ASEAN PLAN OF ACTION FOR

ENERGY COOPERATION (APAEC)

2004 - 2009

• Programme Area No. 1. ASEAN Power Grid

Objective : To facilitate the implementation of the ASEAN Interconnection Master Plan and to further the establishment of policy framework of the electricity networks comprising the APG
Strategy	Action
Develop the ASEAN Power Grid by Interconnection	Possible commissioning by 2005-2007 Vietnam - Cambodia Possible commissioning by 2007 Thailand - Cambodia Possible commissioning by 2009 Peninsular Malaysia - Sumatra Sarawak - West Kalimantan Thailand - Lao PDR Possible commissioning beyond 2009 Sarawak - Peninsular Malaysia Batam - Bintan - Singapore - Johor Philippines - Sabah Sarawak - Sabah - Brunei Darussalam Lao PDR - Vietnam Thailand - Myanmar Lao PDR - Cambodia
Optimization of the generation sector vis-à-vis indigenous resources	Further optimize the AIMS result
Invite private sector participation to develop the generation identified in the AIMS	Conduct F/S on identified interconnections
Conduct F/S on identified interconnections	Conduct studies on policy, regulatory, legal, financial and commercial framework

Develop the ASEAN Power Grid Interconnection

The Heads of ASEAN Power Utilities/Authorities (HAPUA) is tasked to implement the ASEAN Power Grid programme. It completed the ASEAN Interconnection Masterplan Study (AIMS) in March 2003, identifying 14 interconnection projects. During the 21 st AMEM on June 2003 in Langkawi , Malaysia , the Ministers approved 11 of the projects endorsed by HAPUA. The AIMS, as adopted, will serve as the reference guide in the implementation of the ASEAN interconnection projects.

Two (2) interconnection projects are operational. These are the Peninsular Malaysia-Singapore interconnection and the Thailand-Peninsular Malaysia Stage # 1 and Stage # 2 interconnections. The Vietnam-Cambodia interconnection shall be commissioned between 2005-2007 and the Thailand-Cambodia link by 2007. Three (3) other projects will be commissioned by 2009, and the rest beyond 2009.

In its bid to streamline operation, HAPUA adopted the Memorandum of Understanding (MOU) of the new Structure of HAPUA during their 20 th Meeting. A special task force headed by Malaysia completed the review of the HAPUA organizational structure, administrative modalities and established a permanent HAPUA Secretariat last December 17, 2003 with three year term rotation. Indonesia hosts the HAPUA Secretariat for the period 2004-2007.

HAPUA is expected to play a very important role in the development of the ASEAN Power Grid and it is confident that it can develop the grid and bring electricity to the people in the region.

1. Optimization of the Generation Sub-sector

The ASEAN has abundant indigenous energy resources. There are large potential reserves of fossil energy sources as well as renewable energy which can be harnessed to produce electricity. However, initial results of the interconnection study indicate that it would not be economical to fully integrate the power systems of all the 10 ASEAN countries. Dividing the power system into two systems - East System and West System - indicated that there are 11 potential interconnection projects that can be implemented up to the year 2020. Further optimization studies shall be conducted to determine the delivery of cheap source of energy to the load center and economic operation and sharing of reserves.

2. Invite Private Sector Participation to Develop the Interconnection

HAPUA will continue to conduct feasibility studies on the interconnection projects. As power generation and interconnection projects entail huge capital investments, which no single government can undertake on its own, the private sector will be encouraged to embark on these projects.

3. Address barriers to interconnections

HAPUA will conduct studies to come up with appropriate recommendations to overcome barriers to interconnections. Studies to be undertaken will cover areas such as policy, regulatory, legal, financial and commercial framework. The studies shall be conducted in coordination with the eight (8) Working Groups (WG's) under the new HAPUA structure. The WG's include: a) Generation; b) Transmission; c) Distribution; d) Renewable Energy and Environment; e) Electric Supply Industry (ESI) Services; f) Resource Development; g) Power Reliability and Quality; and, h) Human Resource.

