APEC ENERGY OVERVIEW 2024

APEC ENERGY OVERVIEW 2024

Disclaimer
The views and opinions expressed in this publication belong solely tothe authors. The expert group on energy data and analysis focal points
and energy working group members of the respective economies wereconsulted to ensure the veracity of the information within.

APEC ENERGY OVERVIEW 2024

Prepared by
Asia Pacific Energy Research Centre (APERC)
Inui Bldg.-Kachidoki 11F, 1-13-1 Kachidoki,Chuo-ku, Tokyo 104-0054, JAPAN
Tel: +81 (3) 5144-8551 Fax: +81 (3) 5144-8555
E-mail: overview@aperc.or.jp
APERC Website: https://aperc.or.jp
For the Asia-Pacific Economic Cooperation (APEC) Secretariat
35 Heng Mui Keng Terrace Singapore 119616
Tel: (65) 6775 6012 Fax: (65) 6775 6013
E-mail: info@mail.apecsec.org.sg
Website: http://www.apecsec.org.sg© 2024 APEC Secretariat
APEC#224-RE-01.4

APEC ENERGY OVERVIEW 2024

Foreword
The APEC Energy Overview (the Overview) is an annual publication that highlights the current energy situation in each of the 21 APEC economies.
Since its first publication in January 2001, it has been the pioneer publication for APERC, showcasing the latest APEC energy data compiled by theExpert Group on Energy Data and Analysis (EGEDA).
The Overview monitors progress toward meeting the two APEC energy goals, namely:
1. Energy intensity improvement of 45% by 2035 (relative to 2005).
2. Doubling the modern renewable energy share in the APEC energy mix by 2030 (relative to 2010).
In 2021, the APEC-wide energy intensity had improved by 27%, leaving an 18% improvement needed to meet the 2035 goal. The recent APEC Energy
Demand and Supply Outlook 8th edition forecasts that APEC is expected to meet this goal in both the Reference and Carbon Neutrality scenarios ofthat report ahead of the schedule. Progress has also been made in doubling the share of modern renewables. Modern renewables in total final energy
consumption in 2021 have increased by 3.9 percentage points or 66% of the way to the 2030 goal. Modern renewables in the total primary energy
supply have increased, albeit slower, but by more than 50% compared with 2010, while the share of modern renewables for power generation has
increased by 62%.
One of the highlights of the 2024 edition of the Overview includes data to 2021 and this begins to shed light on the extent of the continuing impact of
COVID-19 and initial economic recovery from the pandemic. Additionally, each economy chapter discusses many other trends, issues, policies,
initiatives, and notable developments.
The basis of this report is the EGEDA data that each member economy submits on an annual basis. We thank EGEDA members for their continued
support in providing us with these data. We also encourage APEC member economies and other stakeholders to make use of this publicly available
resource to continue to develop, implement, refine and analyse energy policy, alongside other energy related analyses.

Kazutomo Irie, PhD
President
Asia Pacific Energy Research Centre (APERC)

Glen Sweetnam
Chairman
Expert Group on Energy Data and Analysis (EGEDA)iAPEC ENERGY OVERVIEW 2024

Acknowledgements
We would like to thank APEC member economies for the timely data
information provided to ensure the accuracy and timeliness of thisreport. We would also like to thank members of the APEC Energy
Working Group (EWG), APEC Expert Group on Energy Data andAnalysis (EGEDA), and numerous government officials, for their helpful
information and comments.
The APEC Energy Overview 2024 could not have been accomplishedwithout the contributions of many individuals and organisations in
APEC. We would like to thank all those whose efforts made thispublication possible.
We would also like to thank in particular those named below who
contributed to the successful completion of this publication.
PROJECT MANAGER

Economy Chapters: Mathew HORNE (Australia); Nabih MATUSSIN(Brunei Darussalam and Singapore); Leanne SARGENT (Canada);
Juniko Parlinggoman PARHUSIP (Indonesia); Hyuga Kasai and Risa
PANCHO (Japan); Zhichao LI (China and Hong Kong, China); Jung
Yoon KIM (Korea); Mohd Shah Hambali Bin ARIFIN (Malaysia);
Rodrigo MARTINEZ PICAZO (Mexico); Finbar Barton MAUNSELL(New Zealand and Papua New Guinea); Manuel Antonio HEREDIA
MUNOZ (Peru and Chile); Noriel Christopher Regis REYES (thePhilippines); Glen SWEETNAM (Russia); Ting-Jui SUN (Chinese
Taipei); Thanan MARUKATAT and Phawida JONGSUWANWATTANA(Thailand); Glen SWEETNAM and Yasmin FOULADI (United States);
Quoc Huy PHUNG (Viet Nam).
EDITORS

Elvira Torres GELINDON

Russell Gilbert of The English Editors; with internal editing and review
from Elvira Torres GELINDON and Ting-Jui SUN of APERCPROJECT COORDINATOR

GRAPHICS AND LAYOUT

Ting-Jui SUN

Elvira Torres GELINDON and Ting-Jui SUN

MAIN CONTRIBUTORSADMINISTRATIVE SUPPORT

Data Collection and Compilation: Expert Group on Energy Data
Analysis (EGEDA) through its Secretariat, the Energy Statistics &Training Office (ESTO), Asia Pacific Energy Research Centre(APERC).

Yoshiaki IMAIZUMI, Hideyuki MAEKAWA, Hideyuki FUJISAWA,
Mitsunori YOKOYAMA, Ikuno YAMAGUCHI and Eri OSANAIii

APEC ENERGY OVERVIEW 2024

Contents
Foreword ........................................................................................... i
Acknowledgements .......................................................................... ii
Contents ......................................................................................... iii
Commonly used abbreviations and terms........................................ iv
Currency codes ................................................................................ v
Introduction ..................................................................................... vi

Economy chapters
Australia ........................................................................................... 1
Brunei Darussalam......................................................................... 21
Canada .......................................................................................... 31
Chile............................................................................................... 60
China ............................................................................................. 73

México .............................................................................................. 159
New Zealand ................................................................................... 176
Papua New Guinea .......................................................................... 191
Peru ................................................................................................. 205
The Philippines ................................................................................. 219

Hong Kong, China .......................................................................... 84

Russia .............................................................................................. 236

Indonesia ....................................................................................... 96Singapore ......................................................................................... 251

Japan ........................................................................................... 113
Korea ........................................................................................... 128
Malaysia ....................................................................................... 142

Chinese Taipei ................................................................................. 266
Thailand ........................................................................................... 287
United States .................................................................................... 298
Viet Nam .......................................................................................... 313

iii

APEC ENERGY OVERVIEW 2024

Commonly used abbreviations and terms
Abbreviation

Term

Mloe

million litres of oil equivalent

MMbbl

million barrels

2017 USD PPP

2017 USD purchasing power parity

MMbbl/D

million barrels per day

APEC

Asia-Pacific Economic Cooperation

MMBFOE

million barrels of fuel oil equivalent

APERC

Asia Pacific Energy Research Centre

MMBtu

million British thermal units

ASEAN

Association of Southeast Asian Nations

MMcf/D

million cubic feet per day

B/Dbarrels per day

MMscf/D

million standard cubic feet per day

Bcfbillion cubic feet

mpg

miles per gallon

bcm

billion cubic metresMt

million tonnes

Btu

British thermal units

Mtce

million tonnes of coal equivalent

GW

gigawatt

Mtoe

million tonnes of oil equivalentGWhgigawatt-hourMWmegawattkL

kilolitre

PJ

petajouleskmkilometre

Tbbl/D

trillion barrels per day

km/Lkilometres per litre

tcetonnes of coal equivalentktoekilotonne of oil equivalent

Tcf

trillion cubic feetkVkilovolt

toetonnes of oil equivalentkWkilowatttU

tonnes of uranium metalkWhkilowatt-hourTWhterawatt-hours

Mbbl/D

thousand barrels per day

W

watt

ML

million litres (megalitre)Whwatt-hours

iv

APEC ENERGY OVERVIEW 2024

Currency codes
Code

Currency

Economy

AUD

Australian dollar

Australia

BND

Brunei dollar

Brunei Darussalam

CAD

Canadian dollar

Canada

CLP

Chilean peso

Chile

CNY

yuan renminbi

China

HKD

Hong Kong dollar

Hong Kong, China

IDR

rupiahIndonesia

JPY

yen

Japan

KRW

won

Korea

MYR

Malaysian ringgit

Malaysia

MXN

Mexican peso

MexicoNZDNew Zealand dollar

New Zealand

PGK

kina

Papua New Guinea

PEN

nuevo sol

Peru

PHP

Philippine peso

The Philippines

RUB

Russian ruble

Russia

SGD

Singapore dollar

Singapore

TWD

New Taiwan dollar

Chinese Taipei

THB

baht

ThailandUSD

US dollar

United States

VND

dong

Viet Namv

APEC ENERGY OVERVIEW 2024

In addition to energy supply, transformation, and final consumption data
for the period 2000 to 2021, an up-to-date accounting of energy policies
and notable energy developments to 2024 is provided in each of the
APEC member economy chapters.

Energy Supply and Consumption
Total primary energy supply
The global economy experienced a growth of 6.2% (PPP constant 2017
USD) in 2021, rebounding from economic slowdown in 2020. The
APEC region, which was similarly significantly impacted by COVID-19,
recovered with an economic output of around 6.1% (PPP constant2017 USD) in 2021. The recovery in economic activity resulted in an
increase in the APEC energy supply by over 19 exajoules (5.7% annual
increase) to finally settle at 362 051 PJ in 2021 (Figure 1). Renewables
surged by 7.3%, contributing significantly to the overall rise in energy
supply.
All energy products similarly rebounded in 2021. Coal saw a 6.4%
increase, gas by 5.4% and oil rose by 5.2%. By composition, in 2021,
coal share of TPES reached 34.6%, followed by oil (27.4%), gas(23.9%), renewables (8.3%), and others (5.8%). Despite renewables

400 000
350 000
300 000
250 000
200 000
150 000
100 000
50 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

This year's APEC Energy Overview comprises data up to 2021 andcovers analyses on the initial economic recovery or the possible
continuing impact of COVID-19 post-pandemic, on energy supply anddemand across APEC economies.

Figure 1: APEC energy supply by fuel (PJ), 2000 to 2021

TPES by fuel (PJ)

Introduction

expanding much faster than all other products, their share in TPES
remains lower than fossil fuels.

Coal

Oil

Gas

Renewables

Others

Source: EGEDA (2023)

APEC continues to be a net energy importer from the rest of the world,
but the proportion of net imports to energy supply has been declining
rapidly for more than two decades (Figure 2). While net imports
experienced a slight increase in 2021, its level was well below the 2018
level. This marks the third consecutive year that net imports haveremained at this low since 2019. This three-year trend is attributed tothe structural shift in the US and APEC Southeast Asian (SEA)
economies. Between 2018 and 2021, the US and APEC SEA
economies maintained their positions as net exporters while China
continued to be a net importer and net imports expanded, from 28 477
PJ to 33 030 PJ during the same period. Most of the energy reliance onviAPEC ENERGY OVERVIEW 2024

the rest of the world is tied to multiple APEC member economies
importing oil from Middle East economies. But this reliance on the
Middle East is being offset by the rise in energy production and exports
from economies such as Australia; Canada; Indonesia; Russia (until
2021); and the US.
Figure 2: APEC net energy imports as a proportion of supply, 2000 to
2021
12%

8%

Figure 3: APEC final consumption by sector (PJ), 2000 to 2021

4%
2%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Total final consumption
Total final consumption (which includes consumption of energy
commodities by the non-energy sector) rebounded 4.4% to 233 850 PJ
in 2021. Relaxation of pandemic control measures, gradual recovery oftransport, and recovery of economic activities were the main reasonsfor this rebound.

250 000
200 000
150 000
100 000
50 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

6%

Final energy demand by sector (PJ)

Net imports proportion

10%

The most significant rebound occurred in the transport sector with a
7.3% increase in 2021, but its level remained significantly lower thanthe pre-pandemic levels in 2019. The non-energy sector, which drove
the growth of final consumption in 2020, remained strong and grew
4.8% in 2021. Rebound was also seen in the final consumption in theservices (4%) and industry (3.5%) sectors in 2021. Meanwhile,
consumption in the residential sector, which was largely unchanged in2020 in view of the shift to work-from-home scheme for many workers,
saw a rise of 2.2% in 2021. By composition, the industry comprised
33.4% of total final consumption in 2021, followed by transport (25.4%),
residential (16%), non-energy (12.4%), commercial (8.2%), andagricultural and other sectors (4.6%).

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

vii

APEC ENERGY OVERVIEW 2024

Power sector
Power generation in APEC increased significantly (up 6.4%) to exceed
18 600 TWh in 2021. Other renewable generation (which include solar
and wind) still maintained the fastest growth at 25% in 2021. Thermal
power generation showed a strong recovery (6.1%) after declining in2020 due to the pandemic; in particular, oil (8.6% increase) and coal
(8.1%) remarkably rebounded in 2021. Nuclear electricity generation
also recovered, by 3.4%. However, power generation from hydro andgeothermal individually remained declining at by 1.3% and 0.3%,
respectively in 2021.
APEC's power generation still relies on thermal sources with, 64.5% of
power generation. The total share of renewable energy in power
generation reached 25.2% in 2021, accounting for a quarter of the total
power generation. Nuclear has a 9.7% share in power and has had astable increase since 2012, except in 2020.

20 00018 000
16 000
14 000
12 000
10 000
8 000
6 000
4 000
2 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Transformation

Figure 4: APEC electricity generation by fuel, 2000 to 2021

Electricity generation (TWh)In terms of final energy consumption by energy products, electricity saw
the fastest increase at 7.2%, leading to a 33.6% share of final energy
consumption. Mirroring the increases in most of the energy-consuming
sector, oil and gas showed an increasing trend, rising by 6.2% and 3%,
respectively. Coal consumption continued its decline and fell 5.4% in
2021. As a result, oil retained the second-largest share of final energy
consumption at 32.9%, followed by gas (18%), coal (11.3%), and nonelectricity renewables (4.3%).

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

Energy Transition
Emissions
As energy consumption rebounded alongside economic activities in
2021, CO2 emissions in the APEC region also experienced aremarkable surge. Although renewable energy increased much fasterthan fossil fuels, it remains at a relatively low base. As a result, CO2
emissions from fuel combustion grew 4.8% in 2021, reversing thedecline brought by the reduced mobility during COVID-19 pandemic in
2020 (Figure 5).

viii

APEC ENERGY OVERVIEW 2024

Figure 5: APEC CO2 combustion emissions (million tonnes), 2000 to
2021
25 000needed to meet the 2035 goal (Figure 6). APEC is on track to achieve
this energy intensity improvement if current trends continue.
Figure 6: APEC total final energy consumption intensity index, 2000 to
2021 (2005 = 100)

CO2 combustion
emissions120
15 000

10 000

5 000

0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective – to improve energy intensity anddouble the share of modern renewables.
Energy intensity goal
In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.
As of 2021, APEC-wide final energy intensity has improved 27%
compared to the 2005 level, leaving an additional 18% improvement

Energy intensity index (2005 = 100)Million tonnes CO2

20 000Total final energy consumption energy intensity
100
80
APEC-wide goal 2035
60
40
20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

The observed improvement in primary energy supply intensity (notshown here, 25% improvement) is very close to the observed
improvement in final energy intensity.
Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030.
Modern renewables do not include traditional biomass, which istypically relied on in emerging economies for household energy needs
and is associated with negative health outcomes. Many APEC
economies are enacting policies to reduce traditional biomassix

APEC ENERGY OVERVIEW 2024

consumption, either through upgrading fuel stoves, or via facilitating
switching to alternative fuels such as natural gas, liquefied petroleumgas (LPG), or electricity. The modern renewables share of final energy
consumption has increased from 6% in 2010 to almost 9.9% in 2021,
which is a 66% improvement. This means that APEC is ahead ofschedule to double its share of modern renewables by 2030 (Figure 7).

15.6% in 2010 (Figure 8).
Figure 8: APEC modern renewable energy share in the electricity mix,
2000 to 2020
35.0%

APEC doubling goal 2030
30.0%

Figure 7: APEC modern renewable energy share in final energy
consumption, 2010 through to 2030

12.0%
10.0%

Proportion

14.0%

25.0%

Share required
to meetdoubling
APEC-wide sharechange to 2021

20.0%

15.0%
Renewables share in electricity mix
10.0%

8.0%

5.0%

6.0%
4.0%

0.0%
2000

2.0%

Source: EGEDA (2023)

0.0%
2010

2010 to 2021

2021 to 2030
requirement

2030 APEC target

2005

2010

2015

2020

2025

2030

In terms of supply, modern renewables in TPES have increased from
4.8% in 2010 to 7.5% in 2021, which is almost a 53% increase at the
halfway mark to the goal year of 2030.

Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

Progress has also been made in doubling the share of renewables inthe electricity mix by 2030 (relative to 2010). Renewable generationaccounts for 25% of APEC electricity generation in 2021, up fromx

APEC ENERGY OVERVIEW 2024

Economy chaptersxi

APEC ENERGY OVERVIEW 2024

Australia
Introduction
Australia updated its nationally determined contribution (NDC) in June
2022, committing to reduce greenhouse gas emissions to 43% below
2005 levels by 2030. This is a significant expansion of the priorcommitment of a 26 to 28% reduction for the same period. Australia’s
updated NDC also includes a commitment to achieve net zero
emissions by 2050. The updated NDC commitments were legislated via
the Climate Change Act 2022.
Underpinning the legislated NDC is an Australian Government plan toreach 82% renewable generation by 2030 (Powering Australia, 2024).
The share of renewables generation for 2023 in the National Electricity
Market (NEM) was 38% (AEMO, 2024). More than doubling the current
renewable generation share will rely on a significant buildout of offshorewind, continued growth in rooftop and utility scale solar PV, for Snowy
2.0 (2.2 GW capacity) to become operational, and for regulatory
approval, integration, distribution, and transmission challenges, thatfacilitate a much higher share of renewables, to be met.
Current high population growth—population is anticipated to reachalmost 37 million in 2050 (Intergenerational Report, 2023)—and rapid
electrification of end-use sectors will be an additional challenge indelivering high levels of renewable generation.
The high prices for energy commodities brought about by the COVID19 recovery and geopolitical volatility are abating but remain historicallyhigh. The largest energy commodity earner for Australia for the past

few years, LNG, generated export earnings that surpassed AUD 92
billion in 2022–23, up by almost a third. An easing of geopoliticalpressures and expanded LNG supplies from the US and Qatar shouldsee prices and export earnings fall in the coming years.
Australia’s thermal coal export revenues also increased by a third,
reaching AUD 65 billion in 2022–23 (REQ, 2023). A large coalinventory in China and fewer anticipated global supply disruptions
mean that earnings are likely to be lower for 2024, even with resiliency
in short-term production volumes.
Metallurgical coal export earnings were AUD 61 billion in 2022–23, but
this represented a decline of almost 10% from the previous financial
year and the very high prices of 2021. Volumes are likely to increase in
the coming year, though earnings are anticipated to continue to fall due
to prices returning to much lower levels.
Table 1: Australia macroeconomic data and energy reserves
Key data a, b

Energy reserves c, dArea (million km2)

7.7

Oil (billion barrels)

2.4

Population (million)

27

Gas (trillion cubic feet)

84.4

GDP (2017 USD billion
PPP)

1278.6

Coal (million tonnes)

150 227

GDP per capita (2017
USD PPP)

49 774

Uranium (kilotonnes U< USD 130/kgU)

1 239

Source: a ABS (2024); b World Bank (2024); c Energy Institute (2023); d UN (2024)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

1

APEC ENERGY OVERVIEW 2024

The market power of LNG exporters has meant the price cap acts like a
price floor and is only applicable for the small proportion of gas
consumption that has been newly contracted. These high price gas
market conditions are also influential for electricity prices due to gas
generation regularly being the marginal price setter for wholesale
electricity prices in the NEM. Wholesale gas and electricity prices inWestern Australia are lower, in part, due to a policy of domestic gas
reservation, but delays in new gas supply and rising demand fromdomestic consumers are also bringing about price rises (S&P Global,
2023).
Australia has the largest uranium reserves in the world, though only
accounts for the fourth highest production or uranium behind
Kazakhstan, Canada, and Namibia (World Nuclear Association, 2023).
Most of Australia’s relatively small level of oil production is from theremote North West Shelf. Distance from Australia’s refineries and illsuited grades mean that most of the oil is exported (Geoscience, 2023).

Energy Supply and Consumption
Total primary energy supply
Australia’s energy supply—energy that is ultimately consumed

domestically—fell by 2.9% in 2021 to just over 5 450 PJ. But thisreduction was outshone by a fall in production of over 1 100 PJ. Twoyears of wet weather and labour force disruptions (from the COVID-19
pandemic and labour shortages) had a large impact on coal production,
explaining most of this fall (REQ, 2023).
While the 5.8% fall in energy production was large, the pullback has
been a rare blip of the past two decades. Energy production has
increased by more than 80% since 2000 with almost all this production
destined for export markets, mostly in Asia.
Figure 1: Australia energy supply, production, and net imports (PJ),
2000 to 2021
25 000

Production, net imports and TPES (PJ)

The high global prices for energy commodities have transmitted
through to many Australian consumers. The Australian Government
has attempted to shield east coast consumers from these high prices
by instituting a domestic wholesale natural gas price cap of AUD 12 pergigajoule. However, LNG exporters controlling 90% of east coast gas
supply has meant incentives have not aligned for new gas to be madereadily available (ACCC, 2023). Uncertainty over how the gas market
will develop over the next few decades has also hampered investment
in pipelines that would more readily transport gas domestically.

Production

20 000
15 000
10 000
5 000
Total Primary Energy Supply
0
2000-5 000

2005

2010

2015

2020

Net imports-10 000-15 000

Source: EGEDA (2023)

Australia was the fifth-largest global producer of coal and the seventhlargest global producer of natural gas in 2022 (EI, 2023). Almost 90%
2

APEC ENERGY OVERVIEW 2024

of Australia’s coal production is exported to meet demand from coalfired power plants (thermal coal) and blast furnaces for steel production(metallurgical coal) that are in Asia. Metallurgical coal accounts for lessthan one-fifth of APEC coal consumption, though it accounts for almost
half of Australia’s coal exports.
Australia shipped its first LNG cargo from the North West Shelf,Western Australia in 1989. The north-western regions of Australiacontinued to account for all of Australia’s LNG exports until
unconventional coal seam gas resources from the Surat and Bowenbasins were developed in Queensland. The first east coast LNG cargo
was shipped from Gladstone, Queensland in 2015, and has since led
Australia to challenge to being the largest global LNG exporter.
Australia and Qatar both accounted for a 21% share of global LNG
exports in 2022.
Figure 2: Australia energy supply by fuel (PJ), 2000 to 2021
6 000

The US is poised to challenge for the leading LNG title with significant
additions to LNG exporting becoming operational in the mid-2020s (EI,2023). The US and Qatar are also both generally lower down the LNG
cost curve than coal seam gas supply from Australia.
Australia’s energy supply was slowly increasing until the global financial
crisis in 2008. Energy supply has mostly maintained a high plateau
since then, even though population has increased by a fifth andeconomic output has increased by more than a quarter. The
accumulation of improvements in energy efficiency partially explains
why this plateau is observed (Figure 2). Non-combustible renewables—
wind and solar—replacing fossil fuels also constrains growth in energy
supply, due to their statistical treatment.
Figure 3: Energy supply mix – Australia and APEC, 2021
100%

Other
Renewables

80%
Gas

TPES by fuel (PJ)

5 000
60%

4 000

Oil

3 000
40%
2 000
20%

1 000

Coal

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal
Source: EGEDA (2023)

Oil

Gas

Renewables

Others0%Australia

APEC

Source: EGEDA (2023)

Coal supply fell for the third year in a row, to 31% of Australia’s supply
3

APEC ENERGY OVERVIEW 2024

Total final consumption
Australia’s energy supply of 5 453 PJ in 2020 flows through to 3 306 PJ
of end-use demand. This means that almost two-fifths is consumed in
the transformation process, which comprises own use and losses.
Total final consumption, which includes the consumption of energy
commodities by the non-energy sector, increased marginally (0.3%) in
2021, and is almost 4% lower than peak consumption in 2018.

Figure 4: Australia final consumption by sector (PJ), 2000 to 2021
4 000
3 500
3 000
2 500
2 000
1 500
1 000
500
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

When compared to APEC, oil is more prominent due to Australia’s
transport sector. Australia has high levels of car ownership and people
and freight move greater distances between population centres than inmany other APEC economies. Australian consumer preferences arealso for larger sport utility vehicles, which mean that recent energy
efficiency gains are being offset by more energy hungry vehicles(energy.gov.au, 2024).

Commercial sector energy consumption posted another fall (3.8%) in
2021 due to COVID-19 activity restrictions. But just like in 2020, thiswas counterweighed by an increase in residential energy consumption,
which increased 2.0%. The increase in residential energy consumption
is partly explained by COVID-19 and the greater level of economic
activity that is now occurring in households.

Final energy demand by sector (PJ)

mix in 2021. Oil supply (which includes petroleum products imports)
also fell in 2021, by 4.3%, but remained the most prominent absolutesource of supply for the second year running. Natural gas supply
bucked its trend of the last four years by falling 1.7% in 2021. There isa current trend away from using natural gas in many end-use
applications, but it is playing an important role in the power sector, via
gas-fired peaking turbines to help meet the challenge of variable
renewable generation. There is also significant consumption of natural
gas associated with the liquefaction process required for LNG exports,
though that is unlikely to be a source of growth moving forward.
Renewables supply increased by 10.4% in 2021, so that they now
account for 8.4% of Australia’s energy supply. Australia may haveworld-beating levels of solar PV (one-in-three households), but other
APEC economies have very significant hydro generation that
contributes to APEC having a similar share of renewables (8.3%) to
Australia.

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

The transport sector posted another fall (3.2%) in consumption in 2021.
Lockdowns and COVID-reduced mobility, including interstate travel
restrictions and increased working from home, impacted road and airtransport strongly through 2020 and 2021—lockdown and state-border
restrictions ended progressively from late 2021 to early 2022. In
contrast, APEC transport energy consumption boomed in 2021,
4

APEC ENERGY OVERVIEW 2024

increasing by 7.3%, with many APEC economies rapidly reopening,
aided by vaccine rollout.

expand downstream processing that could contribute to an industrial
revival in the coming decades.

Australia’s industrial energy consumption has maintained a similar level
for most of the last two decades (Figure 4). The commodity andresources boom of the 2000s and 2010s led to increased minerals
mining activity (the energy consumption is captured in the industry
sector), but this was not enough to offset the impacts of a strong
Australian dollar and the offshoring of many other industrial enterprises.
The accelerating rollout of renewables and batteries will require large
quantities of minerals such as lithium and rare earth elements, that
Australia is well placed to supply.

Difficulty for Australian manufacturers to secure reliable long-term gas
supply at a competitive price will provide an incentive for theelectrification of many industrial pursuits. The rise of renewable
powered industry, such as green steel, will be an opportunity forAustralia to pursue due to its vast wind and solar renewable potential.
But these prospects require significant infrastructure and technologicaldevelopment that are unlikely to be realised until at least the 2030s. In
the interim, lack of reliably sourced gas supply will be a disadvantage
for Australian manufacturers.

Figure 5: Final consumption by sector, Australia and APEC, 2021

Final energy demand
Final energy demand excludes the consumption of energy products by
the non-energy sector and is a subset of final consumption.

100%

Non-energy
Agriculture & others

Transport energy consumption is still mostly tied to oil (refined
products) in all APEC economies. For Australia, almost four-fifths ofrefined product consumption is by the transport sector. Refined
products are also used in all other end-use sectors, such as diesel inminerals mining (industry), LPG in residential buildings, and diesel
generators in commercial buildings. These use cases combine to meanthat oil accounted for half of Australia’s final energy demand in 2021,
with this share higher than it was in 2000 (47%).

80%
Residential
Commercial

60%

Transport
40%

20%

Industry0%Australia

APEC

Source: EGEDA (2023)

The Australian Government has developed a Critical Minerals Strategy(2023) that not only prioritises greater mining activity, but also seeks to
5

APEC ENERGY OVERVIEW 2024

Figure 6: Australia final energy demand by fuel (PJ), 2000 to 2021

Final energy demand by fuel (PJ)

3 500

Figure 7: Final energy demand fuel share, Australia and APEC, 2021
100%

3 000

Electricity andothers

80%

2 500
2 000

Renewables

60%

Gas

1 500
40%

1 000

Oil

500
20%

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Coal
0%
Australia

Electricity and others

APEC

Source: EGEDA (2022)
Source: EGEDA (2023)
Note: Does not include non-energy sector consumption of energy products.

Wide-scale electrification of end-use applications has yet to occur andso electricity has yet to rise in prominence, maintaining a share ofroughly a quarter for most of the previous two decades. With the rise ofelectric vehicles, and a move to electrifying other sectors, electricity is
anticipated to undergo significant growth in the next few decades. See
the 8th edition of the APEC Energy Demand and Supply Outlook for ananalysis and discussion of these trends.
Australia’s relatively small heavy industry sector means that coalconsumption in applications such as steel making, cement, andchemicals manufacturing is relatively low. The other end-use sectors
use almost no coal in Australia.

Roughly three-quarters of Australia’s natural gas production wasexported in 2021. A large portion of this production occurs in the northwest and is unavailable to domestic east coast consumers, due tolimited domestic pipeline networks and no LNG import terminals. Thereare currently multiple proposals to build LNG import facilities at
locations on the east and south coasts, and one of these projects isnearing completion at Port Kembla in NSW. It is uncertain whether
additional import terminals will be built.
Heating and cooking applications within the buildings sectors havebeen among the most prominent sources of natural gas demand.
Multiple manufacturing applications have also relied on the consistentheating properties of natural gas and its ability to generate high heat.
But higher prices and difficulty in securing long-term contracts on the
6

APEC ENERGY OVERVIEW 2024

east coast had been constraining natural gas demand in the lead up to
COVID-19.

Figure 8: Australia electricity generation by fuel, 2000 to 2021

Transformation
Power sector
Coal remains the dominant source of electricity generation for Australia.
However, coal’s share in the generation mix has fallen from well over
80% at its peak to 53% in 2021. The rapid rise in renewable generation,
particularly solar PV, has negatively impacted the economics of coalfired power. With continued rapid renewables deployment, coal is likely
to be phased out in the 2030s, as long as regulatory, integration,
distribution, and transmission challenges of integrating a very highshare of renewable are met.

250
200
150
100
50
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

The small size of Australia’s heavy industry sector provides a partial
explanation for the relatively low consumption of coal by Australian
end-use energy consumers. Australia’s relatively low consumption ofelectricity also correlates with the high relative share of the transport
sector, which is dependent on refined products (oil). With the rise ofEVs, end-use electricity consumption is likely to grow faster in Australia
than for other economies that have a less prominent transport sector.

Electricity generation (TWh)300

In 2021, natural gas consumption increased by 1.6%, which was partly
due to lower global demand that freed up supply for domestic
consumption. This small increase is likely to be a fluctuation away fromthe longer-term decline in domestic natural gas consumption.
Australia’s domestic consumption of gas is likely to stay lower than for
the APEC region (Figure 7).

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

Natural gas-fired generation had been increasing strongly for a decade
but fell by almost 10% in 2021. Much of this fall accommodated thesustained very large increase in renewable generation, which
accounted for a 26.5% share in 2021.
The very large increase in renewable generation is supported byAustralia’s world-leading solar rooftop PV rates of installation. The riseof rooftop solar is partly due to very favourable solar radiation
conditions, and partially to do with policy support from state and federal
governments. One in three Australian homes have a solar panel
system installed. The complementary rise of utility scale solar and windmeans that renewable generation is continuing to accelerate (Figure 8).

7

APEC ENERGY OVERVIEW 2024

Figure 9: Electricity generation fuel share, Australia and APEC, 2021
100%

Others80%

Geothermal
NuclearOther
renewables

Hydro
60%
Gas

Coal

20%

0%
Australia

The federal government has announced support measures forAustralia’s remaining two refineries in Geelong, Victoria and Lytton,
Queensland to continue to meet some of Australia’s demand for refined
products until at least 2030. These remaining two refineries have an
output that fulfils just under a quarter of Australia’s petroleum productconsumption in 2023 (Australian Petroleum Statistics, 2023).

Energy Transition

Oil

40%

Refining

APEC

Source: EGEDA (2023)

The ‘other renewables’ generation category, which includes solar PV,
increased by 24% in 2021. This amounted to almost 11 000 GWh,
which more than offset the decline in coal-fired power generation. The
relative share of the ‘other renewables’ category for Australia is almost
double the size for APEC.
Australia’s hydro generation is under two-fifths of the relative share ofhydro in the APEC generation mix. The Snowy Hydro 2.0 scheme will
provide an additional two gigawatts of pumped hydro capacity but is
now delayed until 2029. When this capacity is eventually available,hydro generation is poised to increase, but it will remain significantly
lower than hydro-dominant APEC economies like Canada and New
Zealand.

Since a new federal government was elected in May 2022,
commitments that support Australia’s legislated net zero 2050
commitment have accelerated. A National Net Zero Authority has been
established to ensure the opportunities are shared widely, including
with workers and communities that are associated with emissions
intensive sectors (Prime Minister of Australia, 2023).
At the end of 2022, Australian federal, and state and territory, energy
ministers introduced the Commonwealth Capacity Investment Scheme(CIS). The scheme aims to develop a capacity market for clean
dispatchable storage and generation to ensure reliability and security
while delivering much lower emissions from Australia’s electricity grid.
In November 2023, the Australian Government announced an
expansion to the scheme to target a total of 32 GW of new capacity,
made up of:•

23 GW of renewable capacity representing AUD 52 billion in
investment•

9 GW of clean dispatchable capacity representing AUD 15
billion in investment.
8

APEC ENERGY OVERVIEW 2024

The expanded CIS will be rolled out from 2024 to 2027 with regularcompetitive tenders held approximately every six months, starting in
April/May 2024. Some 14 GW of the CIS will be rolled out through aguaranteed tender, with the remaining 18 GW delivered throughRenewable Energy Transformation Agreements.

For Australia, CO2 combustion emissions have maintained a highplateau for most of the last decade, though they have fallen in 2020
and 2021. This fall was partly due to a decline in economic activity thatwas brought on by the COVID-19 pandemic and partly due to the rapid
rise in renewable generation.

New transmission infrastructure to deliver renewable energy andincreased generation is being supported by low-cost finance (Rewiring
the Nation, 2022). The locations of these new sources of power will be
guided by renewable energy zone analysis by the Australian Energy
Market Operator (AEMO), which includes Offshore Wind Zones
analysis (AEMO, 2022).

Figure 10: Australia CO2 combustion emissions (million tonnes), 2000
to 2021

Australia is supporting multiple hydrogen initiatives to capitalise on
potential demand. Details of these hydrogen initiatives are available in
the energy policy section later in the chapter.

CO2 combustion emissions

380
370

Million tonnes CO2

The Australian Government has also announced up to AUD 1 billion
funding for the Solar Sunshot program in March 2024. The programaims to support facilities along the supply chain of Australia’s solar
photovoltaic (PV) manufacturing (ARENA, 2024).

390

360
350
340
330
320
310
300
290

The Department of Climate Change, Energy, the Environment andWater has also ensured that energy policy is more closely aligned withenvironmental considerations, to support energy transition objectives.
Emissions
The expert group on energy data and analysis (EGEDA) falls under theumbrella of APEC’s Energy Working Group (EWG). In addition toenergy data compiled by EGEDA, CO2 emissions from combustion
activities in the energy sector are recorded. These emissions are asubset of total greenhouse gas (GHG) emissions that are considered in
the context of climate change, such as under the United Nations
Framework Convention on Climate Change (UNFCCC).

280
2000

2005

2010

2015

2020

Source: EGEDA (2023)

The EGEDA emissions data presented here only accounts for CO2 fromenergy combustion (from transformation and end-use activities),
calculated using default Intergovernmental Panel on Climate Change
emission factors and energy contents. Due to these reasons, this data
does not closely match Australia’s emissions reported under UNFCCC
guidelines.
Australia joined the Global Methane Pledge in October 2022, with9

APEC ENERGY OVERVIEW 2024

participant economies agreeing to a collective effort to reduce global
methane emissions at least 30% from 2020 levels by 2030.
Energy security
Even though Australia produces much more energy than it consumes,
energy security has become an increasingly prominent issue in recent
years. The difficulty in securing natural gas supply, and the muchhigher prices for that supply, mean that Australian consumers are in asimilar predicament to many European and Asian consumers.
The much higher global price for coal and gas has also impacted
Australia’s electricity markets and is a prominent reason for theincreased levels of inflation that Australia has experienced since 2022.
The unprecedented spikes in energy prices have sparked significant
debate in Australia about energy policy settings. Two-thirds of the
respondents of a survey of top economists (Economic Society ofAustralia, 2022) advocated intervention in response to thesechallenging market conditions. The proposed interventions include acap on domestic prices, a tax on wartime profits that can then be used
to finance subsidies, or domestic reservation.
In December 2022, the Australian Government implemented awholesale price cap of AUD 12 per gigajoule for natural gas and AUD
125 per tonne of black coal (Energy Price Relief Plan, 2024). The pricecap for gas applies to new domestic wholesale gas contracts by east
coast producers. However, because 90% of gas supply is controlled by
the east coast LNG producer-exporters, east coast consumers havestill found it difficult to secure a ready supply (ACCC, 2023). To deliver
price relief will require an intervention such as domestic reservation,
guaranteeing requisite supply, or an intervention that encourages amore competitive supply landscape. The Future Gas Strategy, released
May 2024, attempts to meet these challenges (Department of Industry,Innovation, Science and Resources, 2024).
Australia has been non-compliant with the International Energy Agency(IEA) 90 days of oil stock requirement since 2012. The federal
government signed an agreement with the US in 2020 to lease a
portion of the US Strategic Petroleum Reserve (SPR) as part of acommitment to return Australia to compliance by 2026. Economy
owned oil held in the SPR was released to the market in response to
the IEA’s March collective action. A collective action is a coordinatedrelease of oil that aims to stabilise the market and put downward
pressure on prices.
The closure of two of the remaining four oil refineries in Australia in
2021 means that Australia is now more reliant on sources of refined
products supply, and less reliant on sources of crude oil supply.

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.
Energy intensity goal
In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economy targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.

10

APEC ENERGY OVERVIEW 2024

Figure 11: Australia total final energy consumption intensity index, 2000
to 2021 (2005 = 100)

Figure 12: Australia modern renewable energy share, 2010 and 2021
12.0%

Energy intensity index (2005 = 100)

120
10.0%

Total final energy consumption energy intensity

100

Change from2010 to 2021

8.0%
80
6.0%
60

APEC-wide goal 2035
4.0%

40
2.0%

20

0
2000

0.0%
2005

2010

2015

2020

2025

2030

2035

2010

Change2021

Source: EGEDA (2022)

Source: EGEDA (2023)

Australia’s final energy demand energy intensity has been consistently
improving at a rate of between 1.5 and 2% per annum for the two
decades to 2021 (Figure 11). This represents more than a 26%
improvement since 2005. Energy supply intensity has improved by justunder 23% for the same period, with the discrepancy partly due to thelarge ramp in LNG operations and associated large own-use andenergy losses.

Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

Doubling of renewables

The share of modern renewables in Australia’s final energy demandmix increased from 6.3% in 2010 to 10.8% in 2021, which was a 72%
increase. Australia’s large year-on-year increases in renewablegeneration explain most of this increase.

The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for 2010 to 2030. There is no
economy-level goal for individual member economies, but individual
economies will contribute to the doubling goal.
11

APEC ENERGY OVERVIEW 2024

large pullback in 2015 coincided with the end of Australia’s carbon pricein 2014 and a collapse in renewables investment.

