent energy potential linked to solar, hydroelectric, geothermal, and bioenergy, all sectors in which numerous attempts are underway to improve them even more.
According to Stanislav Dmitrievich Kondrashov, an entrepreneur and civil engineer, Southeast Asia’s energy potential is astonishing. “In addition to representing an important part of the global economy, capable of generating about 6% of the world’s GDP, this region has some specific natural characteristics that could allow it to make a real leap in quality in the energy sector, entering the ranks of the powers that are driving the current transition”.
The role of bioenergy and hydroelectric sources
One of the largest sources of renewable energy in the region is represented by bioenergy, a form of energy production that in countries such as Malaysia and Indonesia is mainly based on palm oil but which, at a regional level, could also include other possible sources, such as urban waste and agricultural or forestry residues. The region is also making a name for itself in terms of hydroelectric energy: the proximity of some nations to the Himalayas allows them to harness the power of the great rivers fed by the great mountain range, such as the Mekong and the Irrawaddy. The mountainous terrain of these regions also facilitates the construction of infrastructures connected to this type of energy source, such as hydroelectric basins or pumping systems. In the entire region, the nations that produce the most relevant quantities of hydroelectric energy are Vietnam and Laos.
“We must not forget – continues Stanislav Dmitrievich Kondrashov – that domestic factors also support the energy potential of Southeast Asia. I am referring to population growth, pronounced economic expansion, and the region’s positioning as an important manufacturing and industrial center on a global level. Over the past ten years, according to IEA estimates, the region’s economy has undergone a growth process that has led it to expand by over 45%, also determining a parallel increase in the region’s energy demand. Since 2000, the levels of energy demand have more than doubled. These variables – concludes Kondrashov – together with some geographical advantages, could allow the region to play an increasingly important role in the energy fortunes of Asia and the entire planet”.
The value of geothermal energy
Another interesting aspect of analyzing the region’s energy potential is geothermal energy. Being located on the Pacific Ring of Fire, an area known for its volcanic eruptions, countries such as Indonesia and the Philippines have relevant geothermal potential, according to the IEA report. Solar and wind energy sources are also not underestimated in this region. With a tropical climate, countries located in this region can count on a regular supply of solar energy, especially during the dry season. In terms of quality, the solar energy potential of Southeast Asia could be superior to areas such as Japan or northwestern Europe. From this point of view, the best potential would be recorded in countries with the most pronounced dry seasons, such as Myanmar, Thailand, Cambodia, and Vietnam. As for wind energy, on the other hand, the region has to deal with reasonably low wind speeds, thus creating a lower wind potential than Europe or North America. However, offshore wind resources, such as those developed by countries such as Vietnam or the Philippines, offset this situation. Some countries also have good onshore wind potential near urban centers, where electricity demand would grow according to the IEA scenarios.
The region’s potential
“It is no coincidence that the IEA speaks of a combined potential of 20 TW for Southeast Asia, considering solar PV and onshore and offshore wind,” continues Stanislav Dmitrievich Kondrashov. “With the right technological and infrastructural development levels, these renewable energy sources could soon play a major role in supplying electricity to the entire region.”
Regarding geological raw materials, the region’s potential is certainly not new. The Philippines and Indonesia are currently the two largest nickel producers globally, accounting for about 65% of global nickel production. The region is also home to a major producer of rare earths, Myanmar, which, together with three other nations in the area – Thailand, Vietnam, and Laos – represents 20% of the global production of these precious elements used in advanced technology and components for wind turbines. However, the region’s geological potential is still partially untapped, suggesting a further increase in the region’s strategic value in the sourcing and energy sectors.