• Programme Area No. 2. Trans-ASEAN Gas Pipeline

Objective : To facilitate implementation and realisation of the Trans-ASEAN Gas Pipeline Infrastructure Project to ensure greater economic value and security of gas supply
Strategy	Action
ASCOPE Members to collectively implement ASEAN MOU on TAGP	Operationalization of the MOU on TAGP Formal establishment of the AGCC
PERTAMINA and PSC Partners to undertake detailed feasibility study for East Natuna Gas Field Development	Commission of Feasibility Study Initiative
Respective ASCOPE Members to implement the approved roadmap for TAGP accordingly	Eight (8) gas interconnection projects South Sumatera , Indonesia - Peninsular, Malaysia W. Natuna , Indonesia - Duyong , Malaysia E. Natuna , Indonesia - JDA - Erawan , Thailand 4a+4b E. Natuna - W. Natuna, Indonesia - Kerteh, Malaysia 4a+4b E. Natuna - W. Natuna, Indonesia - Singapore E. Natuna, Indonesia - Brunei Darrusalam - Sabah, Malaysia - Palawan-Luzon, Philippines Malaysia - Thailand JDA - Block B Vietnam Pauh , Malaysia - Arun, Sumatra , Indonesia East Kalimantan - Sabah - Philippines
ASCOPE Gas Centre (AGC) to implement the approved 5-year Work Programme	AGC Work Program are as follows: To support and encourage the production, utilisation, distribution, marketing, and sale of natural gas. To standardise technical specification for the Pipelines, such as design and construction standards, operation and maintenance guidelines, safety, environment and measurement standards which are internationally recognised by the oil and gas industry. To facilitate effective and stable contractual arrangements for the supply, distribution and transportation of natural gas including adherence to the open access principle as well as management of the pipelines in accordance with such internationally accepted standards in the petroleum industry. To recommend appropriate measure to ensure security and safety of the Pipelines and the uninterrupted flow of contracted natural gas for transmission through the Pipelines. To recommend measures to mitigate the risk and impact on the environment which the construction, operation, and maintenance of the Pipelines may pose to the community, property and environment. To explore possible cooperation and coordination measures concerning further economic potential use of pipelines to be abandoned Other initiatives may include R&D on CO2 sequestration, harmonization of standards & specifications, etc. Study alternative options on Marine CNG Transport mode

The following plan of action provides the platform for the implementation and realization of the TAGP:

•  Implement the Memorandum of Understanding (MOU) on the TAGP

The Memorandum of Understanding (MOU) on the TAGP was signed by the ASEAN Energy Ministers during the 20 th AMEM held in Bali , Indonesia on 04 July 2002 . The TAGP MOU sets out the cooperation framework for greater public-private partnership and collaboration in the implementation of the TAGP.

Under the MOU member countries can initiate individual and/or joint studies, either on a bilateral or multilateral basis, to support and encourage the production, utilisation, distribution, marketing and sales of natural gas among ASEAN member countries. Assessment and review of national and regional legal and institutional frameworks for natural gas, concerning cross-border issues relative to the commercial and economic feasibility, construction, financing, operation and maintenance of the pipeline as well as supply transportation and distribution of natural gas to member countries shall be undertaken.

Relevant studies on the following (pursuant to Article III of the TAGP MOU) will likewise be conducted:

•  Financing

To consider available financing modes or arrangements relative to the financing of the construction, operation and maintenance of the pipelines, as well as the supply, transportation and distribution of natural gas to member countries. This considers the important role of the private sector, especially in the provision of needed capital investment.

•  Technical Specifications

To determine appropriate standardisation of technical specification of the pipeline, such as, but not limited to, design and construction standards, operation and maintenance guidelines, safety, environment and measurement standards which are internationally recognized by the oil and gas industry.

•  Access and Use

To determine effective and stable contractual arrangements for the supply distribution and transportation of natural gas, including adherence to the open access principle as well as management of the pipelines in accordance with such internationally accepted standards by the oil and gas industry.

•  Security Supply and Emergency Supply Arrangements

To determine appropriate measures to ensure security and safety of the pipelines and the uninterrupted flow of contracted natural gas for transmission through the pipelines, including a framework for cooperation in the event of serious supply disruptions, subject to mutual consultations.