Figure 13: Australia renewable generation share, 2000 to 2021
30%

The short-lived carbon price, from 2012 to 2014, correlated with anincrease in renewable generation but it is difficult to determine howlarge the impact was from the imposition of this short-lived price. The
sustained rise of the late 2010s was largely due to the rise of rooftop
solar, though the growth of utility scale solar and wind generation
capacity is also accelerating.

25%
Renewables share in electricity mix

Proportion

20%
15%
10%
5%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

In 2021, the annual increase in renewable generation was more than
18%, which was large considering that hydro generation was flat. Solar
and wind capacity continues to accelerate and is supporting increased
climate ambitions such as Australia’s updated NDC, released in 2022.
However, it remains to be seen whether this pace of increase candeliver on the Australian Government target of 82% renewablegeneration by 2030. A more recent update shows that renewablegeneration reached 35% in 2023 (Australian Energy Statistics, 2024).

Electricity generation from renewables increased from 22.5% in 2020 to26.5% in 2021, which was triple the 2005 level of 8.8% (Figure 13). The

12

Energy Policy
Energy policy

Details

Reference

Paris Agreement Nationally
Determined Contribution

To reduce greenhouse gas emissions by 43% below 2005 levels by 2030.
To achieve net zero emissions by 2050.
These are enshrined in law in the Climate Change Act 2022.
Australia has also set a target to grow the renewable share of the National Electricity Market to82% by 2030 but this has not been legislated.

Department of Climate
Change, Energy, theEnvironment and Water

Energy price relief plan

The Commonwealth introduced an emergency gas price cap, at AUD 12 per gigajoule on newwholesale gas sales by east coast producers.
The Australian Government has worked with the NSW and Queensland governments to set an
effective cap for the price of coal used for electricity generation at AUD 125 a tonne.

Department of Climate
Change, Energy, theEnvironment and Water

Powering Australia Plan

The Australian Government’s Powering Australia Plan is focused on creating jobs, cutting
power bills, and reducing emissions by boosting renewable energy. It includes:• AUD 20 billion investment in transmission.
• AUD 102 million for community solar banks.
• AUD 224 million for the installation of 400 community batteries.
• AUD 1.9 billion for powering the region’s fund.

Department of Climate
Change, Energy, theEnvironment and Water

Offshore Wind Strategy

Unlocking the power of offshore wind in Australia will help improve energy security as coal fire
power stations retire, as well as improving affordability, and sustainability and bring the
economy another steps closer to net zero by 2050.

Department of Climate
Change, Energy, theEnvironment and Water

National Capacity Investment
Scheme (CIS)

The scheme will provide an economy framework to encourage new investment in clean
dispatchable capacity to support reliability and reduce the risk of price shocks in Australia’s
rapidly changing energy market. Expansion details provided in notable energy developments
section.

energy.gov.au

Critical Minerals Strategy 20232030

This updated strategy builds on the first Critical Minerals Strategy, published in 2019. It has avision to put Australia at the centre of meeting the growing demand for critical minerals. It will
underpin the economy’s prosperity and security by improving access to reliable, secure andresilient supplies of critical minerals.

Department of Industry,
Science and Resources

13Energy policy

Details

Reference

Safeguard mechanism

The safeguard complements the ACCU Scheme (previously ERF) by placing a legislated
obligation on Australia’s largest greenhouse gas emitters to keep net emissions below theiremissions limit (or baseline). These baselines will decline on a trajectory consistent withachieving Australia’s emission reduction targets of 43% below 2005 levels by 2030 and net
zero by 2050. The targets were legislated into Australian law in 2022.

Clean Energy Regulator

ACCU Scheme (previously
known as Emissions Reduction
Fund)This legislated scheme allows participants to earn Australian Carbon Credit Units (ACCUs) for
every tonne of emissions reduced or sequestered through a project. These credits can be soldto the Australian Government or to other buyers in the market. The Independent Panel, which
released its completed review of ACCUs in December 2022, concluded the scheme
arrangements are sound, while recommending some changes to strengthen the scheme. The
government is working with stakeholders to implement the recommendations from the Review.

Clean Energy Regulator

Australia’s National Hydrogen
Strategy

Designed to establish Australia's hydrogen industry as a major global player by 2030. Australia
is currently reviewing this strategy.

Department of Climate
Change, Energy, theEnvironment and Water

Rewiring the Nation

Rewiring the Nation is AUD 20 billion program to provide low-cost finance to upgrade, expand
and modernise Australia’s electricity grid and drive down power prices.

Department of Climate
Change, Energy, theEnvironment and Water

Growing Australia’s hydrogen
industry(Multiple initiatives)

Various hydrogen projects, with the potential to help revitalise manufacturing, support regional
economies, create jobs, investment, and trade opportunities, while helping Australia achieve
its decarbonisation targets.

Department of Climate
Change, Energy, theEnvironment and Water

The National Greenhouse andEnergy Reporting scheme

A single domestic framework for mandatory reporting and dissemination of company
information about greenhouse gas emissions, energy production, energy consumption, andother information from the energy, waste, and industrial processes sectors.

Clean Energy Regulator and
DCCEEW

Bilateral Renewable Energy
Transformation Agreements

On 23 November 2023 the Commonwealth announced a significant expansion of the Capacity
Investment Scheme (CIS) with additional capacity to be negotiated with state and territory
governments through bilateral Renewable Energy Transformation Agreements (RETAs).
Building on successful collaboration to date under the National Energy Transformation
Partnership, RETAs are designed to detail how the Commonwealth and respective state andterritory governments will work together to achieve shared objectives in the renewable energy
transformation.

Department of Climate
Change, Energy, theEnvironment and Water

14

Energy policy

Details

Reference

Energy and Climate Change
Ministerial Council (ECMC)

The ECMC is a forum for the Commonwealth, Australian states and territories, and New
Zealand to work together on priority issues of domestic significance and key reforms in theenergy and climate change sectors. The Hon Chris Bowen MP, Minister for Climate Change
and Energy, chairs the ECMC. This council replaced the former Energy National Cabinet
Reform Committee in 2022.

Department of Climate
Change, Energy, theEnvironment and Water

National Energy Customer
Framework

Regulates the connection, supply, and sale of energy (electricity and gas) to grid-connected
residential and small-business energy customers.

Department of Climate
Change, Energy, theEnvironment and Water

Australia's fuel security package

Various measures to increase domestic storage and hold a sovereign refining capability thatmeets Australia's needs during an emergency.

Department of Climate
Change, Energy, theEnvironment and Water

Energy emergency management
forumsParticipation in gas, liquid fuel, and electricity emergency management forums to ensure
effective communication and collaboration between governments and industry in energy
supply emergencies.

Department of Climate
Change, Energy, theEnvironment and Water

Trusted Information Sharing
Network

The Trusted Information Sharing Network for Critical Infrastructure Resilience Energy Sector
Group is a forum for sharing information on security issues and practical measures to improve
the resilience of energy infrastructure to all hazards.

Cyber and Infrastructure
Security Centre

Energy supply policy

The Australian Government is ensuring supply security, reliability, and affordability via clean
energy and electricity market reforms, delivering priority transmission projects and pumped
hydro, and supporting the Tasmanian energy taskforce.

Department of Climate
Change, Energy, theEnvironment and Water

Subsidies for residential (andcommercial) storage and/or PV

State-based government programs providing incentives for solar PV installations.

Solar rebates in Australia

Large-scale Renewable Energy
TargetSmall-scale Renewable Energy
SchemeSnowy 2.0
Climate Active

The Large-scale Renewable Energy Target (LRET) incentivises the development of renewableenergy power stations in Australia through a Renewable Energy Certificate Market for thecreation and sale of certificates called large-scale generation certificates (LGCs).
Incentivises small-scale renewable energy systems through legislated demand for small-scaletechnology certificates (STCs). The STCs act as a discount offered to small energy consumers
to install RE systems such as solar water heaters and solar PV.
Sponsoring and commissioning of a 2GW pumped hydro facility in 2027 by the federal
government.
Certification is awarded to Australian businesses that meet the requirements to achieve net
zero carbon emissions.

Clean Energy Regulator

Clean Energy Regulator
Snowy Hydro
Climate Active

15

Energy policy

Details

Reference

Liddell Taskforce

Will advise government whether sufficient dispatchable capacity has been built to make up forthe closure of the Liddell power plant in 2023.

Department of Climate
Change, Energy, theEnvironment and Water

Retailer Reliability Obligation(RRO)

If gaps are forecast between energy demand and supply, the Australian Energy Market
Operator will compel energy retailers to contract additional generation.

Department of Climate
Change, Energy, theEnvironment and Water

Regional Australia Microgrid
Pilots Program

An AUD 50 million six-year program that aims to improve the resilience and reliability of power
supply for regional and remote communities. Administered by ARENA.

ARENAGEMS program

Commercial Buildings Disclosure

The Greenhouse and Energy Minimum Standards Act 2012 (GEMS Act) provides forGreenhouse and Energy Minimum Standards for specific types of products before they can besupplied in Australia.
The Commercial Building Disclosure (CBD) program requires energy efficiency information to
be provided in most cases when commercial office space of 1000 square metres or more isoffered for sale or lease.

GEMS Determinations
Commercial Building
Disclosure

National Electric Vehicle Strategy

Launched in April 2023, provides a domestically agreed framework to make Australia
a globally competitive market for electric vehicles.

energy.gov.au

Electric Vehicle policies

Australian states and territories have multiple targets for EV sales, EV rebates, support for EV
charging infrastructure, and other such policies that aim to support electrification of transport.

Department of Climate
Change, Energy, theEnvironment and Water

National Energy Productivity Plan
2015–2030

Provides a framework and an economy-wide work plan of new and existing measuresdesigned to coordinate efforts and accelerate improvement to deliver a 40% improvement inAustralia’s energy productivity.

Department of Climate
Change, Energy, theEnvironment and Water

16

Notable Energy Developments
Notable development

Details

Reference

Climate change and energy
transformation

The Australian Government announced a budget of AUD 24.9 billion in October 2022, which
includes the Powering Australia Plan.

Energy Minister press release

Community Batteries forHousehold Solar

The Community Batteries for Household Solar program will install 400 batteries acrossAustralia. This will provide shared storage for up to 100 000 households. The batteries will store
excess solar energy for families and households to use during peak times.

Department of Climate
Change, Energy, theEnvironment and Water

National Energy Performance
Strategy

Framework to deliver the energy efficiency savings required to meet the government's 2030
and 2050 emissions reduction targets.

Department of Climate
Change, Energy, theEnvironment and Water

National Energy Transformation
Partnership

On 12 August 2022, federal, state and territory Energy Ministers agreed to establish a new
National Energy Transformation Partnership. The Partnership is a framework for domesticalignment and cooperative action by governments to support the smooth transformation ofAustralia’s energy sector.

energy.gov.au

Gas Code of Conduct

The Australian Government has implemented a mandatory Gas Code of Conduct, as part of theEnergy Price Relief Plan announced in December 2022, to ensure that east coast gas users
can contract for gas at reasonable prices and on reasonable terms.

energy.gov.au

Expansion of the Capacity
Investment Scheme

On 23 November 2023, the Australian Government announced an expansion of the Capacity
Investment Scheme to target a total of 32 GW of new capacity, made up of:• 23 GW of renewable capacity representing AUD 52 billion in investment• 9 GW of clean dispatchable capacity representing AUD 15 billion in investment (anadditional 7.9 GW to the 1.1 GW already in progress through the first stage of the CIS).

Department of Climate
Change, Energy, theEnvironment and Water

Solar Sunshot

The Australian Government is investing AUD 1 billion in the Solar Sunshot program tosupercharge Australia’s ambition to become a renewable energy super power at home andabroad.
Solar Sunshot will help Australia capture more of the global solar manufacturing supply chain
through support, including production subsidies and grants.

Australian Renewable Energy
AgencyHydrogen Headstart

The Australian Government will invest AUD 2.0 billion in the new Hydrogen Headstart program,providing revenue support for large-scale renewable hydrogen projects through competitivehydrogen production contracts. The program will put Australia on course for up to a gigawatt ofelectrolyser capacity by 2030.

Department of Climate
Change, Energy, theEnvironment and Water

17

Notable development

Details

Reference

Powering Net Zero Industries

•
•
•
•
•
•

AUD 2 billion Hydrogen Headstart.
Critical minerals to drive clean energy technologies.
Support growing demand for batteries.
Explore CCUS or CCS.
Reforming Safeguard Mechanism.
Transparency and integrity through Annual Climate Change Statement.

Budget.gov.au

Just energy transition

•
•
•
•
•
•

Encouraging Australians to consider a career in the clean energy sector.
New Energy Apprenticeships Program.
National Skills Agreement.
Equal by 30 is building gender equity across clean energy sector.
National Net Zero Authority.
Working with and learning from First Nations people to manage climate crisis adaptation.

Powering Australia

Useful Links
Australian Bureau of Statistics – https://www.abs.gov.au/
Australian Competition and Consumer Commission – https://www.accc.gov.au/
Australian Energy Market Commission – https://www.aemc.gov.au/
Australian Energy Market Operator – https://aemo.com.au/
Australian Energy Regulator – https://www.aer.gov.au/
Australian Renewable Energy Agency – https://arena.gov.au/
Clean Energy Finance Corporation – https://www.cefc.com.au/
Clean Energy Regulator – http://www.cleanenergyregulator.gov.au/
Department of Climate Change, Energy, the Environment and Water – https://www.dcceew.gov.au/
Department of Industry, Science and Resources – https://www.industry.gov.au/
Energy.gov.au – https://www.energy.gov.au/
18

References
Australian Competition and Consumer Commission (2024), Gas inquiry 2017–2030, https://www.accc.gov.au/inquiries-and-consultations/gas-inquiry2017-30
Australian Energy Market Operator (2022), Appendix 3. Renewable energy zones, Appendix to 2022 ISP for the National Electricity Market,
https://aemo.com.au/-/media/files/major-publications/isp/2022/2022-documents/a3-renewable-energy-zones.pdf?la=en
Australian Energy Market Operator (2024), Data (NEM), https://aemo.com.au/energy-systems/electricity/national-electricity-market-nem/data-nem
Australia Energy Statistics (2024), Energy data, https://www.energy.gov.au/energy-data/australian-energy-statistics
Australian Petroleum Statistics (2024), https://www.energy.gov.au/energy-data/australian-petroleum-statistics
Australian Renewable Energy Agency (2024), Solar Sunshot, https://arena.gov.au/funding/solar-sunshot/
Energy Institute (2023), Statistical Review of World Energy 2023, https://www.energyinst.org/statistical-review
Department of Climate Change, Energy, the Environment and Water (2024) Powering Australia, https://www.dcceew.gov.au/energy/strategies-andframeworks/powering-australia
Department of Industry, Science and Resources (2023) Critical Minerals Strategy 2023–2030, https://www.industry.gov.au/publications/criticalminerals-strategy-2023-2030
Department of Industry, Science and Resources (2023), Resources and Energy Quarterly. https://www.industry.gov.au/publications/resources-andenergy-quarterly
Economic Society of Australia (2022), Leading economists back Federal Government action to curb rising gas and electricity prices (poll 57),https://esacentral.org.au/polls-item/48855/leading-economists-back-federal-government-action-to-curb-rising-gas-and-electricityprices/?type_fr=902
Prime Minister of Australia (2023), National Net Zero Authority media release, https://www.pm.gov.au/media/national-net-zero-authority
Rewiring the Nation (2023), Rewiring the Nation supports its first two transmission projects, https://www.energy.gov.au/news-media/news/rewiringnation-supports-its-first-two-transmission-projects
S&P Global (2023), Western Australia govt updates WA Domestic Gas Policy, limiting LNG exports,
https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/lng/081623-western-australia-govt-updates-wa-domestic-gas-policylimiting-lng-exports
19

The Department of the Treasury (2023), 2023 Intergenerational Report, https://treasury.gov.au/publication/2023-intergenerational-report
World Nuclear Association (2023), World Uranium Mining Production, https://world-nuclear.org/information-library/nuclear-fuel-cycle/mining-ofuranium/world-uranium-mining-production.aspx

20

Brunei
Darussalam
Introduction
Brunei Darussalam has been a net energy exporting economy due to anabundance of oil and gas. These commodities accounted for 52% of
Brunei Darussalam’s total GDP of USD 26.8 billion in 2021 and morethan 80% of the overall government revenue in the same year. This has
generated a high per capita GDP of USD 60 127, enabling thegovernment to provide a comfortable quality of life for the citizens
through subsidised education, healthcare, housing and fuels, among
other services. In 2021, most of the crude oil and petroleum products
were exported to several APEC economies, notably Australia andSingapore, while LNG volumes were mainly shipped to China; Japan;
Korea; Malaysia and others.
Brunei Darussalam aims to achieve a 20% reduction in its greenhousegas (GHG) emissions from business-as-usual levels in 2030 in their
updated Nationally Determined Contributions (NDC). To further enhance
Brunei Darussalam’s climate ambitions, the economy pledged to achieve
net zero emissions in 2050 as per the announcement in COP26 in
Glasgow, United Kingdom. The Brunei National Climate Change Policy(BNCCP) serves as the foundation for achieving the economy’s NDC
target, outlining key strategies to reduce emissions across the energy
sector in principle, in addition to strengthening carbon sequestration in

the forestry sector and enhancing climate adaptation.
The Brunei Darussalam National Council on Climate Change (BNCCC)
launched a directive on the mandatory reporting of GHG emissions in
2023. Through this directive, all emitting facilities, including government
departments and private sector companies, are required to report theirquarterly and annual emissions, in line with the BNCCP objectives.
Brunei Darussalam is a signatory to the Global Coal to Clean Power
Transition Statement, which was announced during COP26. The
economy is committed to transition away from unabated coal-fired power
generation, through rapid deployment of clean power generation andenergy efficiency measures, ceasing issuance of new permits forconstruction of unabated coal-fired power generation projects.
Table 1: Brunei Darussalam’s macroeconomic data and energy
reserves
Key data a, b

Energy reserves c

Area (km2)

5 765

Oil (billion barrels)

1.1

Population (million)

0.45

Gas (trillion cubic feet)

7.9

GDP (2017 USD billion
PPP)

26.8

Coal (million tonnes)0

GDP per capita (2017
USD PPP)

60 127

Uranium (kilotonnes U< USD 130/kgU)

0

Source: a MOFE (2023); b World Bank (2023); c EI (2023).
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

21

Total primary energy supply
Brunei Darussalam’s energy supply in 2021 amounted to almost 195 PJ– a significant increase of 27% from 2020 levels (Figure 1). This is driven
primarily by imports of crude oil to meet the domestic refinery
requirements. Consequently, the net import grew by almost 15% during
the same period. Increased imports of coal from Indonesia were also
influential in the growth of the economy’s net imports.
Generally, indigenous upstream production has been on the downward
trend since 2000. Total production in 2021 stood at almost 598 PJ, downby 6.6% in the previous year, attributed to maturing oil and gas fields inshallow waters.
Figure 1: Brunei Darussalam’s energy supply, production, and net
imports (PJ), 2000 to 2021

Figure 2: Brunei Darussalam’s energy supply by fuel (PJ), 2000 to 2021
250

200

150

100

50

1 200
1 000

The energy supply in Brunei Darussalam has been gas-centric for morethan two decades, serving as fuel and feedstock in the power and nonenergy sectors, respectively. In 2021, gas accounted for 56% of Brunei
Darussalam’s energy supply, while coal and oil made up the remaining
15% and 29% respectively. Renewables supply remained negligible(Figure 2).

TPES by fuel (PJ)

Energy Supply and Consumption

Production
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

800
600
400

Coal

Oil

Gas

Renewables

Others200
0- 2002000

Source: EGEDA (2023)

Total Primary Energy Supply

2005

2010

2015

- 400
- 600

- 800
-1 000Net imports

2020

With respect to APEC energy supply mix (Figure 3), Brunei Darussalam
remained well above APEC in terms of gas share in 2021, given its
monopoly in the economy’s power sector. Oil shares were nearly
identical to each other, while the coal share was significantly below thatof APEC as coal utilisation is only in the domestic refinery.

Source: EGEDA (2023)
22

Figure 3: Energy supply mix – Brunei Darussalam and APEC, 2020
100%

Figure 4: Brunei Darussalam final consumption by sector (PJ), 2000 to
2021

Other

Final energy demand by sector (PJ)

Renewables
80%
Gas
60%
Oil
40%

20%

40
35
30
25
20
15
10
5
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Coal

45

0%
Brunei Darussalam

APEC

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)
Source: EGEDA (2023)

Total final consumption
Brunei Darussalam recorded a decline of almost 3% in its final
consumption in 2021 relative to 2020 levels (Figure 4). Demand growthin the industry, commercial and residential sectors were not enough tooffset the declines of more than 6% and 11% in the transport and nonenergy sectors, respectively. The Delta variant-driven resurgence of
COVID-19 infections forced the government to impose partial lockdowns
across the economy, which partially drove the decline in the transport
sector. The decline in non-energy consumption was due to a decreasein the consumption of lubricants and bitumen in the industry sector.

Compared to the APEC region (Figure 5), Brunei Darussalam’s share of
the transport sector was substantially higher than that of APEC, owing to
the economy’s high private vehicles ownership and limited public
transport use. Given the high dependency on oil and gas industry, Brunei
Darussalam’s share of the industry sector was smaller than that in APEC.
The share of the commercial sector in the economy was higher than thatin APEC, while the residential sector shares in both Brunei Darussalam
and APEC were identical to each other. The shares of both agriculture &others and non-energy sectors in Brunei Darussalam were well below
those of APEC, given negligible demands in both sectors.

23

Figure 5: Final consumption by sector, Brunei Darussalam and APEC,
2021

Figure 6: Brunei Darussalam final energy demand by fuel (PJ), 2000 to
2021
45

100%
Non-energy

40

Agriculture & others

35

80%

60%

Residential

30

Commercial

25
20Transport

15

40%

10
5

Coal

Brunei Darussalam

Oil

Gas

Renewables

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2000

0%

2002

0

Industry

2001

20%

Electricity and others

APEC

Source: EGEDA (2023)

Final energy demand
There was a modest growth of almost 3% in electricity demand in 2021
from 2020 levels, in line with the sectoral demand growth in industry,
residential and commercial sectors. On the other hand, oil demand
declined by almost 7% between the same period, attributed largely to a
decline in transport sector activity as mentioned earlier. Meanwhile,
demand for gas remained stable between 2020 and 2021 (Figure 6).

Source: EGEDA (2023)
Note: Does not include non-energy sector consumption of energy products.

Brunei Darussalam’s final energy demand mix was largely electricity andoil based in 2021, hence the shares of both fuels were well above thoseof APEC (Figure 7). The electricity share was high because of thesubstantial electrification rate in the economy as well as high electricity
usage per capita. The oil share was high because of the dominance ofgasoline and diesel-powered vehicles usage, in addition to low fuelprices. Direct gas usage in Brunei Darussalam is very small, owing to alimited number of households that are directly connected to the gas
supply via pipelines, as most households in the economy are utilising
LPG cylinders for cooking purposes.

24Figure 7: Final energy demand fuel share, Brunei Darussalam and
APEC, 2021

Coal-fired electricity generation, which is exclusive for Hengyi Industries’refinery and petrochemical complex, contributed about 22% of the total
output in 2021, equivalent to about 1.2 TWh (4 PJ). On an annual basis,coal input grew by 1.3% in 2021 from 2020 levels.

100%
Electricity andothers80%

Figure 8: Brunei Darussalam’s electricity generation by fuel (TWh),
2000 to 2021

Renewables

60%

Looking at yearly growth, diesel input for the electricity generation fell byalmost 9% from 2020 levels.

Gas

7

40%

6

Oil

5

20%

4

Coal
0%
Brunei Darussalam

APEC

3
2

Source: EGEDA (2023)
1

Electricity generation from oil (diesel) constituted only 1% of the total,
given that it only supplied a small population in the Temburong District.

NuclearGeothermal

Other renewables

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

Hydro

2008

Gas

2007

2006

2005

Oil

2004

Coal

2003

2002

Brunei Darussalam produced more than 5.6 TWh (20 PJ) of electricity in
2021, a slight decline of 0.6% from the previous year (Figure 8). Gas
remained the main source of fuel for the electricity generation in theeconomy, accounting for 77% of the total electricity output. On an annual
basis, gas input for the electricity generation declined by 1.2% between
2020 and 2021.

2001

Power sector

0

2000

Transformation

Others

Source: EGEDA (2023)

The dominance of gas in Brunei Darussalam’s electricity generation mix
in 2021 means that the economy’s gas share is placed well above
APEC’s share. On the other hand, the share of coal-fired electricity
generation was significantly lower than APEC’s share, given that coalfired electricity generation is only within the refinery and petrochemicalcomplex, i.e., not connected to the public grid.
25

Figure 9: Electricity generation fuel share, Brunei Darussalam and
APEC, 2021
100%

Nuclear
Hydro

60%

Gas

Figure 10: Brunei Darussalam CO2 combustion emissions (million
tonnes), 2000 to 2021

Oil

40%

Coal

20%

Emissions
CO2 emissions in Brunei Darussalam reached more than 12 million
tonnes in 2021, an increase of almost 5% from 2020 levels (Figure 10).
This is attributed to increased coal input for electricity generation within
the refinery and petrochemical complex, despite declines in the gas-fired
electricity generation as well as the transport sector between the same
period.

OthersOther renewables
Geothermal

80%

Energy Transition390
CO2 combustion emissions

380
0%

370
Brunei Darussalam

APEC

Source: EGEDA (2023)

Refining
Brunei Darussalam currently houses the first phase of the Hengyi
refinery and petrochemical complex, located in Pulau Muara Besar(PMB). The integrated complex is capable of refining about 175 000
barrels of crude oil per day. Given its huge capacity, more than half ofthe crude oil input to the complex is procured from abroad, with domestic
crude accounting for the remainder of the input. As of 2021, crude oil
input to the complex stood at almost 370 PJ, up 6% from the previous
year. To put that into perspective, the annual oil demand in Brunei wasabout 20 PJ.

360
350
340
330
320
310
300
290
280
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
Brunei Darussalam is a net energy exporter, given its abundance of oil
and gas resources in its disposal. That said, energy self-sufficiency has
26been on a downward trend for more than two decades, largely due todeclining domestic oil and gas production. However, the low domesticenergy demand still ensured Brunei Darussalam’s supply to be morethan sufficient. In 2021, self-sufficiency stood at 307%, well above thethreshold of the self-sufficiency indicator.

APEC Energy Goals

Figure 11: Brunei Darussalam’s total final energy consumption intensity
index, 2000 to 2021 (2005 = 100)
160
140
120
Total final energy consumption energy intensity

100

There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity and to
double the share of modern renewables.
Energy intensity goal
In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline. The
original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The goal
does not impose individual economy targets, but it is possible to track
the progress of individual APEC economies relative to the overarching
proportional improvement.
Brunei Darussalam’s energy intensity has seen an increasing trend since2005, given that the rate of increase of total final energy consumption isgreater than the increase rate of the economy’s GDP. As of 2021, energy
intensity declined by 1% from 2020 levels, given the decline in theeconomy’s energy consumption (Figure 11).

80
60
APEC-wide goal 2035

40
20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doubling
goal.

27

Figure 12: Brunei modern renewable energy share, 2010 and 2021

Figure 13: Brunei Darussalam’s renewable generation share, 2000 to
2021

0.0%
0.09%

0.0%

0.08%
0.0%
0.0%

0.07%

Change from2010 to 2021

0.06%

0.0%

0.05%

0.0%

0.04%

Renewables share in electricity mix

0.03%

0.0%

0.02%

0.0%
0.01%
0.0%
2010

Change2021

Source: EGEDA (2023)

0.00%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

Given the predominance of natural gas in Brunei’s electricity generation
mix, the share of modern renewables is still negligible (0.03% in 2021).
To reduce the dependence on natural gas in the economy’s power
sector, Brunei is planning to expand its renewables share by installing
200 MW of large-scale solar photovoltaic (PV) plants in 2025, and further
increasing this to 300 MW in 2035. Currently Brunei has about 4.5 MWof solar PV capacity.

28

APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

Reference

Nationally Determined
Contributions

A 20% reduction of GHG emissions relative to business-as-usual levels by 2030.

UNFCCC (2020)

Brunei Darussalam National
Climate Change Policy

The policy was established to pave the way for Brunei's low-carbon and climate-resilient
pathways for a sustainable economy, through adoption of 10 key strategies:
industrial emissions, forest cover, electric vehicles, renewable energy, power management,
carbon pricing, waste management, climate resilience & adaptation, carbon inventory,
awareness & education.

BCCS (2020)

Net Zero Emissions

Brunei is moving towards net-zero emissions by 2050, announced at UNFCCC COP26 in
Glasgow, Scotland, United Kingdom.

UNFCCC (2021)

Energy Efficiency (Standards andLabelling) Order, 2021

The Department of Energy at the Prime Minister's Office introduced the Order in 2021, in linewith its energy efficiency and conservation initiatives. The Order requires manufacturers,
suppliers, wholesalers and retailers in Brunei to import and sell appliances that meet theminimum energy performance standards.

Department of Energy,
Prime Minister's Office(2022)

Directive on the Mandatory
Reporting of Greenhouse Gas

Beginning 2023, all facilities that emit GHG emissions are required to report their GHG
emissions on a quarterly and annual basis, in line with the objective of Strategy 9 of the BNCCP(Carbon Inventory).

BCCS (2023)

29

APEC ENERGY OVERVIEW 2024

Notable Energy Developments
Energy development

Details

Reference

Kampung Belimbing Subok Solar
PV ProjectThe 30 MW Solar PV plant in Kampong Belimbing Subok is set to be operational in 2025.

Department of Councilsof State (2024)

Hengyi Industries Refinery andPetrochemical Complex Phase 2

Phase 2 of the Hengyi Industries Refinery and Petrochemical Complex is set to commence
operation in 2029.

Department of Councilsof State (2024)

LPG inventory

Economy-wide minimum stock for LPG will be increased from 7 days to 14 days beginning
2024.

Department of Councilsof State (2024)

Bukit Panggal Gas-fired Power
Plant Phase 2

Phase 2 of combined-cycle gas power plant in Bukit Panggal is set to be operational in 2027.

Department of Councilsof State (2024)

Useful Links
Brunei Climate Change Secretariat – https://climatechange.gov.bn
Brunei Shell Petroleum – https://www.bsp.com.bn/
Brunei LNG – https://www.bruneilng.com/
Department of Economic Planning and Statistics, Ministry of Finance and Economy – https://deps.mofe.gov.bn
Department of Energy, Prime Minister’s Office – https://www.energy.gov.bn/
Hengyi Industries – https://www.hengyi-industries.com/

30

APEC ENERGY OVERVIEW 2024

CanadaIntroduction
Several climate policies and regulatory updates were released in 2023,
steering and tracking Canada’s progress to reaching its emissions
reduction targets of 40%-45% below 2005 levels by 2030 en route to
net zero emissions by 2050. Given that approximately 80% of Canada’s
greenhouse gas (GHG) emissions stem from energy-related activities,
climate policies targeting emissions reductions inherently affectCanada’s energy system (CER, 2023a).
Canada is home to a diverse energy landscape, influenced by varied
geography, climate, and economic drivers. This diversity necessitates a
tailored approach to energy generation among its provinces andterritories. In Canada’s oil-producing regions, the sector experienced aresilient rebound following COVID-19, marked by an increase in oil
production from 2020 to 2021, a trend continuing into 2022 and 2023
(CER, 2023b). Simultaneously, strides were taken to maintain andincrease capacity of non-emitting energy sources such as nuclear,solar and wind (CanREA, 2024; CNSC, 2023; NRCan, 2023a; ON Gov,
2023). Across Canada, discussions about clean electricity gained
momentum with the publication of draft Clean Electricity Regulations(ECCC, 2023a).
In 2021, Canada released its 2030 Emissions Reduction Plan. This
past year, in fulfilment of a legal requirement under the Canadian NetZero Emissions Accountability Act, Canada released its 2023 Progress
Report on the 2030 Emissions Reduction Plan (ECCC, 2023b; Justice

Canada, 2023). The progress report provides an overview of current
decarbonisation efforts and outlines additional policies that will help
Canada reach its climate goals.
Nonetheless, challenges persist in achieving Canada’s decarbonisation
targets. Uncertainty surrounding climate policies, specifically in light of
the federal decision to temporarily pause the carbon price on deliveriesof heating oil, as well as debates regarding timelines, methods andcost-bearing to achieve Canada’s emissions reduction goals remain at
the forefront.
Table 1: Canada macroeconomic data and energy reserves
Key data a, b

Energy reserves c, dArea (million km2)

10

Oil (billion barrels)

168

Population (million)

38

Gas (trillion cubic feet)83

GDP (2017 USD billion
PPP)

1 843

Coal (million tonnes)

6 582

GDP per capita (2017
USD PPP)48 218Uranium (kilotonnes U< USD 130/kgU)

490

Source: a StatCan (2018); b World Bank (2022); c Energy Institute (2023); d NEA(2023)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

Table 1 outlines key data and energy reserves in Canada for 2021.
Canada’s economic output rebounded following the COVID-19
pandemic. GDP increased 5.0% in 2021 to USD 1 843 billion (2017
USD purchasing power parity [PPP]), and income increased 4.4% to
USD 48 218.
31

APEC ENERGY OVERVIEW 2024

Total primary energy supply
Canada is a self-sufficient and leading producer of energy, with muchof its production driven by demand in global markets. Canada is a topfive producer of crude oil, gas, hydro and uranium, and a top-six
exporter of crude oil, natural gas, uranium and electricity. As such, theenergy sector is an important contributor to Canada's economy, directly
and indirectly accounting for 11.8% of GDP. Of that, 7.2% is directlyfrom petroleum and 1.7% directly from electricity (NRCan, 2023b).
With 90% of its energy exports landing in the US, Canada is trying todiversify its export market. The first phase of LNG Canada is to becomeits first large-scale LNG export facility by mid-decade, and the Trans
Mountain expansion, which will increase oil export capacity by 590 000
barrels per day, began commercial operations in May 2024 (LNG
Canada, 2023; Trans Mountain, 2024). Both projects will provide astrategic source of energy supply for APEC members.
Although Canada’s crude oil sources vary geographically, oil
predominantly comes from Western Canada. Almost two-thirds of thetotal production comes from the oil sands, while conventional, offshore
and tight oil production comprise the remainder (CER, 2023b). Over
99% of natural gas production occurs in Western Canada (CER,
2023c). While the output from conventional resources is declining,
advances in hydraulic fracturing have enabled the development of tightgas resources in the Montney Formation and the Alberta Deep Basin.
Production from these basins is expected to dominate any future
production and LNG exports in the coming decades, dictated largely bydomestic energy policy, gas prices and global demand.
After decreasing in 2020, energy production increased 3.9% to a record

high of 22 572 petajoules (PJ) in 2021 as prices increased following acollapse caused by COVID-19 (EGEDA, 2023). Fossil fuels continue todominate production with a share over 85% (StatCan, 2022). Oil
production is currently setting new highs, at around 5 million barrels perday (NRCan, 2023b). While the production impacts of COVID-19 were
swift, Canada’s oil production proved resilient compared to otherproducers.
Figure 1: Canada energy supply, production, and net imports (PJ),
2000 to 2021
25 000

Production, net imports and TPES
(PJ)

Energy Supply and Consumption

20 000

Production

15 000
10 000Total Primary Energy Supply

5 000
0
2000
-5 000

2005

2010

2015

2020

Net imports-10 000-15 000

Source: EGEDA (2023)

Net imports decreased 9.2% from 2020 to 2021, as oil and gas exports
increased, following increased production, coupled with a decrease in
crude oil imports. Crude oil imports alone decreased by nearly 20%
from 2020 to 2021 as interprovincial crude oil shipments from Western
Canada to Ontario and Quebec increased, causing Ontario andQuebec to rely less on imports from the US (CER, 2022). Gas imports
remained relatively stable.
32

APEC ENERGY OVERVIEW 2024

Figure 2: Canada energy supply by fuel (PJ), 2000 to 2021
14 000Figure 3: Energy supply mix – Canada and APEC, 2021
100%

Other
Renewables

TPES by fuel (PJ)

12 00080%

10 000

Gas

8 000

60%

6 000

Oil

4 000

40%

2 000
20%

Coal

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Others0%
CanadaAPEC

Source: EGEDA (2023)

Source: EGEDA (2023)

Figures 2 and 3 illustrate how dominant fossil fuels continue to be in
Canada’s energy mix. While coal has been steadily declining over the
past two decades, oil and gas persist as predominant fuel sources in
Canada’s energy mix, making up more than 50% of each provincial or
territorial energy supply in all regions except Quebec, where it
comprised just under 50% in 2021 (CER, 2023d). Quebec is uniquely
positioned to capitalise on hydroelectricity due to its extensive, existinghydropower resources. Canada has significant renewable potential andcontinues to realise more of its potential with deployment of solar andwind generating capacity leading the way across the economy.

Hydro is currently the most prominent source of renewable energy in
Canada, supplying 60% of Canada’s electricity in 2021 from an
installed capacity of more than 82 GW (CER, 2023d). Around 14% of
Canada’s total electricity is provided by nuclear energy, through an
installed capacity of more than 13 MW (WNA, 2024). Hydro is also a
key fuel source for Canada’s electricity exports, making up more than
85% of electricity generation in three of the four provinces with thelargest exports of electricity to the USA (CER, 2023e; CER, 2023f). In
the remaining province, nuclear is the dominant electricity source at
about 55%, while hydro generates approximately one quarter of thetotal generation. Canada aims to leverage non-emitting electricity
capacity to decarbonise its oil, natural gas and LNG operations, driving
down own-use emissions to align with its commitment to achieve net
zero emissions by 2050. Some oil sands majors have expressed
33

APEC ENERGY OVERVIEW 2024

particular interest in the deployment of small modular reactors (SMRs)
as a clean electricity source to decarbonise operations throughelectrification in the coming decade (Pathways Alliance, 2023).
Total final consumption
Canada’s total final consumption increased 3.2% from 2020 to reach
8 002 PJ in 2021 (EGEDA, 2023). This positions Canada as the fifthlargest energy consumer in APEC, after China; the USA; Russia; andJapan. Despite an increase in total final consumption from 2020 to2021, the value for 2021 remains the lowest recorded since 2013, otherthan 2020.

energy consumption (2 360 PJ), followed by the industrial sector (1 918
PJ). Non-energy use comprised 964 PJ and agriculture and nonspecified others made up 290 PJ. These increases can likely be
attributed to increases in activity following COVID-19 lockdowns thatpersisted through most of 2020. The residential and commercial
sectors underwent decreases in final consumption from 2020 to 2021,
with 2021 demand at 1 334 PJ (a 1.9% decrease) and 1 136 PJ (a1.1% decrease) respectively.
Figure 5: Final consumption by sector, Canada and APEC, 2021
100%
Non-energy

Figure 4: Canada final consumption by sector (PJ), 2000 to 2021

Residential

8 000
7 000

Commercial

60%

6 000
5 000

Transport

4 000

40%

3 000
2 000
1 000

20%

Industry

0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Final energy demand by sector (PJ)

Agriculture & others
80%

9 000

0%

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

CanadaAPEC

Source: EGEDA (2023)

Source: EGEDA (2023)

Final energy demand

The transport, industry, non-energy use and agriculture sectors all
experienced increases in total final consumption from 2020 to 2021.
The transport sector once again accounted for the largest share of final

Canada’s final energy demand paralleled total final consumption,
increasing 2.8% to 7 038 PJ in 2021 (EGEDA, 2023). Increased oil
demand (4.4%) contributed the most to this increase, which could be
34

APEC ENERGY OVERVIEW 2024

attributed to a resurgence in travel post-COVID-19 leading to a rise in
the use of oil products. Natural gas saw a modest increase of 1.8%,
while renewables experienced the most significant increase with a
4.8% increase in demand, driven by an expansion of installed capacity.
Overall, final energy demand remained low compared to pre-COVID19. This was likely influenced by continued restrictions and shifts in
consumer behaviour, including the widespread adoption of remote andhybrid work that persisted into 2021.

