About
130 million people in Southeast Asia lack access to electricity.
This was revealed by the
Philippine Institute for Development Studies (PIDS) in a study by Dr. Adoracion
Navarro, a senior research fellow of the Institute, Mr. Maxensius Tri Sambodo
of Indonesian Institute of Sciences Economic Research Center, and Mr. Jessie
Todoc, Philippines Country Manager of SEA Energy Access and Alternative Energy,
International Copper Association Southeast Asia.
The authors noted that at least
228 million still rely on traditional biomass for cooking and lack access to
clean and modern cooking facilities. Based on projections of the International
Energy Agency (IEA), about 63 million of the ASEAN population will still have
no electricity in 2030.
In the Philippines, 16 million
of the population are without electricity. This problem also persists in
Indonesia (63 million of its population), Myanmar (26 million), Cambodia (10
million), Thailand (8 million), Viet Nam (2 million), Lao PDR (2.2 million),
and in Malaysia (200 thousand). Only Singapore and Brunei Darussalam have 100
percent electrification rate.
Lack of electricity access is
much greater in rural areas than in urban areas. Improving the rural
electrification ratio is a major challenge both at the national and regional
levels considering the level of electricity access among the 10 ASEAN members.
The Philippines has a total
electrification rate of 83 percent. Its urban electrification rate is 94
percent, which is 21 notches higher than its 73 percent rural electrification
rate. Nevertheless, about half or 47 million people rely on traditional biomass
for cooking.
The authors recommend linking
the benefits from and strategies in ASEAN Energy Market Integration (AEMI) with
the eradication of energy poverty in Southeast Asia. In particular, the
investment requirements and financing options should consider the needs of the
energy-poor. Energy market integration in the region should also contribute to
the respective members’ national economic growth and development, where lack of
access to modern energy services is one of the constraints. To achieve
universal access to electricity by 2030, the ASEAN would need to invest about
US$48 million.
ASEAN countries have to
identify the types of technical solutions that are best suited for the types of
demand when defining their sources of financing for energy poverty reduction,
the authors added. These include on-grid connection extensions, mini-grid
distribution systems, and off-grid electrification that can be financed by
government budget, multilateral and bilateral official development assistance,
and the private sector. (PIDS)
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