•  Health, Safety and Environment

To determine a framework for cooperation to mitigate risk and environmental impact which the construction, operation and maintenance of the pipelines may pose to affected communities, recognising each member country's rights in accordance with its own national laws, safety measures and environmental requirements which are to govern the construction, operation and maintenance of the pipelines, constructed within its territories, including the designation of its own safety and environmental inspectors.

•  Transit Rights

To determine acceptable measures to facilitate issuance of permits, licenses, consents or other authorisations for transit pipelines and natural gas being transported through the territory of member countries.

•  Taxation and Tariff

To determine arrangements for the mutually agreed imposition of, or exemption from import, export or transit fees, duties, taxes or other government imposed fees and charges on the construction, operation and maintenance of the pipeline as well as the natural gas in transit.

•  Abondonement

To explore possible cooperation and coordination measures concerning the potential further economic use of abandoned pipelines without undermining each member country's right to enforce its own national laws concerning the abandonment of pipelines within its territory.

•  Jurisdiction

To determine jurisdiction and responsibility over the pipelines, particularly for pipeline segments located in the high seas (the exclusive economic zone-EEZ).

•  PERTAMINA and PSC partners to undertake detailed feasibility study for East Natuna gas field development

Tasked to lead the implementation of the TAGP as a program area in the APAEC, the ASCOPE formulated the Masterplan for the " Trans-ASEAN Gas Pipeline Infrastructure Project." The Masterplan which was completed in October 2000 indicates that there are a total of 175 Tscf of proven and 94 Tscf probable natural gas reserves in the then seven (7) ASCOPE member countries. Indonesia has the highest gas reserves with 90 Tscf proven and 42 Tscf probable reserves. Myanmar , which joined ASCOPE in 2003, has a total reserves of 18.4 Tscf proven and 60.3 Tscf probable and possible gas reserves.

A very important finding of the Masterplan revealed that should there be no significant commercial gas discoveries in the near future, countries like Thailand , Singapore and the Philippines would see gas shortfalls. The region would increasingly be dependent on Indonesia as the future main gas supply hub for the ASEAN region or else the region has to import gas supplies.

The Masterplan concludes that there are enough gas supplies to meet the future growing demand for natural gas in the ASEAN region. These supply points could economically be connected to the demand centers through pipelines that would have to pass through national borders and meet certain economic, technical and regulatory standards. Furthermore, the Study concluded that the sustainability of the TAGP interconnection project will rely on the discovery and development of potential gas resources in the region. Toward this end, investment for the exploration of potential resources should be encouraged. It was also noted that the development of the East Natuna gas field in Indonesia will greatly influence the timing, occurrence and realization of the TAGP project.

 •  Implement the Trans-ASEAN Gas Pipeline Infrastructure per the approved roadmap on the TAGP

ASCOPE has reviewed and submitted to the ASEAN Secretariat the "Roadmap for Integration of ASEAN: Trans-ASEAN Gas Pipeline Implementation". Seven (7) gas interconnection projects have been identified for implementation. Among these projects, firm commitments have been secured for the gas pipeline interconnection projects between Sumatera , Indonesia and Singapore and W. Natuna ( Indonesia - Duyong ( Malaysia ). Ratification of the TAGP MOU by all member countries is a key factor in the implementation of this infrastructure project.

A feasibility study on a gas pipeline project covering East Kalimantan - Sabah - Philippines has been proposed with possible commissioning by 2009.

ASCOPE Gas Centre (AGC) to implement the approved 5-year Work Programme

In the near to medium term, the ASCOPE Gas Centre (AGC) is expected to address matters relating to harmonization and standardization of technical specification and gas quality while the commercial aspects as per the studies identified under the ASEAN MOU on TAGP will be undertaken in consultation with the ASEAN Gas Consultative Council (AGCC). It will also undertake joint-techno economic studies for the implementation of the TAGP and gas related projects. Furthermore, the AGC will develop knowledge management system for sharing/exchange information on the natural gas industry and develop exchange programme to promote research on natural gas technologists and researchers. One of the studies to be conducted will deal with using marine compressed natural gas (MCNG) as an alternative mode of transport for island demand centers.

