Renewable-based power systems, backed by grid balancing engines and energy storage, can enable Southeast Asian countries to reach net zero by mid-century whilst cutting the levelized cost of electricity (LCOE) by over 20%, when taking into account likely future carbon taxes, according to technology group Wärtsilä.
Path To Net Zero
The modeling, published in Rethinking Energy in Southeast Asia report, simulates the paths to net zero emissions in three major Southeast Asian power systems — Vietnam; the island of Sulawesi in Indonesia; and the island of Luzon in the Philippines. The study shows that a combination of renewables plus flexibility, provided by balancing engines and energy storage, can reliably meet the increasing power demand. In all the countries modeled, the ‘Net Zero’ scenario shows that inflexible fossil fuel assets, such as coal or combined cycle gas turbines (CCGTs), should be phased out. New investments should focus on adding renewable energy sources, increasing flexible capacity, and developing sustainable fuels such as green hydrogen.
