IEEFA Asia Newsletter

Over the last month, our team has continued exploring the developments, challenges, and opportunities in national policies and corporate investment strategies across key sectors, emphasizing the urgent need for an accelerated energy transition.

We have investigated key topics related to the energy transition in the region:

• Indonesia produces 51% of the world’s nickel and has four listed nickel companies that aim to more than double their production in the next 3-5 years. Our report analyzes the greenhouse gas (GHG) emissions of these companies and finds that the GHG intensity of production can be reduced by using hydropower or other renewable energy sources.
• The Indonesian government also plans to expand the clean energy market by proposing power wheeling in its renewable energy bill. This would allow private companies to sell renewable electricity directly to customers through transmission systems owned by the state utility. Our analysis suggests that power wheeling could enhance Indonesia’s attractiveness as an investment destination and accelerate renewable energy development.
• The decarbonization efforts of global Big Tech companies are driving renewable energy demand from the Artificial Intelligence (AI) and semiconductor sectors. However, South Korean companies are lagging in the clean energy transition. Our analysis shows that tripling renewable energy capacity by 2030 could meet projected electricity demand from these sectors, assuming existing power plant buildout plans remain on track.
• Canadian liquefied natural gas (LNG) exporters are building new projects aiming to sell gas to Japan, which has emphasized the need for more LNG to provide energy security. However, Japan’s LNG imports have fallen every year since 2014. The push for Canadian LNG appears to be more about gas expansion opportunities rather than domestic energy security.

We invite you to read these publications to gain insights into the evolving energy landscape.

Paige Nguyen