In the long term, the AGC will enhance and promote technological capability enhancement through effective gas-related techno-economic research and development efforts, education and skills training and development. AGC is also expected to undertake value-added activities for gas development for ASCOPE members.

As presented during the 21 st AMEM in Langkawi , Malaysia will host the AGC.

• Programme Area No. 3. Coal

Objective : To cooperate and promote sustainable development and utilization of coal while addressing environmental issues and facilitating intra-ASEAN coal related issues
Strategy	Action
Strengthen Institutional and Policy Framework	Provide assistance in policy reviews
Promote Clean Coal Technology (CCT)	Organize seminars on CCT Organize technical visits on CCT Facilitate feasibility studies on CCT for rural electrification Facilitate/organize technical training on CCT including coal bed methane
Promote private sector investments	Organize investment seminars Facilitate feasibility studies on coal infrastructure projects and low rank coal projects
Promote intra-ASEAN Coal Trade	Update directories of coal specifications of consumers and producers Facilitate feasibility studies on establishing an ASEAN coal commodity market Organise coal market seminars
Promote environmental assessment of coal projects	Provide assistance on environmental impact assessment of projects Organize seminars on environmental impact

Accordingly, the strategies to be implemented for the next five years are: 1) strengthen institutional and policy framework; 2) promote clean coal technology (CCT); 3) promote private sector investments; 4) promote intra-ASEAN coal trade; and, 5) promote environmental assessment of coal projects. The strategies remain relatively the same as in the previous programme, with some modification on the promotion of environmental awareness.

Various activities were identified to implement the five major strategies, namely:

1. Strengthen Institutional and Policy Framework

The AFOC shall undertake an inventory of existing policies, institutional arrangements and regulations on coal as well as the key industry players in each member country. Likewise it shall conduct studies and provide assistance on policy reviews.

2. Promote Clean Coal Technology (CCT)

Coal suffers from negative perception that it is not a clean fuel. It is common to ASEAN countries that strong opposition is met when coal-fired generating facilities are being constructed due to perceived pollution effects once it becomes operational. This is where government and private developers can work jointly for public acceptance of the project. The promotion of CCT will be highlighted in an information education campaign (IEC) plan through tri-media (print, radio and television) showing the new technologies being employed for emission mitigation of present generation coal power stations.

Other activities that will be carried out to promote CCT are the following: a) organize seminars on CCT; b) organize technical visits on CCT facilities; c) facilitate feasibility studies on CCT for rural electrification; and, d) facilitate/organize technical training on coal usage.

3. Promote Private Sector Investment

To promote private sector investment, the AFOC shall organize Coal Business Forums wherein the private sector will be presented with business opportunities. It shall conduct feasibility studies and likewise compile feasibility studies of member countries and make these available to prospective investors. When necessary, assistance in conducting feasibility studies shall be provided by relevant ASEAN bodies to enhance investment opportunities. The conduct of investment promotion road shows is also expected to boost the level of investments in the sector.

4. Promote intra-ASEAN Coal Trade

With the assistance of ACE, the AFOC plans to establish a directory of coal specifications, producers and consumers in the ASEAN which will be uploaded in the AFOC website. It will also organize a network of coal laboratories in ASEAN to improve standards of coal analysis. AFOC will conduct studies on existing and future coal flow in the region. The studies to be conducted will focus on the coal trade flow and show how the coal commodity market can be organized and established in the future. Preliminary studies have been completed and the information gathered are compiled in the AFOC website.

5. Promote Environmental Assessment of Coal Projects

Under this strategy, the AFOC shall provide assistance in the conduct of environmental impact assessment (EIA) of coal projects. This will be extended to small-scale coal project entrepreneurs who will need external assistance on environmental impact assessment.

