Abstract
Southeast Asia faces very large growth in energy demand to fuel electricity generation, industrial processes, transport, and households in the coming decades. The Toyko-based Asia-Pacific Energy Research Centre (APERC) projects that energy demand in the region (excluding Cambodia, Laos, and Myanmar) will double from 252 million tonnes of oil equivalent (mtoe) to 525 mtoe between 1999 and 2020 (Table l).1 How to best meet this demand poses a range of policy challenges for the region’s governments. Energy supply is a crucial component for economic growth and improving living standards. Governments, therefore, have the task of ensuring: (1) that energy supply is provided to industries and households as efficiently, reliably, and as securely as possible; (2) that the environmental impact of supply and consumption are acceptable; and (3) that supply is consistent with social and equity objectives, for example, promoting the supply of electricity to isolated rural areas. In 2002, the International Energy Agency in Paris reported that as many as 200 million people in Southeast Asia do not have access to electricity.2 Energy sector development also has implications for inter-governmental relations. Pursuit of domestic energy goals can affect neighbouring countries, for example, the construction of dams for hydropower in shared river systems in the Greater Mekong Subregion (GMS). Many of these goals could be better met if governments work together. Furthermore, domestic gas and power systems will be increasingly supported by pipe lines and transmission links with other countries. This opens up the possibilities of system integration to meet demand at lower cost. Co-operation over energy matters can help foster economic integration and should be an important aspect of ASEAN’s endeavours.
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