1.2%) (EGEDA, 2023). The remainder was formed by the share of
renewables (399 PJ, 5.7%) and electricity and others (1 918 PJ, 27%),of which the share of renewable electricity and others was 1 278 PJ.
Although coal makes up less of Canada’s fuel mix than the APEC
region, Canada relies more on fossil fuels.
Figure 7: Final energy demand fuel share, Canada and APEC, 2021
100%

Figure 6: Canada final energy demand by fuel (PJ), 2000 to 2021
8 000

Final energy demand by fuel (PJ)

Electricity andothers80%

7 000

Renewables

60%
6 000

Gas

5 000

40%

4 000
Oil

3 000

20%

2 000
Coal

1 000

0%
Canada

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)

APEC

Source: EGEDA (2023)

Transformation

Note: Does not include non-energy sector consumption of energy products.

Power sector

In 2021, fossil fuels accounted for two-thirds of final energy demand1,
comprising oil (2 635 PJ, 37%), gas (2 000 PJ, 28%), and coal (85 PJ,

Canada generated 643 terawatt-hours (TWh) of electricity in 2021, adecrease of 1.4% from the previous year. Non-emitting electricity

1 Note that the demands in the EGEDA energy balance differ than those in the

differences in energy accounting frameworks (StatCan, 2023a).

Report on Energy Supply and Demand (RESD) energy balances due to35

APEC ENERGY OVERVIEW 2024

generation constituted the largest share of this generation (82%), withhydro as the major contributor at 60% followed by nuclear at 14%.
While the contribution from hydro decreased a similar percentage as
total electricity generation, nuclear decreased 5% from 2020 to 2021.
This decrease in nuclear was likely influenced by a decrease inproduction in Ontario, which generates approximately 55% of its
electricity using nuclear (CER, 2023d; IESO, 2024).
Figure 8: Canada electricity generation by fuel, 2000 to 2021

Ontario is supporting the refurbishment of 14 nuclear reactor units (ONGov, 2023a; ON Gov 2023b). These refurbishments will add
approximately 25-30 years to the operational life of each unit and allow
Ontario to maintain a dependable source of clean electricity.

700

Electricity generation (TWh)

In 2016, the federal government announced its plan to phase out coalfired electricity generation in Canada by 2030. As of 2023, Alberta,
Saskatchewan, New Brunswick, and Nova Scotia maintained someelectricity supply through coal-fired generation. Nova Scotia relied mostheavily on the source, where coal and coke provided more than 45% ofelectricity in 2023 (CER, 2023d). Alberta has committed to phase out
coal-fired electricity in 2024, and the remaining three provinces havealigned with the federal timeline of 2030.

600
500
400
300
200
100

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

Fossil generation accounted for 18% of total power generation. The
proportion of power generated from coal continued its downward
trajectory, dropping to 5.3% as Canada advances in its efforts to phaseout coal-fired power plants. Natural gas-fired generation continued as
the primary fossil generation source, reaching 12% of total power
generation in 2021.

The Government of Alberta enacted a temporary pause on all
approvals of renewable energy projects greater than 1 MW from August2023 to February 2024 (AB Gov, 2023a). The pause was initiated for
the Alberta Utilities Commission to conduct an assessment on land use
and reclamation. The pause on approvals came at a time of highrenewable energy development in the province – Alberta accounted formore than 90% of Canada’s overall growth in renewables in 2023
(CanREA, 2024). Following the pause, the Government of Alberta
unveiled plans for new rules surrounding renewables development.
These include a requirement to demonstrate ability for both crops
and/or livestock to coexist with renewable generation on certain classesof agricultural land, and a minimum 35 kilometre buffer zone aroundprotected areas and pristine viewscapes, as designated by theprovince, where wind projects are prohibited (AB Gov, 2024). The
impact of these rules on renewables investment remains uncertain, andits effects may not be fully realised until 2025 or beyond.
Canada’s variable renewable capacity continues to grow in general. In
2022, Canada’s added more than 1.8 GW of new renewable generation
36

APEC ENERGY OVERVIEW 2024

capacity, and despite increasing interest rates, added another 2.3 GW
of installed capacity in 2023 (CanREA, 2023). The installed capacity ofmajor grid-connected solar and wind hit 20 GW in 2023 (CanREA,2023). Policy support stemming from the proposed Clean Electricity
Regulations, a 2035 target of 100% net zero power, the Clean
Electricity Investment Tax Credit, and higher carbon prices, among
other incentives, will likely drive renewable deployment higher thisdecade.
Figure 9: Electricity generation fuel share, Canada and APEC, 2021
100%

OthersOther renewables
Geothermal
Nuclear

80%

Gas

Coal

20%
0%
CanadaAs of May 2023, there were seven existing or planned renewable diesel
facilities in Canada, with several having been repurposed from existing
petroleum refineries (CER, 2023g). The main driver of these facilities is
Canada’s Clean Fuel Regulations, for which compliance obligation
began in July 2023, that require liquid fuel suppliers to gradually
decrease carbon intensity. These renewable diesel facilities would add
up to 70 thousand barrels per day by 2027, up from zero in 2020.

Canada released its 2023 Progress Report on the 2030 Emissions
Reduction Plan, which suggests that Canada is on track to reach a
36% reduction in emissions by 2030 (ECCC, 2023b). This narrowly falls
short of the targeted 40%-45% reduction.

Oil

40%

Refining

Energy Transition

Hydro
60%

neighbouring American states. While new international power lines
could increase electricity trade between the two economies, opposition
to the construction of new transmission lines is challenging growth.

APEC

Source: EGEDA (2023)

Canada's water resources enable significant parts of its economy torely on clean electricity and provide clean electricity export options toseveral states in the US. The electricity networks of Canada and the
US are highly integrated. In 2021, electricity exports to the US
decreased to 217 PJ and imports increased to 47 PJ (StatCan, 2023b).
The bulk of Canada's electricity trade with the US occurs between theprovinces of Quebec, Ontario, Manitoba and British Columbia and theirThis projection does not include emissions reductions from policies thatare expected but lack sufficient publicly available details, such as any
that may be outlined in the forthcoming Canada Green Buildings
Strategy and the oil and gas sector emissions cap that is underdevelopment. The progress report underscores the importance ofcollaborative efforts required from both the federal andprovincial/territorial governments in Canada. Strengthening existingmeasures or introducing new ones will be necessary to close the gap
between the projected reduction in the progress report and targeted
reduction by 2030.
The largest reductions are intended to come from key sectors such as
37

APEC ENERGY OVERVIEW 2024

oil and gas, transportation, power generation, and buildings. To that
end, in December 2023 the federal government released its framework
to cap oil and gas sector emissions (ECCC, 2023c). The framework
proposes using a cap-and-trade system with a hard and declining cap
on emissions. While certain details are being refined as regulations
take shape, it is estimated that the sector will be expected to reduce
sectoral emissions approximately 35%-38% below 2019 levels by 2030.
Canada’s efforts in this space will be complemented by its commitment
to reduce oil and gas sector methane emissions 75% below 2012 levels
by 2030. Proposed amendments to existing regulations that will help
facilitate this increased reduction were released in December 2023
(ECCC, 2023d). Finalised amendments are expected in 2024. Despite
fluctuations in total GHG emissions for the sector, emissions havestabilised since 2010. While emissions intensity varies acrosssubsectors, it has decreased over the decade due to increased
efficiencies.

Canada with advice on actions needed to achieve a net zero electricity
sector by 2035.
Canada’s 2022 Budget allocated CAD 150 million to develop the
Canada Green Buildings Strategy and launch the Codes Acceleration
Fund. Budget 2024 will invest CAD 903.5M in the Canada Green
Buildings Strategy, which will focus on lowering home energy bills andreducing building emissions by supporting energy efficient retrofits, theadoption of better building codes, and promoting home energy
labelling. This will include a new Canada Greener Homes Affordability
Program and support for ongoing measures to improve energy
efficiency tools for building owners and develop government
approaches to home energy labelling. The anticipated publication date
for the strategy is Spring 2024.

Canada continued investing in zero emission vehicle (ZEV) charging
and refuelling infrastructure and incentives to make it easier and more
affordable to own and operate ZEVs. Canada has committed to sales
mandates that ensure that ZEVs constitute 20% of light-duty vehicles(LDVs) sales by 2026, 60% by 2030 and 100% by 2035 (Canada
Gazette, 2023). For medium- and heavy-duty vehicles (MHDVs), thegovernment is targeting 35% of sales by 2030 and, for those
applications wherein it is feasible, a 100% target by 2040.

Approximately 80% of Canada’s building stock anticipated to exist in2030 is already constructed (ECCC, 2022). This underscores thecritical need to prioritise energy efficiency measures in existingbuildings and to expedite future emissions reduction requirements todecrease the risk of carbon lock-in from the sector. Buildings havebeen a key focus of Canada’s energy efficiency actions, with a focus onaffordability. Since 2021, Canada has committed to invest over CAD 6
billion to accelerate retrofits in commercial and institutional buildings,
homes and community buildings through the Canada Infrastructure
Bank, the Canada Greener Homes Initiative, and the Green andInclusive Community Buildings program.

Draft Clean Electricity Regulations were released in August 2023
(ECCC, 2023a). The proposed regulations would establish aperformance standard for fossil fuel-generated electricity starting in
2035. Additionally, to help shape Canada’s future electricity systems,
the Clean Electricity Advisory Council was launched (NRCan, 2023c).
The council is a group of experts who will provide the Government of

In Budget 2023, Canada announced new or expanded investment tax
credits to spur investment in key sectors across the economy. The
value of the tax credits varies by type, but are available for investments
in carbon capture, use and storage, clean technologies, cleanhydrogen, clean electricity, and clean manufacturing (ECCC, 2023e).
Additionally, Budget 2024 announced the intention to introduce a new38

APEC ENERGY OVERVIEW 2024

10% tax credit on the cost of buildings used in key segments of the EV
supply chain (Finance Canada, 2024).
While Canada is working towards policies and regulations targeted at
reducing emissions, uncertainty around the future of some policies
lingers. This uncertainty was amplified by the federal government’s
decision to remove the carbon tax on heating oil deliveries in November
2023, a pause that will continue until 1 April 2027 (ECCC, 2023f).

industries (Finance Canada, 2023c).
An update to Canada’s social cost of carbon (SCC) was effective
December 2022 and sets a 2024 SCC value of CAD 266/tonne (2021
CAD), with a trajectory that increases annually (ECCC, 2023g). The
2023 value was CAD 261/tonne (2021 CAD). Canada has committed to
update the estimates to reflect the best available science andmethodologies.

Moreover, disagreements between provincial and federal governments
regarding the when and how for emissions reductions introduces
additional uncertainty for some projects. Alberta has publicly remarked
that it is prepared to take the federal government to court overregulations that the province perceives as a violation of constitutional
jurisdiction, such as the proposed oil and gas sector emissions cap (ABGov, 2023b). Regarding the draft Clean Electricity Regulations, theprovince invoked its Sovereignty Act by tabling a resolution that
instructs governments and provincial entities such as the Alberta
Electric System Operator and the Alberta Utilities Commission to ignore
the clean electricity regulations to the extent legally permissible (ABGov, 2023c). Potential legal action could lead to delays in theimplementation of policies and regulations, which exacerbates
investment uncertainty.

In February 2024, Canada announced the beginning of its engagement
process to establish its 2035 emissions reduction target (ECCC,
2023h). This target-setting step is legally mandated under the
Canadian Net-Zero Emissions Accountability Act (Justice Canada,2023).

At the federal level, one step taken to alleviate some investment
uncertainty was the introduction of the Canada Growth Fund’s carbon
contracts for difference (Finance Canada, 2023a). These contracts willbackstop the future price of carbon and possibly other commodities,
such as hydrogen, to provide predictability and help to de-risk
investments in projects that reduce emissions. The first carbon contract
was signed in December 2023 (Finance Canada, 2023b). Canada isalso actively considering a carbon border adjustment mechanism to
reduce carbon leakage and maintain competitiveness of domestic

Canada's CO2 combustion emissions have maintained a plateau nearrecord highs over the past 20 years, but lower activity during the onset
of COVID-19 led to a 9.0% drop in 2020. Moving into 2021, GDPrebounded 5% from 2020 to 2021, while CO2 combustion emissions
remained low. Moving forward, Canada's climate policies should
provide downward pressure on emissions this decade.

Emissions
The expert group on energy data and analysis (EGEDA) falls under theumbrella of APEC’s Energy Working Group (EWG). In addition toenergy data compiled by EGEDA, CO2 emissions from combustion
activities in the energy sector are recorded. These emissions are asubset of total GHG emissions that are considered in the context ofclimate change, such as under the United Nations Framework
Convention on Climate Change (UNFCCC).

39

APEC ENERGY OVERVIEW 2024

Figure 10: Canada CO2 combustion emissions (million tonnes), 2000 to
2021
390

CO2 combustion
emissions380

As electricity demand is expected to increase in the coming decades
through increased electrification, questions are being raised about how
supply will meet demand. Power system operators are beginning toinclude reliability assessments in their plans to target a net zero
electricity system by 2035 while balancing increasing demand.
Increasing or enhancing interprovincial (federally regulated) andintraprovincial (provincially regulated) transmission could provide amore flexible and reliable grid for Canada. However, differences inregulatory and market structure across provinces can hinder the speed
and depth of interprovincial infrastructure development.

Million tonnes CO2

370
360
350
340
330
320
310
300
290
280
2000

federal government has provided several programs to support energy
affordability, and given that provinces and territories regulate electricity,
it is additionally up to those governments to implement the policy
solutions that keep prices low for middle- and low-income households.

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
Because Canada is a net-energy exporter, it generally considers itself
to be a driver of energy security solutions, not a victim of energy
security disruptions. However, higher energy prices are challenging theaffordability of energy for Canadians. Provinces across the economy
are providing relief via tax cuts, subsidies, and retail price caps on theend-user prices for oil products, natural gas and electricity.
Furthermore, Canada’s provincial power system operators are working
to address the challenges that integrating high amounts of variable
renewables could pose for the reliability and affordability of theirelectricity systems. However, other analysis has suggested that whileelectricity rates will rise into the future, total energy spending will
decrease because of increases in energy efficiency (CCI, 2023). The

Several infrastructure developments to connect Canadian oil andnatural gas to global markets are inching towards completion. The 14
million tonnes per annum first phase of the LNG Canada plant in
Kitimat, BC is more than 85% complete. The construction of its Coastal
Gaslink feeder pipeline was mechanically complete at the end of 2023,
and start-up testing is set to begin in 2024. Production is expected to
begin mid-decade (LNG Canada, 2023). The Trans Mountain pipeline
expansion began commercial operations in May 2024 (Trans Mountain,2024). Upon completion, both projects may provide a strategic sourceof energy supply for APEC members for the coming decades.

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.
40

APEC ENERGY OVERVIEW 2024

Energy intensity goal
In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economy targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.
Figure 11: Canada total final energy consumption intensity index, 2000
to 2021 (2005 = 100)

Energy intensity index (2005 = 100)

120
Total final energy consumption energy intensity

100
80
60

APEC-wide goal 2035

40
20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

energy intensity. Figure 11 illustrates this, showing a 22% reduction inenergy intensity since 2005.
After declining steadily since 2005, energy intensity fell sharply forthree consecutive years in 2019, 2020, and 2021. The implementationof economy-wide carbon prices and the adoption of energy-efficienttechnologies and climate policies (see below) could prompt accelerated
efficiency improvements en route to achieving the aspiration target by2035.
Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doubling
goal.
Canada is hard-pressed to double its share to 40%, particularly with its
already high share of renewable electricity, with more than two thirds ofgeneration being from renewable sources (Figure 13). However,Canada can still contribute to APEC achieving its aspirational goals.
Several of Canada’s climate policy announcements, including draft
Clean Electricity Regulations, a 100% net zero power system target by2035, various investment tax credits, climbing carbon prices, andgrants and contributions programs such as the Smart Renewable andElectrification Pathways program, will continue to increase the share of
renewables in the Canadian and APEC fuel mix. Canada’s renewables
share in the electricity mix saw no marked percentage change from2020 levels.

Canada’s energy efficiency policies, commitment to reducing GHG
emissions, and other targeted regulations have historically reduced

41

APEC ENERGY OVERVIEW 2024

Figure 12: Canada modern renewable energy share, 2010 and 2021
25.0%

Figure 13: Canada renewable generation share, 2000 to 2021

Change from2010 to 2021

70%
68%

20.0%

Renewables share in electricity mix

66%

Proportion

64%
15.0%

10.0%

62%
60%
58%
56%

5.0%

54%
52%
2000

0.0%
2010

Change

2021

2005

2010

2015

2020

Source: EGEDA (2023)

Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

42

APEC ENERGY OVERVIEW 2024

Energy Policy
This table is not an exhaustive list of energy and climate policies in Canada. However, it is a list of policies that are expected to have a substantial
impact on Canada’s energy system going forward. For the complete list of key federal energy and climate measures, please refer to the following:•

The Pan-Canadian Framework on Clean Growth and Climate Change (ECCC, 2016): This was Canada’s first-ever economy-wide climate planthat was developed with its provinces and territories and in consultation with Indigenous peoples. It is an important first step for Canada toachieve its Paris Agreement target. It is structured to cut pollution in a more practical and affordable way than any climate plan in Canadianhistory.

•

Canada’s Strengthened Climate Plan: A Healthy Environment and a Healthy Economy (ECCC, 2020): Includes more than 60 new andstrengthened federal measures and an initial CAD 15 billion in investments, to make life more affordable for Canadians, make communities
more liveable and, at every turn, focus on creating jobs, growing the middle class, and supporting workers in a stronger and cleaner economy.

•

2030 Emissions Reduction Plan: Canada’s Next Steps for Clean Air and a Strong Economy (ECCC, 2022): A comprehensive roadmap thatreflects levels of ambition to guide emissions reduction efforts in each sector.
o•2023 Progress Report on the 2030 Emissions Reduction Plan (ECCC, 2023b): The first progress report released shows interested
individuals Canada’s progress on the path laid out in the Emissions Reduction Plan. Additional progress reports will be produced in
2025 and 2027 in line with requirements under the Canada Net-Zero Emissions Accountability Act. Additional targets and plans will be
developed for 2035 through to 2050.

Budget 2024 (Finance Canada, 2024): Announces new and updated information on the federal toolkit for investing in the clean economy: a setof clear and predictable investment tax credits, low-cost strategic financing, and targeted investments and programming, where necessary, torespond to the unique needs of sectors or projects of economic significance.

Additionally, provincial and territorial climate policies and plans can be referenced for specific information about what each respective province andterritory is doing to contribute to their respective climate goals and targets, as well as to Canada’s as a whole.

43

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

2023 Progress Report on the20230 Emissions Reduction Plan

The 2023 Progress Report is the first progress report on the 2030 Emissions Reduction Plan
(ERP) and provides an update on progress towards Canada’s emissions reduction targets
described in the 2030 ERP.

Environment andClimate Change
CanadaCanada Green Buildings Strategy

The Government of Canada, through Budget 2024, will invest CAD 903.5M in the Canada Green
Buildings Strategy, which will focus on lowering home energy bills and reducing building
emissions by supporting energy efficient retrofits, the adoption of better building codes, andpromoting home energy labelling. This will include a new Canada Greener Homes Affordability
Program and support for ongoing measures to improve energy efficiency tools for building owners
and develop government approaches to home energy labelling.

Natural Resources
CanadaCanada Greener Affordable
Housing

This program provides forgivable and low-interest loans up to CAD 170 000 per unit to residential
owners to help finance building retrofit measures and activities needed to meet climate goals. It
also supplies contributions for pre-retrofit activities needed to plan, prepare and apply for retrofit
funding. Applicants must meet certain affordability criteria.

Canada Mortgage andHousing Corporation(CMHC)

Canada Greener Homes Initiative

Provides grants of up to CAD 5 000 and loans of up to CAD 40 000 to help homeowners
undertake home retrofits, and up to CAD 600 toward the costs of pre- and post-retrofit EnerGuide
evaluations. The initiative also includes the Oil to Heat Pump Affordability Program.

Natural Resources
CanadaCanadian Net-Zero Emissions
Accountability Act

Legislates emissions reductions accountability to address climate change, by setting legal
requirements on the Government of Canada to plan, report, and course correct on the path to net
zero emissions by 2050.

Justice Canada

Canadian Sustainable Jobs Act

The legislation will put workers and communities at the centre of policy and decision-making by
establishing a federal framework for accountability, a governance structure and engagement
mechanisms. The Act will hold future governments to account with respect to supporting Canada’s
workers for generations to come.

Natural Resources
Canada44

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Carbon Capture, Utilisation andStorage Investment Tax Credit

Proposed investment tax credit for capital investments in carbon capture, utilisation, and storageof up to 60% for capture carbon from ambient air, up to 50% for capture other than directly fromambient air, and up to 37.5% for related carbon transportation, use, and storage infrastructure.

Finance Canada

Carbon Management Strategy

The strategy articulates the role of carbon management on the path to net zero and the federal
actions that are being taken to accelerate innovation, advance policies, attract investments, scale
up projects and build partnerships in developing carbon management solutions.

Natural Resources
CanadaClean Electricity Investment Tax
CreditProposed investment tax credit of up to 15% for investments in non-emitting electricity generation
systems, abated natural gas-fired electricity generation (subject to an emissions intensity
threshold), electricity storage, and projects that transmit electricity between provinces andterritories.

Finance Canada

Clean Electricity Regulations

Draft regulations were released for consultation in August 2023 with a revised iteration being
issued for comment in early 2024. The regulations function as a set of rules for transitioning
Canada's electricity grid to net-zero. They are to set a technology-neutral emissions performancestandards and include flexibilities so that provinces and utilities are able to maintain reliable andaffordable electricity. Finalised regulations are expected in 2024.

Environment andClimate Change
CanadaClean Fuel Regulations

Requires liquid fossil fuel (gasoline and diesel) primary suppliers to gradually reduce the carbon
intensity from the fuels they produce and sell for use in Canada over time, leading to a decreaseof approximately 15% (below 2016 levels) by 2030.

Environment andClimate Change
CanadaClean Hydrogen Investment Tax
CreditProposed investment tax credit of 15%-40% of eligible expenses on equipment for hydrogenprojects. The rate of the credit depends on the carbon intensity of the hydrogen, calculated using
the Government of Canada's Fuel Life Cycle Assessment model.

Finance Canada

Clean Technology Investment
Tax Credit

Proposed investment tax credit of up to 30% to encourage investment in adoption and operationof clean technology property. Eligible types of equipment include those related to electricity
storage, zero emissions vehicles and clean energy production.

Finance Canada

Clean Technology Manufacturing

Proposed investment tax credit of up to 30% for capital spending related to the manufacturing of

Finance Canada

45

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Investment Tax Credit

specified clean technologies or the processing of critical minerals.

Climate Aviation Action Plan

The plan presents a vision of net zero by 2050 for the sector and includes key pathways for thecollaboration between the government and industry to improve efficiency and reduce pollution. A
key climate signal delivered through the plan is Canada's goal for 10% for the use of sustainableaviation fuel by 2030 and efficiency improvements.

Transport Canada

Contracts for Difference

The Canada Growth Fund will be the principal federal entity issuing carbon contracts fordifference. It will allocate, on a priority basis, up to CAD 7 billion of its current CAD 15 billion incapital to issue all forms of contracts for difference and offtake agreements.

2023 Fall Economic
Statement

Critical Mineral Exploration Tax
CreditTax credit of up to 30% for mineral exploration expenditures renounced under eligible flow throughagreements entered into after 7 April 2022, and on or before 31 March 2027.

Finance Canada

Electric Vehicle Supply Chain
Investment Tax Credit

Canada intends to introduce a new 10% tax credit on the cost of buildings used in key segmentsof the EV supply chain, for businesses that invest in Canada across three supply chain segments:
1) EV assembly, 2) EV battery production, and 3) cathode active material production.

Finance Canada

Eliminating Inefficient Fossil Fuel
Subsidies

Canada released its Inefficient Fossil Fuel Subsidies Government of Canada Self-Review
Assessment Framework and the Inefficient Fossil Fuel Subsidies Government of Canada
guidelines as a step to deliver on the commitment to end inefficient fossil fuel subsidies.

Environment andClimate Change
CanadaEnabling Small Modular Reactors(SMRs) ProgramThis program will promote the safe, commercial development of SMRs. The program will provide
CAD 29.6 million over four years to develop supply chains and fund research. Eligible applicants
could include private companies, utilities, provinces and territories, universities and Indigenous
groups.

Natural Resources
CanadaEnergy Efficiency Regulations

Establishes energy efficiency standards for a wide range of energy-using products, with theobjective of eliminating the least energy-efficient products from the Canadian market.

Natural Resources
Canada46

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Energy Innovation Program

The program advances clean energy technologies that will help Canada meet its climate changetargets, while supporting the transition to a low-carbon economy. It funds research, development
and demonstration projects, and other related scientific activities.

Natural Resources
CanadaGreen Industrial Facilities
Manufacturing Program

The program provides financial assistance to support the implementation of energy efficiency andenergy management solutions designed to maximise energy performance, reduce GHG
emissions, and increase competitiveness for industry in Canada.

Natural Resources
CanadaGreen Shipping Corridor Program

Budget 2023 proposed to create a Green Shipping Corridor Program. This would receive CAD
165.4 million to establish green shipping corridors and help decarbonise the marine sector inshipping areas along the Great Lakes, the St. Lawrence Seaway, and the east and west coasts.

Transport Canada

Greening Government Strategy

Sets a target to reduce absolute Scope 1 and Scope 2 GHG emissions from federal operations by
40% by 2025 and by at least 90% below 2005 levels by 2050.

Treasury Board of
Canada Secretariat

Green Industrial and
Manufacturing Program (GIFMP)

Offers cost-shared financial support for a comprehensive suite of energy efficiency measures andis delivered through two separate tracks: energy efficiency solutions and industrial facility.

Natural Resources
CanadaLow Carbon Economy Fund

Consists of four funding streams to support projects to reduce Canada’s GHG emissions,generate clean growth, build resilient communities, and create good jobs for Canadians.

Environment andClimate Change
CanadaNet Zero Accelerator (NZA)

With up to CAD 8 billion in funding to support large-scale investments in key industrial sectors
across the economy, the NZA ensures that Canada remains competitive in a net zero economy
and reduces GHG emissions.

Innovation, Science andEconomic Development
CanadaOil to Heat Pump Affordability
Program (OHPA)

Launched in February 2023, and strengthened in October 2023, the Oil to Heat Pump Affordability
program provides upfront grants to help low- to median-income households switch from oil heating
to heat pumps by providing funding toward the purchase and installation of a new heat pump. The
program offers up to CAD 15 000 for eligible homeowners residing in a co-delivery province.

Natural Resources
CanadaOutput-Based Pricing System(OBPS)

Implements output-based emissions performance standards that set a price for industrial
emissions if a facility's emissions intensity exceeds their sectoral benchmark. Applies in provinces

Environment andClimate Change
Canada47

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Energy policy

Details

Referenceand territories that do not have a system of equivalent stringency implemented.

Powering Canada Forward:
Building a Clean, Affordable, andReliable Electricity System forEvery Region of CanadaThis paper outlines the work done to date by the federal government, which complements the
progress made by other levels of government to transform the electricity sector, informs how thefederal government will accelerate work over the coming months, and lays the groundwork for
Canada’s first Clean Electricity Strategy to be released in 2024.

Natural Resources
CanadaProposed Regulations Amending
the Regulations Respecting
Reduction in the Release of
Methane and Certain Volatile
Organic Compounds (Upstream
Oil and Gas Sector)

Proposed amendments to the 2018 Regulations Respecting Reduction in the Release of Methane
and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) aimed to further reduce
methane emissions from the oil and gas sector 75% below 2012 levels by 2030 were published at
the end of 2023. Finalised amendments are expected in 2024.

Environment andClimate Change
CanadaPublic Transit FundThe Government of Canada is investing CAD 14.9 billion over the next eight years in reliable, fast,
affordable and clean public transit. This funding includes CAD 3 billion per year in permanent,
predictable federal public transit funding which will be available to support transit solutions
beginning in 2026/27.

Infrastructure Canada

Reduction of Carbon Dioxide
Emissions from Coal-fired
Generation of Electricity
Regulations

Phase-out of traditional, unabated coal-fired electricity by 2030, with exceptions for coal power
equipped with CCS units.

Justice Canada

Regulations Limiting Carbon
Dioxide Emissions from NaturalGas-fired Generation of Electricity

Establishes a regime for limiting CO2 emissions from the generation of electricity via combustionof natural gas. Prohibits the operation of facilities exceeding the standards. Generally speaking,that is 420 tCO2e/GWh for natural gas boilers and combustion engines with a capacity over 150
MW; 550 tCO2e/GWh if combustion engines have a capacity under 150 MW.

Justice Canada

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Energy policy

Details

Reference

Regulatory Framework for an Oiland Gas Sector Greenhouse Gas
Emissions Cap

A regulatory framework outlining plans to implement an emission cap-and-trades system for the oiland gas sector was published in December 2023. It is designed to achieve an emissions reductionof 35% to 38% by 2030 with respect to 2019 levels and net zero by 2050. Upstream oil and gas
facilities, including offshore facilities and LNG facilities, fall under the scope of the cap.

Environment andClimate Change
CanadaSmart Renewables andElectrification Pathways Program

The program provides approximately CAD 4.5 billion until 2035 for smart renewable energy andelectrical grid modernisation projects.

Natural Resources
CanadaSustainable Jobs Plan

An interim plan for 2023-2025 that describes support for Canadians and their communities inrealising the net zero economy of the future by equipping Canadians and their communities withthe skills and training they need to continue to thrive.

Natural Resources
CanadaRegulations Amending thePassenger Automobile and Light
Truck Greenhouse Gas Emission
Regulations

Legislated Canada's Electric Vehicle Availability Standard, which sets regulated light-duty ZEVsales targets (20% by 2026, 60% by 2030, 100% by 2035).

Canada Gazette II

Update to the Pan-CanadianApproach to Carbon Pollution
Pricing 2023-2030

The federal government laid out the economy minimum stringency standards for carbon pricing forthe period of 2023-2030. Any province or territory can design its own pricing system tailored to
local needs or can choose the federal pricing system. A provincial or territorial system must meetthe federal minimum stringency standards, which started at CAD 65/tonne GHG emissions in
2023 and increases by CAD 15 each year to 2030, or the federal system will be implemented.

Environment andClimate Change
CanadaWah-ila-toos: Clean Energy
Initiatives in Indigenous, Rural
and Remote Communities

Wah-ila-toos’ mission is to provide funding for renewable energy and capacity-building projects
and related energy efficiency measures in Indigenous, rural and remote communities acrossCanada. Wah-ila-toos operates under five funding streams.

Natural Resources
Canada49

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Notable Energy Developments
Energy development

Details

Reference

Canada Electricity Advisory
Council

The council is an independent, electricity-sector focused, expert advisory body that provides
advice to the Minister of Energy and Natural Resources to accelerate investment, and promotesustainable, affordable and reliable electricity systems.

Natural Resources
CanadaCanada Growth FundA CAD 15 billion arm’s length public investment vehicle that will help attract private capital to build
Canada’s clean economy by using investment instruments that absorb certain risks in order toencourage private investment in low carbon projects, technologies, businesses and supply chains.

Canada Growth Fund

Canada Infrastructure Bank
Funding

Budget 2023 announced that the Canada Infrastructure Bank would invest at least CAD 10 billion
through its Clean Power priority area, and at least CAD 10 billion through its Green Infrastructure
priority area.

Budget 2023

Canada Infrastructure Bank tofund SMR

The Canada Infrastructure Bank (CIB) has finalised an agreement with Ontario Power Generationand committed CAD 970 million towards Canada’s first small modular reactor (SMR 300 MW).

Clean InfrastructureBank

Deep Retrofit Accelerator
Initiative

Investment of CAD 200 million during 2023 to 2027 to create the Deep Retrofit Accelerator
Initiative. The initiative will provide support for building owners to advance deep retrofits incommercial, institutional, and mid- or high-rise multi-unit residential buildings in Canada, and todrive market transformation in a given region or market segment.

Natural Resources
Canada

LNG Canada Phase 1

At the end of 2023, construction on the first 14 million tonnes per annum facility was 85%
completed and scheduled to be commissioned mid-decade; a possible final investment decision ona second phase would increase this to 28 million tonnes per annum.

LNG Canada

Methane Centre of Excellence

Spurred by an initial investment of CAD 30 million, work associated with the Methane Centre of
Excellence will aim to improve the accuracy, understanding, reporting and mitigation of methane
emissions by focusing on key data, measurement techniques and technology development.

Environment andClimate Change Canada

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Energy development

Details

Reference

Modified Atlantic Loop

Originally proposed transmission line expansion that would connect Atlantic provinces with
Quebec, the project was modified and is now moving forward with the reliability inter-tie between
New Brunswick and Nova Scotia. The project has a target in-service date of 2029 and is being
pursued in the context of transitioning Atlantic provinces away from coal and decarbonising theelectricity system.

Natural Resources
CanadaNew Social Cost of Greenhouse
Gases

An update to the social cost of carbon (SCC) was effective December 2022 and estimates a 2024
SCC of 2021 CAD 266/tonne, which is to increase over time. The 2023 value was 2021 CAD
261/tonne. A 2016 update had previously raised the SCC to CAD 54/tonne for 2020. Canada hascommitted to update the estimates to reflect the best available science and methodologies.

Environment andClimate Change Canada

Pathways Alliance Carbon
Capture and Storage Hub inAlbertaPhase 1 of the planned project focuses on building a proposed CAD 16.5-billion CCS network innorth-eastern Alberta that could capture 10 to 12 million tonnes of CO 2 each year, or roughly 5% of
oil and gas sector emissions in 2021 in Canada. Proposed start-up for injection and storage of CO2
is 2026.

Pathways Alliance

Pausing Fuel Charge on
Deliveries of Heating Oil

Effective November 2023, the federal government paused the federal fuel charge on deliveries ofheating oil in all provinces and territories where it currently applies, until the end of 2026-27.

Environment andClimate Change Canada

Public Engagement on the 2035
GHG Emissions Reduction
TargetA public engagement process to hear the opinions of Canadians and Indigenous peoples to inform
Canada's 2035 greenhouse gas emissions target commenced. This step is mandated under the
Canadian Net-Zero Emissions Accountability Act.

Environment andClimate Change Canada

Regional Energy and Resource
TablesThe Regional Tables are joint partnerships between the federal government and individual
provinces and territories in collaboration with Indigenous partners - and with input from key
stakeholders - to identify and accelerate shared economic priorities for a low-carbon future in theenergy and resource sectors. Ten provinces and territories have launched a Regional Table.

Natural Resources
Canada51

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Energy development

Details

Reference

Alberta-Canada BilateralWorking GroupA working group established between the federal government and Alberta provincial government todiscuss and develop a shared information base to understand and provide certainty regarding
actions and timeframes to achieve these governments’ shared goals of economic prosperity and acarbon-neutral economy by 2050.

Prime Minister ofCanadaRepealing the Renewable Fuels
Regulations (RFR)

The final compliance year under the RFR was 2022, with the final reporting period occurring in
2023. The RFR are officially repealed in September 2024 per s.175 and s.172(2) of the Clean Fuel
Regulations. Suppliers regulated under the RFR will continue to be required to meet volumetricrequirements for renewable fuel, but will be regulated under the CFR, and be subject to associateddeclining carbon intensity requirements.

Environment andClimate Change Canada

Sales Targets for Medium- andHeavy-Duty Zero Emission
VehiclesAim to reach 35% of total new medium- and heavy-duty vehicle sales being ZEV by 2030. In
addition, goal to develop a medium- and heavy-duty ZEV regulation to require 100% of new
medium- and heavy-duty vehicle sales to be ZEVs by 2040 for a subset of vehicle types based on
feasibility, with interim 2030 regulated sales requirements that would vary for different vehicle
categories based on feasibility and explore interim targets for the mid-2020s.

Transport Canada

Trans Mountain Pipeline
Expansion

Canada’s Trans Mountain pipeline expansion began commercial operations in May 2024.

