IEEFA Asia Pacific

Importing liquefied natural gas (#LNG) may be a costly and destabilizing strategy for emerging economies like #Indonesia, undermining efforts to adopt renewable energy and achieve energy self-sufficiency, explains IEEFA's Sam Reynolds. Higher LNG dependence has already placed upward pressure on power prices throughout emerging Asian economies, including Thailand, the Philippines, Bangladesh, and Pakistan.   Current LNG fuel prices would likely result in a power cost of approximately US$145 per megawatt-hour (MWh). In comparison, levelized costs for #solar and #wind power are around US$48 per MWh.   "Exposure to volatile global LNG markets and US-dollar-denominated fuel prices has led to higher #electricity prices and hurt the finances of state-owned enterprises in Asia. Indonesia’s new administration can focus on speeding up the adoption of #renewableenergy through policy reforms to resolve procurement barriers." #natgas #naturalgas #energytransition

According to IEEFA's Grant Hauber, #HongKong may need to rethink the use of #hydrogen fuel in its #transport sector, given its inability to produce it on a large scale, environmental considerations, and the safety risks tied to the alternative fuel: 💡 Hydrogen is unlike any other fuel currently being used in Hong Kong. It is volatile, invisible, odorless, and highly flammable. Because of these safety aspects, it cannot be readily substituted for other fuels. 💡 Additionally, getting it to the distribution points is highly energy-intensive. Therefore, it’s costly and has a high propensity for leakage and loss. 💡 Achieving clean hydrogen production scale of a million tonnes would require gigawatts of #renewableenergy from farms occupying thousands of hectares of land. Most markets build #solar and #wind farms for the grid, not to make hydrogen. Hong Kong would be in a position of a hydrogen importer; none of the clean hydrogen for this plan could be sourced domestically. 💡 Hydrogen’s application in buses and trains is a “fantasy use” because it is uncompetitive compared to electrifying those vehicles. Electric vehicles (#EV) are 60% to 80% energy efficient, compared with about 33% for hydrogen fuel cell vehicles and 17% for hydrogen-powered internal combustion engine vehicles. https://lnkd.in/e9TH5kPC 

🌍 Event Recap: Bihar Climate Finance Summit 🌍 On October 28, Patna hosted the Bihar Climate Finance Summit, organized by the Department of Finance and the Department of Environment, Forests and Climate Change (DoEFCC), Government of Bihar, in collaboration with WRI India. The event was inaugurated by Hon’ble Deputy Chief Minister Shri Samrat Choudhary, highlighting the state’s commitment to addressing climate change. A key highlight was Session 2, where Institute for Energy Economics and Financial Analysis (IEEFA)'s Vibhuti Garg joined an esteemed panel discussing the Role of Private Financial Institutions and the Corporate Sector in Mobilizing Climate Finance in Bihar. Vibhuti emphasized the critical need for derisking clean energy investments to attract private capital into the energy transition. She pointed out that without achieving commercial viability, private investors are unlikely to engage. She also emphasized role of market mechanisms like green tariff and carbon credit market that can invite participation from private players. Also, critical role of public capital in the form of state guarantees, risk sharing facility, concessional capital in blended finance mechanisms etc. can unlock private capital. The panel also featured: 💠Shri SANJAY AGARWAL, Secretary, Transport Department, Government of Bihar 💠Dr. Ashima Jain IAS, Secretary (Expenditure), Finance Department, Government of Bihar 💠Smt Neha Kumar, Head, South Asia Programme, Climate Bonds Initiative 💠Smt Anubha Prasad, GM, SIDBI(Small Industries Development Bank of India) Patna The discussions were insightful and underscored the collaborative efforts needed to drive climate finance in Bihar. #BiharClimateFinance #SustainableInvestments #ClimateChange #EnergyTransition