• Programme Area No. 4. Energy Efficiency and Conservation

Objective : To strengthen cooperation in energy efficiency and conservation through institutional capacity building and increasing private sector involvement including enhancing public awareness as well as expanding markets for energy efficient products
Strategy	Action
Continuation of Information Sharing and Networking	Develop a compendium of the following for circulation to member countries and general public: EE&C Policies / Strategies / Programs EE&C Products and Technologies EE&C Pool of Experts and Institutions EE&C Best Practices / Researches
Continuation of ASEAN Energy Standards and Labeling	Review country S&L programs and testing capacity Study international experiences through study tour and joint workshops Formulation of common Technical Bases Development of Control Mechanisms and Implementation process Dialogues with stakeholders and promotion
Expansion of Private Sector Involvement	Enhance dialogues with private sector, other countries and organizations outside ASEAN Conduct Seminars and Workshops jointly with EE&C Industry and Businesses Include EE&C Discussion and Exhibitions in AEBF Expand Energy Awards/Competitions for Industry Sector and Individual Achievements
Capacity Building	Establish energy audit procedures Implement energy audit training Implement / Disseminate recommended improvements Develop system for energy database, benchmarking and guideline Develop ASEAN Energy Management System/Network Develop certification system for ASEAN energy manager including energy auditor Develop ASEAN energy management training for trainers Develop energy management guidelines Technology Transfer and Demonstration
Promotion of ESCO business	Development of Measurement &Verification (M&V) Protocol for ASEAN Development of Energy Performance Contracting Legal Framework and Standard Form of Contract Development of Project Management and Institutional Guideline Development of Energy Saving Potential Indexes (Benchmarking) E-commerce development for energy services
Promotion of Energy Efficiency in the Transport Sector	Information Sharing on EE Policy and Measures for Transportation Sector Explore possible cooperation activities with ASEAN Transport sector (STOM)

The major guiding framework of the sector is to continue implementing the three strategies contained in the last plan and the inclusion of three new strategies for the next plan of action 2004-2009. The three strategies in the old programme which will be continued are the following: 1) continuation of information sharing and networking; 2) continuation of ASEAN energy labeling; and, 3) expansion of private sector involvement. The three new strategies include, 1) capacity building; 2) enhance business environment of energy services or promotion of ESCO business, and 3) promotion of energy efficiency in the transport sector.

1. Information Sharing and Networking

 This strategy is mainly a continuation and expansion of information sharing and networking among the members and stakeholders from the previous APAEC 1999-2004.

In general terms, priorities have been set for the next five (5) years where efforts shall be concentrated towards promoting energy efficiency. These include the following:

•  Collection of policies, strategies and programs from other member economies;

•  Finalization and dissemination of directory of EE&C products and technologies;

•  Finalization and dissemination of directory of EE&C resources in ASEAN; and

•  Finalization and dissemination of papers/studies/researches on EE&C best practices

All the information gathered will be uploaded to the ACE Homepage through regular updates by the coordinator of the EE&C-SSN for ready reference and/or dissemination to members and its stakeholders.

Overall, lack of information for consumers, manufacturers and industries hamper the inflow of investments in energy efficiency. For the 2004-2009 plan, the EE&C-SSN can also strengthen public awareness on the benefits of implementing energy savings through print advertisements (e.g., newspapers, posters, brochures, handbooks, manuals, etc.) and media campaigns (e.g., radio, TV, etc.).

2. ASEAN Energy Standards and Labeling

The SOME of the 20 th AMEM in Indonesia endorsed a standard label to promote awareness on ASEAN energy efficient products. The SOME requested the EE&C-SSN to identify the products to be covered by the ASEAN standard label and to formulate the required standards and procedures for certification of labeling. For this purpose, a committee for ASEAN Standards and Labeling Programme was created. The conduct of feasibility studies on ASEAN labeling system has previously been considered under the 1999-2004 plan.

3. Expansion of Private Sector Involvement

Private sector involvement is critical to the successful implementation of the plans and programs for the sector. An enhanced and closer dialogue and exchanges will be undertaken for information on energy policy, notably through establishments of networks, fora, conferences and seminars with the private sector. These shall include EE&C industry and businesses, other countries and organizations outside ASEAN. As an example, the sub-sector network will tap the Renewable Energy and Energy Efficiency Partnership (REEEP) which is a coalition of progressive governments, businesses and organizations committed to accelerating the development of renewable energy and energy efficiency systems. The ASEAN Energy Business Forum (AEBF) is also a good opportunity where EE&C can play a major part in the discussion and exhibitions with the private sector.