Trans Mountain

Useful Links
Atomic Energy of Canada Ltd – www.aecl.ca
Canada Gazette – http://www.gazette.gc.ca/
Canadian Centre for Energy Information – https://energy-information.canada.ca/en
Canada Energy Regulator – https://www.cer-rec.gc.ca/index-eng.html
Canadian Nuclear Laboratories – www.cnl.ca
Canadian Nuclear Safety Commission – http://nuclearsafety.gc.ca
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Environment and Climate Change Canada – www.ec.gc.ca
Innovation, Science and Economic Development Canada – https://ised-isde.canada.ca/site/ised/en
Natural Resources Canada – https://natural-resources.canada.ca/home
Statistics Canada – www.statcan.ca
Transport Canada – www.tc.gc.ca

References
AB Gov (Government of Alberta) (2023a), Alberta’s Renewables Inquiry and the Related Pause, https://www.alberta.ca/system/files/au-faq-albertasrenewables-inquiry-and-the-related-pause.pdf– (2023b), Federal emissions cap: Joint statement, https://www.alberta.ca/release.cfm?xID=89438B171E888-D02B-9F79-00A589DAF2E96A07– (2023c), Defending Alberta from brownouts, blackouts and soaring costs, https://www.alberta.ca/release.cfm?xID=89360B845CE8F-F1CC-1B7CDCEC3F4DACCB686E– (2024), Backgrounder: Alberta’s Renewables inquiry and the related pause, https://www.alberta.ca/system/files/au-backgrounder-albertasrenewables-inquiry-and-related-pause-20240228.pdf
Canada Gazette (2023), Regulations Amending the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations: SOR/2023-275,
https://gazette.gc.ca/rp-pr/p2/2023/2023-12-20/html/sor-dors275-eng.html
Canada Growth Fund (2023), Supporting Canada’s journey to net-zero, https://www.cgf-fcc.ca/
Canada Infrastructure Bank (2022), CIB commits CAD 970 million towards Canada’s first Small Modular Reactor, https://cibbic.ca/en/medias/articles/cib-commits-970-million-towards-canadas-first-small-modular-reactor/
CanREA (Canadian Renewables Association) (2024), NEWS RELEASE: New 2023 data shows 11.2% growth for wind, solar & energy storage,
https://renewablesassociation.ca/news-release-new-2023-data-shows-11-2-growth-for-wind-solar-energy-storage/
CCI (Canadian Climate Institute) (2023), Clean Electricity, Affordable Energy, https://climateinstitute.ca/reports/electricity/
CER (Canada Energy Regulator) (2022), Market Snapshot: Crude oil imports declines in 2021, while refined petroleum product imports rose modestly,
https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/market-snapshots/2022/market-snapshot-crude-oil-imports-declined-in-2021-whilerefined-petroleum-product-imports-rose-modestly.html
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APEC ENERGY OVERVIEW 2024

– (2023a), Appendix 1: Domestic Climate Policy Assumptions, https://www.cer-rec.gc.ca/en/data-analysis/canada-energy-future/2023/appendix-1/– (2023b), Estimated Production of Canadian Crude Oil and Equivalent, https://www.cer-rec.gc.ca/en/data-analysis/energy-commodities/crude-oilpetroleum-products/statistics/estimated-production-canadian-crude-oil-equivalent.html– (2023c), Marketable Natural Gas Production in Canada, https://www.cer-rec.gc.ca/en/data-analysis/energy-commodities/naturalgas/statistics/marketable-natural-gas-production-in-canada.html– (2023d), Exploring Canada’s Energy Future, https://apps2.cer-rec.gc.ca/energy-future/– (2023e), Macro Indicators, https://apps.cer-rec.gc.ca/ftrppndc/dflt.aspx?GoCTemplateCulture=en-CA– (2023f), Market Snapshot: Record-high Canadian electricity export revenue in 2022, https://www.cer-rec.gc.ca/en/data-analysis/energymarkets/market-snapshots/2023/market-snapshot-record-high-canadian-electricity-export-revenue-2022.html– (2023g), Market Snapshot: New Renewable Diesel Facilities Will Help Reduce Carbon Intensity of Fuels in Canada, https://www.cerrec.gc.ca/en/data-analysis/energy-markets/market-snapshots/2023/market-snapshot-new-renewable-diesel-facilities-will-help-reduce-carbonintensity-fuels-canada.html
CMHC (Canadian Mortgage Housing Corporation) (2024), Canada Greener Affordable Housing, https://www.cmhc-schl.gc.ca/professionals/projectfunding-and-mortgage-financing/funding-programs/all-funding-programs/canada-greener-affordable-housing-program
CNSC (Canadian Nuclear Safety Commission) (2023), Proposed nuclear facility – NB Power's ARC-100 Project at the Point Lepreau Nuclear
Generating Station site, https://www.cnsc-ccsn.gc.ca/eng/resources/status-of-new-nuclear-projects/nbpower/
Finance Canada (2023a), 2023 Fall Economic Statement, https://www.budget.canada.ca/fes-eea/2023/home-accueil-en.html– (2023b), Deputy Prime Minister welcomes the Canada Growth Fund’s first carbon contract for difference, https://www.canada.ca/en/departmentfinance/news/2023/12/deputy-prime-minister-welcomes-the-canada-growth-funds-first-carbon-contract-for-difference.html– (2023c), Exploring Border Carbon Adjustments for Canada, https://www.canada.ca/en/department-finance/programs/consultations/2021/bordercarbon-adjustments/exploring-border-carbon-adjustments-canada.html– (2024), Budget 2024: Fairness for every generation, https://www.budget.canada.ca/2024/home-accueil-en.html
ECCC (Environment and Climate Change Canada) (2016), Pan-Canadian Framework on Clean Growth and Climate Change,
https://www.canada.ca/en/services/environment/weather/climatechange/pan-canadian-framework/climate-change-plan.html

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APEC ENERGY OVERVIEW 2024

– (2020), Canada’s Strengthen Climate Plan: A Healthy Environment and a Healthy Economy,
https://www.canada.ca/en/services/environment/weather/climatechange/climate-plan/climate-plan-overview/healthy-environment-healthyeconomy.html– (2022), Canada’s 2030 Emissions Reduction Plan - Chapter 2, https://www.canada.ca/en/services/environment/weather/climatechange/climateplan/climate-plan-overview/emissions-reduction-2030/plan/chapter-2.html– (2023a), Clean Electricity Regulations, https://www.canada.ca/en/services/environment/weather/climatechange/climate-plan/clean-electricityregulation.html– (2023b), 2023 Progress Report on the 2030 Emissions Reduction Plan,
https://www.canada.ca/en/services/environment/weather/climatechange/climate-plan/climate-plan-overview/emissions-reduction-2030/2023progress-report.html– (2023c), Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap,https://www.canada.ca/en/services/environment/weather/climatechange/climate-plan/oil-gas-emissions-cap/regulatory-framework.html– (2023d), Draft Oil and Gas Methane Regulations Amendments published in December 2023 to reduce emissions by 75
percent,https://www.canada.ca/en/environment-climate-change/news/2023/12/draft-oil-and-gas-methane-regulations-amendments-published-indecember-2023-to-reduce-emissions-by-75-percent.html– (2023e), Minister Guilbeault highlights the big five new Clean Investment Tax Credits in Budget 2023 to support sustainable made-in-Canada clean
economy, https://www.canada.ca/en/environment-climate-change/news/2023/04/minister-guilbeault-highlights-the-big-five-new-clean-investmenttax-credits-in-budget-2023-to-support-sustainable-made-in-canada-clean-economy.html– (2023f), Lowering energy bills for Canadians across the country, https://www.canada.ca/en/department-finance/news/2023/10/lowering-energy-billsfor-canadians-across-the-country.html– (2023g), Social cost of greenhouse gas emissions, https://www.canada.ca/en/environment-climate-change/services/climate-change/scienceresearch-data/social-cost-ghg.html– (2023h), Government of Canada launches public engagement on the 2035 greenhouse gas emissions reduction target,
https://www.canada.ca/en/environment-climate-change/news/2024/02/government-of-canada-launches-public-engagement-on-the-2035greenhouse-gas-emissions-reduction-target.html

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APEC ENERGY OVERVIEW 2024

– (2023i), Government of Canada delivers on key climate commitment to phase out inefficient fossil fuel subsidies,
https://www.canada.ca/en/environment-climate-change/news/2023/07/government-of-canada-delivers-on-key-climate-commitment-to-phase-outinefficient-fossil-fuel-subsidies.html– (2023j), Output-Based Pricing System, https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how-it-willwork/output-based-pricing-system.html– (2023k), Clean Fuel Regulations, https://www.canada.ca/en/environment-climate-change/services/managing-pollution/energy-production/fuelregulations/clean-fuel-regulations.html– (2023l), Update to the Pan-Canadian Approach to Carbon Pollution Pricing 2023-2030, https://www.canada.ca/en/environment-climatechange/services/climate-change/pricing-pollution-how-it-will-work/carbon-pollution-pricing-federal-benchmark-information/federal-benchmark2023-2030.html– (2023m), The Low Carbon Economy Fund, https://www.canada.ca/en/environment-climate-change/services/climate-change/low-carbon-economyfund.html
EGEDA (Expert Group on Energy Data Analysis, APEC Energy Working Group) (2023), APEC Energy Database.
https://www.egeda.ewg.apec.org/egeda/database_info/index.html
Energy Institute (2023), Statistical Review of World Energy, https://www.energyinst.org/statistical-review
Infrastructure Canada (2023), Building Canada's public transit future: Healthy and sustainable modes of transportation for all,https://www.infrastructure.gc.ca/transit-transport/index-eng.html
IESO (2024), 2021 Year in Review, https://www.ieso.ca/Corporate-IESO/Media/Year-End-Data/2021
ISED (Innovation, Science and Economic Development Canada) (2023), Net Zero Accelerator Initiative, https://ised-isde.canada.ca/site/strategicinnovation-fund/en/net-zero-accelerator-initiative
Justice Canada (2018), Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations (SOR/2012-167), https://lawslois.justice.gc.ca/eng/regulations/sor-2012-167/index.html– (2019), Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity (SOR/2018-261), https://lawslois.justice.gc.ca/eng/regulations/SOR-2018-261/index.html– (2023), Canadian Net-Zero Emissions Accountability Act, https://laws-lois.justice.gc.ca/eng/acts/c-19.3/fulltext.html
LNG Canada (2023), LNG Canada, https://www.lngcanada.ca/
NEA (Nuclear Energy Agency) (2023), Uranium 2022 – Resources, Production and Demand, https://www.oecd-nea.org/jcms/pl_79960/uranium-202256

APEC ENERGY OVERVIEW 2024

resources-production-and-demand
NRCan (Natural Resources Canada) (2023a), Government of Canada Announces Federal Support for Small Modular Reactor (SMR) Development in
Saskatchewan, https://www.canada.ca/en/natural-resources-canada/news/2023/08/government-of-canada-announces-federal-support-for-smallmodular-reactor-smr-development-in-saskatchewan.html– (2023b), Energy Fact Book 2023-2024, https://publications.gc.ca/collections/collection_2023/rncan-nrcan/M136-1-2023-eng.pdf– (2023c), The Canada Electricity Advisory Council, https://natural-resources.canada.ca/our-natural-resources/energy-sources-distribution/electricityinfrastructure/the-canada-electricity-advisory-council/25297– (2023d), The Canada Green Buildings Strategy consultation, https://natural-resources.canada.ca/public-consultations-and-engagements/the-canadagreen-buildings-strategy-consultation/25009– (2023e), Sustainable Jobs Plan, https://www.canada.ca/content/dam/nrcan-rncan/documents/SGJ_Report_EN_March8.pdf– (2023f), Government of Canada Releases Vision to Build a Clean, Affordable and Reliable Electricity System to Power Canada Forward,
https://www.canada.ca/en/natural-resources-canada/news/2023/08/government-of-canada-releases-vision-to-build-a-clean-affordable-andreliable-electricity-system-to-power-canada-forward.html– (2023g), Canada Greener Homes Initiative, https://natural-resources.canada.ca/energy-efficiency/homes/canada-greener-homes-initiative/24831– (2023h), Energy Innovation Program, https://natural-resources.canada.ca/science-and-data/funding-partnerships/opportunities/grantsincentives/energy-innovation-program/18876– (2023i), Smart Renewables and Electrification Pathways Program, https://natural-resources.canada.ca/climate-change/green-infrastructureprograms/sreps/23566– (2023j), Canada’s Carbon Management Strategy, https://natural-resources.canada.ca/climate-change/canadas-green-future/capturing-theopportunity-carbon-management-strategy-for-canada/canadas-carbon-management-strategy/25337– (2023k), Wah-ila-toos: Clean Energy Initiatives in Indigenous, rural and remote communities,
https://www.canada.ca/en/services/environment/weather/climatechange/climate-plan/reduce-emissions/reducing-reliance-diesel.html– (2023l), Regional Energy and Resource Tables, https://natural-resources.canada.ca/climate-change/regional-energy-and-resource-tables/24356– (2023m), Deep Retrofit Accelerator Initiative, https://natural-resources.canada.ca/energy-efficiency/buildings/deep-retrofit-accelerator-initiative/24925– (2023n), Joint Policy Statement on Developing and Transmitting Clean, Reliable and Affordable Power in Nova Scotia and New Brunswick,https://www.canada.ca/en/natural-resources-canada/news/2023/10/joint-policy-statement-on-developing-and-transmitting-clean-reliable-andaffordable-power-in-nova-scotia-and-new-brunswick.html– (2023o), Green Industrial Facilities and Manufacturing Program, https://natural-resources.canada.ca/energy-efficiency/energy-efficiency-for57

APEC ENERGY OVERVIEW 2024

industry/green-industrial-facilities-and-manufacturing-program/20413– (2023p), Oil to Heat Pump Affordability Program, https://natural-resources.canada.ca/energy-efficiency/homes/canada-greener-homes-initiative/oilheat-pump-affordability-program/24775– (2023q), Energy Efficiency Regulations, https://natural-resources.canada.ca/energy-efficiency/energy-efficiency-regulations/6845
ON Gov (Government of Ontario) (2023a), Ontario Supporting Plan to Refurbish Pickering Nuclear Generating Station,
https://news.ontario.ca/en/release/1004128/ontario-supporting-plan-to-refurbish-pickering-nuclear-generating-station– (2023b), Powering Ontario’s Growth, https://www.ontario.ca/page/powering-ontarios-growth
Pathways Alliance (2023), Net Zero Initiative, https://pathwaysalliance.ca/net-zero-initiative/
Prime Minister of Canada (2023), Prime Minister Justin Trudeau meets with Alberta Premier Danielle Smith,https://www.pm.gc.ca/en/news/readouts/2023/07/08/prime-minister-justin-trudeau-meets-alberta-premier-danielle-smith
StatCan (Statistics Canada) (2018), Geography, https://www150.statcan.gc.ca/n1/pub/11-402-x/2011000/chap/geo/geo-eng.htm– (2022), Energy supply and demand, 2021, https://www150.statcan.gc.ca/n1/daily-quotidien/221206/dq221206e-eng.htm– (2023a), Report on Energy Supply and Demand in Canada, https://www150.statcan.gc.ca/n1/en/catalogue/57-003-X– (2023b), Electric power, electric utilities and industry, annual supply and disposition,
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2510002101
Trans Mountain (2024), Trans Mountain Announces Milestones of Commercial Service for Expanded System,
https://www.transmountain.com/news/2024/trans-mountain-announces-milestones-of-commercial-service-for-expanded-system
Transport Canada (2022), Canada’s Action Plan for Clean On-Road Transportation, https://tc.canada.ca/en/road-transportation/publications/canada-saction-plan-clean-road-transportation– (2023a), Minister Alghabra announces the release of Canada’s Aviation Climate Action Plan, https://www.canada.ca/en/transportcanada/news/2022/09/minister-alghabra-announces-the-release-of-canadas-aviation-climate-action-plan.html– (2023b), Minister of Transport announces the Green Shipping Corridor Program to help cut pollution in marine shipping,https://www.canada.ca/en/transport-canada/news/2023/12/minister-of-transport-announces-the-green-shipping-corridor-program-to-help-cutpollution-in-marine-shipping.html
Treasury Board of Canada Secretariat (2022), Greening Government Strategy, https://www.canada.ca/en/treasury-boardsecretariat/services/innovation/greening-government/strategy.html
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WNA (World Nuclear Association) (2024), Nuclear Power in Canada, https://world-nuclear.org/information-library/country-profiles/countries-a-f/canadanuclear-power

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Chile
Introduction

Also, in December 2023, the Energy Transition Bill, presented in July
2023, was approved in principle by the Chilean Senate. Some articles of
the Bill require further discussion during early 2024 before final approval.
This Bill is considered an enabling condition to develop utility scaleenergy storage projects in Atacama.
Table 1: Chile’s macroeconomic data and energy reserves

The world faced several risks in 2023, including widespread rising
inflation, and global energy and food supply crises following the eventsof previous years. During 2023, Chile introduced several measures tocontrol domestic inflation and reactivate its economy. Despite thesemeasures, Chilean GDP growth is estimated to be close to 0%, althoughhigher growth, closer to 2.5%, is expected for 2024.

Key data a

In April 2023, the Ministry of Energy launched the Initial Agenda for a
Second Time of the Energy Transition, with the aim of taking actions foran accelerated decarbonisation of the electricity sector. The agenda
considers the deployment of the first 10 measures in four areas of action:
storage promotion; mitigation of risks to suppliers; operational flexibility;and political, regulatory actions and urgent works.
Some initiatives to promote the energy storage that were carried out
during 2023 included a proposal for the modification of the Supreme
Decree N62/2006 that regulates power transfer between electricity
generators to include energy storage systems within the National Electric
System.
In December 2023, the Ministry of Energy released the draft of the Green
Hydrogen Action plan 2023-2030 for public consultation. The action planconsists of 111 measures that range from pilot projects to theimplementation of regulatory changes required for the development of
the hydrogen industry in this economy.

Energy reserves b, c

Area (million km2)

0.8

Oil (billion barrels)000

Population (million)

20

Gas (trillion cubic feet)000

GDP (2017 USD billion
PPP)

495

Coal (million tonnes)000

GDP per capita (2017
USD PPP)

25 174

Uranium (kilotonnes U< USD 260/kgU)

561

Source: a World Bank (2023); b Energy Institute (2023); c Nuclear Energy Agency(2023)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

Despite the lack of fossil fuel resources, Chile has an enormous potential
for renewable energy (Chile has 2.3 TW of renewable energy reservefrom the 30 GW installed by 2023) that it is trying to develop in
accordance with its energy policy. In that direction, the Chilean National
Energy Commission awarded 777 GWh/year of renewable energy tosupply electricity to the economy’s electricity system, starting in 2027.

60

APEC ENERGY OVERVIEW 2024

Energy Supply and Consumption

Figure 2: Chile’s energy supply by fuel (PJ), 2000 to 2021
2 000

Energy supply

1 800
1 400
1 200

1 000
800
600
400
200

0
- 200

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Figure 1: Chile’s energy supply, production, and net imports (PJ), 2000
to 2021

1 600

TPES by fuel (PJ)

The recovery of the Chilean economy from the impact of the COVID-19
pandemic drove an increase in energy demand during 2021. Chile’s totalenergy supply was 1 656 PJ in 2021 representing a 4.9% increase fromthe previous year. Most of the energy supply, 68.9%, was met throughfuel imports, while the remainder was sourced from domestic energy
production. As consequence, Chile is reliant on importing most of fuels,
mainly fossil fuels, to meet its energy needs.

Production, net imports and TPES
(PJ)

2 000
1 800
1 600

Coal

1 000
800
Production

200
0
2000

Renewables

OthersWhen analysed by fuel type, total energy supply of coal decreased by
6%, reaching 265 PJ in 2021. This reduction follows the declining trendthat began in 2019, aligning with the Coal Phase-Out Plan aimed atclosing all of Chile’s coal-fired power plants by 2040.

Net imports

1 200

400

Gas

Source: EGEDA (2023)

1 400

600

Oil

Total Primary Energy Supply

2005

2010

2015

2020

Source: EGEDA (2023)

Additionally, oil supply was 685 PJ, a 7.7% increase from the 2020 level,
and gas supply reached 221 PJ, a 9.4% increase. Given the limited
production of oil and gas in Chile, it can be considered that theseincreases are met through imports. On the other hand, renewable energy
supply has increased by 5.8%, reaching 485 PJ in 2021.

In 2021, total primary energy production was 543 PJ, 3.5% higher thanthe 2020 level, mostly due to an increase of renewable energy
production. Net imports saw an 8.3% increase from the previous year
reaching 1 140 PJ, mostly driven by an increase in oil and gas imports.
61

APEC ENERGY OVERVIEW 2024

100%

Final energy demand by sector (PJ)

Other
Renewables

80%
Gas
60%
Oil
40%

20%

Coal

0%
Chile

Figure 4: Chile’s final consumption by sector (PJ), 2000 to 2021
1 400
1 200
1 000
800
600
400
200
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Figure 3: Energy supply mix – Chile and APEC, 2021

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

APEC
Source: EGEDA (2023)

Source: EGEDA (2023)

The share of renewable energy in the total energy supply in Chile wasmuch higher (29.3%) than in APEC (4.3%) during 2021. Oil share is also
higher in Chile (41.4%) than in APEC (27.3%). Another importantdifference is observed in coal. Coal represented 16.0% of the energy
supply in Chile while representing 34.6% in APEC.
Total final consumption
Due to the recovery of the economy post pandemic, an increase of totalenergy consumption was expected for 2021. Transport experienced
energy consumption growth at 9.3%, reaching up to 390 PJ in 2021 from357 PJ in the previous year. Commercial and public sector had a growthof 15.7%, rising from 68 PJ in 2020 to 78 PJ 2021. In contrast, industry
energy consumption fell 3.7%, a consequence of the impact of the global
economic crisis that affected Chilean products, mainly from mining.

Due to diverse rates of growth in energy fuel consumptions acrossdifferent sectors, there has been a shift of shares of each sector,
especially industry and commercial, in 2021 in comparison to 2020.
Industry was the biggest fuel consumer at 36.1%, followed bytransportation at 33.9%, and residential consumption at 17.5%. When
compared to Chile’s energy fuel consumption mix, APEC’s transport
sector showed a lower share at 25.4%. Other relevant difference was in
the share of non-energy sector that includes the use of energy products
as raw materials for the manufacture of products. This sector
represented 3.3% in Chile and 12.4% in APEC in 2020.

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APEC ENERGY OVERVIEW 2024

Figure 5: Final consumption by sector, Chile and APEC, 2021
100%

demand was due to a reduction of solid biomass in most of the sectors
including industry as well as the reduction of hydropower.
Figure 6: Chile’s final energy demand by fuel (PJ), 2000 to 2021

Non-energy
Agriculture & others

1 400

Final energy demand by fuel (PJ)

80%

Residential
Commercial

60%

Transport
40%

20%

Industry

1 200
1 000
800
600

400
200

Chile

APEC

Source: EGEDA (2023)

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0
0%

Coal

Oil

Gas

Renewables

Electricity and others

Final energy demand

Source: EGEDA (2023)

Final energy demand grew 2.4%, reaching 1 114 PJ in 2021, although it
did not reach the levels of demand observed in 2019 at 1 150 PJ. The
biggest demand growths were observed in coal at 15.6% going from 6
PJ in 2020 to 7 PJ, in 2021 gas at 7.2% going from 64 PJ to 68 PJ, andoil and oil products at 6.7% going from 589 PJ to 628 PJ. Renewableenergy demand decreased 15.7% going from 160 PJ to 135 PJ.

Note: Does not include non-energy sector consumption of energy products.

It is notable that the decreasing trend of coal supply, due to thedecreasing use of coal in commercial power generation in energy
transformation, is opposite to the increasing trend of final coal energy
demand. On the other hand, the opposite case is observed in the trends
of renewable energy. In this case, the decrease of final renewable energy

Chile’s final energy demand fuel share did not change drastically ifcompared with 2020; more than half of the final energy demand, 56.5%,
is satisfied by oil and oil products. Coal satisfied 0.6% of final energy
demand; renewables 12.1%; and natural gas 6.1%.
Additionally, electricity represented 24.7% of the final energy demand,slightly below the 33.6% of final energy demand observed in APEC.

63APEC ENERGY OVERVIEW 2024

Figure 7: Final energy demand fuel share, Chile and APEC, 2021

Figure 8: Chile’s electricity generation by fuel, 2000 to 2021

100%

100
90

80%

Electricity generation (TWh)Electricity andothersRenewables

60%

Gas
40%
Oil

80
70
60
50
40
30
20
10

20%

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0
Coal
0%
Chile

APEC

Source: EGEDA (2023)

Transformation
Power sector
Chile has an ambitious goal of achieving 70% of renewable energy in theelectricity fuel mix by 2030. In 2021, electricity generation fuel mix
comprised coal at 29.6%, gas at 18.1%, oil at 3.5%, hydro at 22.0%,
geothermal at 0.4%, and other renewables at 26.5%.

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

Following the calendar of the Coal Phase-Out Plan, eleven coal-fuelledunits of electric generation power plants were retired between 2019 andApril 2024. Additionally, four units are expected to close, and another fiveare expected to switch fuels by 2025. To achieve the plan’s objectives,
the remaining ten units will be closed by 2040. However, following theseobjectives will be challenging over the coming years because theretirement of coal-fuelled units must not compromise grid stability andmust adhere to operational grid requirements.

64

APEC ENERGY OVERVIEW 2024

Figure 9: Electricity generation fuel share, Chile and APEC, 2021
100%

Others80%

Other renewables
Nuclear
Hydro

60%

Gas

Energy Transition

Oil

40%

Coal

20%
0%
Chile

The combined share of hydro and other renewables represented 49% of
the Chilean electricity generation fuel share in 2021, where 26.5%
represented just the share of geothermal, biomass, wind, and solar
energy. In that regard, Chile’s electricity generation has a lower carbon
intensity than APEC does because in APEC all renewables represent
25.2% of electricity generation.

APEC

In addition to the policies mentioned above and the efforts to have theEnergy Transition Bill approved, the Ministry of Energy and the Ministryof Environment have initiated the development of a Chilean
decarbonisation roadmap with the objective of accelerating
decarbonisation and making Chile carbon neutral by 2050 or earlier.

Source: EGEDA (2023)

EmissionsElectricity generation, that includes power generation from mainelectricity producers and auto producers, grew by 4.8%, reaching 88
TWh in 2021 from 84 TWh in 2020. However, hydropower plant
generation was reduced by 11.5% due to severe droughts that Chilesuffered in 2021, going from 21.9 TWh in 2020 to 19.3 TWh. To
compensate for the decline in hydro generation, other types of power
plants increased production. Oil-fuelled power generation rose by 76.8%,
going from 1.7 TWh in 2020 to 3.1 TWh in 2021. Geothermal power
generation rose by 50%, increasing from 0.2 TWh in 2020 to 0.3 TWh in
2021. Other renewable energy power plant generation, which includes
biomass, solar, wind and others renewable, increased by 24%, goingfrom 19 TWh in 2020 to 23 TWh in 2021. Gas-based power generation
increased by 4%, going from 15 TWh in 2020 to almost 16 TWh in 2021.
Finally, coal-fuelled power generation was nearly maintained at the level
observed in 2020 at 26 TWh.

Emissions increased 1.3%, reaching 84 941 kt-CO2 in 2021. This canbe explained by the increase of energy consumption due to economic
recovery after the pandemic. However, it is noteworthy that emissions
have not reached the level observed between 2016 and 2019.

65

APEC ENERGY OVERVIEW 2024

Figure 10: Chile’s CO2 combustion emissions (million tonnes), 2000 to
2021
100
90
CO2 combustion emissions

70
60

In 2011, APEC member economies agreed to increase their target to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline. The
original goal was a 25% improvement by 2030, relative to a 2005
baseline.
Figure 11: Chile’s total final energy consumption intensity index, 2000
to 2021 (2005 = 100)

50

140

40
30
20
10
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
To contribute to energy security, Chile and Argentina signed anagreement on energy collaboration that includes Argentina supplying
300 000 m3/day of gas to Chile from June 2022 to September 2023. It is
expected that this supply might increase to 4 000 000 m3/day in the
future.

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity and to
double the share of modern renewables.

Energy intensity index (2005 = 100)Million tonnes CO2

80

Energy intensity goal

120
Total final energy consumption energy
intensity

100
80

APEC-wide goal 2035

60
40
20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

APEC is on track to achieve this energy intensity improvement. The goal
does not impose individual economy targets, but it is possible to track
the progress of individual APEC economies relative to the overarching
proportional improvement.
Chilean energy intensity decreased 8% in 2021, the lowest recorded
since this indicator has been monitored. Given that energy intensity is
calculated as the ratio of total energy consumption over GDP, this66

APEC ENERGY OVERVIEW 2024

decline was mainly driven by the GDP growth observed in 2021, a growththat was the result of economy reactivation measures.
Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doublinggoal.

renewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources in distributed generation.

Chile has increased its share of modern renewables in total final energy
consumption it does not include traditional biomass, in total final energy
consumption, which went from 13.1% in 2010 to 17.3% in 2021.
Figure 13: Chile’s renewable generation share, 2000 to 2021
60%

Figure 12: Chile’s modern renewable energy share, 2010 and 2021

Renewables share in electricity mix

50%
20.0%

Change from2010 to 2021

40%

Proportion

18.0%
16.0%
14.0%

30%
20%

12.0%
10.0%

10%

8.0%
0%
2000

6.0%

2005

2010

2015

2020

4.0%
Source: EGEDA (2022)
2.0%
0.0%
2010

Change2021

Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All other

Chile maintained its renewable generation share in 2021 at 49%. The
production of auto producers was considered in the estimation of thisindicator.The goals established in the updated National Energy Policy
2050 suggest that Chile will see a rapid increase in its renewablegeneration share.

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APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy
Hydrogen Strategy for Chile

Energy Efficiency Law

Framework Law on Climate Change

Coal-fired power plant shutdown

National electromobility strategy

Long-term National Energy Planning (20232027)

Energy Agenda 2022-2026

Updated National Energy Policy 2050

Details
The design and implementation of a development policy for hydrogen would
allow the displacement of fossil fuels on a large scale in the power generation,transport, and industry sectors.
The law 21.305 outlines a long-term energy efficiency plan, to be updated
every five years. The new law regulates the management of energy by large
consumers and delivers information to homebuyers regarding housing energy
requirements.
In June 2022, the Chilean Government published the Law 21.455, theFramework Law on Climate Change, which establishes the goal of reachingcarbon neutrality by 2050.
A total of 3.63 GW of coal-fired power plants will shut down before 2025, whichis equivalent to 65% of the total coal electricity capacity. Operation of coal
power plants will cease by 2040 at the latest.
This strategy outlines actions to be taken in the short and medium terms tomeet the government's goal of having 40% of private vehicles and 100% of
public transport fleets powered by electricity by 2040. By the end of 2050, 58%
of privately owned vehicles will be powered by electricity.
The Ministry of Energy release the preliminary result on 2021, and it´s
expected to close in July 2024. The main objectives of this work are to present
scenarios to estimate the future energy demand, to be used as input
information for the electric transmission planning and to function as a tool thathelps policymakers develop energy policies. The last report that updated thebackground information for the long-term economy energy planning was
released in 2023.
The new government of Chile launched this energy roadmap. The documentemphasises equitable access to quality energy and the development of aclean, secure and resilient energy system.
This update increased the goal of renewable energy in electricity generation to
80% by 2030 and aims to achieve 100% zero-emission energy by 2050.
Additionally, there is a goal of 100% access to electricity by 2030, establishedgoals for hydrogen and electromobility, and the role of Chile as a greenhydrogen and derivates exporter by 2030.

Reference

Ministry of Energy

Ministry of Energy

Ministry of Environment
Ministry of Energy

Ministry of Energy

Ministry of Energy

Ministry of Energy

Ministry of Energy

68

APEC ENERGY OVERVIEW 2024

Energy policy
Law 21.499 that regulates production andtrade of solid fuels

Law 21.505 to promote electricity storage andelectromobility
Initial Agenda for a Second Time of the Energy
Transition

Details
This law declares wood fuel, pellets, briquettes, charcoal and agricultural waste
as fuels and establishes requirements and standards for commercialisation.
This law is intended to improve air quality and protect the health and safety ofpeople who live in areas where these fuels are used.
This Law will expand renewables in the electricity mix by promoting storage
technologies, provide greater security to the grid, and help the process ofdecarbonisation. The law also promotes electric mobility through economic
incentives.
In April 2023, the Ministry of Energy launched the Initial Agenda for a Second
Time of the Energy Transition, with the aim of taking actions for an accelerated
decarbonisation of the electricity sector

Decarbonization Plan 2030

This plan aims to facilitate the decarbonization of the electricity grid by 2030

Energy Transition Bill for approval at the
SenateThe Bill is considered key to promoting investment in energy storage projects
that will strengthen the transmission network and allow the integration ofvariable renewable energy.

Reference

Ministry of Energy

Ministry of Energy

Ministry of Energy
Chile lanzó un nuevo Plande Descarbonización con
miras al 2030 - Energía
Estratégica
(energiaestrategica.com)
Senado aprobó en lo
general el proyecto de leyde Transición Energética deChile - Energía Estratégica
(energiaestrategica.com)

69

APEC ENERGY OVERVIEW 2024

Notable Energy Developments
Energy development

Details

Reference

Launch of roadmap for electromobility

This document presents concrete measures to expand the utilisation ofelectromobility in the short and medium term.

Ministry de Energy

Launch of Initial Agenda for a Second Time of
the Energy Transition,

This agenda presents 10 measures in four areas to accelerate thedecarbonisation of the power sector: promotion of energy storage, mitigation of
suppliers’ risks, operational flexibility, policy and regulatory actions.

Ministry de Energy

HIF Global initiated commercial exports ofsynthetic fuels to Europe

Haru Oni demonstration exported 24 600 litres of synthetic gasoline to theUnited Kingdom. The synthetic gasoline is manufactured with domestically
produced green hydrogen.

Ministry de Energy

Draft of Green Hydrogen Action Plan

The draft of the Green Hydrogen Action Plan was presented for public
consultation. Revision will finalised by the first trimester of 2024.

Ministry de Energy

Useful Links
Government Institutions
Chilean National Energy Commission (CNE) – www.cne.cl
Renewable Energy National Register(RENOVA) – https://www.coordinador.cl/renova/
Energía Abierta Beta – www.energiaabierta.cl
Fuel Prices in Refuelling Stations Information System – http://www.bencinaenlinea.cl/web2/
Chilean Energy Sustainability Agency (ASE) – www.agenciaSE.org
National Electric Coordinator – www.coordinador.cl
Government of Chile – www.gobiernodechile.cl
70

APEC ENERGY OVERVIEW 2024

Ministry of Economy, Development and Reconstruction – www.economia.cl
Ministry of Energy – www.energia.gob.cl
Ministry of the Environment – www.mma.gob.cl
Nuclear Energy Chilean Commission (CCHEN) – www.cchen.cl
National Institute of Statistics (INE) – www.ine.cl
National Oil Company (ENAP) – www.enap.cl Superintendence of Electricity and Fuel (SEC) – www.sec.cl
Energy Associations
Chilean Association of Power Generators – www.generadoras.cl
Chilean Association for Renewable Energies and Storage ACERA AG – www.acera.cl
Chilean Association of Electric Companies – www.electricas.cl
Chilean Association of Solar Energy – www.acesol.cl
Chilean Association for Small and Mid-hydro Power Plants (APEMEC) – www.apemec.cl
Chilean Geothermal Energy Association A.G. (ACHEGEO A.G.) - www.achegeo.cl
Chilean Hydrogen Association (H2 Chile) - https://h2chile.cl/
Association of Producers of Green Hydrogen and its Derivatives in Magallanes - www.h2vmagallanes.cl/
Association of Chilean Transmitters - https://transmisoras.cl/

References
Ministerio de Energía (2023) Energia 2050. https://energia.gob.cl/energia2050
Ministerio de Energía (2023) Agenda Inicial para un Segundo Tiempo de la Transición Energética.
https://energia.gob.cl/sites/default/files/documentos/agenda_inicial_para_un_segundo_tiempo_de_la_transicion_energetica.pdf
Nuclear Energy Agency and International Atomic Energy Agency (2023) Uranium 2022 Resources, Production and Demand.
71

APEC ENERGY OVERVIEW 2024

Revista Energía (2022) Termoeléctrica Bocamina II y Tocopilla U15 cierran operaciones https://revistaenergia.com/?p=34831
United Nations Climate Change (2023) Nationally Determined Contributions Registry. https://unfccc.int/NDCREG
World Bank. (2021). Chile. Retrieved from https://data.worldbank.org/country/chile?view=chart
Ministerio de Energía (2023) Agenda Inicial para un Segundo Tiempo de la Transición energética.
https://energia.gob.cl/sites/default/files/documentos/agenda_inicial_para_un_segundo_tiempo_de_la_transicion_energetica.pdf
Ministerio de Energía (2023) Hoja de ruta para el avance de la electromovilidad en Chile.
https://energia.gob.cl/sites/default/files/documentos/hoja_de_ruta_para_el_avance_de_la_electromovilidad_en_chile_acciones_concretas_al_202
6.pdf
Ministerio de Energía (2023) Hoja de ruta para el avance de la electromovilidad en Chile.
https://energia.gob.cl/sites/default/files/documentos/hoja_de_ruta_para_el_avance_de_la_electromovilidad_en_chile_acciones_concretas_al_202
6.pdf
Ministerio de Energía (2023) Plan de Accion del Hidrógeno Verde 2023-2030. https://energia.gob.cl/consultas-publicas/plan-de-accion-de-hidrogenoverde-2023-2030
Claudia Saravia (2021) Déficit de hasta 80% de lluvias pone a 2021 como el cuarto año más seco de la historia de Chile. Diario Financiero.
https://www.df.cl/empresas/industria/deficit-de-hasta-80-de-lluvias-pone-a-2021-como-el-cuarto-ano-mas-seco72

APEC ENERGY OVERVIEW 2024

China
Introduction
China is relatively rich in energy resources, particularly coal. According
to the 2023 BP statistics, China’s proven coal reserves were more than
143 billion tonnes, proven oil reserves were 3.5 billion tonnes, andproven natural gas reserves were 8.4 trillion cubic metres. In addition,
China has a hydropower capacity ranging between 400-700 GW, morethan the other economies within APEC (International Hydropower
Association, 2022).
In 2023, according to a National Bureau of Statistics of China update,
China’s crude coal production (from industrial enterprises above
designated scale) achieved 4.66 billion tonnes, 2.9% more than theprevious year. In addition, crude oil annual production reached 208
million tonnes, and gas annual production rose to 230 billion cubic
metres, 5.8% more than the previous year, thereby maintaining a stable
growth rate of around 10 billion cubic metres annually for sevenconsecutive years. Also, the first round of large wind and photovoltaic
bases in the desert, Gobi and barren areas (45 GW) were completed
and connected in 2023, followed by second and third rounds (morethan 50 GW). All renewable power capacities amount to more than 1
450 GW, more than 50% of overall power capacity, surpassing thermal
power for the first time.

Table 1: China’s macroeconomic data and energy reserves in 2020
Key data a, b

Energy reserves c, dArea (million km2)

9.6

Oil (billion tonnes)

3.5

Population (million)

1 412

Gas (trillion cubic
meters)8.4

GDP (2017 USD billion
PPP)

24939

Coal (billion tonnes)

143

GDP per capita (2017
USD PPP)

17658

Uranium (kilotonnes U< USD 130/kgU)

119

Source: a UN (2023); b World Bank (2023); c BP (2023); d UN (2023)

Energy Supply and Consumption
China has maintained relatively steady GDP growth and has become
the world’s largest energy producer and consumer, forming an energy
supply system through the comprehensive development of coal,electricity, oil, natural gas and renewable energy.
Total primary energy supply
In 2021, China’s total primary energy supply increased by 6.8%,
reaching 147 771 PJ. Energy production increased by 6.6%, while net
imports increased by 0.8%. The net imports share of energy supply
decreased from 23.7% in 2019 to 22.4% in 2021 (Figure 1).

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APEC ENERGY OVERVIEW 2024

Figure 1: China’s energy supply, production, and net imports (PJ), 2000
to 2021
Production, net imports and
TPES (PJ)

160 000
140 000
Total Primary Energy Supply

120 000
100 000

Production

80 00060 00040 000Net imports

20 000
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Figure 2: China’s energy supply by fuel (PJ), 2000 to 2021
160 000

TPES by fuel (PJ)

140 000
120 000
100 000
80 00060 00040 000
20 000

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

From the macro view, coal and oil’s share in energy supply havemaintained their decreasing trend and declined to 60.6% and 19.4% in
2021. In contrast, the share of gas and renewables has increased from
8.8% and 7.1% to 9.3% and 7.4%, respectively. Overall, the structureof China’s energy mix is moving away from the most carbon-intensive
fossil fuels and on to cleaner fuel types (Figure 2).
Since 2000, the total consumption has gone through three different
stages. The period 2000-2011 was the high-speed stage, in which theaverage annual consumption growth rate remained at around 10%. The
period 2012-2016 was the plateau stage, where the average annual
consumption growth rate was around 1%. Simultaneously, in 2012,
China entered a “New Era” by shifting its policy to “high-quality
development”, focusing more on environmental protection andcommitment to building a community with a shared future forhumankind. The period from 2017 to the present has been the lowspeed stage, where the total primary energy supply (TPES) grew at alow rate of around 4%. However, with GDP growing at a higher speedof 8.1% in 2021, the fastest since 2011, the annual increase rate in
TPES reached 6.8% (Figure 1, 2).
China’s large coal reserves, price sensitivity from the demand side, anduncertainties about the oil and gas supply chain contributed to the factthat the share of coal in China’s energy supply is much higher than thatof other APEC members. However, this share has decreased as gas
and renewables begin to account for a more substantial share. China’s
rapid development of renewable energy in recent years has ensured
that China’s share of renewables was comparable to the APEC regionin 2021 (Figure 3).

Others

Source: EGEDA (2023)

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APEC ENERGY OVERVIEW 2024

Figure 3: Energy supply mix – China and APEC, 2021
Other
Renewables

80%
Gas

Figure 4: China’s final consumption by sector (PJ), 2000 to 2021

Oil
40%

20%

Coal

0%
China

APEC

Source: EGEDA (2023)

Total final consumption
China’s final consumption increased by 4.7% in 2021, with industry
accounting for 48% of the total, followed by transport (15%) and
residential (13%). China’s industrial sector is the largest in the world
and currently produces large volumes of steel, cement, aluminium andmany manufactured products. Industrial energy consumption more thandoubled from 2000 to 2021. Likely due to China’s COVID-19 pandemic
control, China’s annual foreign trade in 2021 hit a new high, exceeding
USD 6 trillion for the first time, which may be one of the reasons for its
robust total final consumption increase.

Final energy demand by sector (PJ)60%

100 000
90 00080 00070 00060 00050 00040 00030 000
20 000
10 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

100%

vigorous recovery increase of 6.8% in the next year. The consumptionof the residential sector continuously grew, partially elevated by the
implementation of the Clean Winter Heating Plan in Northern China(2017-2021), which helped tens of millions of families shift fromscattered coal or biomass stove heating to gas or electricity heating.

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

China’s transport sector has the second-largest share and kept growing
from 2000 to 2019. After experiencing an unprecedented fall caused by
the COVID-19 pandemic in 2020, the transport sector showed a75

APEC ENERGY OVERVIEW 2024

Figure 5: Final consumption by sector, China and APEC, 2021
100%
Non-energy
Agriculture & others
80%
Residential

According to the updated Nationally Determined Commitment (NDC)
submitted in 2022 and the 14th Five-Year Plan (FYP), China will strictly
limit the increase in coal consumption and phase it down in thedecades ahead. The 14th FYP set the targets for 2025: the share of
non-fossil fuels in final energy consumption will increase to 20%, CO2
emissions intensity will decrease by 18%, domestic oil production willkeep at 200 million tonnes and natural gas will produce more than 230
billion cubic metres.

