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The European Commission (EC) has pledged to further support
ASEAN countries in the development of renewable energy after the
existing partnership agreement comes to an end this month
With the end of the five-year EC-ASEAN Energy Facility program (EAEF)
now in sight, the commission's first secretary Ronan Mac Aongusa said
Wednesday in Jakarta that the next stage of the partnership would
involve the participation of technology suppliers and the private
sector, as well as a new package of assistance.
The EAEF program has attracted 180 proposals from 500 European and
ASEAN companies.
A total of 77 projects received financial assistance for five-year
terms from 2002 to 2007 under the partnership program. The total cost
of the EAEF program is estimated at 38.51 million euros (US$50.06
million), comprising the individual project partners' contribution of
15.6 million euros, the EC's commitment of 21.5 million euros and the
ASEAN Center for Energy (ACE)'s contribution of 51,000 euros.
Seven of the program's projects are located in Indonesia, including a
4.2 megawatt (MW) rice husk-fueled power plant in Bolang, North
Sulawesi, and a 10 MW palm oil residue-fueled power plant in Riau.
Of the total of 77 projects under the program, 34 focused on renewable
energy and 14 on energy efficiency and conservation, including
associated feasibility studies and demonstration projects.
"Even though a lot of the programs are still at the stage of
feasibility studies, we have proven that they are bankable. Therefore,
(in the next phase) the private sector will be able to value the
projects," Aongusa said. "We want to encourage economic cooperation, we
want to increase the capital involved in the projects."
For the next stage, the partnership would focus on discussions and
dialogue to establish an energy policy in the ASEAN region.
Aongusa said the EC would also consider offering other financing
mechanisms for companies involved in the development of renewable
energy, such as biofuel, biomass and biodiesel. However, he did not
elaborate.
Last January, under its new energy policy, the EU agreed that it must
reduce its carbon emissions by 20 percent and increase the use of
renewable energy, including biofuels, by 20 percent by 2020.
ACE executive director Weerawat Chantanakome said that the partnership
would provide an opportunity for ASEAN to move in a similar direction.
"Renewable energy and energy efficiency are the most important
components of energy security in the region," he said, adding that the
ACE would list what each country needed to do to promote biofuel use.
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