The extension of ASEAN Best Practices Competition Awards is expected to increase potential in energy savings, increase participation of other buildings through replication and adoption of building energy management system and other good practices towards energy efficient operation of their building. This will compel building owners, operators and contractors to use energy efficient equipment, devices, and other energy conserving measures in the construction and maintenance of their buildings.

4. Capacity Building

This is a new strategy being considered for the medium term noting that demand for energy and energy prices have been increasing rapidly within and outside ASEAN. To meet this challenge, EE&C-SSN has undertaken a number of initiatives for the effective utilization of energy. However, some of the ASEAN members lack experience and technology on how to facilitate development and implementation of cleaner production of energy efficient projects. In addition, some ASEAN members lack financial resource to carry out such projects.

For 2004-2009, the sector shall pursue a conservation plan to reap benefits to the extent possible. Hence, capacity building shall be a major focus.

5. Promotion of ESCO Business

Among the key actions to be implemented under this strategy are: a) development of measurement and verification protocol for ASEAN; b) development of energy performance contracting legal framework and standard form of contract; c) development of project management and institutional guideline; d) development of energy saving potential indexes (benchmarking); and e) E-commerce development for energy services.

The Energy service companies or ESCOs approach has not been widely used in ASEAN due to lack of awareness, financial, institutional and legal framework. As a mechanism, the EE&C-SSN shall tap the assistance of an ESCO to improve energy efficiency within ASEAN. The sector will be provided value-added benefits on the technical assessment and recommendation with the help of a specialist. This shall result to an immediate reduction of energy costs to the members who acquired the services of an ESCO.

6. Promotion of Energy Efficiency in the Transport Sector

The new strategy was crafted in response to the clamor of the AMEM/SOME to include projects for the transport sector as the sector is a major consumer of energy. Formulation of actions to be undertaken is in its very early stage and still under discussion by the sub-sector network. Some of the actions envisioned would be the sharing of information on the energy efficiency policy and measures for the transport sector and possible research or studies. The EE&C-SSN will coordinate with the Senior Transport Officials Meeting (STOM) of ASEAN for joint studies.

• Programme Area No. 5. Renewable Energy

Objective : To institute and maintain sustainable development on the use of renewable energy and its technologies
Strategy	Action
To develop a policy and institutional framework for the development of RE	Recommend a regional policy on RE including setting a renewable energy target in the region Conduct institutional capacity building Continue to conduct dialogues and consultation workshops among stakeholders
To promote the development and contribution of RE in energy supply	Increase the share of RE in ASEAN to at least 10 percent of power generation
To further strengthen information networking in RE	To continue the implementation of PRESSEA and ASEM GRIPP Network
To promote intra-ASEAN cooperation on ASEAN-made products and services	Update compilation of existing specification and standards of member countries in the RE-SSN Infonet of ACE Conduct market study on various RE technologies Develop/harmonize standards for RE products Strengthen local manufacturing capabilities for RE products To design and apply innovative financing instruments in support of RE projects To compile potential projects that are planned for implementation up to 2009 To increase international cooperation
To promote the utilization of biomass-based cogeneration technology	To develop promotional activities i.e. workshops/ seminars to encourage uptake of cogeneratin projects Dissemination of information relating to cogeneration and market developments
To promote the utilization of biofuels	To develop promotional activities i.e. workshops/ seminars to encourage utilization of biofuels Dissemination of information relating to biofuel technology and market developments Establish linkage to the automotive and related industries to pursue cooperation in R&D activities

The objective of the programme area is "to institute and maintain sustainable development on the use renewable energy and its technologies". The need for multilateral action to promote the commercialization of RE is apparent in the strategies and activities as elaborated below:

1. Develop a policy and institutional framework for the development of RE

Certain issues and barriers regarding RE development need to be unveiled and sufficiently addressed by the ASEAN countries, which can be discussed in national workshops participated by various agencies, including government, research institutions, private and commercial industries. Findings from these activities are anticipated to be included in the formulation of a policy and institutional framework for the development on RE.