Commercial

60%

Transport
40%

20%increased from just above 10 000 PJ in 2000 to a peak of about 33 554
PJ in 2012. After 2012, coal consumption declined by more than 45%
until 2021, and its share in final energy demand was 23% in 2021,
down from 48% when it peaked in 2012. In contrast, the share ofelectricity and others had increased by 2021, reaching 41%, while theshare of renewables remained almost stable at 2%.

Industry

Figure 6: China’s final energy demand by fuel (PJ), 2000 to 2021
APEC

Source: EGEDA (2023)

China’s industrial energy consumption accounts for 18% of the final
consumption for the entire APEC region. A continued transition to amore service-based economy will be important for China to reduce theindustry’s final energy consumption. However, it is important torecognise that China remains an important source of industrial products
for almost all global economies due to its large scale and cheap prices.
A dramatic decline in China’s industrial sector may initiate an increase
in industrial activity in other economies as well as a rise in price ofsome industrial products.
Final energy demand
From 2000 to 2021, the fuel composition of the final energy demandchanged significantly. The most prominent change is that of coal, which

Final energy demand by fuel (PJ)China

90 00080 00070 00060 00050 00040 00030 000
20 000
10 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0%

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)
Note: Does not include non-energy sector consumption of energy products.
76

APEC ENERGY OVERVIEW 2024

Although demand for coal and its share has decreased from the record
high in 2012, China’s share of coal in 2021 (23%) was still relatively
high (Figure 7). For the entire APEC region, coal’s share of final energy
consumption was 11%.

2023). From 2000 until 2021, the proportion of non-fossil energy inelectricity increased from 18% to 33%. Within this increase, the shareof nuclear generation had increased three times (Figure 8).
Figure 8: China’s electricity generation by fuel, 2000 to 2021

Figure 7: Final energy consumption fuel share, China and APEC, 2021
Electricity generation (TWh)

9 000
100%
Electricity andothers80%

Renewables

60%

Gas
40%

8 000
7 000
6 000

5 000
4 000
3 000
2 000
1 000

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0
Oil

20%

Coal
Coal

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

0%
China

Oil

APEC

Source: EGEDA (2023)

Transformation
Power sector
Power generation has been an important component fuelling China’s
economic growth and has increased more than five-fold since 2000.
China’s power sector remains heavily reliant on coal, with 64% ofChina’s electricity generated from coal-fired power plants in 2021.
However, this share represents a decline from 75% in 2000 (EGEDA,

China is stringently curbing coal-powered projects and has committed
to no longer pursuing new coal-fired power projects abroad. At thesame time, China has committed to establishing a new power systemwith new energy sources as the main body. The construction of large
wind and photovoltaic bases in the desert, Gobi, and barren areas has
been initiated and accelerated. Hydropower and pumped storage
power stations will also be developed, depending on regional feasibility.
As for nuclear power, China plans to make advances in an orderly andsafe manner.

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APEC ENERGY OVERVIEW 2024

Figure 9: Electricity generation fuel share, China and APEC, 2021
100%

OthersOther renewables
Geothermal
Nuclear

80%

Hydro
60%
Gas
Oil

40%

Coal

20%

0%

China

APEC

Source: EGEDA (2023)

Secure supply combined with favourable prices has meant that the
proportion of coal-fired power in China is higher than that of APEC,
while the share of gas generation is less than that of APEC (Figure 9).
In 2021, China’s power generation reached 8 534 TWh. Thermal powerand hydropower reached 5 707 TWh and 1 339 TWh, respectively(EGEDA, 2023), each ranking as first in the world. Nuclear power
generation reached 408 TWh, ranking second behind the UnitedStates. (EGEDA, 2023; BP, 2023).

Energy Transition
Emissions
For carbon dioxide peaking and carbon neutrality, China has put inplace a “1+N” policy framework. “1” means the guiding idea and the
top-level design for the above goals, consisting of the two documents
issued in 2021: Working Guidance for Carbon Dioxide Peaking andCarbon Neutrality in Full and Faithful Implementation of the New
Development Philosophy and The Action Plan for Carbon Dioxide
Peaking before 2030, which clearly articulate the schedules, road maps
and working procedures, whereas the “N” is the implementation
schemes in key areas and sectors, such as energy, industry, transport,
agriculture and rural areas, etc. Meanwhile, all provinces have also
implemented their own schemes within their respective jurisdictions.
As the largest industrial economy, China continues to deepen its
supply-side structural reforms, aiming to transform the prevailingdevelopment model characterised by excessive reliance on increased
resource consumption, extensive expansion based on scale, anddependence on high-energy and high-emission industries. Policies
such as capacity replacement are implemented in industries with highresource consumption and significant carbon emissions, such as steel,cement, and electrolytic aluminium. During the period of the 13th FYP(2016-2020), cumulative exits from excess steel capacity exceeded 150
million tonnes, and excess cement capacity exceeded 300 million
tonnes. Illegitimate strip steel production was entirely eliminated, andoutdated capacities in industries such as electrolytic aluminium andcement were largely eradicated.
To optimise the structure of transportation, China has accelerated theconstruction of special railway lines, promoted the shift of freighttransport from road to railways and waterways, and encouraged multimodal transport. In 2021, the railway and waterway freight volume
accounted for 25% of the total in China, an increase of 3.9% over 2012.
At the same time, China has vigorously promoted the use of newenergy vehicles in public transport, taxi services, environmental
78

APEC ENERGY OVERVIEW 2024

sanitation, logistics, distribution, civil aviation, airports, and Party andgovernment institutions. By the end of 2021, the number of China's
registered new-energy vehicles had reached 7.8 million, accounting forabout half of the global aggregate (China's Economy Council
Information Office).

rate of China’s energy consumption has slowed significantly, and the‘dual control’ of energy intensity and total energy consumption has
been included in China’s 14th FYP, in which China aims to achieve a
13% reduction in energy consumption per unit of GDP below 2020
levels by 2025.

Figure 10: China CO2 combustion emissions (million tonnes), 2000 to
2021

In 2021, China’s total final energy consumption (excluding non-energy
sources) energy intensity declined by 46% relative to 2005, alreadyreaching the set target (Figure 11).

12 000Figure 11: China’s total final energy consumption intensity index, 2000
to 2021 (2005 = 100)

8 000

120
CO2 combustion emissions

6 000
4 000
2 000
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity and to
double the share of modern renewables.
Energy intensity goal
Energy intensity in the APEC region has been continuously improving.
China is contributing to APEC’s aspirational goal of a 45% energy
intensity reduction from the 2005 level by 2035. Since 2012, the growth

Energy intensity index (2005 = 100)Million tonnes CO2

10 000Total final energy consumption energy intensity

100
80

APEC-wide goal 2035

60
40
20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix between 2010 and 2030. Modern
renewables do not include traditional biomass, and the share is relative
to final energy consumption.
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APEC ENERGY OVERVIEW 2024

Figure 12: China’s modern renewable energy share, 2010 and 2021
12.0%
10.0%

Change from2010 to 2021

8.0%
6.0%

has entered a period of rapid renewable energy development. The
modern renewables’ share of final energy consumption in 2010 was
5.1%. In 2021, this proportional share was 10.2%, double what it was in2010, showing that the set target was achieved (Figure 12). China has
set multiple renewable energy targets in the 14th FYP, and as a result,even though it has already attained the renewable energy policy
doubling target, China will not slow down its efforts in promoting
renewable energy.
The share of renewable energy in China’s electricity mix increased from
16% in 2000 to 28% in 2021 (Figure 13). This increase was mainly
driven by wind and solar of which total installed capacity is expected to
grow to more than 1 200 GW by 2030 (UNFCCC, 2021).

4.0%
2.0%

Figure 13: China’s renewable generation share, 2000 to 2021
30%

0.0%
2010

ChangeRenewables share in electricity mix

2021

25%

Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

There is no economy-level goal for individual member economies.
However, it is possible to calculate the relative improvement of
individual economies to get a better sense of whether the goal will beachieved.
Since the implementation of the Renewable Energy Law in 2006, China

Proportion

Source: EGEDA (2023)

20%
15%
10%
5%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

80

APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

Reference

Working Guidance for Carbon
Dioxide Peaking and Carbon
Neutrality in Full and Faithful
Implementation of the New
Development Philosophy

The working Guidance provides guiding principles, guidelines, main objectives andmeasures to realise the carbon dioxide peaking and neutrality.

The Economy Council of
the People's Republic of
China

Action Plan for Carbon Dioxide
Peaking Before 2030

Outline measures for gradually slowing the emission of carbon, transitioning to
renewable energy and reducing waste. Offers an overview of China’s overall plan forreaching 2030 goal.

Policy link

14th Five-Year Plan for a Modern
Energy System

Clarifies the key tasks for the development of China’s energy sector from 2021 to 2025.

NEA of China

14th Five-Year Plan on Renewable
Energy Development (2021-2025)

Clarifies the key tasks for the development of China’s renewable energy sector from2021 to 2025.

NDRC

Comprehensive Work Plan for
Energy Conservation and Emission
Reduction in the 14th Five-Year Plan

Improves and implements the dual control system for energy consumption intensity andtotal volume and total discharge of major pollutants; organises the implementation of key
projects for energy conservation and emissions reduction

Government link

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APEC ENERGY OVERVIEW 2024

Notable Energy Developments
Energy development

Details

Reference

China's Green Development in the
New EraPresents a full picture of China's ideas, actions and achievements in green developmentin the New Era, and shares with the world its experience in this regard.

https://www.gov.cn/zhen
gce/202301/19/content_5737923.
htm

National Electric Power Industry
Statistics in 2022

The installed capacity of wind power is about 370 million kW, an increase of 11% yearon-year; the installed capacity of solar power is about 390 million kW, an increase of
28% year-on-year.

NEA of China

Top Ten Landmark Achievements of
National Oil and Gas Exploration andDevelopment in 2022

Top Ten Landmark Achievements of National Oil and Gas Exploration and Developmentin 2022 appraised by the National Energy Administration.

NEA of China

Energy Development Achievementsin the Past Ten Years in the New Era

Energy Development Achievements in the Past Ten Years in the New Era released by
the National Energy Administration.

Energy Statistics

The production data of coal, electricity, crude oil and natural gas are released by the
National Bureau of Statistics.

https://www.stats.gov.cn/

China’s Policies and Actions for
Addressing Climate Change (2022)

This report is released to summarise China’s progress in responding to climate change
since 2021 and share its experience and approaches with international community.

https://english.mee.gov.cn/Resources/Reports/re
ports/202211/P0202211
10605466439270.pdf

NEA of China

Useful Links
National Development and Reform Commission – https://www.ndrc.gov.cn/
National Energy Administration – http://www.nea.gov.cn/
National Bureau of Statistics of China – http://www.stats.gov.cn/english/

82

APEC ENERGY OVERVIEW 2024

References
National Energy Administration, Press Conference, 13 February 2023. http://www.nea.gov.cn/2023-02/13/c_1310697026.htm
EGEDA (Expert Group on Energy Data Analysis, APEC Energy Working Group) (2021), APEC Energy Database.
https://www.egeda.ewg.apec.org/egeda/database_info/index.html
Review of China’s Foreign Trade in 2021, 14 January 2022. http://english.customs.gov.cn/Statics/63ef2d4b-d9f8-411e-8424-34a08b11e3fd.html

83

APEC ENERGY OVERVIEW 2024

Hong Kong,
China
Introduction
Hong Kong, China (HKC) announced its goal to achieve carbon
neutrality before 2050 in its Climate Action Plan 2050 (CAP2050),
released in October 2021. The CAP2050 is one of HKC’s major
environmental policy plans. It comprises long-term decarbonisingtargets and action plans, covering energy supply and demand aspects,
and including the roadmap towards carbon neutrality. It sets a carbon
neutrality target following the issue of the Climate Action Plan 2030+(CAP2030+) released in 2017. The CAP2050 brings together theoverall strategies, plans, targets, and actions for HKC to achievecarbon neutrality before 2050.
HKC is implementing the action plan to progress towards achieving its
carbon-neutral goal. Net-zero electricity generation is one of the four
major decarbonization strategies that HKC is striving to increase theshare of renewable energy in the fuel mix for electricity generation to
7.5%-10% by 2035 and further increase the share to 15% subsequently
through facilitating local renewable energy projects. The Government
introduced the Feed-in Tariff (FiT) Scheme with the power companies
in 2018, in which the power companies purchase renewable energy
generated by the private sector at a rate higher than the electricity tariff.
The Government has taken the lead in developing renewable energy,

and a number of waste-to-energy projects have been launchedprogressively or are under planning. As of 2022, pilot projects with total
design capacity of 300 kW floating solar systems have been installed atthree reservoirs for electricity generation in HKC. The Government willfurther be expanding the scale of floating solar system with generating
capacity up to 5 MW at the reservoirs. New waste-to-energy facility at
Shek Kwu Chau (I•PARK1), with a treatment capacity of 3 000 tonnesof municipal solid waste, is targeted for commissioning in 2025. HKC
continues to promote and enhance energy conservation and improveenergy efficiency in buildings through the uplifting of the key measures,the Mandatory Energy Efficiency Labelling Scheme (MEELS), and the
Buildings Energy Efficiency Ordinance (BEEO).
For green transport, vehicle electrification is a critical initiative todecarbonise the transport sector. The Government announced theHong Kong Roadmap on Popularisation of Electric Vehicles (the EV
Roadmap) in March 2021, setting the target to cease new registrationof fuel-propelled and hybrid private cars (PCs) in 2035 or earlier. In
mid-2023, HKC's electric double-decker buses started service in public
transport. Apart from promoting the adoption of EVs, HKC is exploringand promoting the adoption of hydrogen in the fields of power
generation, energy storage and transport, particularly to decarbonisecommercial and heavy goods vehicles. The first hydrogen-powered bus
was launched in 2024.

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APEC ENERGY OVERVIEW 2024

Key data a
Area (km2)

Oil (billion barrels)-

Apart from low energy demand from the bunkers’ usage, the significant
drop in net imports in 2020 and 2021 was also partially due to thegradual reduction of coal consumption in electricity generation.
Renewable sources, as part of the total primary energy production,
have remained stable at about 5 PJ since 2016.
Figure 1: Hong Kong, China’s energy supply, production, and net
imports (PJ), 2000 to 2021

Energy reserves
1114.4

Population (million)

7.5

Gas (trillion cubic feet)-

GDP (2017 USD billion
PPP)

430

Coal (million tonnes)-

58 479Uranium (kilotonnes U< USD 130/kgU)

GDP per capita (2017
USD PPP)-

Source: World Bank (2023); Government HKC (2023)

Energy Supply and Consumption
Total primary energy supply
Due to its limited terrain, HKC relies almost entirely on imported energy
such as oil, gas, and coal products, or transformed secondary energy
such as electricity, to meet its demands. However, due to its limited
terrain, HKC produces renewable energy domestically mainly throughwaste-to-energy projects and government-funded and non-funded solar
photovoltaic (PV) projects.
HKC's total primary energy supply remained stable at about 600
Petajoules (PJ) since 2000 before it dropped to 535 PJ in 2020 and 534
PJ in 2021. The faster decline in net imports compared with the total
primary energy supply may indicate the dramatically decreasing
demand from international shipping and trade caused by COVID-19(Figure 1).

1 600

Production, net imports and TPES
(PJ)

Table 1: Hong Kong, China’s macroeconomic data and energy reserves

Net imports

1 400
1 200
1 000
800
600

Total Primary Energy Supply

400
200
0
2000

Production
2005

2010

2015

2020

Source: EGEDA (2023)

Fossil fuels have dominated HKC's total primary energy supply for the
past two decades, with changes in structure over the period (Figure 2).
Coal's share rose from 31% in 2000 to 57% at the peak in 2014 andgradually declined to 29% in 2021. Meanwhile, gas's share increased
from 16% in 2014 to 36% in 2021 to replace coal in electricity
generation. Over the same period, oil's share showed a similar trend asgas, but at a slower rate, from 22% to 26%.

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APEC ENERGY OVERVIEW 2024

Renewables and others grew from 5.6% in 2000 to 9.5% in 2021, as
the geographical constraint limited the large-scale renewable sourcesin HKC.

Figure 3: Energy supply mix – Hong Kong, China and APEC, 2021
100%

Other
Renewables

Figure 2: Hong Kong, China’s energy supply by fuel (PJ), 2000 to 2021
80%

Gas

700

TPES by fuel (PJ)

600

60%
Oil

500
40%

400
300

20%

Coal

200
100

0%
Hong Kong, China

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Others

Source: EGEDA (2023)

HKC's total primary energy supply structure showed a reliance on fossil
fuels about 5% higher than the entire APEC region in 2021 (Figure 3).
The coal share was 6% lower; the oil share was almost the same, andthe gas share was 12% higher. The share of renewables was
significantly lower than the APEC region.

APEC

Source: EGEDA (2023)

Total final consumption
HKC's total final consumption declined by about a quarter from 374 PJ
in 2000 to 282 PJ in 2005, driven by falling demand from the industry
sector (Figure 4). Economic growth in HKC had led to a steady growthof final consumption before being impacted by the financial crisis in
2008. Since then, the final consumption in HKC has stabilised at an
average of 276 PJ.
The commercial and transport sectors were the main end-use sectors
for the past 21 years, accounting for 43% and 29% respectively of all
end-use energy consumption in 2021. The commercial sector has
experienced steady energy growth since 2000, while the transport
sector has slowly declined in energy consumption. In 2004, the former
surpassed the latter for the first time, becoming the largest
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APEC ENERGY OVERVIEW 2024

consumption sector, and rising gradually since then. Limited economic
activities due to the COVID-19 lockdown in 2020 caused a drop inenergy consumption across most sectors except residential. However,in 2021, the final energy consumption was restored to a similar level asin 2019.

100%
Non-energy
Agriculture & others
80%
Residential
Commercial

60%

400
350

Transport
40%

300
250
200

20%

Industry

150
100

0%

50

Hong Kong, China

APEC

0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Final energy demand by sector (PJ)

Figure 4: Hong Kong, China’s final consumption by sector (PJ), 2000 to
2021

Figure 5: Final consumption by sector, Hong Kong, China and APEC,
2021

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

HKC's commercial energy consumption share was five times larger
than the APEC region in 2021 (Figure 5), as service activities
contributed the largest share of economic output since the early 2000s.
The transport sector's share was slightly higher than the APEC region,
while industry, agriculture & other sectors' shares were much smaller.

Source: EGEDA (2023)

Final energy demand
HKC's final energy demand was stable at around 280 PJ from 2010 to2021, except for the pandemic-related drop in 2020 (Figure 6). The
final energy demand has been dominated by the electricity and others
category since 2004. The share of electricity and others rose from 50%
in 2004 to 60% in 2021.
Demand for oil, gas, renewables, electricity and others recovered in
2021 to the previous level, reflecting that mobility and economic
activities post COVID-19 lockdown were resuming gradually.

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APEC ENERGY OVERVIEW 2024

Figure 6: Hong Kong, China’s final energy demand by fuel (PJ), 2000 to
2021
400

Figure 7: Final energy demand fuel share, Hong Kong, China and
APEC, 2021
100%

350

Electricity andothers

80%

300
250

Renewables

60%

200

Gas

150
40%

100

Oil

50
20%

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)

Coal
0%
Hong Kong, China

APEC

Source: EGEDA (2023)

Note: Does not include non-energy sector consumption of energy products.

Transformation

As a services-based and high-electrification economy, HKC's electricity
and others’ share was almost double that of the APEC region in 2021
(Figure 7), with the energy mostly consumed by the commercial andresidential sectors. The shares of oil, gas, and renewables were
smaller than those in the APEC region, and end-users in HKC did notconsume coal in 2021.

Power sector
In the total primary energy supply, HKC's electricity generation relies
heavily on fossil fuels, specifically coal and gas. However, the structure
has gradually changed between both fuels for the past decade,following the HKC decarbonisation plan in the power sector. On top ofits commitment to the Paris Agreement, HKC released the CAP2050 in
2021, which comprises targets and mitigation plans to reduce carbon
emissions by 50% (compared with 2005 level) before 2035 and reachcarbon neutrality in 2050. One of the mitigation plans is to phase out
coal consumption gradually in electricity generation by 2035.
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APEC ENERGY OVERVIEW 2024

As a result of HKC’s decarbonisation commitment, the coal share inelectricity generation declined by more than half, from 80% in 2013 to
36% in 2021 (Figure 8), while the share of electricity generation fromgas increased from 19% in 2013 to 62% in 2021, reflecting the shift
from coal to gas in HKC's power sector. All other fuels aside from coaland gas accounted for less than 1% of the fuel mix in 2021. Other
renewables and others increased by about 56% in a year, increasingfrom 0.17 TWh in 2020 to 0.26 TWh in 2021.
Figure 8: Hong Kong, China’s electricity generation by fuel, 2000 to
2021

Electricity generation (TWh)50

15% by 2050. At the same time, HKC will explore regional cooperation
on zero-carbon energy and identify sources of zero-carbon energy inneighbouring areas.
HKC relies heavily on imported fossil fuels to generate electricity andmeet demands. Most of the imported coal and gas in 2021 wastransformed into electricity for final consumption. The dominance ofboth fuels in the power sector is apparent compared to the APEC
region's generation mix in 2021 (Figure 9).
Figure 9: Electricity generation fuel share, Hong Kong, China and
APEC, 2021
100%

45

OthersOther renewables
Geothermal
Nuclear

40
80%

35

Hydro

30
25

60%
Gas

20
15

Oil

40%

10
5
0

Coal

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

20%

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

0%
Hong Kong, China

APEC

Source: EGEDA (2023)

HKC will gradually cease using coal for daily electricity generation andreplace it with low- to zero-carbon energy, as stated in the CAP2050.
Gas will be the primary substitute fuel for coal, supported by otherrenewables. Other renewables’ share will be increased to 7.5%- 10% of
the fuel mix in electricity generation by 2035 and further increased to89

APEC ENERGY OVERVIEW 2024

Energy Transition

Energy security

Emissions
HKC CO2 emissions increased by about a third in the period 2000 to
2014, peaking at 40 million tonnes in 2014. Since then, CO2 emissions
have declined to 30 million tonnes in 2021, which is even less than in
2000. Various decarbonisation measures from both the supply anddemand sides have supported the reduction of CO2 emissions in HKC,
including promoting electric vehicles and energy-saving measures,
introducing innovative waste-to-energy and waste-to-resources
facilities, and reducing coal use in electricity generation.
Figure 10: Hong Kong, China’s CO2 combustion emissions (million
tonnes), 2000 to 2021

HKC started diversifying its gas sources by importing LNG through theoperation of its first offshore LNG receiving terminal in mid-2023. Its
maximum regasification is to meet the growing gas demand, mainly
from the power sector. HKC also imports zero-carbon energy from thenuclear power station located in Guangdong, China via an electrical
grid interconnection of the China Southern Power Grid.

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity and to
double the share of modern renewables.
Energy intensity goal

45.0 0CO2 combustion
emissions40.0 0Million tonnes CO2

35.0 030.0 0APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economy targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.

25.0 020.0 015.0 010.0 0
5.0 0
.0 0
2000

In 2011, APEC member economies agreed to increase their target to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.

2005

2010

2015

2020

Relative to a 2005 baseline, HKC's final energy consumption intensity
declined by 35% from 2005 to 2021, about a 2.2% annually reduction.
The energy intensity reduction in HKC has also contributed to thepositive progress towards achieving APEC's energy intensity goal.

Source: EGEDA (2023)

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APEC ENERGY OVERVIEW 2024

Figure 11: Hong Kong, China’s total final energy consumption intensity
index, 2000 to 2035 (2005 = 100)

Energy intensity index (2005 = 100)

180

Figure 12: Hong Kong, China’s modern renewable energy share, 2010
and 2021
1.2%
Change from2010 to 2021

160
1.0%

140
120

0.8%
Total final energy consumption energy intensity

100

0.6%

80
APEC-wide goal 2035

60

0.4%

40
20
0
2000

0.2%
2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

0.0%
2010

Change2021

Doubling of renewables

Source: EGEDA (2023)

The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doublinggoal.

Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

HKC's share of modern renewables in final energy consumption
reached 1.1% in 2021, increasing by about 87% in 11 years (Figure12). The renewables share in electricity generation is relatively low.
Despite this, there was a rise from 0.11% to 0.71% over the same
period (Figure 13).

HKC committed to increasing the share of renewables in the fuel mix
for electricity generation to 7.5%-10% by 2035 and 15% by 2050
through developing more advanced waste-to-energy facilities andFeed-in Tariff (FiT) Scheme to encourage the community to develop
distributed renewables, specifically solar energy.

91

APEC ENERGY OVERVIEW 2024

Figure 13: Hong Kong, China’s renewable generation share, 2000 to
2021

Source: EGEDA (2023)

92

APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

Reference

Green Tech Fund (GTF)

HKD 400 million has been allocated for setting up the GTF to provide better and more
focused funding support for environmental protection.

GTF

Energy Efficiency Initiatives

Mandatory Energy Efficiency Labelling Scheme (MEELS), Voluntary Energy Efficiency
Labelling Scheme (VEELS), Building Energy Efficiency Ordinance (BEEO), District Cooling
System (DCS), Retro-Commissioning.

MEELS, VEELS, BEEO,
DCS, RCx

Renewable Energy Initiatives

Feed-in tariff and Renewable Energy Certificate, Installing renewable energy system invarious government schools and welfare non-government organisations, Waste-to-energy
infrastructures.

GOVHK, HKRENet

Scheme of Control Agreements(SCAs)

Promotes the development of quality service by power companies and improves energy
efficiency and energy conservation.

Environment and Ecology
BureauA Memorandum ofUnderstanding Between the
National Energy Administration(NEA) and HKC

China provides HKC with a stable supply of natural gas and nuclear electricity.

Environment and Ecology
BureauEnergy-Saving Plan for Hong
Kong's Built Environment 20152025+

Comprises of an energy-saving policy and strategies to achieve energy intensity reduction
by 40% from the 2005 level by 2025.

Environment and Ecology
BureauClimate Action Plan 2030+
ReportPlans and measures across sectors to reduce carbon intensity by 65% to 70% from the 2005
level by 2030, equivalent to a 26% to 36% absolute reduction and a reduction to 3.3-3.8
tonnes on a per capita basis.

CLIMATEREADY

Climate Action Plan 2050

Comprehensive plans and measures across sectors to achieve carbon neutrality before
2050.

Environment and Ecology
BureauHong Kong Roadmap on
Popularisation of Electrical
VehiclesMeasures related to electric vehicles to achieve zero vehicular emissions before 2050.

Environment and Ecology
Bureau93

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Clean Air Plan for Hong Kong
2035

Comprehensive policies, measures, and long-term decarbonisation strategies to improve theair quality.

Environment and Ecology
BureauEnvironmental Protection and
Ecological Conservation

Striving to achieve carbon neutrality before 2050 and reduce carbon emissions by 50%
before 2035 as compared to the 2005 level.

Policy Address 2023

Notable Energy Developments
Energy development

Details

Reference

Green Tech Fund (GTF)

GTF Assessment Committee in the third round approved 8 projects from 80 applications witha total grant of around HKD 30 million. The fourth round of GTF applications closed on 20
March 2024.

Green Tech FundTax Incentives Scheme forEnvironment-friendly Commercial
VehiclesHKC released a Qualifying Standard for Environment-friendly Commercial Vehicles, which
took effect from 1 April 2024 to 31 March 2025.

Environmental Protection
Department

LNG Receiving Terminal

The first HKC LNG receiving terminal was in operation in mid-2023. The floating storage andregasification unit (FSRU) vessel has a storage capacity of 263 000 cubic metres, aregasification capacity of 800 million standard cubic feet per day.

CLP
HKE

Useful links
The HKC Government – www.gov.hk/en
Electrical and Mechanical Services Department – www.emsd.gov.hk
Environment and Ecology Bureau – https://www.eeb.gov.hk
Environmental Protection Department – www.epd.gov.hk
Council for Sustainable Development – https://www.eeb.gov.hk/en/susdev/council/pastreports.htm
Climate Ready – https://cnsd.gov.hk/en/climate-ready/94

APEC ENERGY OVERVIEW 2024

Information on Renewable Energy (RE) Technologies – https://re.emsd.gov.hk/
Low Carbon Living Calculator – https://www.carboncalculator.gov.hk

References
Census and Statistics Department, Hong Kong Special Administrative Region (2022), Hong Kong Energy Statistics – 2021 Annual Report,
https://www.censtatd.gov.hk/en/data/stat_report/product/B1100002/att/B11000022021AN21B0100.pdf
Electrical & Mechanical Services Department (EMSD) (2023), Hong Kong Energy End-use Data 2023,
https://www.emsd.gov.hk/filemanager/en/content_762/HKEEUD2023.pdf
Hong Kong Special Administrative Region of the People's Republic of China (2023), The Chief Executive's 2023 Policy Address,
https://www.policyaddress.gov.hk/2023/en/policy.html
GovHK Press Releases (2024), LCQ8: Promoting the popularization of electric vehicles, 10 Jan – 2024,
https://www.info.gov.hk/gia/general/202401/10/P2024011000267.htm
https://www.eeb.gov.hk/tc/see_blog/blog20231226.html

95

APEC ENERGY OVERVIEW 2024

Indonesia
Introduction
Indonesia is the world’s largest archipelagic economy, located to thesouth-east of mainland Southeast Asia, between the Pacific Ocean andthe Indian Ocean. The economy’s total land area, approximately 1.9
million km2, is 25% of its territory and the largest in Southeast Asia. The
population, around 276 million in 2022 (BPS, 2023), was fourth globally.
Indonesia had a gross domestic product (GDP) of US dollar (USD) 3 247
billion and a GDP per capita of USD 11 859 in 2021 (2017 USD
purchasing power parity [PPP]), recording an annual increase of 3.7%
and 3% since 2020, respectively (World Bank, 2023). Indonesia’s
economy continues to recover from the COVID-19 pandemic in 2020. In
2022, Indonesia’s economy grew at a rate of 5.3%, which is higher than
the growth before the pandemic (BPS, 2023).
Indonesia updated its Nationally Determined Contribution (NDC) in
September 2022. The revised NDC reflects a more substantialcommitment to reducing emissions by 31.89% unconditionally and43.20% conditionally by 2030, compared to the initial NDC and its
updated version. This enhanced NDC, along with the Long-Term Low
Carbon and Climate Resilience Strategy (LTS-LCCR) 2050, outlines
Indonesia's vision to attain net zero emissions by 2060 or earlier(UNFCCC, 2022).
In 2022, Indonesia, in collaboration with the International Partners Group(IPG), initiated the Just Energy Transition Partnership (JETP) to expedite

the economy’s transition to cleaner energy in the power sector. This longterm partnership seeks to secure an initial funding of USD 20 billion,
sourced from both public and private financing, over a span of three tofive years. The primary objectives include achieving a power sector
emission target of no more than 290 MT CO2 by 2030, with an immediate
trajectory toward net zero emission in the power sector by 2050.
Additionally, JETP aims to hasten the adoption of renewable energy, witha goal for renewables to constitute at least 34% of total power generation
by 2030. In 2023, JETP took a significant step by unveiling theComprehensive Investment Policy Plan, which provides detailed
recommendations concerning the energy transition in the power sector.
This plan encompasses insights into policy reforms, financing
requirements, and strategies to propel the shift toward a moresustainable energy landscape (JETP, 2023). Looking forward, theeconomy expects to see an enormous growth in population by 0.5%-1%
from 2020-2050. As such, the economy needs to combine its efforts todecarbonise with the critical goal of maintaining secure and affordable
energy for the economy.
Table 1: Indonesia macroeconomic data and energy reserves
Key data a, b

Energy reserves c, dArea (million km2)

1.9

Oil (billion barrels)

2.4

Population (million)276

Gas (trillion cubic feet)44

GDP (2017 USD billion
PPP)

3 247

Coal (million tonnes)

34 869GDP per capita (2017
USD PPP)

11 859Uranium (kilotonnes U< USD 130/kgU)

7 391

Source: a World Bank (2023) b Energy Institute (2023); c NEA (2023)
96

APEC ENERGY OVERVIEW 2024

Note: Reserves are total proved reserves and reasonably assured recoverable resources
for uranium.

Indonesia has substantial and diverse energy resources of oil, naturalgas, coal, and renewables. In 2021, there were 14 634 PJ of proven oil
reserves and over 44 852 PJ of proven natural gas reserves. Indonesia’scoal reserves were estimated at almost 526 316 PJ (Table 1), with morethan 60% of the reserve in Kalimantan and the rest mainly in Sumatra(MEMR, 2022b).
In 2022, renewable energy potential included 23 gigawatts (GW) of
geothermal, 95 GW of hydropower, 3294 GW of solar, 57 GW ofbioenergy, 155 GW of wind power, and 63 GW of ocean energy (DEN,2023).

Indonesia’s natural gas production in 2021 was 1 718 PJ, or 21% higher
than in 2020 and 5.5% higher than in 2019. Indonesia has continued toprioritise gas utilisation for domestic demand, and therefore limiting theshare of gas exports. Even so, gas was still Indonesia’s second-largest
energy export in 2021, amounting to 280 PJ exported via pipeline and
485 PJ via LNG cargo (MEMR, 2022c).
Indonesia still had to import aviation fuel, diesel oil, and LPG due to thecapacity limitations of its refinery units. Indonesia has been trying to
reduce LPG imports by promoting induction and electric cookers,
resulting in a 0.95% reduction in LPG imports in 2021 compared to 2020.
Figure 1: Indonesia energy supply, production, and net imports (PJ),
2000 to 2021

Energy Supply and Consumption
In 2021, Indonesia's energy production increased by 8.7% to 20 951 PJ,
mainly due to the increase in coal, gas, and biodiesel production.
Energy exports, which mainly were coal and crude oil, increased by 7.4%
from 2020. Indonesia's energy imports, mainly high-calorie coal andpetroleum products, raised in 2020 by 28%. In total, Indonesia’s total
primary energy supply (TPES), compared to 2020, increased by 9.4% tobecome 9 943 PJ.
Coal production in 2021 increased by 0.9% more than in 2020 asinternational coal demand began to recover from the COVID-19
pandemic. However, coal production in 2021 was still 3.9% below the
production level in 2019. Indonesia was one of the world’s biggest
thermal coal exporters, with export capacity amounting to 435 million
tonnes in 2021, equivalent to 70% of its production. China, India, and thePhilippines remained as Indonesia's top three coal export destinations.

Production, net imports and TPES
(PJ)

Total primary energy supply

25 000
20 000
Production

15 000
10 0005 000
02000-5 000Total Primary Energy Supply
2005

2010

2015
2020
Net imports-10 000-15 000

Source: EGEDA (2023)

In 2021, Indonesia's energy supply was predominantly sourced fromfossil fuels. The supply of oil increased by 15% compared to 2020, driven
by the surge in transportation activity, while gas witnessed a notable 21%
97

APEC ENERGY OVERVIEW 2024

increase from the previous year. In contrast, energy supply fromrenewables only saw a modest 6% increase from 2020. The boost in
renewable energy mainly came from solar, biogas, and biodiesel,
showing a rise of about 10%. Hydro and biomass experienced a moremodest increase of around 5%, whereas wind and municipal waste saw
a decline since 2020.
Figure 2: Indonesia energy supply by fuel (PJ), 2000 to 2021
12 000Transport is the primary source of oil demand, and so a nearly 10%
increase in transport activity in 2021 was the leading cause of the rise in
the proportion of oil to 31%, compared with 27% in the APEC regions.
Renewable energy in Indonesia (19%) was more than twice as high asthat of APEC (8%). This disparity is attributed to the abundant renewable
resources in Indonesia, including geothermal, biofuel, and solar energy.
Additionally, the success of renewable utilisation programmes, such as
the biodiesel B30 implementation programme, has contributed to thissignificant increase in renewable energy adoption.
Figure 3: Energy supply mix – Indonesia and APEC, 2021

10 000

TPES by fuel (PJ)

100%

Other

8 000

Renewables
80%

6 000

Gas
4 000
60%
2 000

Oil
40%

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Others

Source: EGEDA (2023)

Fossil fuels in 2021 accounted for more than 80% of Indonesia's energy
supply (Figure 3). However, compared to 2020, while the supply of coalremained the same, it accounted for a slightly lower share of the fuel mix
than in APEC. Following a slight decrease in supply, gas also accounted
for a lower share than in APEC, at 17.3% in Indonesia and 24% in APEC.

20%

Coal

0%
Indonesia

APEC

Source: EGEDA (2023)

Total final consumption
Indonesia's final energy demand reached 6 031 PJ, marking a 5.7%
98

APEC ENERGY OVERVIEW 2024

increase from 2020 and showcasing a recovery from the 11% decline
observed in 2019-2020 (Figure 4). The transport sector dominatedconsumption, contributing the highest increase with a 13% uptick from
2020, though not yet reaching 2019 levels. The industry sector continued
to grapple with the impact of the COVID-19 pandemic, experiencing a
3.8% decrease in energy demand from 2020. In the residential sector,
energy demand increased by only 0.8%, maintaining a constant demandfor decades. Despite a growing population and increased residential
structures, this stability is attributed partly to using more efficienthousehold appliances, including LED lighting and efficient air
conditioning. The agriculture sector showed a remarkable recovery, witha 12% increase in energy demand in 2021, rebounding from a 17% dropin 2020.
Figure 4: Indonesia final consumption by sector (PJ), 2000 to 2021

in its energy demand distribution. The transport sector commands thelargest share at 40%, unlike the APEC region, where the industry sector
takes the lead at 33%.
Noteworthy distinctions extend to the shares of agriculture and nonenergy use, which are relatively small in Indonesia, accounting for 1.1%
and 5.9%, respectively. In comparison, APEC registers higher figures at
4.6% and 12% for agriculture and non-energy use, respectively. These
differences underscore Indonesia's unique energy profile, portraying it
as a high-energy consumer with a significant emphasis on mobilisation.
In contrast, other APEC economies, on average, exhibit greater
industrialisation.
Figure 5: Final consumption by sector, Indonesia and APEC, 2021
100%
Agriculture & others
80%

6 000

Residential

5 000
Commercial

60%

4 000
3 000

Transport
40%

2 000
1 000

20%

0

Industry

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Final energy demand by sector (PJ)

Non-energy
7 000

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy0%Indonesia

APEC

Source: EGEDA (2023)
Source: EGEDA (2023)

In contrast to the broader APEC economy (Figure 5), Indonesia diverges
99APEC ENERGY OVERVIEW 2024

Final energy demand
As Indonesia's largest energy consumer, the transportation sector relies
heavily on oil fuel, making it the primary contributor to the economy's final
energy consumption (Figure 6). Beyond powering land transportation, oil
is crucial in fuelling marine transit, especially in an economy with anextensive archipelago like Indonesia. Additionally, oil is utilised for power
generation in remote and small islands that are not connected to the grid.
Considering Indonesia's status as a net oil importer and the limited
longevity of its current oil reserves, regulations have been implemented
to ensure efficient oil use. Measures such as promoting biodiesel usage,
limiting oil subsidies, and encouraging the adoption of Low-Cost Green
Cars (LCGC) have been enacted. These initiatives have contributed to adecrease in the final energy demand for oil in 2021 compared to 2014.

Meanwhile, the demand for electricity has been consistently rising over
the years, driven by government programmes aimed at enhancing
energy efficiency and promoting electrification. Industries andcommercial enterprises, previously reliant on fossil fuels, areencouraged to transition to power from the utility grid. This shift towards
grid-based power consumption is evident even in major companies like
Pertamina, which are gradually transitioning from using their own oil
production to relying on grid power to energise some of their oil and gas
production and refinery platforms.
Figure 7: Final energy demand fuel share, Indonesia and APEC, 2021
100%
Electricity andothers80%

Final energy demand by fuel (PJ)

Figure 6: Indonesia final energy demand by fuel (PJ), 2000 to 2021

Renewables

60%

7 000

Gas

6 000

40%

5 000

Oil
20%

4 000

Coal

3 000

0%
Indonesia

2 000
1 000

APEC

Source: EGEDA (2023)

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)

In 2021, Indonesia's final energy demand was as much as 5 675 PJ,
representing only 2.8% of the total APEC energy demand. Within APEC,
electricity emerged as the dominant source, constituting 34%, followedby oil at 32%, gas at 18%, and renewables at 4.3% of APEC's totalenergy demand.

