(Hanoi, Vietnam) The 38th ASEAN Ministers of Energy Meeting (AMEM) which was hosted by Vietnam virtually on November 17 – 20, 2020, endorsed the ASEAN Plan of Action and Energy Cooperation (APAEC) Phase II: 2021-2025. First introduced in 1998, the APAEC is a series of guiding policy documents that aims to promote multilateral energy cooperation and to facilitate deeper cooperation both within ASEAN as well as with Dialogue Partners, and International Organisations. It supports the ASEAN Economic Community (AEC) goals which is to achieve a highly integrated, cohesive, competitive, innovative and dynamic ASEAN.

Building on the good achievements in the implementation of APAEC Phase I: 2016- 2020, the new APAEC Phase II: 2021-2025 sets out more ambitious targets and strategic initiatives which the ASEAN Member States agreed to pursue in the next five years to bring more economic growth and to create pathways towards prosperity. The theme of the Phase II is “Enhancing Energy Connectivity and Market Integration in ASEAN to Achieve Energy Security, Accessibility, Affordability and Sustainability for All” with a new sub-theme of “Accelerating Energy Transition and Strengthening Energy Resilience through Greater Innovation and Cooperation.”.

The APAEC Phase II was developed by the APAEC Drafting Committee (ADC) which is chaired by Singapore and co-chaired by Vietnam with strong support from the ASEAN Member States, specialised energy bodies, sub-sector networks, ASEAN Secretariat and ASEAN Centre for Energy. The development of APAEC Phase II considered the global energy trends such as the energy transition, global economic growth, impacts of COVID-19, the United Nation’s Sustainable Development Goals No. 7 (SDG7) and the 4th Industrial Revolution

“The APAEC Phase II lays out the key strategies to shape regional energy landscape by addressing energy challenges, and seize opportunities in building up responsive and cohesive energy pathways for ASEAN”, said The Prime Minister of Vietnam, Nguyễn Xuân Phúc. He also expressed the views that the APAEC Phase II will usher in the deployment of clean energy systems and technologies towards energy security and environmental sustainability.

The ADC Chair from Singapore, Mr. Jonathan Goh expressed the confidence that the new APAEC Phase II will pave the way for greater regional integration and connectivity, more deployment of renewable energy technologies to achieve the 23% share of RE in total primary energy supply (TPES) and 35% RE share in ASEAN’s installed power capacity by 2025, and more efforts to promote energy efficiency and conservation to achieve the aspirational target of 32% in energy intensity reduction based on 2005 level.

The APAEC Phase II will continue to advance ASEAN energy cooperation through seven (7) programme areas namely, (i) ASEAN Power Grid, (ii) Trans-ASEAN Gas Pipeline, (iii) Coal and Clean Coal Technology, (iv) Energy Efficiency and Conservation, (v) Renewable Energy, (vi) Regional Energy Policy and Planning and (vii) Civilian Nuclear Energy. Greater efforts will be taken to promote various technologies such as hydrogen, battery and energy storage, carbon capture utilisation and storage, solar PV, bioenergy, waste to energy, smart energy system and electrified vehicles. The ASEAN Member States will continue to promote multilateral electricity trading, development of a common gas market, clean coal technology and digitalisation in the energy sector.

According to Dr Nuki Agya Utama, the Executive Director of ASEAN Centre for Energy, the regional cooperation and engagement with dialogue partners, international organisations, private sector and academe, are the key success factors of APAEC Phase II. Particularly, he emphasised that the APAEC Phase II will attract investments in the energy sector in the coming five years and expected to enhance greater participation of private sector. As it mentioned in the 6th ASEAN Energy Outlook, which was also endorsed by the 38th AMEM, that the financial requirement to achieve the regional targets is calculated at USD 508 billion from 2018 to 2040.

ASEAN groups Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

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