The Just Energy Transition Partnership (#JETP) has motivated #Indonesia to develop the Comprehensive Investment and Policy Plan (CIPP), but the plan remains aspirational and lacks a clear strategy for implementing investment, says IEEFA's Mutya Yustika. Private sector financiers are also more interested in investing in #renewable energy assets that generate returns, rather than in taking on a polluting asset until it shuts. Her suggestions include: 💡 The breadth of the CIPP requires a more holistic approach to deliver large amounts of financing at a reasonable cost and over time. 💡 The International Partners Group could help facilitate the process by better organizing its interactions with the Government. 💡 The Government would need to clearly signal a move away from #coal reliance. So far, it has taken a hands-off approach to the development of captive coal-fired power plants for industry, especially in the #nickel smelting sector. This has negatively impacted JETP negotiations. https://lnkd.in/gf9_7ncM #energytransition #decarbonization #climatefinance

Australia’s Iron Ore Industry: At a Crossroads 🇦🇺 As Simon Nicholas, energy finance analyst at IEEFA Australia, states, “Things are moving in Australia; it’s just a question of whether they are moving fast enough.” For over a century, Australia has been a leading iron ore exporter, primarily fuelling the steel industries of nations like China. However, with a slowdown in demand and increasing global pressure to reduce CO2 emissions from steel production, the landscape is shifting dramatically. Australia faces unique challenges – our iron ore is not well-suited for the emerging "green" steel production processes that prioritise sustainability. As the global market increasingly demands cleaner alternatives, it’s vital for our industry to adapt swiftly. Key players in Australia are making strides towards this transition, exploring innovative methods such as using green hydrogen to produce “green iron.” With South Australia positioned as a potential leader in this space due to its abundant renewable energy resources and its suitable ore, the time is ripe for transformation. But will we move fast enough to seize this opportunity? 📖 Read this article for further information ⤵ https://lnkd.in/gH54kGH2 #IronOre #GreenSteel #GreenHydrogen #GreenIron #RenewableEnergy #Australia 

According to IEEFA's Christopher Doleman, #Japan plays a significant role in the global liquefied natural gas (#LNG) markets. However, the evolution of that role will largely depend on the government’s strategy for shifting away from #gas as a major power fuel. These resales will grow if domestic gas demand falls in line with the Ministry of Economy, Trade and Industry (METI)'s Sixth Strategic Energy Plan. Two other factors are the ability of emerging Asian markets to absorb LNG supply, and the ability of buyers to secure flexible contracts that allow for cargo diversions. "An emerging glut of LNG supply this decade should put pressure on LNG prices and potentially challenge the ability of some LNG investors to recoup their capital. As the largest public financier of the gas sector, Japan, and its LNG buyers, could be exposed if they are relying on spot prices for revenue generation." https://lnkd.in/gsay5GEq #investment #electricity

🌍 India's Critical Minerals Strategy: A Path to Energy Transition As India strives to accelerate its energy transition, a new report co-authored by Charith Konda and Kaira Rakheja titled “India’s Hunt for Critical Minerals” highlights the pressing need for diversification in sourcing critical minerals. With significant import dependency for minerals such as lithium, cobalt, nickel and graphite, it is crucial to develop a more resilient procurement strategy. 🔑 Key Insights: 🔶High Import Dependency: India relies on imports for vital minerals, with 100% dependency for lithium, cobalt and nickel. 🔶Rising Demand: The demand for these minerals is expected to more than double by 2030, while domestic production is still years away. 🔶Strategic Partnerships: Strengthening ties with resource-rich nations like Australia, Chile, Ghana and South Africa could help in securing a stable supply of minerals. The report emphasises that India should not only explore new international partnerships but also expedite domestic production to mitigate trade risks and enhance supply security. As we navigate this crucial transition, collaboration and innovation will be key to ensuring that India meets its renewable energy goals.💡 Read the full report: https://lnkd.in/g-4t-vvH Read the press release: https://lnkd.in/gtGvJJD2 #EnergyTransition #CriticalMinerals #Sustainability #trade