Note: does not include non-energy sector consumption of energy products.
100

APEC ENERGY OVERVIEW 2024

In contrast, Indonesia presented a different energy profile. The
economy’s primary reliance was on oil, accounting for 49%, thenelectricity at 18%, coal at 9.1%, and lesser contribution from gas at 8.9%.
Notably, Indonesia boasted significantly more contribution fromrenewables at 16%, a figure surpassing the corresponding percentage
within APEC.

Transformation
Power sector
In 2021, the total electricity generated was 309 terawatt-hours (TWh),
6.5% higher than that of 2020 and 5.3% higher than that of 2019 (Figure8). This shows that even though COVID-19 affected demand in all
sectors, the electrification rate was high enough that it still increased.
The prominent increase was in the industry sector, which saw a 14%
increase in demand, followed by the transportation and commercial
sectors, which saw 8.5% and 4.9% increases, respectively.
The electricity was produced by facilities with a combined on-grid andoff-grid capacity of 74.5 GW. This capacity grew by 2 GW compared tothe previous year, driven mainly by the addition of Coal, Combined
Cycle, and Hydro Power Plants (MEMR, 2021a). The total 74.5 GW
capacity comprised Steam Power Plants (fuelled with coal, gas, oil, or
co-firing) at 37 GW, Combined Cycle Gas Turbines at 12.5 GW, Hydro
at 6 GW, and Diesel at 5 GW.
Despite a diverse capacity, Indonesia's power sector continued its
reliance on coal (Figure 8), contributing 61% of the total electricity
generation in 2021. Coal has evolved into the backbone of electricity
generation, with its share steadily increasing from 37% in 2000 to 61%
in 2021 (EGEDA, 2023). This shift is attributed to its low cost andfavourable Levelised Cost Of Electricity (LCOE) compared to other fuel.

Following coal, gas emerged as the second-largest contributor toelectricity generation share. It primarily functioned as a load peaker andfollower, ensuring the stability of the power system and meeting peakdemand in the evening.
Electricity generated from hydro sources increased by 7.9% from theprevious year. Hydroelectricity is commonly employed as a load peakerdue to frequent seasonal variations that can suddenly reduce waterlevels, affecting power production capacity. Encouragingly, electricity
generated from renewables saw a significant 9.2% increase from 2020.
This surge was mainly attributed to hydro (mini and micro), alongsideother renewables such as biomass, biogas, solar, and wind.
Notably, while coal played a crucial role in expanding electricity
generation capacity in 2021 compared to 2020, the increase did not
originate from coal power plants owned by the domestic utility. Instead,
Independent Power Producers (IPP) and Private Power Utilities were thedriving forces. Domestic utility-owned coal power plants produced 113
763 TWh in 2021, a marginal 0.4% increase from previous years.
Domestic utility-owned coal power plants produced 113 763 TWh in
2021, a marginal 0.4% increase from previous years. Conversely,
electricity generated by coal power plants owned by IPP and PPU surged
by 25% in 2021, reaching 76 196 TWh.
Lastly, while electricity generated from oil remained consistent in 2021
compared to 2020, a notable trend has emerged since 2000, indicating
a continuous decline in the oil share within the electricity energy mix. Thisdecline aligns with the government's persistent push for the dedieselisation programme, aimed at substituting the use of oil fuel ininternal combustion engines (ICE) with a combination of gas fuel andrenewables.

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APEC ENERGY OVERVIEW 2024

Figure 8: Indonesia electricity generation by fuel, 2000 to 2021

potential, solar energy comprised a minimal 0.06% share in 2021,
remaining unchanged from 2020.

350

Electricity generation (TWh)Figure 9: Electricity generation fuel share, Indonesia and APEC, 2021
300
100%

OthersOther renewables
Geothermal
Nuclear

250
80%

200

Hydro
150

60%

Gas

100

Oil

40%
50

Coal

20%

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others0%Indonesia

Source: EGEDA (2023)

Source: EGEDA (2023)

Compared to the APEC Energy Mix in 2021, Indonesia exhibited aheightened dependence on coal for electricity generation (Figure 9).
Coal constituted 62% of Indonesia's electricity mix, a significant disparity
from APEC's 43%. The share of gas in Indonesia's energy mix stood at
18%, closely trailing APEC's 20%. This similarity underscores the vitalrole of gas in maintaining system frequency and stability for bothIndonesia and APEC as a whole.

Refining

Regarding renewable energy, Indonesia held an 18% share of electricity
from renewable sources, while APEC had already achieved 25%.
Notably, Indonesia's renewable energy is primarily derived from hydro(8%) and geothermal (5%), whereas APEC predominantly sourced
renewables from hydro (14%). Despite Indonesia's substantial solar

APEC

In 2022, Indonesia operated eight oil refineries, collectively possessing
a processing capacity of 1 151 thousand barrels of oil equivalent or 7 PJof energy per day. The most substantial among them is the Cilacap
refinery, boasting a daily capacity of 2.1 PJ. Throughout the year, theserefineries processed 322 million barrels of crude oil obtained from both
imports and domestic sources. The diverse range of refined products
includes gasoline, diesel oil, fuel oil, kerosene, aviation turbine fuel, andaviation gas, as well as other non-fuel items such as LPG, lubricants,
and naphtha. In 2022, the overall output of oil fuel from refineries reachedapproximately 1 597 PJ, while non-fuel production accounted for around
312 PJ. Presently, Indonesia is actively expanding its refinery capacity
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APEC ENERGY OVERVIEW 2024

through the Refinery Development Master Program (RDMP), which
encompasses the expansion of existing facilities and the establishmentof new refineries.

Energy Transition
In 2021, Indonesia declared its commitment to achieving net zero
emissions by 2060 with the issuance of its Long-Term Strategy on Low
Carbon and Climate Resilient Development (LTS-LCCR) 2050
documents. In 2022, Indonesia updated its nationally determined
contribution (NDC), elevating its 2030 emission reduction target.
Notably, the Ministry of Energy and Mineral Resources (MEMR) and theInternational Energy Agency (IEA) collaboratively introduced Indonesia's
Net Zero Emission (NZE) roadmap in September 2022 (MEMR, 2022a).
This strategic plan outlines various mitigation measures, such as:
•

•
•
•
•
•
•

A significant emphasis on the development of renewable sources
specifically solar, hydro, and geothermal energy a considerable focus
on the development of renewable sources – specifically solar, hydro,
and geothermal energy.
Gradual phasing out of coal power plants.
Enhancement of transmission connectivity, andImplementation of Carbon Capture and Storage/Utilisation(CCS/CCUS).
Increasing electric vehicle uptake.
Improved energy efficiency, andThe development of nuclear, hydrogen, and ammonia in the energy
sector (MEMR, 2022a).

The Just Energy Transition Partnership (JETP), established in
November 2022 by the Government of Indonesia, together with theInternational Partners Group (IPG), has planned to organize USD 20

billion in funding to finance the energy transition. This initiative gains
significance as the NDC emission reduction target for 2030, initially set
at 41%, has been revised to a more ambitious 43%, with dependence oninternational funding.
In November 2023, the JETP Comprehensive Investment and PolicyPlan (JETP-CIPP) was introduced, outlining the formation of multiple
working groups within JETP. These groups include key partners such as
the International Energy Agency, Danish Energy Agency, AsianDevelopment Bank, GFANZ, JICA, World Bank, USAID, and various
other institutes. The primary purpose of these working groups is tooversee programmes and funding initiatives aimed at achieving thedeliverables of the energy transition.
The initial funding injection from the International Partners Group (IPG)
is anticipated to act as a catalyst for additional funding, totalling USD 97
billion between 2023 and 2030. This funding is crucial to support various
energy transition projects, including (JETP, 2023):••••

The deployment of transmission lines and grids.
The retirement and managed phase-out of early coal-fired power
plants (CFPP).
The acceleration of dispatchable renewable energy (16 GW built out
by 2030), andThe acceleration of variable renewable energy (40 GW built out by2030).

Emissions
Indonesia’s CO2 combustion emissions have maintained an increasing
trend for the past two decades (Figure 10). On average, the CO2
combustion emissions increased by 4.1% CAGR from 2000, though we
can see that in 2020, the emissions decreased by about 6% compared103

APEC ENERGY OVERVIEW 2024

to 2019 due to the COVID-19 pandemic.
Figure 10: Indonesia CO2 combustion emissions (million tonnes), 2000
to 2021700

Million tonnes CO2600

CO2 combustion
emissions500

2022, the economy continued the domestic market obligation policy forcoal, mandating coal miners to allocate 25% of their production fordomestic use. Additionally, coal prices were capped at USD 70/tonne forelectricity (MEMR, 2022b) and USD 90/tonne for the industry (MEMR,
2022d). Similar regulations were imposed on gas, with fixed prices set
for gas used in electricity and specific industries from 2021 to 2024.
These measures are essential for managing the energy market andensuring stability in the face of evolving global energy dynamics (MEMR,
2021b).

400

APEC Energy Goals

300

There are two energy-related objectives that APEC member economies
have agreed to meet as a collective – to improve energy intensity anddouble the share of modern renewables.

200

100
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
Coal, oil, and gas have historically dominated Indonesia's energy supply,
comprising 81% of the total primary energy supply (TPES) in 2021, withcoal holding the largest share at 33% (EGEDA, 2023). While the majorityof fossil fuel production occurs domestically, making Indonesia a net
energy exporter, the economy has shifted from being a net oil exporterto an importer, thereby exposing its oil supply security to global market
fluctuations (EGEDA, 2023). Despite this shift, Indonesia maintained ahigh self-sufficiency rate, reaching 211% in 2021 (EGEDA, 2023).
To ensure the affordability of energy demand, Indonesia has
implemented energy price regulations for domestic consumption. In

Energy intensity goal
In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline. The
original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The goal
does not impose individual economy targets, but it is possible to track
the progress of individual APEC economies relative to the overarching
proportional improvement.
In 2021, Indonesia’s total final energy consumption intensity (notincluding non-energy) improved by around 33% relative to 2005. Thishas contributed to APEC’s overall commitment to improve energy
intensity by 45% by 2035, as shown in Figure 11.

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APEC ENERGY OVERVIEW 2024

Figure 11: Indonesia total final energy consumption intensity index,
2000 to 2021 (2005 = 100)

Figure 12: Indonesia modern renewable energy share, 2010 and 2021
18.0%

Energy intensity index (2005 = 100)

120

16.0%
Total final energy consumption energy intensity

100

Change from2010 to 2021

14.0%
12.0%

80

10.0%

60

8.0%

APEC-wide goal 2035

6.0%
40
4.0%
20

2.0%
0.0%

0
2000

2010
2005

2010

2015

2020

2025

2030

2035

Change2021>

Source: EGEDA (2022)

Source: EGEDA (2023)

Doubling of renewables

Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doublinggoal.

Indonesia's utilisation of modern renewables in 2010 accounted for 8.1%
of its final energy consumption. But in 2021, this proportion had notably
increased to 17% (Figure 12). Over the past decade, there has been asurge in the consumption of fossil fuels, particularly coal and oil, in
response to the rapidly expanding energy needs within Indonesia(EGEDA, 2023). Remarkably, the share of modern renewables in the
2020s has surpassed that of 2019. This shift is attributed to a decline infossil fuel demand, particularly in oil for final energy consumption, and a
105

APEC ENERGY OVERVIEW 2024

concurrent rise in renewables for electricity generation. As Indonesia
advances its policies aimed at achieving net zero emissions by 2060, or
possibly even sooner, it is anticipated that the contribution of renewables
to the overall energy mix will further escalate, signalling a pivotal step
toward a more sustainable energy future.
Figure 13: Indonesia's renewable generation share, 2000 to 2021
20%
18%

Renewables share in electricity mix

16%

Proportion

14%
12%
10%
8%
6%
4%
2%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

106

APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

General Plan of National Energy

Indonesia has renewable energy targets in the energy mix of 23% in 2025 and 31% in 2050.

General Plan of National Electricity

Electricity generation targets are 23% renewables, 22% natural gas, 55% coal, and 0.4% oil by
2025. For 2038, targets are 28% renewables, 25% natural gas, 47% coal, and 0.1% oil.

Enhanced Nationally Determined
Contribution of Indonesia

A reduction target of 31.89% and conditional reduction target of up to 43.2% of the business-asusual scenario by 2030, with reduction of the energy sector targeted at 12.5% and conditionally15.5%.

Reference
Ministry of Energy andMineral Resources
Ministry of Energy andMineral Resources
UNFCC

Indonesia is prioritising coal gasification as a key energy security programme. The first pilot
programme is delivering the coal-to-dimethyl ether project in Sumatra. The constructed plant can
produce 1.4 tonnes of DME per year starting in 2027.
Programme to increase domestic oil production through investment in new oil fields and theuse of enhanced oil recovery. Through this approach, oil production is expected to grow from
705 000 bpd to 1 million barrels per day and gas production of 12 BSCFD by 2030.
The refinery development master plan improves Indonesian energy security by mandating
domestic processing of oil products. It is targeted to increase to 1.3 million bpd by 2025.
The state oil company produces 100% diesel from palm oil by converting the existing Cilacap
refinery, producing 6 000 bpd in 2021.

Ministry of Energy andMineral Resources

New Simplified Gross Split
production share contract

Indonesia plant to introduce new production share contract, simplified gross split, for oil andgas development in Indonesia.

Directorate General of Oiland GasGas pricing policy for the industry

The gas price for the industrial sector lowered to or close to USD 6/MMBTU for 2020-2024.

Gas pricing policy for electricity
generation

The gas price for electricity generation lowered to or close to USD 6/MMBTU for 2020-2024.

Fuel conversion to LPG for small
fishery boat

Indonesia continues its programme to convert oil fuel to LPG for small fishery boats as an effort
to reduce emissions.

City gas expansion programme

Increases the share of gas supply to buildings, mostly in residential buildings. City gas network
expansion will increase from up to 662.431 by 2021.

Biodiesel blending rate programmeincreased from 30% to 35%

Mandatory biodiesel blending program starting from a 10% blend rate in 2016 to a 20% rate in2019 to 30% rate in 2020, and 35% rate from February 2023 onward.

Coal-gasification programme
One million barrels of oil
production
The Refinery Development Master
Plan
Green Refinery Project

Ministry of Energy andMineral Resources
Pertamina
Pertamina

Ministry of Energy andMineral Resources
Ministry of Energy andMineral Resources

Directorate General of Oiland GasDirectorate General of Oiland GasMinistry of Energy andMineral Resources
107

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Coal Domestic Market Obligation

Implementation of Coal Domestic Market Obligation rate at 25% of each coal mining
company's production with a selling price of USD 70 per tonne for power production in 2022.

EV Development Programme

The target for light duty EVs is to reach 2 million units, and electric motorcycles will reach 13
million units by 2030.

Ministry of Energy andMineral Resources
Directorate General New
and Renewable Energy
and Energy Conservation

Energy Efficiency Improvement
Programme

Currently, 121 million units of ICE two-wheeler motorcycles are in operation in Indonesia. To
accelerate the electrification in transport sector, Indonesia plans to launch the ICE to EV
conversion programme for two-wheeler motorcycle.
Mandatory Energy Efficiency standards for home appliances (LED, lighting, air circulating andair conditioning).
The Indonesian government aimed to improve energy efficiency by 17% of energy saving in 2025
and by 39% in 2050 against business-as-usual energy consumption.

Indonesia NZE Roadmap

Indonesia, in cooperation with IEA, launched its NZE roadmap for the energy sector of 2060.

Accelerating renewable energy
development

Indonesia has issued new Presidential regulation to accelerate the development of renewableenergy and phasing out its coal power generations.

Ministry of Energy andMineral Resources
Ministry of Energy andMineral Resources

Indonesia aims to increase
mineral-added value by developing
downstream industries.

Indonesia aims to increase mineral-added value by developing downstream industries (not only
providing/exporting raw materials) and the battery industry to support electrification, especiallyin the transport sector (EV).

Ministry of Energy andMineral Resources

The 2-wheeler ICE motorcycle
conversion programme
Mandatory Energy Efficiency

Ministry of Energy andMineral Resources
Ministry of Energy andMineral Resources
Ministry of Energy andMineral Resources

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APEC ENERGY OVERVIEW 2024

Notable Energy Developments
Energy development

Details

Reference

Abadi LNG ProjectIndonesia may form a consortium to take over Shell after Shell (35%) pulled out from Masela
Block (Abadi LNG Project). In this project, INPEX controls 65% and hopes to make a final
investment in Masela in the latter half of this decade.

REUTERS

Pertamina begins the year 2023
with thousands of barrels of oil
reserves discovered

Pertamina found potential oil deposits and produced thousands of barrels of new oil reserves in
the Rokan Working Area. There are four mainstay wells that are currently the focus because they
have sizable oil reserves, namely in the Minas, Petani, Benar, and Bekasap fields, which produce
between 1 000 and 1 400 barrels per day.

Pertamina

Bio-CNG from palm plantation

Indonesia started to produce Bio-CNG from palm plantations. For the first phase, 25
installations began to be constructed to make 387 000 M3 Bio-CNG.

Extension of Operation 2055: BP
LNG Tangguh Terminal

The operation contract of LNG Tangguh Terminal operated by BP is extended from 2035 up to
2055 with an expected new investment of USD 4.6 billion.

Ministry of Energy andMineral Resources
Ministry of Energy andMineral Resources

Coal-to-Dimethyl Ether (DME)
Conversion Programme

The coal-to-DME conversion programme is a strategy to reduce LPG imports relied on by thebuildings sector. DME production is expected in 2027 at 1.4 million tonnes per year, with a total
investment value of around USD 2.1 billion

Ministry of Energy andMineral Resources

Just Energy Transition
Partnership Commitment withIndonesia

EU and the International Partners Group (IPG) launched JETP with Indonesia. This extended
partnership aims to mobilise an initial USD 20 billion over three to five years to achieve the future
ambitious climate and energy targets.

JETP

Asia Zero Emission Community(AZEC)

Japan and Indonesia initiated the Asia Zero Emission Community (AZEC). With this initiative,
Indonesia is prioritised to receive USD 500 million in funding to implement the energy transition.

Ministry of Energy andMineral Resources

CCGT 275 MW in Sumatera

CCGT Riau, with a total capacity of 275 MW, started its operation in 2022.

Directorate General of
Electricity

Refinery Development Master
Program (RDMP) Balongan

Balongan Oil Refinery Unit Extension Program, as one of the refinery that undergo the Refinery
Development Program, has been completed

Pertamina

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APEC ENERGY OVERVIEW 2024

Useful Links
BPH Migas, Downstream Oil and Gas Regulatory Agency – www.bphmigas.go.id
Ministry of Energy and Mineral Resources (KESDM) – www.esdm.go.id
Directorate General of Electricity – www.djk.esdm.go.id
Directorate General of Oil and Gas – www.migas.esdm.go.id
Directorate General of New Renewable Energy and Energy Conservation – www.ebtke.esdm.go.id
Directorate General of Mineral and Coal – www.minerba.esdm.go.id
National Energy Council – www.den.go.id
SKKMIGAS, Special Task Force for Upstream Oil and Gas – www.skkmigas-esdm.go.id
Ministry of Transportation – www.dephub.go.id
Ministry of Industry – www.kemenperin.go.id
PT Pertamina – www.pertamina.com
PT Pertamina Gas – www.pertagas.pertamina.com
PT PGN (Persero) – www.pgn.co.id
PT PLN (Persero) – www.pln.co.id
Statistics Indonesia (BPS) – www.bps.go.id
UNDP Indonesia – www.id.undp.org
World Bank – www.worldbank.org

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APEC ENERGY OVERVIEW 2024

References
BPS. (2023). Statistical Yearbook of Indonesia 2022. Statistik Indonesia 2023, 1101001, 780.
https://www.bps.go.id/id/publication/2023/02/28/18018f9896f09f03580a614b/statistik-indonesia-2023.html
DEN. (2023). Indonesia Energy Outlook 2023, December 2023, ISSN 2527-3000
https://den.go.id/publikasi/indonesia-energy-outlook# https://den.go.id/publikasi/indonesia-energy-outlook#
EGEDA (Expert Group on Energy Data Analysis, APEC Energy Working Group)). (2023), APEC Energy Database.
https://www.egeda.ewg.apec.org/egeda/database_info/index.html
Energy Institute. (2023). Statistical Review of World Energy
Resources and data downloads | Statistical Review of World Energy (energyinst.org)
JETP. (2023). Comprehensive Investment and Policy Plan. https://jetp-id.org/cipp https://jetp-id.org/cipp
MEMR. (2022a). Energy Ministry, IEA Launch NZE Roadmap. https://www.esdm.go.id/en/media-center/news-archives/energy-ministry-iea-launchnzeroadmap
MEMR (2022b), Ministerial Decree concerning Coal Domestic Market Obligations and Coal Price for Power Plant.
https://jdih.esdm.go.id/storage/document/Keputusan%20Menteri%20ESDM%20Nomor%20267%20K%20MB%2001%202022%20Salinan%20Pe
menuhan%20Batubara.pdf.
MEMR. (2022c). Handbook Energy & Economic Statistics Indonesia 2022. Ministry of Energy and Mineral Resources Republic of Indonesia, 2022
https://www.esdm.go.id/en/publication/handbook-of-energy-economic-statistics-of-indonesia-heesi
MEMR. (2022d). Ministerial Decree concerning Coal Price for Industry.
https://jdih.esdm.go.id/storage/document/B-103HK.02.SJH.2.2022.pdf
MEMR. (2021a). Handbook Energy & Economic Statistics Indonesia 2021. Ministry of Energy and Mineral Resources Republic of Indonesia, 2021.
https://www.esdm.go.id/en/publication/handbook-of-energy-economic-statistics-of-indonesia-heesi
MEMR (2021b) Ministerial Decree concerning Gas Price for Power Plant
https://jdih.esdm.go.id/storage/document/Abstrak%20Kepmen%20ESDM%20No.%20135.K_HK.02_MEM.M_2021.pdf
NEA. (2023). Uranium 2022 Resources, Production and Demand.
https://www.oecd-nea.org/upload/docs/application/pdf/2023-04/7634_uranium_-_resources_production_and_demand_2022.pdf
111

APEC ENERGY OVERVIEW 2024

UNFCCC. (2022). Enhanced Nationally Determined Contribution Republic of Indonesia.
https://unfccc.int/sites/default/files/NDC/2022-09/23.09.2022_Enhanced%20NDC%20Indonesia.pdf https://unfccc.int/sites/default/files/NDC/202209/23.09.2022_Enhanced%20NDC%20Indonesia.pdf
World Bank. (2023). GDP, PPP (constant 2017 international D) – Indonesia | Data.
https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.KD?locations=ID

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APEC ENERGY OVERVIEW 2024Japan

in energy efficiency across various sectors, and the stimulation oftechnological innovation in energy storage and conservation.

Introduction

Key data a, b

Japan is an archipelago comprising of several thousand islands, withthe largest being Honshu, Hokkaido, Kyushu and Shikoku. Its terrain islargely mountainous and densely forested. Japan boasts the world's
third-largest economy after the United States and China.
In 2021, Japan’s real gross domestic product (GDP) was approximately
USD 5 157 billion (2017 USD purchasing power parity [PPP]) (World
Bank, 2023). With a population of 126 million, the economy enjoyed aper capita income of more than USD 41 000, a 2.6% increase from
2020, indicating a strong recovery momentum that has brought Japan’s
GDP close to its pre-pandemic levels. Despite its economic prowess,
Japan has modest energy resources, relying on imports for most of its
fossil fuel needs. The economy’s proven reserves include
approximately 44 million barrels of oil, 738 billion cubic feet (bcf) of
natural gas, and 350 million tonnes (Mt) of coal.
The Japanese Government periodically devises a Strategic Energy
Plan to steer Japan’s energy policy. The latest, the 6th Strategic Energy
Plan, promulgated in 2021, underscores a commitment to carbon
neutrality by 2050 and a reduction in greenhouse gas (GHG)
emissions. Furthermore, it introduces initiatives to ensure a stableenergy supply and lower energy costs while enhancing safety andfulfilling Japan’s energy demands amidst the ongoing battle against
climate change. This plan has already led to significant outcomes, suchas the increased adoption of renewable energy sources, improvements

Table 1: Japan’s macroeconomic data and energy reserves
Energy reserves c, d, eArea (million km2) a

378

Oil (million barrels) c

44

Population (million) b

126

Gas (billion cubic feet) c

738

GDP (2017 USD billion
PPP) b

5 157

Coal (million tonnes) d

350

GDP per capita (2017
USD PPP) b

41 035

Uranium (kilotonnes U <USD 130/kgU) e

6.6

Source: a GIS (2022); b World Bank (2023); c Xu & Bell-Hammer (2023); d EI (2023); e
NEA & IAEA (2023)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

A key legislative advancement, the amendment to the Act on
Rationalizing Energy Use effective from April 2023, broadens thepolicy’s remit to encompass non-fossil energies, signalling a strategic
pivot towards more sustainable energy consumption patterns. Thislegislative change reflects Japan's resolve to harmonise economic
vitality with environmental conservation, even as it navigates thelingering economic repercussions of the COVID-19 pandemic.

Energy Supply and Consumption
Total primary energy supply
In 2021, Japan’s total primary energy supply (TPES) reached 16 731
113

APEC ENERGY OVERVIEW 2024

petajoules (PJ), marking a 3.8% increase from the previous year
(Expert Group on Energy Data Analysis [EGEDA], 2023) (Figure 1).
Following the Great East Japan Earthquake, Japan took all its nuclear
reactors offline, leaving its energy mix dominated by fossil fuels.
Although coal and oil consumption saw a resurgence in 2021 following
the pandemic’s downturn, natural gas usage continued a steadydecline because of a significant increase in natural gas prices,
attributed to supply constraints and heightened global demand.

consumption heavily depends on imports, mostly from the Middle East.
During the 2010s, Japan diversified its oil sources, partially due toincreased imports from Russia via the Eastern Siberia Pacific Ocean
pipeline. By 2021, Saudi Arabia and the United Arab Emirates emerged
as the predominant suppliers, providing 37% and 36% of Japan’s oil,respectively (METI, 2023a).
Figure 2: Japan’s energy supply by fuel (PJ), 2000 to 2021
25 000Figure 1: Japan’s energy supply, production, and net imports (PJ),
2000 to 2021

20 000

TPES by fuel (PJ)

Total Primary Energy Supply
20 000Net imports

15 000

15 000
10 0005 000

10 000
0
5 000
0
2000

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Production, net imports and TPES
(PJ)

25 000

Production

Coal
2005

2010

2015

2020

Source: EGEDA (2023)

Oil remained the dominant energy source, accounting for 38% ofJapan’s TPES in 2021, with coal at 27% and natural gas at 22%(EGEDA, 2023). The economy’s reliance on energy imports issignificant, as they constituted 89% of the TPES (EGEDA, 2023).
In 2021, Japan maintained its position as the world’s sixth-largest oil
consumer and the fourth within APEC economies. Japan’s oil

Oil

Gas

Renewables

Others

Source: EGEDA (2023)

Japan’s energy supply profile in 2021 showed oil leading at 6 308 PJ, aslight increase of 1.6% from the previous year (EGEDA, 2023) (Figure2). Coal, with the primary supply at 4 659 PJ, saw a more substantial
increase of 7%, affirming Japan’s status as one of the world’s largest
coal importers (EGEDA, 2023). The economy’s coal demand, driven bypower generation, steel production, and the cement industry, waslargely met by imports from Australia (72%), as of 2021 (METI, 2023a).
Australia was also the top supplier of coking coal at 55% in 2021
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APEC ENERGY OVERVIEW 2024

Figure 3: Energy supply mix – Japan and APEC, 2021
100%

Other
Renewables

80%
Gas
60%
Oil
40%

20%

Coal

In 2021, Japan saw a marginal increase in its final energy consumption,
excluding non-energy uses, rising 1.3% to 9 918 PJ from the previous
year (EGEDA, 2023). Including non-energy usage, the total climbed to
11 189 PJ (EGEDA, 2023).
Figure 4: Japan’s final consumption by sector (PJ), 2000 to 2021
16 000
14 000
12 000
10 000
8 000
6 000
4 000
2 000
0

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

0%
Japan

Total final consumption

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Natural gas, another critical component of Japan’s energy mix, isscarce domestically. In 2021, its domestic production stood at 2.3
billion cubic metres (bcm), with notable production in Niigata, Chiba,
and Hokkaido prefectures, accounting for 2.2% of domestic demand(METI, 2023a). Japan’s LNG imports, essential for electricity generationand city gas, accounted for a significant 20% of the global trade in 2021
and are mainly sourced from Australia (38%), Malaysia (14%), Qatar(9.9%) and Russia (9.5%) (METI, 2023a). The primary natural gas
supply was 3 631 PJ, reflecting a decrease of 5.9% from the previous
year.

renewables is almost on par with the APEC region (EGEDA, 2023)(Figure 3).

Final energy demand by sector (PJ)

(METI, 2023a).

APEC

Source: EGEDA (2023)

In contrast to APEC’s overall energy mix, Japan has a notably higher
reliance on oil (+10%) and less on coal (-7.3%). The share of gas andDespite a long-term downward trend since a 2005 peak, Japan
experienced a slight uptick in energy demand in 2021, attributed to theeconomic rebound following the first year of the pandemic. With the
exemption of the residential sector, other sectors saw increases,
nudging the economy’s overall final consumption up by approximately
150 PJ from 2020 (EGEDA, 2023) (Figure 4).
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APEC ENERGY OVERVIEW 2024

The industrial sector was responsible for 30% of Japan’s final energy
consumption, followed by the transport sector at 24%, the commercial
sector at 18%, and residential sector at 15% (EGEDA, 2023). Notably,
the commercial sector’s energy use is more than twice that of the
APEC region’s 8.2% (EGEDA, 2023) (Figure 5).

Residential

In 2021, oil remained the preeminent component of Japan’s final
energy demand at 43%, amounting to 4 284 PJ, which represents aslight decrease of 1.4% compared to the previous year (EGEDA, 2023)(Figure 6). Electricity and other energy sources constituted 35%, gas
12%, and coal 8.2% (EGEDA, 2023). The contribution of renewables toJapan’s energy demand was relatively low at 2% (EGEDA, 2023). In
the APEC context, Japan’s dependency on oil was higher by 10
percentage points, while its use of coal was lower by 6.2 percentage
points, with negligible differences in the consumption of other fuels(EGEDA, 2023) (Figure 7).

Commercial

Figure 6: Japan’s final energy demand by fuel (PJ), 2000 to 2021

Figure 5: Final consumption by sector, Japan and APEC, 2021
100%
Non-energy
Agriculture & others
80%

60%

Final energy demand20%

Industry

0%
Japan

APEC

Source: EGEDA (2023)

In 2021, industry demand surged by 5.1% compared to 2020, signallinga recovery from the pandemic’s economic impact (EGEDA, 2023).
Although passenger transport saw a decline, a rise in freight activities
led to an overall 1% increase in the transport sector’s energy use to
2 649 PJ (EGEDA, 2023). Meanwhile, the residential sector’s
consumption fell by 6.6%, reflecting lifestyle changes as the economy
reopened (EGEDA, 2023).

12 000
10 000
8 000
6 000
4 000
2 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

40%

Final energy demand by fuel (PJ)

14 000Transport

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)
Note: Does not include non-energy sector consumption of energy products.

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APEC ENERGY OVERVIEW 2024

Figure 7: Final energy demand fuel share, Japan and APEC, 2021

bolstering its nuclear energy capacity (METI, 2024c).
Figure 8: Japan’s electricity generation by fuel, 2000 to 2021

100%

1 400

Renewables

60%

Gas
40%
Oil
20%
Coal

1 000
800

600
400
200

0

0%
Japan

1 200

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

80%

Electricity generation (TWh)Electricity andothersAPEC

Source: EGEDA (2022)

Transformation
Power sector
As of October 2023, Japan’s installed generating capacity stood at 266
gigawatts (GW) (METI, 2024b). It generated 1 040 terawatt-hours(TWh) of electricity in 2021 (EGEDA, 2023) (Figure 8). The majority,
69% of this electricity, was derived from fossil fuels, while a significant
20% came from renewable sources such as hydro, solar, wind andgeothermal (EGEDA, 2023). Nuclear energy contributed 6.8% to themix after a period of stagnation following the 2011 Fukushima Daiichi
nuclear accident (EGEDA, 2023). By January 2024, Japan had
successfully restarted 12 commercial nuclear reactors, with Takahama
Unit 1 and Unit 2 among the latest to be restarted in 2023, further

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

Japan’s energy profile contrasts with that of the broader APEC region;
it relies more heavily on fossil fuels by an additional 4.8 percentage
points and less on renewables by 4.9 percentage points (EGEDA,
2023) (Figure 9). Notably, it uses 14 percentage points more gas and
12 percentage points less coal, along with 6.1 percentage points lesshydropower (EGEDA, 2023).
Since 1995, the Japanese electricity market has been undergoing aprocess of liberalisation to ensure fair competition and transparency.
Liberalisation diminishes monopoly power by facilitating competition in
the electricity market, where practical. Japan’s partial liberalisation
enabled businesses other than major electricity companies to sellelectricity. Independent power producers were introduced in 1995,
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APEC ENERGY OVERVIEW 2024

along with a system of power producers and suppliers (PPSs).
Additionally, partial retail competition (for purchases over 2 000 kW)
was established in 2000. The scope of the retail competition was
expanded to include contracts larger than 500 kW in 2004 and larger
than 50 kW in 2005 (METI, 2011).

balancing traditional energy sources with renewables and navigating
through regulatory reforms to create a resilient and competitiveelectricity market.

Energy transition

Figure 9: Electricity generation fuel share, Japan and APEC, 2021
100%

Ensuring a stable energy supply while addressing the urgent need foremissions reductions is a critical balancing act for Japan, given its
scarcity of natural energy resources.

OthersOther renewables
Geothermal
Nuclear80%

Emissions

Hydro
60%

Japan has legally enshrined the goal of carbon neutrality by 2050,
underscoring its commitment to environmental sustainability. Alongside
this, Japan has set a bold target to reduce greenhouse gas (GHG)
emissions by 46% by 2030 from 2013 levels, with an aspirational push
for a 50% reduction, as submitted in its Nationally Determined
Contribution (NDC) to the United Nations Framework Convention on
Climate Change (UNFCCC) (MoE, 2022).

Gas
Oil

40%

Coal

20%
0%
Japan

APEC

Source: EGEDA (2023)

As a result of the earthquake and nuclear power accident in March
2011, and due to the limitations in the capacity of the east-west
frequency conversion facilities and inter-regional interconnection lines,
it was not possible to sufficiently operate the wide-area grid and supply
electricity. Afterwards, Japan’s electricity sector faced mountingpressure to deregulate further to create a more competitive andtransparent system. Finally, in 2016, the retail electricity market was
fully liberalised. As of December 2021, the sales share of PPS reachedaround 22% (METI, 2022).
This overview underscores Japan’s evolving energy landscape,Remarkably, Japan has made noteworthy progress in reducing CO2
combustion emissions, achieving a 20% reduction by 2021 from 2013,reflecting the success of its energy policies and commitment to global
climate change goals (EGEDA, 2023) (Figure 10).
The economy also recognises the importance of improving energy
efficiency in developing economies such as Indonesia and Thailand,
where energy consumption is expected to surge. Japan is poised toplay a supportive role, leveraging its technological advancements andexperience to assist these economies in reducing the carbon emissions
associated with increased fossil fuel use.
As Japan continues to advance its energy transition, relevant issues
such as the integration of renewable energy, enhancement of energy
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APEC ENERGY OVERVIEW 2024

storage solutions, and the development of smart grids will remain at theforefront of policy and innovation. This comprehensive approach toenergy transition not only aims to secure Japan’s energy future but also
contributes significantly to global efforts in combating climate change.
Figure 10: Japan’s CO2 combustion emissions (million tonnes), 2000 to
2021
1 400

Million tonnes CO2

1 200
CO2 combustion
emissions

1 000

In terms of nuclear energy, Japan is considering bringing online
existing nuclear power plants that were mothballed after the Fukushima
triple disaster, as well as investing in the development of advanced
next-generation reactors for overseas use. However, the economy still
grapples with the aftermath of the Fukushima Daiichi incident, including
issues related to nuclear waste, decommissioning of old reactors, andpublic trust in nuclear energy.

800
600
400
200
0
2000

ammonia as a potential clean energy source. Large-scale pilot trials
have shown the feasibility of burning a coal-ammonia mix, with thelargest power plant operator, JERA, investing in projects to test thefeasibility of 50% ammonia mix (Hughes & Beck, 2022). The success ofthese projects could pave the way for significant reductions in CO2emissions from thermal power generation. However, the environmental
benefits of using ammonia are contingent on how it is produced.
Ammonia production currently relies heavily on processes that emit
CO2, but there is a potential for ‘green’ ammonia production using
renewable energy, which would result in near-zero emissions (Hughes
and Beck, 2022).

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
Japan is actively strengthening its energy security by diversifying its
energy mix and building cooperative agreements with other economies.
Efforts to accelerate the domestic production of renewable energy are
underway, and Japan is also working on bringing more nuclear plants
back online. In addition, Japan is developing thermal power plants that
aim for lower emissions through techniques such as ammonia cocombustion in boilers.

Moreover, carbon capture and utilisation (CCU) and carbon capture,utilisation and storage (CCUS) projects have been implemented toensure energy security alongside achieving carbon neutrality (METI,2022).

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.

One of the key strategies in Japan’s energy policy is the utilisation of119

APEC ENERGY OVERVIEW 2024

Energy intensity goal
In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economy targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.
Figure 11: Japan’s total final energy consumption intensity index, 2000
to 2021 (2005 = 100)

Energy intensity index (2005 = 100)

120
Total final energy consumption energy intensity

100
80

APEC-wide goal 2035

60
40
20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2022)

Japan has made significant strides in enhancing energy efficiency withthe establishment of the Energy Conservation Law in 1979, following
the oil crisis. This law serves as the cornerstone of Japan’s energy

conservation efforts (METI, 2019). This legislation targets key sectors
such as industry, buildings (both commercial and residential), andtransport, mandating improvements in energy efficiency. The law’slong-term impact is evident, as Japan realised a notable 26%
improvement in energy intensity from 2005 to 2021, a testament to theeffectiveness of its energy policies (EGEDA, 2023) (Figure 11).
Furthermore, the year-on-year improvement from 2020 to 2021 alone
was 0.8%, reflecting ongoing advancements in energy conservationand efficiency practices across the economy (EGEDA, 2023).
Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doubling
goal.
Japan has made significant strides in renewable energy over the past
decade, witnessing a remarkable 93% increase in the renewable shareof final energy consumption, reaching 8.3% in 2021 (EGEDA, 2023)(Figure 12).
The introduction of the feed-in tariff (FIT) system in July 2012 played apivotal role in this growth, particularly in solar energy, where Japan’ssolar capacity per square kilometre is among the highest of major
economies. The FIT system guaranteed a fixed purchase price forelectricity from renewable sources, spurring rapid deployment,
especially in the solar sector. This also led Japan’s renewablegeneration share in the electricity mix to double in a decade from 10%
to 20% between 2011 and 2021 (EGEDA, 2023) (Figure 13).