Skilled and trained personnel are essential to help realize the actual potential of RE. Necessary transfer of technology, knowledge and skills among ASEAN countries are required for capacity building. Special training sessions need to be conducted to facilitate the exchange of information on technology and successful practice among experienced ASEAN personnel.

Experience gained in the ASEAN region is valuable. Therefore, it is highly important for other countries in the region to gain access to mature technologies. Exposure through organizing bilateral dialogues and consultation workshops, training courses, study tours and exchange of visits of technical experts shall be encouraged.

2. Promote the development and contribution of RE in energy supply

The success in the development of renewable energy is gauged through its increasing importance in the national energy balance in competition with conventional sources of energy. Therefore, the target to attain at least 10 percent of dependable capacity utilizing RE for power generation is deemed as an acceptable and precise indicator in ASEAN context.

3. To further strengthen information networking in RE

Given the high acceptance of internet based information dissemination, the existing online information networking, i.e PRESSEA and ASEM GRIPP Network, will be sustained to help ensure effective diffusion of RE initiatives. Selected stakeholders in the region will be invited to attend national level RE programme workshops and seminars organized by member countries to share experience and lesson learned.

4. Promote intra-ASEAN cooperation on ASEAN-made products and services

At the moment, ACE has taken the initiative to compile existing RE specification and standards of ASEAN Member countries in its infonet. This effort will be continued to ensure sufficient and updated information readily accessible to all.

Efforts will be devoted to the commercialization and marketing aspects of RE technologies. A market study will be conducted to identify and address the constraints in marketing renewable technologies in order to facilitate diffusion and to enable the renewable industry to be self-sustaining.

Lack of standard and codes of practice contribute to the perceived risk in renewable energy application among investors and consumers. To improve their confidence, RE products should comply with certain standard.

The capacity of the local industry to manufacture, assemble, service and maintain the RE products must be improved in order to assist in fostering commercialization. The capabilities of local manufacturing should be supported by strategic incentives from the government.

In spite of the merits of NRE, significant barrier to its wide scale application involve high cost of investment which undermine the efforts to further expand its utilization and to achieve the targeted commercialization phase. An innovative financing instrument/mechanism should be formulated to accelerate use of RE.

Given the potential merits of RE for the ASEAN region, a compilation of prospective RE projects will be made to ascertain the accumulated potential installed capacity within the area. The activity will provide interested developers with valuable information needed for investment decision-making.

A cooperative arrangement among countries is viewed as a viable approach. Multilateral collaborations that bring in private and international agencies to invest in viable RE projects shall be continued.

5. To promote the utilization of biomass-based cogeneration technology

Biomass-based cogeneration system for the production of electricity and usable energy will be encouraged. In this respect, the generation of energy mainly for in-house consumption will be promoted. The supply of excess energy generated by the biomass-based generating system to the local community and to the grid will be encouraged.

It is envisaged that closer cooperation with the on-going EC-ASEAN Cogen Programme will be undertaken to accelerate the acceptance of the technology in the region.

6. To promote the utilization of biofuels

any countries are trying to search for alternative fuels to reduce heavy reliance on petroleum fuels. Under the programme area, utilization of biofuels calls for focused technological cooperation in bioenergy. Linkage with automotive and related industries shall be established in order to advance technological know-how and R&D activities. Likewise, market studies shall be conducted to fully determine the commercial potential of bioenergy.

