EU plans more aid for ASEAN energy program

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.
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.

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.

Jakarta Post