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APEC ENERGY OVERVIEW 2024

Figure 12: Japan’s modern renewable energy share, 2010 and 2021
9.0%
8.0%

Figure 13: Japan’s renewable generation share, 2000 to 2021
25%

Change from2010 to 2021

20%

7.0%

Proportion

6.0%
5.0%
4.0%

Renewables share in electricity mix

15%
10%

3.0%
2.0%

5%

1.0%
0.0%

2010

Change

2021

0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)
Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

The 6th Strategic Energy Plan, released in October 2021, reaffirms
Japan’s commitment to renewable energy as a cornerstone of its future
generation. This plan envisions renewables accounting for 36-38% ofJapan’s electricity generation by 2030. The strategy emphasises theneed for innovation and recognises the potential role of hydrogen,expecting it to play a central role in Japan’s clean energy transition.
Japan aims to establish a comprehensive hydrogen supply chain and is
exploring large-scale power generation based on hydrogen, which
could offer insights to the global energy community on making
hydrogen a viable clean energy source.

Japan faces challenges due to its geographical constraints, which canlead to high grid connection costs. This, along with a gradual decreasein FIT prices, has slowed down investment in solar power. To addressthese issues, Japan is transitioning towards a feed-in premium (FIP)
scheme, which aligns the revenue for generators with market prices,
providing incentives for supply adjustments based on demand, unlike
the FIT scheme.
To continue reducing the cost of renewable generation and make itcompetitive with conventional power sources, Japan is focusing ontechnological innovation and market-based instruments to foster lowcarbon technologies. Discussions are underway about introducing
economic mechanisms such as carbon tax and carbon borderadjustments to enhance low-carbon technology adoption and further
increase energy efficiency.
The journey towards a sustainable and resilient energy system in121

APEC ENERGY OVERVIEW 2024

Japan is characterised by a combination of policy measures,
technological advancements, and international cooperation, all aimed
at harmonising the economy’s energy security with its environmental
commitments.

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APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

Reference

The 6th Strategic Energy Plan

The Plan reflects Japan's approach to balancing energy security and environmental
sustainability. Sets diverse energy mix targets for 2030, emphasising a balanced approach
between renewables (36-38%), nuclear (20-22%), LNG (20%), coal, oil (2%), andhydrogen/ammonia (1%).

METI

Japan's Nationally Determined
Contribution (NDC)

A 46% GHG emission reduction target by 2030 from 2013 levels, showcasing Japan'scommitment to international climate goals.

MOE

The Plan for Global WarmingCountermeasures

Outlines actionable measures for various stakeholders to achieve a 46% GHG emission
reduction by 2050.

MOE

The Long-Term Strategy under
the Paris Agreement

Japan’s strategy for low GHG emission development in line with the Paris Agreement provisions.

MOE

Clean Energy Strategy to
Achieve Carbon Neutrality by
2050

Focuses on energy security and accelerated decarbonisation in response to global energy shifts,
especially due to geopolitical events.

Cabinet Public Affairs
Office, Cabinet Secretariat

Green Growth Strategy

Action plans for 14 industries to support sustainable development and green technology throughvarious incentives and international cooperation.

METI

Basic Policy for the Realisation of
GX

A policy decided in February 2023 to enhance industrial competitiveness and decarbonisation,
promoting energy efficiency and the shift to decarbonised power sources.

METI

Sector-specific Investment
Strategies for GX

Promotes investment in prioritised sectors as part of the GX initiative, accelerating Japan's
sustainable energy policies.

METI

Top Runner Programme

Sets efficiency benchmarks for household appliances to promote energy conservation.

METI

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APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Electricity System Reform

Expand Economy-wide Coordination of Transmission Operators, achieve full liberalisation ofelectricity retail business and generation and secure neutrality of power transmission anddistribution sectors.

METI

Establishing Resilient andSustainable Electricity Supply
Systems

Implements measures for sustainable electricity supply, including disaster response
collaboration and renewable energy support.

METI

Baseload Market

Aims to ensure equal access to cheap power supplies for new power retail companies, fostering
market competition.

METI(Japanese only)

Long-term Decarbonised Power
Source Auction

Encourages investment in non-carbon-emitting power sources, aiming for long-term financial
stability for renewable energy, nuclear power, and battery storage, reflecting a strategic
approach to energy transition.

METI(Japanese only)

Feed-in Tariff (FIT) Law

Enhances economy-wide coordination of transmission operators and achieves full liberalisationof the electricity retail business.

METI(Japanese only)

Feed-in Premium (FIP)

Introduced in April 2022, the FIP system complements the FIT by aligning renewable energy
prices with market rates.

METI(Japanese only)

J-Credit Scheme

Certifies CO2 reduction or absorption volumes as credits, facilitating carbon offset initiatives.

METI

Roadmap for Carbon Recycling
Technologies

Focuses on recycling CO2 into useful products, reducing atmospheric CO2 emissions.

METI

Basic Plan for the Promotion of
Biomass Utilisation

Utilise biomass for energy, contributing to rural revitalisation and a recycling-oriented society.

MAFF

JOGMEC’s Financial Assistanceto Japanese Companies

Provide financial support to Japanese companies for energy projects.

JOGMECJapan Bank for International
Cooperation (JBIC) Support

Provide export loans, overseas investment loans, import loans, united loans, equity participationand guarantees.

JBIC

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APEC ENERGY OVERVIEW 2024

Notable Energy Developments
Energy development

Details

Reference

Asia Zero Emission Community(AZEC)In the Asia Zero Emission Community (AZEC) Leaders Meeting in December 2023, Prime
Minister Kishida affirmed the importance of achieving a common goal of “net-zero emissions
through various pathways” and of a triple breakthrough of simultaneously achieving“decarbonization, economic growth, and energy security”. And the meeting emphasised net-zeroemissions in Asia, with Japan promoting next-generation technologies and collaboration,
indicating Japan's leadership role in regional decarbonisation efforts.

METI

The Revised Act on Rationalizing
Energy Use

Expands energy rationalisation to non-fossil fuels, targeting large-scale businesses to adopt
environmentally friendly equipment and processes.

METI

GX Promotion Act

Supports Japan's transition to a decarbonised, growth-oriented economy with measures
including carbon pricing mechanisms and the establishment of a GX Promotion Organization.

METI

Updated Basic Hydrogen
Strategy

Focuses on establishing a hydrogen supply chain based on carbon intensity and aims to position
Japan as a leader in hydrogen and ammonia technology in Asia and the Indo-Pacific.

METI

New Nuclear Law

Extends the operational limit of nuclear power plants beyond 60 years under strict safety
regulations, reflecting the role of nuclear energy in Japan's energy mix.

AEC

Tokyo GX Week 2023

A METI-led initiative focused on Green Transformation (GX), aiming to align clean energy
transitions with decarbonisation and economic development, reflecting Japan's leadership in
global green transformation dialogues.

METI

LNG Producer-Consumer
Conference 2023

An annual forum initiated by METI since 2012 for stakeholders in the LNG market to foster
dialogue and cooperation, demonstrating Japan's pivotal role in the global LNG sector.

LNG PCC

Sixth Hydrogen Energy
Ministerial Meeting

Discussions focused on accelerating hydrogen demand with goals for substantial increases by
2030, highlighting hydrogen's role in sustainable growth and job creation, aligning with global
sustainable energy objectives.

METI

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APEC ENERGY OVERVIEW 2024

Energy development

Details

Reference

Launch of Nuclear Supply Chain
Platform Website

The platform supports Japan's nuclear energy initiatives, serving as a collaborative hub forstakeholders, ensuring alignment with Japan's energy goals and safety standards.

METI

Comprehensive Evaluation of
Seafloor Hydrothermal Deposits

METI and JOGMEC's evaluation of these deposits for domestic mineral supply, aligning withJapan's ocean policy and marine resource development plans, indicating exploration ofalternative resources.

METI

Useful Links
Agency for Natural Resources and Energy – https://www.enecho.meti.go.jp/en/
Ministry of Economy, Trade and Industry – https://www.meti.go.jp/english/index.html
Ministry of the Environment – http://www.env.go.jp/en/index.html
Ministry of Land, Infrastructure, Transport and Tourism – https://www.mlit.go.jp/en/index.html
Institute of Energy Economics, Japan – https://eneken.ieej.or.jp/en/
Energy Conservation Center, Japan – https://www.asiaeec-col.eccj.or.jp/

References
EGEDA (Expert Group on Energy Data Analysis, APEC Energy Working Group) (2023), APEC Energy Database,https://www.egeda.ewg.apec.org/egeda/database_info/index.html
EI (Energy Institute) (2023), Statistical Review of World Energy, https://www.energyinst.org/statistical-review/resources-and-data-downloads
GIS (Geospatial Information Authority of Japan) (2022), The Survey of Land Area, https://www.gsi.go.jp/KOKUJYOHO/MENCHO/backnumber/GSImenseki20221001.pdf
Hughes, L. & Beck, F.J. (2022), 'Japan sees ammonia as an energy pyrrhic victory', TechXplore, February 2022, https://techxplore.com/news/2022-02japan-ammonia-energy-pyrrhic-victory.html
METI (Ministry of Economy, Trade and Industry)126

APEC ENERGY OVERVIEW 2024

– (2011), Energy White Paper 2011, https://warp.da.ndl.go.jp/info:ndljp/pid/11194359/www.enecho.meti.go.jp/about/whitepaper/2011/– (2019), Overview of the Energy Conservation Law,
https://www.enecho.meti.go.jp/category/saving_and_new/saving/summary/pdf/20181227_001_gaiyo.pdf– (2023a), Energy White Paper 2023, https://www.enecho.meti.go.jp/about/whitepaper/– (2024b, accessed on 12 February 2024), Power Generating Sources and Output Data,
https://www.enecho.meti.go.jp/statistics/electric_power/ep002/results.html– (2024c, accessed on 12 February 2024, Status of Japanese Nuclear Power Plants,
https://www.enecho.meti.go.jp/category/electricity_and_gas/nuclear/001/pdf/001_02_001.pdf
MoE (Ministry of the Environment) (2022), White Paper on the Environment, the Sound Material-Cycle Society and Biodiversity in Japan 2022,
https://www.env.go.jp/policy/hakusyo/r04/pdf.html
NEA (Nuclear Energy Agency) & IAEA (International Atomic Energy Agency) (2023), Uranium 2022: Resources, Production and Demand, OECD
Publishing, Paris, https://doi.org/10.1787/2c4e111b-en
World Bank (2023), Japan Data, https://data.worldbank.org/country/japan
Xu, C. & Bell-Hammer, L. (2023) ‘Worldwide Report’, Oil & Gas Journal, vol. 121, no. 12, Dec 2023, https://www.ogj.com/magazine/62378

127

APEC ENERGY OVERVIEW 2024

Republic of Korea
Introduction
The Republic of Korea (Korea) is located in Northeast Asia, positioned
between China and Japan. It has an area of 100 413 square kilometres(km2) and in 2022 had a population of approximately 52 million. Korea
has an extremely high population density, with an average of around
516 people per km2. Seoul, Korea’s largest city and capital, is home toaround 20% of the total population and has a population density of 15
550 people per km2. The economy’s terrain consists of hills andmountains with extensive coastal plains in the west and south. The
climate is relatively temperate, with four distinct seasons. Korea’senergy consumption is influenced by weather conditions, which meansthat air conditioning is essential during the hot summers and heating
during the frigid winters.
Korea has emerged as one of Asia’s most dynamic and rapidly
expanding economies in recent decades. In 2022, the GDP reached
USD 2 352 billion (2017 USD purchasing power parity [PPP]). The
GDP per capita in 2022 stood at USD 45 560(2017 USD PPP),
reflecting a threefold increase from 1990.
Korea’s primary industries include semiconductors, shipbuilding, cars,
petrochemicals, digital electronics, steel, and machinery parts andmaterials. In 2022, manufacturing accounted for approximately 28% ofGDP, with an export-oriented manufacturing sector driving economic
growth. For instance, Korea's semiconductor and electric vehicle (EV)battery production sectors are enhancing their capacities in line withincreasing demand.
Before and since President Yoon assumed office in May 2022, theKorean government has faced global energy supply volatility due to therebalancing of the world energy markets provoked by geopoliticalvolatility post-COVID conditions. As it becomes increasingly important
to strike a balance between carbon neutrality and energy security, the
new government continues to monitor the direction of changes in the
global energy supply chain to develop a feasible and reasonableenergy mix, having released their new energy policy goals anddirections in July 2022.
Korea has limited domestic energy resources. With no oil resources
except for a small amount of condensate, only 326 million tonnes ofrecoverable coal reserves, and 0.3 trillion cubic feet of natural gas,
Korea relies on energy imports to sustain its strong economic growth.
Table 1: Korea’s macroeconomic data and energy reserves
Key data a, b
Area (km2) a

Energy reserves c
100 413

Oil (billion barrels)-

Population (million) a

51.8

Gas (trillion cubic feet)

0.3

GDP (2017 USD billion
PPP) b2 352

Coal (million tonnes)

326

GDP per capita (2017 USD
PPP) b45 560Uranium (kilotonnes U< USD 130/kgU)-

Source: a KOSIS (2022); b World Bank (2023); c Energy Institute (2023)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.
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APEC ENERGY OVERVIEW 2024

Energy Supply and Consumption
Total primary energy supply
From 1990 to 2021, Korea’s total primary energy supply (TPES)
experienced a nearly threefold increase, rising from 3 890 PJ to 12 216
PJ. TPES demonstrated a robust growth trajectory, with an annual
average rate of 7.3% from 1990 to 2000, outpacing the 7.1% annual
growth rate of the economy during the same period. Following 2000,
TPES experienced a notable increase of 56%, rising from 7 811 PJ to
12 216 PJ. However, a decrease of 2.08% was observed in the threeyear span from 2018 to 2020 largely attributable to the COVID-19
pandemic (Figure 1). In particular, reductions in energy supply in 2020
were primarily derived from coal and oil compared to 2019 levels. After
four consecutive years of decline, Korea witnessed a substantial 5.7%
surge in its TPES in 2021, primarily driven by oil and gas (EGEDA,
2023).

Total Primary Energy Supply

10 000Net imports

8 000
6 000

Source: EGEDA (2023)

10 000
8 000
6 000
4 000
2 000

Production

0

2 000
0
2000

14 000

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

4 000

Figure 2: Korea’s energy supply by fuel (PJ), 2000 to 2021

12 000

14 000
12 000From 2000 to 2021, Korea’s TPES fuel mix reflected the economy’s
desire to have a stable energy supply (Figure 2). During this period,
renewable energy experienced substantial growth, rising from 34 PJ to254 PJ, marking a modest increase in its proportional share from 0.4%
to 2.1%. Notably, the share of natural gas saw a rapid surge, from 9%
in 2000 to 18.6% in 2021. The volume of natural gas consistently
increased from 1 647 PJ in 2015 to 2 278 PJ in 2021. In contrast, coalreached its peak in 2017, and oil reached its highest point in 2018,
followed by a subsequent decline until 2020. Despite these fluctuations,coal, oil, natural gas and renewable energy sources collectively
contributed to an overall increase in TPES in 2021 (EGEDA, 2023).

TPES by fuel (PJ)

Production, net imports and
TPES (PJ)

Figure 1: Korea’s energy supply, production, and net imports (PJ), 2000
to 2021

Due to its limited domestic energy resources, a significant portion of
Korea’s TPES is imported. In 2021, approximately 85.2% of Korea’s
TPES was reported as net imports. During that year, Korea ranked as
the world’s fourth-largest importer of crude oil, sixth-largest importer ofnatural gas, and fourth-largest importer of coal (IEA, 2023).

2005

2010

2015

Coal

2020

Oil

Gas

Renewables

Others

Source: EGEDA (2023)
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APEC ENERGY OVERVIEW 2024

As of 2021, the composition of coal, oil and gas in Korea’s energy mix
accounted for more than 80% of TPES, which is similar to APEC
(Figure 3). However, Korea’s TPES fuel mix displayed differences inthe distribution of energy sources when compared to the overall APEC
region. Notably, the proportion of oil and other in Korea’s TPES was
higher than APEC, although coal, gas, and renewables werecomparatively lower. Korea’s oil share in the TPES was 38%. Coal andgas were followed by 26% and 19% respectively, which was lower thanthe APEC estimates. Meanwhile, APEC’s renewable energy share wasfour times that of Korea’s. Renewable energy accounts for 8.2% of theenergy supply in APEC, compared to 2.1% in Korea.
Figure 3: Energy supply mix – Korea and APEC, 2021
Other
Renewables

Figure 4: Korea’s final consumption by sector (PJ), 2000 to 2021

Gas

60%
Oil
40%
20%

Coal

0%

Korea

APEC

Source: EGEDA (2023)

Total final consumption
Total final consumption represents end-use energy, which includes
non-energy uses of energy products. Korea’s total final consumption(including non-energy) in 2021 was 7 608 PJ, indicating a 4% rise from

9 000
8 000
7 000

6 000
5 000
4 000
3 000
2 000
1 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

80%

Korea's final consumption was primarily dominated by the non-energy
and industrial sectors, which accounted for the largest shares at 29%
and 26%, respectively. The transport sector, on the other hand,accounted for approximately 20%. The remaining 25% consists of thecommercial, residential, and agriculture sectors. Since the late 1990s,
the agricultural sector has seen an overall decrease in consumption,
hitting its lowest point at 158 PJ in 2021. Except for agriculture andcommercial sectors, all other sectors experienced growth inconsumption in 2021.

Final energy demand by sector (PJ)100%

the previous year. After three consecutive years of declining energy
consumption, which included a significant 3.4% decrease in 2020 due
to the impact of the COVID-19 pandemic, 2021 marked a rebound inenergy consumption.

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)
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APEC ENERGY OVERVIEW 2024

In comparison to APEC, Korea’s industry and transport sectors accountfor a smaller share of final consumption, with the non-energy sector
holding a larger portion (Figure 5). In 2021, APEC’s final consumption
share in the industry and transport sectors was 33% and 25%,
respectively, compared to Korea’s consumption of 26% and 20%.
The non-energy sector generally refers to energy products that areused as raw materials rather than being consumed as fuel ortransformed. These are often oil products used in the chemical andpetrochemical industries to produce plastics or lubricants. In 2021,
Korea's non-energy sector represented 29% of final consumption, morethan doubling the APEC proportion of 12%.
Figure 5: Final consumption by sector, Korea and APEC, 2021

Final energy demand
Korea's final energy demand displayed a steady upward trend from2009 to 2018. However, a decline in the final energy demand wasobserved from 2019 to 2020 because of the COVID-19 pandemic(Figure 6). Korea’s final energy demand, on the other hand, rebounded
to 5 382 PJ in 2021, which is comparable to levels observed prior to the
COVID-19 pandemic. An analysis of fuel demand over the past two
decades indicates that the proportion of coal and oil in the total demandhas declined, according to data from 2001 to 2021. In particular, thecombined share of the two fuel sources decreased from 61% to 41%
between 2001 and 2021. However, the share of other sectors, including
gas, renewables, electricity, and others, has consistently increased.
Figure 6: Korea final energy demand by fuel (PJ), 2000 to 2021

100%
Non-energy

Final energy demand by fuel (PJ)

6 000

Agriculture & others
80%
Residential
Commercial

60%

Transport
40%

20%

Industry

4 000
3 000
2 000
1 000

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

0%
Korea
Source: EGEDA (2023)

5 000

APEC

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)
Note: Does not include non-energy sector consumption of energy products.
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APEC ENERGY OVERVIEW 2024

In comparison to APEC, Korea’s electricity demand is relatively high.
Korea’s final energy demand in ‘electricity and others’ accounts for
42%, while APEC accounts for 34% (Figure 7). Korea’s economic
growth has led to a huge increase in electricity demand during the lastfew decades. Power-based equipment has also continuously
increased, which has contributed to electricity’s growing share of total
final energy demand. According to the 10th Basic Plan for Long-term
Electricity Demand and Supply (2022-36) announced by the Ministry ofTrade, Industry and Energy (MOTIE), it is projected that electricity
consumption will increase by 1.7% annually from 2022 to 2036.
Notably, as of 2021, Korea’s coal consumption remains considerably
lower than that of APEC.
Figure 7: Final energy demand fuel share, Korea and APEC, 2021
100%
Electricity andothers

80%

Gas
40%
Oil
20%
Coal
0%
Korea

Power sector
The energy consumption in Korea’s transformation sectors has
experienced significant growth since 2000, primarily driven by a steady
expansion of electricity generation capacities. Between 2000 and 2021,
the overall power generation more than doubled, from 289 TWh in 2000
to 608 TWh in 2021 (Figure 8). In 2011, a power outage led torestrictions on electricity supply in certain areas. A stable electricity
supply was therefore one of the foremost energy policies of Korea.
Analysing each source of fuel generation, coal contributed to 34% of
Korea’s electricity in 2021, compared to its share of 42% in 2019. Withan increased emphasis on carbon neutrality ambitions, coal power
generation is expected to fall considerably in the long run. In contrast,
gas and renewable energy increased their proportion of the generation
mix in 2021 compared to the previous year.
In January 2023, the Korean government released the 10th Basic Plan
for Long-term Electricity Demand and Supply, a 15-year outlook that is
updated every two years. According to the plan, nuclear power, LNG,
and renewable energy facilities are expected to expand, while coal
power plants would be steadily phased out. Specifically, the Plan
involves the replacement of aging coal plants with LNG. Additionally,
there will be continued investments in nuclear power and renewables,
which will be assessed for safety and feasibility. Given the potential forhigh volatility in long-term power generation, a cautious estimate
suggests that nuclear power and renewables will each account for
more than 30% of total electricity generation by 2036.

Renewables

60%

Transformation

APEC

Source: EGEDA (2023)
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APEC ENERGY OVERVIEW 2024

Figure 8: Korea’s electricity generation by fuel, 2000 to 2021

Figure 9: Electricity generation fuel share, Korea and APEC, 2021

Electricity generation (TWh)

700

100%

OthersOther renewables
Geothermal
Nuclear

600
80%
500

Hydro
60%

400

Gas

300

Oil

40%

200

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Coal

20%

100

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

In Korea’s electricity generation mix, the proportions of oil werecomparable to the generation mix observed for APEC in 2021 (Figure9). Meanwhile, there were some differences between Korea and APEC
in terms of power generation fuels. In 2021, Korea had a smaller
percentage of coal power generation than APEC, with 34% in Korea
and 43% in APEC, whereas Korea and APEC had similar shares ofcoal power generation in 2019. Gas constituted 31% of the power
sector in Korea, an amount that surpassed that of APEC (20%). The
share of nuclear power in Korea was 26%, more than double that of
APEC’s part of roughly 10%. In contrast to gas and nuclear, APEC had
a larger ratio of renewables than Korea. In addition, hydro accounts for
0.5% in Korea and 14% in APEC.

0%
Korea

APEC

Source: EGEDA (2023)

Refining
Korea has steadily promoted investments in large-scale refineries andfacility enhancements to improve the quality of its products. As a result,as of 2022, Korea's oil refining capacity reached 3 363 thousandbarrels per day, ranking 5th in the world (Energy Institute, 2023). Moreprecisely, Korea’s global share stood at 3.3%, followed by the US(18%), China (17%), Russia (7%) and India (5%).
Following the end of the COVID-19 pandemic, Korean oil refining
businesses reported increased exports of major oil products such as
diesel, gasoline, and jet fuel, reaching 46 672 billion barrels in 2023.
Despite this short-term export performance, Korean oil refineries arefacing challenges in reducing long-term oil demand and achievingcarbon neutrality to diversify their business portfolio.
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APEC ENERGY OVERVIEW 2024

Given that climate change transcends environmental concerns, and theParis Agreement signifies a global pledge, the Korean Government
maintains its dedication to the clean energy transition. In October 2021,
the government announced an updated nationally determined
contribution (NDC) towards achieving carbon neutrality by 2050. Thisupdated target sets a more ambitious goal of a 40% reduction in
Korea’s GHG emissions by 2030, compared to 2018 levels,
representing a significant increase from the original target of 26%. To
oversee and coordinate domestic carbon-neutral policies, the 2050
Carbon Neutrality Committee was established in May 2021 as apresidential body, and later renamed the Presidential Commission on
Carbon Neutrality and Green Growth in March 2022. However, it isnoteworthy that the pursuit of energy security, especially in the context
of global energy supply instability, is emerging as a crucial
consideration within the energy transition policies.
Emissions
EGEDA data reveals that, although Korea's CO2 emissions per GDP
have shown a decline over the past three years, there has been ageneral increase in emissions since 2000, reaching a peak in 2018
(Figure 10). This implies that efforts from stakeholders to reduce CO2
emissions in each sector should be complemented by effective policy
implementation.
After President Yoon took office in May 2022, the Presidential
Commission on Carbon Neutrality and Green Growth released visionand promotion strategies for carbon neutrality and green growth in
October 2022. Subsequently, in April 2023, the commission unveiled its
1st Basic Plan for Carbon Neutrality and Green Growth. The Basic Plan
aims to provide policy directions and strategies for achieving carbon

neutrality by 2050 through the following strategies: (1) implementing
specific and efficient measures to reduce GHG emissions, including theutilisation of carbon-free energy sources; (2) promoting carbon
neutrality led by private sectors through technology innovation andfacilitating investments; (3) improving the efficiency of domestic energy
consumption and establishing a cooperative system between thecentral and municipal government, and (4) strengthening international
cooperation.
Furthermore, the Korean Government proposed to push forward theCarbon-Free Energy (CFE) Initiative to the international community.
The CFE Initiative emphasises the widespread use of nuclear energy,hydrogen, and CCUS (carbon capture, utilisation, and storage), which
would serve as a feasible and sustainable ways to achieve both energy
security and carbon neutrality goals. Korea intends to develop detailed
measures for CFE initiative such as carbon-free certification
requirements that other economies may agree on and pursue together.
Figure 10: Korea’s CO2 combustion emissions (million tonnes), 2000 to
2021
700

CO2 combustion emissions

600

Million tonnes CO2

Energy Transition

500
400
300
200
100
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)
134

APEC ENERGY OVERVIEW 2024

Since Korea is one of the world's largest importers of oil and gas,energy security has long been a priority for ensuring the stable supplyof energy. The recent geopolitical volatility has raised greater emphasison energy security, particularly during the ongoing energy transition tocleaner sources. In response to recent environmental changes, theKorean Government announced new energy policy goals and directions
in July 2022, aiming to respond to global energy supply chain risks andcarbon neutrality.
The energy policy directions aim for a practical and balanced energy
mix, implying a resumption of the construction of the Shin-Hanul No. 3
and No. 4 nuclear reactors. The objective is to increase the nuclear
energy ratio to at least 30% by the year 2030. The energy mix
adjustment involves the construction of power grid to accommodate thechange in power supply mix, along with the implementation of a powersystem stability plan.
Furthermore, several internal and external efforts are underway tostrengthen the supply. In January 2024, Korea’s National Assembly
passed the Special Act on National Resource Security Act, which aims
to develop a comprehensive framework for energy security through theimplementation of essential policy measures. There is also a continued
effort to diversify imports through bilateral and multilateralcollaborations. For instance, participation in a Mineral Security
Partnership (MSP) is aimed at ensuring a secure supply chain for
critical minerals in coordination with other economies. In addition, toalleviate the financial burden on individuals vulnerable to energy
poverty, energy vouchers and support for energy efficiency measures
have been expanded.

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.
Energy intensity goal
In 2011, APEC member economies agreed to increase their target to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline. APEC is on track to achieve this energy intensity
improvement. The goal does not impose individual economy targets,
but it is possible to track the progress of individual APEC economies
relative to the overarching proportional improvement.
Figure 11: Korea’s total final energy consumption intensity index, 2000
to 2021 (2005 = 100)
140

Energy intensity index (2005 = 100)

Energy security

120
Total final energy consumption energy intensity

100
80

APEC-wide goal 2035

60
40
20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2022)
135

APEC ENERGY OVERVIEW 2024

Korea’s total final energy consumption intensity, excluding non-energy
sectors, has shown improvement since 2005, with only a slight setback
in 2010 (Figure 11). In 2020, the improvement was 30% compared to
the 2005 baseline, representing 1% improvement from the previous
year and 8% during the last five years (2017-2021).

Figure 12: Korea’s modern renewable energy share, 2010 and 2021
4.0%

3.5%
3.0%

The economic situations of APEC economies, especially energy usage,
may change as technology advances and industries develop. It istherefore necessary to closely monitor whether the energy intensity in
Korea continues to improve in the next years.
Doubling of renewables
The second energy goal involves doubling the proportion of modern
renewables in the APEC energy mix from 2010 to 2030. While there isno specific economy-level goal for each member economies, progress
made by individual economies will contribute to achieving the doubling
goal.
Korea has continuously promoted policies to increase renewableenergy in response to climate change and for sustainable long-term
growth. While APEC increased from 6.0% to 9.9% in 2021 compared to2010, Korea increased at a faster rate, surging from 1.3% to 3.5%.
Between 2000 and 2021, Korea's renewable energy witnessed a rapid
increase, particularly notable from around 2015 (Figure 13). The 10th
Basic Plan for Long-term Electricity Demand and Supply (2022-36)
announced that it would promote phased renewable supply along withrenewable energy back-up facilities. According to this plan, renewables
will account for around 30% of total generation mix by 2036.

Change from2010 to 2021

2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2010

Change2021

Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

Korea has also implemented measures to ensure a stable supply of
renewables, such as the Renewable Portfolio Standards (RPS)
established in 2012. The RPS requires power generation businesses to
produce a certain amount of annual electricity production as renewableenergy. While the RPS system has served its role in fostering thedevelopment of a more mature renewable energy market, MOTIE
announced in January 2024 that it considers changing the current RPS
system to gradually introducing an auction system to effectively adapt
to changing market conditions.
136

APEC ENERGY OVERVIEW 2024

Figure 13: Korea’s renewable generation share, 2000 to 2021
7%

6%

Proportion

5%
Renewables share in electricity mix
4%
3%
2%
1%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

137

APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

Reference

10th Basic Plan for Electricity
Demand and Supply

In accordance with the Electricity Business Act, it is required for the Ministry of Trade, Industry
and Energy (MOTIE) to establish the biennial Basic Plan for Electricity Demand and Supply.
The 10th Basic Plan, which was released in January 2023, presented mid- to long-term
projections for power demand and proposes a pragmatic and rational energy mix from 2022 to2036. MOTIE plans to develop the 11th Basic Plan in 2024 for the period 2024-2038.

Ministry of Trade,Industry and Energy

15th Long-term Natural Gas
Demand and Supply Plan

New Energy Policy Goals andDirections

3rd Energy Master Plan

New Hydrogen Economy Policy
Directions
5th Basic Plan for Renewable
EnergyThe Gas Business Act requires MOTIE to develop a biennial long-term plan for natural gas
supply and demand. The 15th Plan, published in April 2023, underlined the importance of gas
supply and demand stability, and provided a natural gas demand forecast for the years 2023 2036.
In July 2022, MOTIE announced the New Government Energy Policy Direction. Thisannouncement provided re-establishing the energy mix by raising the share of nuclear energy
to a minimum of 30% by 2030. Furthermore, ensuring energy security, emphasising energy
demand efficiency, and improving the structure of electricity market were outlined in the New
Energy Policy.
The Energy Master Plan serves as an all-encompassing strategy that covers macro-scale plansacross various energy sectors. This comprehensive plan outlines mid- to long-term energy
policy frameworks and targets across the economy. In June 2019, the 3rd plan was unveiled,covering the period from 2019 to 2040.
Announced during the 5th meeting of the Hydrogen Economy Commission in November 2022.
This new plan strives to cultivate the clean hydrogen ecosystem, establish a legal framework forhydrogen infrastructure, and drive technical innovation, etc.
The 5th Plan, released in December 2020, is designed to establish an ecosystem that facilitates
the utilisation of renewable energy for a low-carbon economy. This plan outlines key strategies
for renewable energy industry and demand projections.

Ministry of Trade,Industry and Energy

Ministry of Trade,Industry and Energy

Ministry of Trade,Industry and Energy
Ministry of Trade,Industry and Energy
Ministry of Trade,Industry and Energy

2030 NDC (Nationally Determined
Contribution)

The 2030 NDC are intermediate goals for achieving carbon neutrality by 2050. Korea hasestablished an updated target of reducing 40% of its GHG emissions by 2030 from 2018 levels.

Presidential Commission
on Carbon Neutrality andGreen Growth

1st Basic Plan for Carbon
Neutrality and Green Growth

In accordance with the Framework Act on Carbon Neutrality, Korea unveiled its 1st Basic Planin April 2023. This plan will be updated every five years for the next 20 years, spanning from2023 to 2042. The 1st Plan includes provisions for adjusting reduction targets for each sector,
developing core green technologies, and facilitating support for policy and private financing.

Presidential Commission
on Carbon Neutrality andGreen Growth138

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Strategy for Securing Reliable
Critical Minerals Supply

In February 2023, MOTIE unveiled a strategy that outlined various measures to secure thesupply chain of critical minerals. These measures include identifying specific strategic criticalminerals, enhancing international cooperation, mitigating supply risks, and promoting financial
assistance and investment.

Ministry of Trade,Industry and Energy

Basic Plan for Resources
Development

In May 2020, MOTIE announced a plan to enhance the government’s financial support forresource exploration projects undertaken by private sector enterprises, aiming at ensuringresources security.

Ministry of Trade,Industry and Energy

6th Basic Plan for Energy Use
Rationalization

In accordance with the Energy Use Rationalization Act, MOTIE has formulated a demand-sidestrategy for the mid- to long-term every five years since 1993. The 6th plan, unveiled in August
2020, aims to strengthen demand management, enhance energy use efficiency, and promote
institutional development.

Ministry of Trade,Industry and Energy

Notable Energy Developments
Energy development

Details

Reference

Carbon-Free Energy (CFE)
Initiative

The Korean Government proposed the concept of the CFE Initiative during the 2023 UN
General Assembly and COP 28, highlighting the importance of utilising various carbon-freeenergy sources such as nuclear power, hydrogen, and renewable energy. This initiative aims toprovide more sustainable and rational carbon-free energy alternatives, especially to highly
industrialised economies like Korea.

Ministry of Trade,Industry and Energy

Special Act on National Resource
Security

Act on Carbon Capture, Utilizationand Storage (CCUS)

In January 2024, the Special Act on National Resource Security Act was passed in Korea's
National Assembly. This Act seeks to establish a comprehensive framework for energy security
through the implementation of the key policy measures. These measures include theidentification of critical resources, such as oil, natural gas, uranium, and critical minerals. The
Act also provides a legal basis for storage requirements and the establishment of an early
warning system for emergency situations.
In January 2024, Korea's National Assembly passed the new CCUS Act bill, which aims toprovide a comprehensive framework to promote the CCUS business within the economy. Thislegislation enables the establishment of a CCUS Basic Plan every five years and outlines
promoting the CCUS industry, infrastructure, project management, and technology
development.

Ministry of Trade,Industry and Energy

Ministry of Trade,Industry and Energy

139

APEC ENERGY OVERVIEW 2024

Energy development

Details

Reference

6th Hydrogen Economy Committee
Meeting

In continuation of the New Hydrogen Economy Policy Directions, released during the 5th
Hydrogen Economy Committee, the 6th meeting held in December 2023 focused on outlining
specific strategies to promote the hydrogen industry. These strategies include the establishmentof certification criteria, technology development, and the growth of hydrogen car and charging
infrastructure.

Ministry of Trade,Industry and Energy

Useful Links
Korea Energy Statistical Information System – https://www.kesis.net/main/main.jsp
Korea Electric Power Corporation – https://home.kepco.co.kr/kepco/main.do
Korea Energy Economics Institute – http://www.keei.re.kr/main.nsf/index.html
Korea Energy Agency – http://www.energy.or.kr/web/kem_home_new/new_main.asp
Korea Gas Corporation – https://www.kogas.or.kr:9450/portal/index.do
Korea National Oil Corporation – https://www.knoc.co.kr/
Presidential Commission on Carbon Neutrality and Green Growth – https://www.2050cnc.go.kr/base/main/view
Ministry of Trade, Industry and Energy – http://english.motie.go.kr/www/main.do
Ministry of Environment – http://eng.me.go.kr/eng/web/main.do
Statistics Korea – http://kostat.go.kr/portal/eng/index.action

References
KOSIS (Korea Statistics Information Service) (2019), Energy and Mineral Resources Statistics,
http://kosis.kr/statisticsList/statisticsListIndex.do?menuId=M_01_01&vwcd=MT_ZTITLE&parmTabId=M_01_01
MOTIE (Ministry of Trade, Industry and Energy)– (2022), The New Energy Policy Goals and Directions,
http://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_seq_n=165751&bbs_cd_n=81&currentPage=11&search_key_n=title_v&cate_n=140

APEC ENERGY OVERVIEW 2024

&dept_v=&search_val_v=%EC%83%88%EC%A0%95%EB%B6%80– (2023), 10th Basic Plan on Electricity Demand and Supply,
https://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_seq_n=166650&bbs_cd_n=81&currentPage=1&search_key_n=&cate_n=&d
ept_v=&search_val_v=
Presidential Commission on Carbon Neutrality and Green Growth (2022)– (2021) Enhanced 2030 NDC (Nationally Determined Contribution)
https://2050cnc.go.kr/eng/contents/view?contentsNo=43&menuLevel=2&menuNo=50– (2022), Vision and Promotion Strategies for Carbon Neutrality and Green Growth,
https://www.2050cnc.go.kr/base/board/read?boardManagementNo=3&boardNo=1049&searchCategory=&page=2&searchType=&searchWord=&
menuLevel=2&menuNo=17– (2023), 1st Basic Plan for Carbon Neutrality and Greenhttps://www.2050cnc.go.kr/base/board/read?boardManagementNo=3&boardNo=1049&searchCategory=&page=2&searchType=&searchWord=&
menuLevel=2&menuNo=17

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APEC ENERGY OVERVIEW 2024

Malaysia
Introduction
Malaysia has always emphasised the importance of the energy sector’scritical role in the economy. In pursuing a net zero future, Malaysia has
released the Twelfth Malaysia Plan, spanning 2021 to 2025, and the
National Energy Policy 2022-2040 has laid the groundwork fortransitioning to this target. Malaysia has developed the National Energy
Transition Roadmap (NETR) 2023 to accelerate this energy transition
effort. This roadmap is vital for steering Malaysia’s shift from a traditional
fossil fuel-based economy to a high-value green economy. The NETR
approach is based on the fundamental energy trilemma of security,
affordability and sustainability.
The NETR establishes the pathway for improving the domestic energy
mix, GHG emission reduction, and energy transition initiatives. Within
NETR there are ten flagship catalyst projects covering six energy
transition levers, namely, energy efficiency (EE), renewable energy (RE),hydrogen, bioenergy, green mobility, and carbon capture, utilisation, andstorage (CCUS).
In addition, Malaysia has launched multiple documents spearheading the
economy's vision to reach the status of a carbon-neutral economy by2050, i.e., the Hydrogen Economy and Technology Roadmap (HETR)
and New Industrial Masterplan (NIMP).
These plans reinforce Malaysia’s commitment to net zero emissions as
early as 2050. By 2050, NETR initiatives are expected to deliver a 32%
reduction in GHG emissions for the energy sector compared to the 2019baseline, reaching 4.3 MtCO2eq emissions per capita. This aligns with
Malaysia’s Nationally Determined Contribution (NDC) under the Paris
Agreement. Malaysia intends to reduce its greenhouse gas (GHG)
emissions intensity against GDP by 45% by 2030, relative to its 2005
levels, on an unconditional basis. Malaysia has announced a new target
for installed renewable energy (RE) capacity in July 2023, aiming for 70%
by 2050. As of December 2023, Malaysia’s installed RE capacity stoodat 25%.
Table 1: Malaysia macroeconomic data and energy reserves
Key data a, b

Energy reserves c

Area (million km2)

330 441

Population (million)

33.4

Gas (trillion cubic feet)

76.032GDP (2017 USD billion
PPP)

884.1

Coal (million tonnes)

1 938.4

GDP per capita (2017
USD PPP)26 332.2

Uranium (kilotonnes U< USD 130/kgU)

0 000

Oil (billion barrels)

4.43

Source: a DOSM, EPU (2023); b World Bank (2022); c EC (2023).
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

On October 2023, the Malaysian Parliament passed the Energy
Efficiency and Conservation Bill 2023 (EECA). This legislation
represents a key component of the National Energy Transition Roadmap
and aims to promote demand-side energy management by overseeing
conservation and efficient energy consumption. The act will requiresignificant domestic energy consumers to implement energy-saving
measures covering electrical and thermal energy. The EECA will
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APEC ENERGY OVERVIEW 2024

Malaysia’s GDP growth was confirmed at 3.3% year-on-year in Q3 of2023 from a near two-year low of 2.9% in the previous period.
Malaysia's energy sector has historically been dominated by fossil
fuels, i.e., coal, oil and natural gas, with the economy being asignificant producer and exporter of oil and gas. Malaysia’s crude oil
reserve stood at 4.43 billion barrels, while total natural gas reserves
stood at 76.032 Tscf in 2023. Malaysia has significant coal reserves at
276.04 million tonnes, The economy uses 90% of the reserve fordomestic use.