• Programme Area No. 6. Regional Energy Policy and Planning

Objective : To enhance national and regional energy policy analysis and planning towards sustainable development
Strategy	Action
Energy policy and supply security information sharing network	Continue and update the member's country energy policy and plans/infonet of ACE Continue and update the ASEAN energy database system of ACE
Capacity building in energy policy planning, supply security assessment and database development	Continue capacity building activities of member countries in energy policy analysis, database maintenance, supply security assessment through training, joint studies and technical exchanges between member countries
Incorporation of environmental and sustainable development concern in regional policy formulation	Continue the information networking on environmental data related to energy development Conduct studies on environmental and energy policies for sustainable development Undertake regional cooperation on energy and sustainable development
Analysis and preparation of regional energy policy and outlook	Conduct analysis on regional energy policy and outlook using common methodologies / framework Prepare regional energy policy and outlook
Strengthen collaboration/ cooperation among national and regional institutions in energy policy and planning	Expand energy nodal network for the region Conduct seminar/workshop and regional training in energy policy planning and supply security assessment Exploration/utilization of all kind of indigenous energy resources
Address energy issues pertaining to ASEAN dialogue partners/other relationships	Continue/pursue dialogue with the following: ASEAN-Japan ASEAN+3 ASEAN-EU ASEAN-Australia ASEAN-Germany ASEAN-Multi Lateral Agencies
Pursue studies on evolving regional energy policy reform/issues	Identify priority areas for regional studies
Monitoring and evaluation on the progress of the ASEAN Plan of Action for Energy Cooperation	Conduct periodic monitoring and evaluation of the APAEC 2004-2009 Formulate an evaluation and monitoring (E&M) system for the APAEC 2004-2009

1. Energy policy and supply security information sharing network

Under the strategy of energy policy and supply security information sharing, continuous updating will be required of the ASEAN Energy Database (AED). The same will be done to member countries' energy policy and plans at the REPP-SSN infonet to be developed with the assistance of ACE. A seminar/workshop on Estimation and Reporting of Energy Reserves shall be conducted wherein data to be acquired shall be included in the AED.

2. Capacity building in energy policy planning, supply security assessment and database development

With regard to capacity building, regular training, joint studies and technical exchanges in energy policy analysis, database maintenance and supply security assessment will be conducted. These will be carried out through the technical exchange programs such as the SOME-METI capacity building on energy database and energy supply security assessment, the EPSAP under the ASEAN-Australia Economic Development Cooperation, and the ASEAN-IEA program. Although some ASEAN members have progressed ahead of other members in these areas, training will ensure increased technical capability, ensure uniformity in the pace of work and output expected of each country. This will greatly benefit the new members of ASEAN -- Cambodia , Lao , Myanmar and Vietnam which will be accorded priority.

3. Incorporation of environmental and sustainable development concern in regional policy formulation

A particular area of interest that this programme area would like to focus on is the incorporation of environmental concern in regional policy formulation. The REPP-SSN will continue the information networking on environmental data related to energy development with entities such as the Climate Change Information Center (CCIC) of the Philippines , the Center for Energy and Environment Resources Development (CEERD) of Thailand , and the Pusat Tenaga Malaysia (PTM). These nodal networks on climate change and environment shall likewise conduct cooperation studies on environmental and energy policies for sustainable development.

4. Analysis and preparation of regional energy policy and outlook

Preparation of the Regional Outlook is in progess. The Institute of Energy Economics , Japan (IEEJ) shall assist in developing the energy outlook models of each country using econometric approach. The Microfit software will be used for developing the models.

5. Strengthen collaboration/cooperation among national and regional institutions in energy policy and planning

The energy nodal network for the region will be expanded with the dissemination of reports on regional policy issue analysis and demand-supply outlook to concerned international organizations. Cooperation/exchange programs with regional institutions will be conducted in seminars, workshops, trainings, etc.

6. Address energy issues pertaining to ASEAN dialogue partners/other relationships

Through the programme, dialogue shall be continued with the ASEAN partners through participation in meetings/forums/trainings. The implications of issues arising from these dialogues shall be included in policy analysis reports which could assist Senior Officials in decision making.

7. Pursue studies on evolving regional energy policy reform/issues

The strategy was formulated upon the recommendation during the Special SOME in December 2003 in Kuala Lumpur , Malaysia . This will provide special focus to ASEAN energy regulatory and market reforms as well as other areas of interest deemed important to merit deeper studies.

8. Monitoring and evaluation on the progress of the APAEC 2004-2009

Tne of the functions of the REPP-SSN under the Terms of Reference (TOR) creating it is to assist the ACE in coordinating the implementation and monitoring of the APAEC 2004-2009. This responsibility will formally rest with the sub-sector network upon approval of energy ministers at the 22 nd AMEM on May/June 2004.