🔌POWERup: Your Go-To Newsletter for India's Power Sector! 🌱 Our latest edition of POWERup newsletter is here, and it’s packed with insights on India’s electricity capacity, generation, and investment trends for 3Q 2024! Key Highlights: 1️⃣ Installed Capacity: In 3Q 2024 (Jul-Sep), India added an impressive 6,505 MW of power generating capacity, with renewables accounting for 99% of these additions! 🌱 Cumulative renewable capacity has crossed the 200GW milestone. 2️⃣ Growth in Solar: Solar power capacity additions continue to drive India’s power generation capacity growth. Full-year solar power capacity additions could cross 20GW, nearly double the 10GW achieved in 2023. ☀️ 3️⃣ State Leaders: Rajasthan and Gujarat continue to lead in renewable energy installations, showcasing their commitment to a greener future. 4️⃣ Generation Trends: Renewable energy generation rose by 4.3% compared with 3Q 2023, led by a good monsoon season and increased renewable power capacity. Fossil fuel-based power generation fell by 1.4% owing to increased nuclear and renewable power generation. 🌍 5️⃣ Investment Landscape: Although investments in the renewable sector grew by 9.7% year-on-year, they remain significantly below previous years’ levels in the nine months due to high interest rates and policy uncertainties. 📉 ✨Download and stay informed about India’s energy transition: https://lnkd.in/gfGGjikY 📬 Subscribe to our POWERup newsletter for automatic updates  https://lnkd.in/g32y-ZjJ Charith Konda | Kaira Rakheja #POWERup #RenewableEnergy #Sustainability #ElectricityGeneration

IEEFA Australia at the All Energy Australia Conference in Melbourne 🇭🇲 This week, IEEFA Australia took centre stage at the All Energy Australia conference, showcasing the critical insights of our team members in the renewable energy sector. 🔹 Amandine Denis-Ryan, CEO IEEFA Australia: Amandine joined a compelling session on "Australia’s Role & Progress in the Race to Clean Energy", outlining key pathways to achieve Australia’s renewable energy targets by 2050. Her discussion highlighted the need for robust policies and collaboration between government, industry and communities. 🔹 Jay Gordon, Energy Analyst, IEEFA Australia: Jay presented on "Seizing Opportunities and Managing Risks in the Electrification Transition", emphasising the financial benefits of transitioning to all-electric homes. His insights sparked valuable discussions about maximising #electrification while ensuring an equitable transition. 🔹 Johanna Bowyer, Lead Energy Analyst, IEEFA Australia: Johanna participated in a panel on "Priorities for the Consumer Energy Resources Roadmap", focusing on the critical role of consumer energy resources in Australia’s energy transition. She outlined the actions and social changes necessary to navigate the rapidly evolving energy landscape. Thank you to All Energy Australia for hosting IEEFA Australia team members 🙏 #AllEnergyAustralia #RenewableEnergy #EnergyTransition #IEEFAAustralia

🌏 ESG is Gaining Momentum in Asia: A Positive Shift but More Work Ahead! 📈 In 2024, regulatory bodies across Asia stepped up their game in sustainability reporting. Key developments include: 1️⃣ New Regulations: Countries like Hong Kong, Singapore and Japan are establishing frameworks for green taxonomy, net zero transition plans and ESG ratings. 🚀 2️⃣ Rising Investor Expectations: Over 83% of global investors now incorporate sustainability into their analysis, and 89% of leading corporates in Asia reported sustainability in 2022, up from 49% in 2011! 📊 3️⃣ Demand for Quality: As the emphasis on sustainability grows, so does the need for third-party scrutiny. 94% of investors use ESG ratings monthly, highlighting the importance of accuracy and transparency. 🔍 4️⃣ Path Forward: Regulators must ensure robust oversight to mitigate greenwashing risks and implement clear standards. Japan's recent issuance of transition bonds serves as a great model for best practices. 📜 The increased focus on ESG is a significant step forward, but it’s crucial for regulators and corporates to work together to ensure integrity and transparency in sustainability efforts. 💪🌱 Read the full article: https://lnkd.in/eF_gjWyV Soni Tiwari | #ESG #Sustainability #Investing #Regulations #CorporateResponsibility