Achieving ASEAN's Net Zero Declaration Through Digitalization

Achieving ASEAN's Net Zero Declaration Through Digitalization

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The Association of Southeast Asian Nations (#asean) - the world's fourth-largest energy-consuming region, has recently embarked on the path of energy transformation. What impact will the implementation of a "smart energy system" utilizing the latest digital technology have?

Summary:

ASEAN - the world's fourth largest energy-consuming region, pledged to #netzero energy consumption and transition to clean energy at #cop26.

Southeast Asia, characterized by highly variable energy demand, has initiated solutions for developing smart energy systems utilizing opportunities from #digitalization

The combination of appropriate data recording and advanced big data analysis systems will enable better resource allocation, return on investment, and risk reduction for #public, #privateequity, and individual #investors.

Introduction:

At COP26, ASEAN - the world's fourth-largest energy-consuming region - pledged to achieve net-zero energy consumption and transition to clean energy. In this article, we explore how digitalization can help ASEAN achieve its net-zero goals.

But the question remains: How can ASEAN achieve its net-zero goals??

Net-Zero Is Not Just A Talk, But A Long-Term Process

ASEAN countries are heavily dependent on traditional power generation methods, with fossil fuels making up 83% of their energy consumption.?This puts the energy security and economy of many member countries at risk as demand grows with economic development.?

No alt text provided for this image
Power generation shares with the latest energy policy proposed for major Southeast Asia markets. Image: IHS Markit

However, many ASEAN countries have shown a strong commitment to achieving net-zero emissions by 2050, and the region has embarked on a path toward the energy transition.

Remarkably, Indonesia and the Philippines have announced the launch of a partnership (ETM Southeast Asia Partnership) to eliminate coal and transition their economies to a path of low-carbon growth.

So, how can we - the business leaders and investors, take action from this commitment?

Digitalization Is The Missing Piece

The development of smart energy systems utilizing digital technology is said to hold great potential for solving long-lasting energy problems in Southeast Asian countries.?

By accurately predicting energy consumption patterns using historical data through the use of artificial intelligence and machine learning, electric utilities will be able to monitor consumer demand and perform management to smooth out consumption peaks.?

This combination of proper data recording and advanced big data analysis systems will enable better resource allocation, return on investment, and risk reduction for individual investors.

No alt text provided for this image
This infographic details how the U.S. can reach carbon neutrality by mid-century. Image: Lawrence Berkeley National Lab.

But when Southeast Asian countries have started the process -? what can a "smart energy system" actually do utilizing the latest digital technology?

How Can Digitalization Change The Game?

A balanced approach to supply and demand can be achieved by combining flexible and reliable power grids with digital technology to manage energy demand, particularly in the case of constantly fluctuating electricity supply and demand.?

Government participation will also play a key role in the development of new energy systems, including the necessary digital infrastructure and regulatory frameworks.?

“Indonesia will be able to contribute more quickly to the world’s net-zero emissions. The question is, how big is the contribution of developed countries to us? What technology transfer can be provided? What programs are supported to achieve the SDGs targets that have been hampered by the pandemic?”
President Jokowi of Indonesia: “Indonesia will be able to contribute more quickly to the world’s net-zero emissions. The question is, how big is the contribution of developed countries to us? What technology transfer can be provided?" Image: Cabinet Secretariat of The Republic of Indonesia

Each ASEAN member country will need to develop and promote its own policies based on its specific priorities and needs.

Net Zero Through Digitalization Is Achievable - And So Are Your Business

ASEAN's net-zero declaration is an ambitious goal, but digitalization offers a practical solution for achieving it. The development of smart energy systems will not only help achieve its net-zero goals but will also create new opportunities for economic growth and contribute to combating climate change.

ASEAN regions nowadays contained such a huge potential in semiconductors for further comprehensive digitalization.?

Digitization (i.e., IoT, Big Data/AI, connectivity and 5/6G) will lead to increasing demand for electronic devices and semiconductors.
ASEAN-6 Semiconductor and related products Trade Value as of 2020 [USD bn]. Infographic: Roland Berger

Roland Berger Insights reveals with such strong underlying economic activities, this region will open attractive opportunities for both public and private inquiries to participate.

If your entrepreneur is ready to make the switch, consider networking with reliable and specialized experts in your area.

And if you are an expert with knowledge about digital technology and energy, Arches Expert Networking Service can deliver your best expert solution to the right business.?

With a wealth of experience in connecting clients with niche experts, Arches offers customized market insights and consulting services throughout Southeast Asia.

Don't hesitate - contact us today and let Maxime JEAN help you get started on the path to success!

Arches is the leading human capital sharing platform in the Asia Pacific connecting subject matter experts with you. Get to know us at: https://lnkd.in/gJTvDWrr

#knowledgesharing?#managementconsulting?#marketresearch?#businessconsulting?#asean?#netzero2050 #netzero #digitalization #esg #technology?#renewableenergy?#emissionsreduction?#sustainable?#energy?#riskmanagment

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