Energy Supply and Consumption
Total primary energy supply
Malaysia's total energy supply has grown since 2000 at an annual
average of 3.4%, reaching 4 006 PJ in 2021 (Figure 1). In 2020, there
was low energy demand due to the outbreak of COVID-19, and in
2021, a slight increment in energy supply was observed as a result of
economic recovery, although the recovery has been relatively slow,
given that 2019 levels of supply have not been surpassed.
Total primary energy supply (TPES) increased by 2.9% compared to2020, but is still down 3.1% in 2019. Both gas and renewable fuel types
increased. However, coal and oil recorded a slight reduction. Natural
gas is the leading fuel used in TPES with its share of 44.5%, followedby crude oil at 27.7%, coal and coke at 23.8%, and renewable energy(RE) at 4.1%.
Figure 1: Malaysia energy supply, production, and net imports (PJ),
2000 to 2021
5 000

Production, net imports and
TPES (PJ)

regulate the heavy industrial and commercial users that consume 21 600
GJ per annum, equivalent to MYR 2.4 million (USD 500 thousand) inannual electricity bills or MYR 1 million (USD 200 thousand) in natural
gas bills, covering 1 500 out of 2 700 industrial users, representing 70%80% of industrial consumption and 500 out of 1.7 million commercial
consumers.

Production

4 000
3 000
2 000

Total Primary Energy Supply

1 000
0
2000
-1 000Net imports
2005

2010

2015

2020

-2 000Source: EGEDA (2023)

Gas is the main energy source in Malaysia for 2021 due to its reliability
and affordability compared to other fossil fuels. Malaysia has significant
natural gas reserves, making it a readily available and domesticallysourced energy option. Decades-long gas price control by thegovernment, fostering demand and inefficient energy use, burdening
Petronas investment capacity and discouraging the development of
more expensive domestic production. Investments in gas infrastructure
and technologies have enhanced its accessibility and efficiency, further
solidifying its position as the main energy supply in the economy.
It is forecast that in the coming three years, more than 25 oil and gas
wells are to be drilled each year, focusing on shallow water plays within
Peninsular Malaysia and Sarawak and deepwater wells in Sabah. This
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APEC ENERGY OVERVIEW 2024

is expected to sustain and grow Malaysia’s oil and gas production of
two million barrels of oil equivalent per day by 2025. Malaysia’s
renewable energy comes from solar and hydro sources and is mostly
used in power generation.
Figure 2: Malaysia energy supply by fuel (PJ), 2000 to 2021
4 500

Figure 3: Energy supply mix – Malaysia and APEC, 2021
100%

Other
Renewables

80%
Gas
60%

4 000

Oil

TPES by fuel (PJ)

3 500

40%

3 000

2 500
20%

2 000

Coal

1 500
1 000

0%
Malaysia

500
- 500

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Others

APEC-20%
Source: EGEDA (2023)

Total final consumption
Source: EGEDA (2023)

The availability of indigenous oil and gas resources in Malaysia and the
low global fossil fuel prices in 2021 continued to be contributing factors
to higher reliance on fossil fuels than the APEC region (Figure 3). Oiland gas shares were about 20% higher than in the APEC region. Coal
was lower as Malaysia imported about 90% of its coal supply andshifted away to cleaner resources. Renewables and other shares werealso below that in the APEC region.

In terms of final consumption, the industry sector has the largest share,with 33.5% in 2021. The transport sector followed with 31.6%, nonenergy with 19.0%, and the ‘others’ sector with 15.9%. As shown in
Figure 5, in 2021 the total final energy consumption experienced an
upward trend of 0.2% from 2020. This was due to increasing energy
consumption in the industry sector in particular. In contrast, thetransport sector is still facing a downward trend as the government andprivate organisations are encouraged to work from home (WFH).

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APEC ENERGY OVERVIEW 2024

Figure 5: Final consumption by sector, Malaysia and APEC, 2021
100%

3 000

Non-energy
2 500

Agriculture & others

80%

2 000

Residential

1 500

Commercial

60%
1 000

Transport

500

40%

0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Final energy demand by sector (PJ)

Figure 4: Malaysia final consumption by sector (PJ), 2000 to 2021

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

20%

Industry0%
Malaysia

APEC

Source: EGEDA (2023)

Like the APEC region, the transport and industry sectors represented
the most significant portion of Malaysia's final consumption, more than
60% in 2021 (Figure 5). The non-energy consumption share was larger
in Malaysia than in the APEC region in 2021. Malaysia has many
petrochemical plants, including fertiliser plants in Peninsular Malaysia,
Sabah and Sarawak, which use oil and gas as feedstock. The nonenergy sector's energy consumption growth was mainly driven by
feedstock availability and price. The industry sector was expected to
grow steadily, supported by one of the main clusters of the Twelfth
Malaysian Plan on propelling the growth of strategic hub and highimpact industries as well as micro, small and medium-enterprises.

Source: EGEDA (2023)

Final energy demand
Malaysia experienced a 4% annual growth in final energy demand,rising from 1 149 PJ in 2000 to 1 944 PJ in 2021. Fossil fuels
constituted nearly 70% of the fuel share utilised by end-users in 2021,
marking a 0.04% increase from the previous year. Petroleum products,
primarily oil, comprised over half of the end-user fuel share in 2021.
Within this, the transport sector accounted for 76% of the total oil
demand, while the industry sector utilised 19.7%, the non-energy sector
4%, and other sectors 0.3%.
Electricity emerged as the second most prominent fuel, remaining
unchanged from 29% of the end-user fuel share in 2020 to 29% in
2021. Post-COVID-19 pandemic, electricity demand in 2021
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APEC ENERGY OVERVIEW 2024

experienced a minor increase in volume due to a notable increase fromthe residential sector, offset by a substantial reduction from othersectors. The government had introduced reliefs and initiatives tomitigate household electric bill increases.
Figure 6: Malaysia final energy demand by fuel (PJ), 2000 to 2021
Final energy demand by fuel (PJ)

2 500

an average of 74 PJ before experiencing declines in 2019 and 2020
and rebounding slower in 2021.
The significant consumption of petroleum products in the transport
sector contributed to a larger portion of oil in Malaysia's final energy
demand than the APEC region in 2021 (Figure 7), despite a decrease
in its share from 50% in 2020 to 47.7% in 2021. Conversely, the sharesof other fuels were below those of APEC, except oil and coal.
Figure 7: Final energy demand fuel share, Malaysia and APEC, 2021

2 000

100%

1 500

Electricity andothers

80%

1 000
500

Renewables

60%

Gas

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Electricity and others

40%
Oil
20%

Source: EGEDA (2023)
Note: Does not include non-energy sector consumption of energy products.

In 2021, gas and coal collectively represented 21.8% of the fuel shareutilised by end-users, with a slight increase in demand from the industry
sector attributed to lower gas prices compared to 2019 and a slightrecovery from the impact of COVID-19 in 2020.

Coal
0%
Malaysia

APEC

Source: EGEDA (2022)

Gas demand has followed an upward trend since recovering from theglobal financial crisis in 2008. In contrast, coal has remained stable at146

APEC ENERGY OVERVIEW 2024

Since 2000, Malaysia's electricity generation predominantly relied oncoal and gas, which held a combined share of 85% and then steadily
increased to a peak of 93% in 2010 before gradually declining to 80%
in 2021 (Figure 8). This decrease reflects Malaysia's efforts to achieve
a 31% renewable energy capacity mix by 2025, i.e., 91% contributed byhydro. This helps Malaysia achieve the target outlined in the Malaysia
Renewable Energy Roadmap (MYRER). Malaysia has set an
unconditional target of a 45% reduction in economy-wide carbon
intensity against GDP compared to 2005 levels, to be achieved in 2030
(revised in 2021). As a result of these renewable energy targets andclimate change commitments, including the newly announced decision
not to develop any new coal-fired power plants for electricity generation(while existing coal-fired power plants will retire according to the Power
Purchase Agreement (PPA) date), the contribution of renewables toelectricity generation more than tripled from 6% in 2010 to 20% in
2021, while the share of oil remained consistently low over the past two
decades.
In 2020, there was an annual drop in electricity generation, a significant
decline of 24% in gas-based electricity generation. However, in 2021, aslight increase was observed due to the commissioning of two newgas-fired power plants (SPG Block 1 and SPG Block 2), partially offset
by a 19% increase in coal-based generation.

200
180
160
140
120
100
80
60
40
20
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Power sector

Figure 8: Malaysia electricity generation by fuel, 2000 to 2021
Electricity generation (TWh)Transformation

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

Malaysia's electricity generation in 2021 featured a larger proportion ofcoal, gas and hydro compared to the APEC region, with oil comprisinghalf and other renewables representing a significantly smaller portion(Figure 9). This comparison highlights Malaysia's heavier reliance on
coal and gas in electricity generation relative to the APEC region.
Although Malaysia has established a nuclear agency and has
periodically reviewed nuclear options, as of 2021 there are no nuclear
power generation plants.

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APEC ENERGY OVERVIEW 2024

Figure 9: Electricity generation fuel share, Malaysia and APEC, 2021
100%

OthersOther
renewables
Geother…
Nuclear80%

Emissions
As a rapidly developing economy, Malaysia’s economic growth andadvancement are highly dependent on the cumulative efforts of all its
sectors, from manufacturing and transportation to logistics andconstruction. As its population grows, development ramps up, and theeconomy progresses, Malaysia’s energy consumption is parallel withGDP growth.

Hydro

60%
Gas
Oil

40%

As a visible outcome of a higher standard of living, more people now
own and use energy-consuming technology-based appliances anddevices. Urbanisation and commercialisation have also increased
electricity consumption, with more offices, factories, shopping centres,
and other entertainment outlets in operation.

Coal

20%

0%
Malaysia

Energy transition

APEC

Source: EGEDA (2023)

Refining
Malaysia has invested heavily in refining activities during the past two
decades to meet its demand for petroleum products with domestic
supplies. Malaysia had an oil refining capacity of 955 thousand barrels
daily (5.84 PJ), an increase from 625 thousand barrels (3.82) daily in2020. Oil refinery capacity in Malaysia has been increasing since 2012,reaching a maximum of 625 thousand barrels per day. The import andexport difference of petroleum products is at 20%. The production of
petroleum products from refineries consists of petrol (24.53%), diesel(44.34%), LPG (3.24%), ATF and AV Gas (11.85%), non-energy(9.42%), fuel oil (5.80%), refinery gas (0.75%) and kerosene (0.07%).

As a result of this growth in energy use, Malaysia has witnessed a
consistent rise in CO2 emissions. This growth in emissions surpassed
the growth rate of fossil fuel utilisation in energy supply, primarily driven
by the rise in coal consumption for electricity generation during this timeframe.
The Twelfth Malaysia Plan, spanning 2021 to 2025, outlines Malaysia’scommitment to reaching net zero greenhouse gas (GHG) emissions by
2050. Through this, the economy hopes to decrease GHG emissions
by 32%. The National Energy Transition Roadmap (NETR) (2023) will
also play a key role.
At the same time, the National Energy Policy 2022-2040 (DTN)
establishes the groundwork for a just and inclusive energy transition,
which is important because such a large transition can create andincrease inequalities for those affected the most.

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APEC ENERGY OVERVIEW 2024

Figure 10: Malaysia CO2 combustion emissions (million tonnes), 2000
to 2021

Million tonnes CO2250

CO2 combustion
emissionsstabilise the escalating dependence on imported oil and natural gas.

APEC Energy Goals

150

There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.

100

Energy intensity goal

200

50
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
NETR has developed the Responsible Transition (RT) Pathway 2050 toshift Malaysia’s energy systems from fossil fuel-based to greener andlow-carbon options. Malaysia’s main electricity resource for decades
has been non-indigenous, mostly in the form of imported coal. NETR
targets phasing out coal and reducing fossil-fuel reliance from 96% in
2023 to 77% in 2050. Natural gas is set to be a transitional fuel and theprimary contributor of TPES, followed by renewables that include solar,hydro and bioenergy, collectively contributing 23% of TPES in 2050
from 4% in 2023.

In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economic targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.
Malaysia's total final energy consumption energy intensity (excluding
non-energy) has been improving at an average rate of 2.0% annually,reaching a total reduction of 26% in 2021 compared to 2005 (Figure
11).

Over the last two years, Petronas and international investors havedirected their attention towards exploration in Malaysia, especially in
the Sarawak and Sabah basins. Most of these oil and gas discoveries
were situated offshore in East Malaysia. Apart from extending theestimated oil and gas production duration, these discoveries will help
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APEC ENERGY OVERVIEW 2024

Figure 11: Malaysia total final energy consumption intensity index, 2000
to 2021 (2005 = 100)

Figure 12: Malaysia modern renewable energy share, 2010 and 2021
8.0%

Energy intensity index (2005 =
100)

120

7.0%
Total final energy consumption energy intensity

100

6.0%

Change from2010 to 2021

80
5.0%
APEC-wide goal 2035

60

4.0%
40
3.0%
20
2.0%
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2022)

Doubling of renewables

1.0%
0.0%
2010

Change2021

The second energy goal involves doubling the share of modern
renewables in the APEC energy mix from 2010 to 2030. There is no
economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doublinggoal.

Source: EGEDA (2023)

Since the inception of the National Renewable Energy Policy andAction Plan (NREPAP) in 2010, various renewable energy programmes
have been implemented. Malaysia's utilization of modern renewables
has been on the rise. By 2021, the proportional share in was 7%,
compared to 1.4% in 2010 (Figure 12). Looking forward, MYRER(2021) is expected to guide renewable sources to reach 70% of therenewable energy mix (installed capacity) in 2050.

In 2021, Malaysia's electricity generation from renewables reached19%, tripling the level seen in 2010 (Figure 13). Moreover, there wassignificant growth in renewables-based electricity generation,
increasing from 7 TWh in 2010 to 34 TWh in 2021. This growth was
guided by policies and plans, such as the various renewable energy(RE) plans, the feed-in tariff (FiT) scheme, solar auctioning, the rooftop
solar quota under the Large-Scale Solar (LSS), Net Energy Metering(NEM), and the Self Consumption (SELCO) Programme.

Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

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APEC ENERGY OVERVIEW 2024

In addition to the rise in renewables-based electricity generation in
2021, the annual increase in the renewables share was also partly
attributed to the decline in electricity generation from fossil fuels,
specifically oil and gas.

‘

Figure 13: Malaysia renewable generation share, 2000 to 2021
25%

Proportion

20%

Renewables share in electricity mix

15%

10%

5%

0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

151

APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy
National Petroleum Policy 1975
National Energy Policy 1979
National Depletion Policy 1980

Details
To ensure the efficient utilisation of indigenous petroleum resources to facilitate domestic,
industrial and economic development while ensuring effective regulation and domestic
majority control in the oil and gas industry's ownership, management and operation.
To achieve an efficient, secure and environmentally sustainable supply of energy.
To prolong the lifespan of domestic oil and gas reserves by safeguarding against overexploitation and prioritising domestic needs for future energy security, with production caps
imposed on oil and natural gas reserves.

Reference
Ministry of Economy
Ministry of Economy
Ministry of Economy

Four-Fuel Diversification Policy
1981

To enhance the reliability and security of the energy supply by reducing over-dependenceon oil as the single fuel source by diversification to four primary fuels: oil, natural gas,hydroelectricity and coal.

Ministry of Energy
Transition and Water
Transformation

Five-Fuel Diversification Policy
2000

To introduce RE as an alternative fuel source to complement the four focus fuel sources
identified in the Four-Fuel Diversification Policy and encourage efficient energy utilisation.

Ministry of Energy
Transition and Water
Transformation

National Policy on theEnvironment 2002

To promote continuous economic, social and cultural progress and enhance the quality oflife of Malaysians through environmentally sound and sustainable development. This
includes stewardship of the environment, continuous improvement of environmental quality
and sustainable use of natural resources, and consumption and production patterns.

Ministry of Natural
Resources andEnvironmental
Sustainability

National Biofuel Policy 2006

To promote the use of biofuels, in alignment with the Five-Fuel Diversification policy, as anenvironmentally friendly, sustainable, and viable energy source to reduce dependency on
fossil fuels and promote the well-being of all stakeholders in agricultural and commoditybased industries through stable and remunerative prices.

Ministry of Plantation
and Commodities

National Green Technology
Policy 2009

To promote energy efficiency while enhancing economic development to facilitate thegrowth of the green technology industry, increase domestic capability and capacity in green
technology development, ensure sustainable development and conservation of theenvironment for future generations, and enhance public awareness of green technology.

Ministry of Natural
Resources andEnvironmental
Sustainability

National Renewable Energy
Policy and Action Plan 2009

To enhance the utilisation of indigenous RE resources to contribute towards domestic
supply security and sustainable socio-economic development by increasing RE contribution
in the domestic power generation mix, facilitating the growth of the RE industry, ensuring
reasonable RE generation costs, conserving the environment for future generations, andenhancing awareness on the role and importance of RE.

Ministry of Energy
Transition and Water
Transformation

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APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

National Policy on Climate
Change 2010

To promote the effective management of resources and enhanced environmental
conservation to strengthen economic competitiveness and improve quality of life, integrate
climate change considerations into domestic policies, and strengthen institutional andimplementation capacities to address challenges and opportunities related to climatechange.

Ministry of Natural
Resources andEnvironmental
Sustainability

New Energy Policy 2010

To promote energy security, economic efficiency, and environmental and social objectives
through the five key pillars of energy pricing, supply, efficiency, governance, and change
management. Highlights include the gradual reduction of energy subsidies, such as gradualgas price revisions to converge with the market pricing, initiatives to secure and manage
reliable energy supply with third-party access (TPA) and the building of Re-Gasification
Terminals (RGTs) and RAPID and FiT for RE sources and encouraging studies onalternative energies for increased energy source diversification, increased energy efficiency
and various enablers such as energy sector governance.

Ministry of Economy

Nationally Determined
Contribution to the UNFCCC
2015

To unconditionally decrease the GHG emission intensity of GDP by 35% in 2030 comparedto the 2005 level and by a further 10% on the condition of receipt of climate finance,technology transfer and capacity building from developed economies.

Ministry of Natural
Resources andEnvironmental
Sustainability

National Energy Efficiency Action
Plan 2016

To enhance energy efficiency with a target of 8% reduction (saving up to 594 MWh) inelectricity demand by 2025 through energy efficiency initiatives, enabled by the
implementation of the energy efficiency plan, strengthening of the institutional frameworkand capability development, implementation of a sustainable funding mechanism andpromotion of private sector investment in energy efficiency initiatives.

Ministry of Energy
Transition and Water
Transformation

Green Technology Master Plan
2017-2030

Outlines the strategic plans/immediate course for green technology development to createa low-carbon and resource-efficient economy.

Ministry of Natural
Resources andEnvironmental
Sustainability

Green Technology Financing
Scheme 1.0, 2.0 and 3.0

A special financing scheme to support the development of green technology in the energy,building, manufacturing, transport, waste management and water sectors.

Malaysia GreenTechnology Corporation

Malaysia's Roadmap Towards
Zero Single-Use Plastics 20182030

Towards zero single-use plastics for a cleaner and healthier environment in Malaysia by
2030.

Ministry of Natural
Resources andEnvironmental
Sustainability

153

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

National Automotive Policy 2020

To encourage new growth areas through the integration of technologies such as the Next
Generation Vehicle (NxGV), Mobility as a Service (MaaS) and Industrial Revolution 4.0(IR4.0) that are in line with the development of future technologies.

Ministry of International
Trade and Industry

Peninsular Malaysia Generation
Development Plan 2020 (20212039)

Electricity demand is projected to grow by 0.6% p.a. for 2021-2030 and 1.8% p.a. for 20302039. To achieve the RE capacity mix target from 20% to 31% by 2025, large hydroresources will be included as part of the RE for consistency and 1 178 MW of new RE
capacities will be developed in Peninsular Malaysia from 2021 onwards. To increase RE
capacity to 40% by 2035, an additional 2 414 MW of RE capacity will be developed. The
total new RE capacity would consist of 93% solar and 7% non-solar energy. The plan is
also to develop 6 077 MW of new capacity (thermal energy and RE) by 2030 and 9 924
MW of new capacity (thermal energy and RE) beyond 2030.

Energy Commission

Low Carbon Mobility Blueprint
2021-2030

To focus on improving vehicle fuel economies and emissions, adopting EVs, low-emission
vehicles and alternative fuels, and reducing GHG emissions and energy via mode shifts.

National Low Carbon Cities
Masterplan 2021

To help guide the implementation of low-carbon developments and initiatives.

Nationally Determined
Contribution to the UNFCCC
2021

To unconditionally decrease GHG emission intensity of the GDP by 45% in 2030 comparedto the 2005 level.

The Twelfth Malaysia Plan
2021-2025

A medium-term plan for Shared Prosperity Vision 2030, with the objective of “A
Prosperous, Inclusive, Sustainable Malaysia”. Under the plan, the energy sector willaddress the energy trilemma, especially on energy security and sustainability.

Ministry of Economy

National OGSE Industry Blueprint
2021-2030

To help shape the Oil & Gas Services and Equipment (OGSE) industry and adapt to therapidly evolving needs of the global market.

Ministry of Economy

Malaysia Renewable Energy
Roadmap 2022-2035

To support further decarbonisation of the electricity sector in Malaysia through the 2035
milestone, from 2022 to 2035.

Sabah Gas Master Plan 2022

A collaborative effort between the Sabah State Government and Petronas to sustainably
pursue the full potential of Sabah's domestic natural gas industry.

Ministry of Natural
Resources andEnvironmental
Sustainability
Ministry of Natural
Resources andEnvironmental
Sustainability
Ministry of Natural
Resources andEnvironmental
Sustainability

Ministry of Energy
Transition and Water
Transformation
Sabah State
Government
PETRONAS
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APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Third Industrial Master Plan
(IMP3) 2030

Manufacturing: to grow at 5.6% annually, contribute 28.5% to GDP in 2020, and total
investments of MYR 412.2 billion (MYR 27.5 billion annually). Non-government services: togrow at 7.5% annually and contribute 59.7% to GDP in 2020, and total investments of MYR
687.7 billion (MYR 45.8 billion annually).

Ministry of International
Trade and Industry

Post COVID-19 Development
Strategy 2030

To ensure Sarawak can embark on a full-fledged transformation by capitalising on
megatrends around the world such as globalisation, the new industrial revolution, circular
economy, and transition towards a low carbon economy.

Economic Planning Unit
SarawakNational Energy Policy 20222040

To enhance macroeconomic resilience and energy security, achieve social equitability andaffordability, and ensure environmental sustainability. The document is subject to reviews
every three years to ensure that the targets are achievable and to keep the policy in linewith international development in the energy transition pace.

Ministry of Economy

National Energy Transition
Roadmap 2050

To accelerate energy transition efforts. This roadmap is vital for steering Malaysia’s shift
from a traditional fossil fuels-based economy to a high-value green economy. The NETR
requires a whole-of-economy approach, encompassing federal and state governments,
industry, the public, and the international community.

Ministry of Economy

Hydrogen Economy andTechnology Roadmap 2050

To guide the development of Malaysia’s hydrogen economy. This roadmap is a supporting
document to the National Energy Policy 2022-2040 (NEP), which will pave the way toachieving environmentally sustainable, long-term energy security for Malaysia, driven bytechnological innovation.

Ministry of Science,
Technology, andInnovation

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APEC ENERGY OVERVIEW 2024

Notable Energy Developments
Energy development

Details

Reference

Energy Efficiency andConservation Act 2023

To strengthen the regulatory framework of Energy in Malaysia, EECA will implement
initiatives and implementation to reach the economy target on energy saving.

Energy Commission

Electric motorcycle rebateElectric motorcycle incentive scheme provides buyers of electric bikes with a rebate toencourage them to switch from petrol to electric bikes.

Ministry of International
Trade and Industry

Sustainability Achieved Via
Energy Efficiency (SAVE) 4.0

A programme that grants an e-rebate to domestic households that purchase energy-efficient
air conditioners and refrigerators with 4-star or 5-star energy efficiency labels from theEnergy Commission (ST)Ministry of Energy
Transition and Water
Transformation
Ministry of Economy

Renewable Energy Capacity

The enhanced RE capacity mix target will rise from the previous goal of 40% by 2035 to
70% by 2050.

Solar and wind energy projects in
Malaysia

Masdar and MIDA have agreed through a MoU signed during COP28 for an implementation
roadmap to advance the development of 10GW of clean energy projects in Malaysia.

Floating Solar and Centralised
Solar Park Projects

TNB with Majuperak Holdings Berhad (MHB), a government-linked company, to develop a
substantial 100-megawatt (MW) ground-mounted solar project in Perak.

Imbalance Cost Pass-Through(ICPT) Rates 2023

A mechanism to reflect changes in the cost of electricity generation, specifically fuel costs,
for every six months. The government of Malaysia has also decided to introduce a targeted
subsidy scheme for ICPT implementation period from 1 July 2023 until 31 December 2023,
with the implementation of the targeted subsidy scheme.

Sustainable Energy
Development Authority(SEDA) Malaysia
Malaysian Investment
Development Authority
Tenaga Malaysia
BerhadMajuperak Holdings
BerhadTenaga Malaysia
Berhad156

APEC ENERGY OVERVIEW 2024

Useful Links
Bank Negara Malaysia – www.bnm.gov.my
Department of Statistics Malaysia – www.dosm.gov.my
Energy Commission – www.st.gov.my
Grid System Operator – www.gso.org.my
Malaysia Energy Information Hub – www.meih.st.gov.my
Malaysia Green Technology Corporation – www.mgtc.gov.my
Malaysian Palm Oil Board – www.mpob.gov.my
Ministry of Economy – www.epu.gov.my
Ministry of Energy Transition and Water Transformation
Ministry of Natural Resources and Environmental Sustainability
Ministry of Finance – www.mof.gov.my
Ministry of Investment, Trade, and Industry – www.miti.gov.my
Ministry of Plantation and Commodities – www.mpic.gov.my
Ministry of Science, Technology, and Innovation – www.mosti.gov.my
PETRONAS – www.petronas.com
Prime Minister's Office – www.pmo.gov.my
Sabah Electricity Sdn. Bhd. – www.sesb.com.my
Sarawak Energy Berhad – www.sarawakenergy.com
Sustainable Energy Development Authority (SEDA) Malaysia – www.seda.gov.mySingle Buyer Department – www.singlebuyer.com.my

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APEC ENERGY OVERVIEW 2024

References
Department of Statistics Malaysia (DOSM) (2023), OpenDOSM, Current population and GDP, https://open.dosm.gov.my/
Energy Commission (EC) (2023), National Energy Balance 2020, https://meih.st.gov.my/documents/10620/2923c46a-8324-4133-a0df-aba45dee3a92
HRMAsia (2022), Malaysia lets employers choose whether to allow WFH, https://hrmasia.com/malaysia-lets-employers-choose-whether-to-allow-wfh/
Ministry of Economy, National Energy Transition Roadmap (NETR) 2023,
https://www.ekonomi.gov.my/sites/default/files/202309/National%20Energy%20Transition%20Roadmap_0.pdf
Ministry of Economy, Twelfth Malaysia Plan (12MP) 2021-2025, https://rmke12.ekonomi.gov.my/en
Ministry of Economy,
Ministry of Economy, National Energy Policy (DTN) (2022), https://www.ekonomi.gov.my/sites/default/files/2022-09/Dasar_Tenaga_Negara_20222040.pdf
Ministry of International Trade and Industry (2030), New Industrial Master Plan (NIMP) 2030, https://www.nimp2030.gov.my/
Ministry of Natural Resources and Environmental Sustainability (2023), Fourth Biennial Update Report Under the United Nations Framework
Convention on Climate Change, https://unfccc.int/documents/624776
Ministry of Science, Technology, and Innovation (MOSTI), Hydrogen Economy and Technology Roadmap (2023),
https://www.mosti.gov.my/en/penerbitan/?d=LzIwMjM%3D&m1dll_index_get=0
Petronas (2023), Petronas Activity Outlook 2024 – 2026, https://www.petronas.com/activity-outlook-2024-2026/
Sustainable Energy Development Authority (SEDA) Malaysia (2023), Malaysia Renewable Energy Roadmap (MYRER),
https://www.seda.gov.my/reportal/myrer/
Tenaga Malaysia Berhad (TNB) (2023), Imbalance Cost Pass-Through (ICPT) mechanism, https://www.tnb.com.my/faq/icpt-english

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APEC ENERGY OVERVIEW 2024

MexicoIntroduction
Mexico’s favourable geographic location, with access to the Atlantic
and Pacific Ocean and close to the United States, allows it to importnatural gas produced in the US through its robust and interconnected
pipeline system. Increased demand for US natural gas globally has
positioned Mexico as a potential exporter of US gas. In 2023, Mexico’s
first gas liquefaction terminal, New Fortress Altamira Fast LNG (FLNG),
started operations and a second liquefaction terminal is expected tocome online in 2024. Mexico’s Comisión Federal de Electricidad (CFE),
which holds most of the pipeline capacity, is a key player in thedevelopment of these projects, together with the private sector.
Despite having abundant hydrocarbon resources and being one of the
top 10 economies globally in terms of shale oil and gas reserves,
Mexico’s oil and gas production has been insufficient to satisfy agrowing energy demand. In 2014, Mexico enacted energy reforms toopen the sector to private sector participation and thereby increaseenergy production.
In 2021, Mexico’s natural gas production fell to its lowest level in 45
years. However, the last two years saw a partial reversal to thedownward trend in production. Gas production in 2023 reached 4 995
million cubic feet per day, a 4% increment over the volumes reported in
2022. Exploration and extraction contracts awarded to the private
sector since the 2014 energy reform have contributed to this growthtrajectory; private entities extracted 4.9% of the gas produced in 2023.

In 2023, crude oil production reached 1.65 million barrels per day, a
1.9% increment over the value reported the previous year. The private
sector saw an 11% growth in crude oil production while Mexico’s oil
company, Petróleos Mexicanos (PEMEX), reported a marginal growthof 0.7% in the same year. The low crude oil production growth waslargely driven by productivity decline in mature fields, which represent
the largest share of producing assets.
The government has an energy self-sufficiency strategy with theobjective of increasing domestic production of crude oil, gas andrefined products. PEMEX is the key pillar of this strategy. The Energy
Ministry’s key infrastructure project consists of a new refinery with acapacity of 340 000 barrels per day, which is in the state of Tabasco
and is expected to begin operations in the second half of 2024.
Table 1: Mexico’s macroeconomic data and energy reserves
Key data a, b

Energy reserves c, dArea (million km2)

2.0

Oil (billion barrels)

6.1

Population (million)

127

Gas (trillion cubic feet)

6.3

GDP (2017 USD billion
PPP)

2 582

Coal (million tonnes)

1 211

GDP per capita (2017
USD PPP)

20 255

Uranium (kilotonnes U< USD 130/kgU)

1 800

Source: a SRE (2023); b World Bank (2023); c BP (2023); d UN (2023)
Note: Reserves are total proved reserves and identified recoverable resources foruranium.

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APEC ENERGY OVERVIEW 2024

In November 2022, during COP27, Mexico’s government made thecommitment to increase its Nationally Determined Contributions by 5%in order to reduce greenhouse emissions by a total of 35% below 2005
levels by 2030. Mexico seeks to deploy more than 30 additional
gigawatts of combined wind, solar, geothermal and hydroelectricity
capacity by 2030, with a goal of reaching more than 40 gigawatts ofcombined wind and solar power (SRE, 2022).

re-exported from Mexico to the international market. Due to its
geographic location and logistical advantages, several liquefied naturalgas (LNG) projects in Mexico are being considered to expand the tradeof US gas. Most of these projects are geared to the Asian andEuropean markets. Several additional LNG export projects have beenannounced and one is currently under construction: Sempra’s Costa
Azul project in Baja California.

Energy Supply and Consumption

Over the long term, as the Asian and European markets pursue
decarbonisation strategies, Mexico could become well positioned toexport LNG, as well as low-carbon fuels such as green and bluehydrogen.

Mexico’s energy production has declined by 42% since oil production
peaked at 11 058 PJ in 2004. Total primary energy supply, which
includes imports, exceeded domestic production for the first time in2016, and it is expected that this trend will continue unless the decline
in crude oil and gas production is reversed. The production of thesehydrocarbons started to show signs of stabilisation since 2019 due to
new developments in the Sureste Basin.
Mexico was a net energy exporter up to 2015. Mexico energy exports
consist mostly of crude oil but were outpaced by an increase in natural
gas and oil refined products imports from the United States. The
decline in oil and gas production exacerbated the reliance on US fuels;
the volume of net energy imports tripled from 2016 to 2021.

Figure 1: Mexico’s energy supply, production, and net imports (PJ),
2000 to 2021
12 000

Production, net imports and TPES (PJ)

Total primary energy supply

10 000

Production

8 000
6 000

Total Primary Energy…

4 000
Net imports

2 000
0
2000
-2 000

2005

2010

2015

2020

The United States-Mexico-Canada Agreement (USMCA) is theframework for energy trade between North American economies. Dueto the USMCA and geographical proximity to the United States, Mexico
receives relatively affordable oil refined products and gas imports fromthe United States.

Source: EGEDA (2023)

Over the next decades, natural gas imports are expected to continue
increasing to satisfy growth in domestic demand, and, potentially, to be

From 2010 to 2019, Mexico’s total primary energy supply (TPES)
volume grew modestly (4%) before contracting by 3% in 2020. In terms-4 000-6 000160

APEC ENERGY OVERVIEW 2024of composition, fossil fuels still represent the largest share (89%), withoil accounting for the largest share (44%) in 2021.
In 2021, TPES saw a 4.2% annual increase as economic activities
reactivated. Oil saw the largest increase at 8.1%, due to a slightincrease in production and increased imports of oil refined products. In
the same year, coal supply contracted by 13%. A fuel switch in power
generation is increasingly displacing coal from Mexico’s energy mix, as
less carbon-intensive natural gas increases its share. In the same year,
natural gas supply increased by 3%.
Figure 2: Mexico’s energy supply by fuel (PJ), 2000 to 2021
9 000

host of factors, including an abundance of affordable US gas andnatural gas infrastructure build-out, has allowed Mexico to increase its
gas supply even amid the contraction in domestic supply. An extensive
integrated pipeline network allows natural gas to reach demand centres
to supply the industrial, building and power sectors.
Mexico has great potential for renewable energy generation. Wind andsolar penetration have been rapidly increasing during the last decade;however, modern renewables still lag behind hydro and thermal
generation. In 2021, the renewables supply increased by 3%, driven by
supply growth in wind, solar and hydro. Solid biomass and geothermal
showed a slight contraction.
Figure 3: Energy supply mix – Mexico and APEC, 2021

8 000
100%

TPES by fuel (PJ)

7 000
6 000

Other
Renewables

80%

5 000

Gas

4 000

60%

3 000
Oil
2 000

40%

1 000

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Others

20%

Coal

0%
MexicoAPEC

Source: EGEDA (2023)

Natural gas is also replacing oil supply. From 2010 to 2021, the shareof oil supply in TPES reduced from 53% to 44%, while the share ofnatural gas supply increased from 30% to 41%. Since mid-2000s, a

Source: EGEDA (2023)

One of the main differences between Mexico’s energy mix and APEC’s
is the low share of coal in the energy supply mix. In comparison to the161

APEC ENERGY OVERVIEW 2024

The new refinery will have a capacity of 340 000 barrels per day. The
current government aims to increase Mexico’s energy self-sufficiency,
by increasing domestic fuel production. Currently, about 60% of
Mexico’s refined products are imported from the United States.
Total final consumption
In 2021, total final consumption (TFC) in Mexico continued to decline,
showing a 3.4% contraction compared to the previous year (including
non-energy consumption). Economic activity struggled to rebound to
pre-pandemic levels as COVID-19 cases remained high, affecting
especially industrial energy consumption, which showed a 9%
contraction from 2020 to 2021.
TFC in the transport and commercial sectors also experienced further
contractions in 2021. The transport sector saw a 2.4% contraction while
the commercial sector saw a 1.4% decrease in its final energy
consumption. The fall in final consumption in the transport sector was a
result of work-from-home policies, while the commercial sector final
consumption was affected by social distancing policies and economic
uncertainty.

6 000
5 000
4 000
3 000
2 000
1 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

In Mexico, the share of oil in the energy supply mix is larger (44%) thanin APEC (27%). This is due to Mexico’s domestic production andimports of oil refined products. Mexico has six oil refineries, and it isbuilding a seventh, called Dos Bocas, located in the state of Tabasco in
the southern region of Mexico.

Figure 4: Mexico’s final consumption by sector (PJ), 2000 to 2021

Final energy demand by sector (PJ)

APEC region, Mexico has readily available domestic and imported
natural gas, which makes it a more competitive fuel than coal for
applications such as power generation.

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

Mexico’s TFC has been largely driven by the transport sector, making up
36% of total consumption. The mountainous geography, extensive tradewith the United States, and sizeable vehicle ownership make this sector
the dominant energy consumer. The transport sector in Mexico is largely
dependent on oil refined products such as diesel and gasoline.
The industry sector is the second largest consumer at 31% of TFC. This
sector is heavily reliant on electricity and natural gas consumption.

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APEC ENERGY OVERVIEW 2024

Figure 6: Mexico’s final energy demand by fuel (PJ), 2000 to 2021

Figure 5: Final consumption by sector, Mexico and APEC, 2021

6 000

100%

80%

Final energy demand by fuel (PJ)

Non-energy
Agriculture &othersResidential
Commercial

60%

Transport

40%

20%

Industry

5 000
4 000
3 000
2 000
1 000

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

0%
MexicoCoal

APEC
Source:EGEDA (2023)

Final energy demand
In 2021, final energy demand in Mexico contracted by 3.2% from thealready low levels of 2020 (excluding non-energy consumption).
Economic activity was still limited as COVID-19 cases remained high,especially during the first half of 2021. Final energy demand contraction
affected electricity and fuels; however, renewables final energy demand
increased. Renewables surged by 7.8% in 2021 as the use of solid
biomass rebounded. Coal demand saw the largest annual drop at 52%;
this was the result of a sharp contraction in coal demand for
manufacturing.

Oil

Gas

Renewables

Electricity and others

Note: Does not include non-energy sector consumption of energy products.
Source: EGEDA (2023)

Mexico is heavily reliant on fossil fuels to meet its final energy demand.
In 2021, oil represented the largest share of final energy demand at 54%.
Mexico’s domestic oil production and access to oil refined products
imports from the United States explain why the economy is more reliant
on oil than the APEC region in general. Although Mexico has a sizeable
total gas supply, a large portion of it is used to produce electricity. The
gas share of final energy demand is 9.5%, half of the share for the APEC
region total. The coal share in Mexico’s final energy demand mix is
noticeably low at 1.2% due to its limited requirements in Mexico’s
industry sector.

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APEC ENERGY OVERVIEW 2024

Figure 7: Final energy demand fuel share, Mexico and APEC, 2021

Electricity andothersgas generation. Even though final energy demand for electricity
contracted slightly in 2021, the generation level observed was thehighest on record as Mexico sharply decreased electricity imports fromthe United States. Mexico’s power sector also experienced a sharp
increase in losses.

Renewables

Figure 8: Mexico’s electricity generation by fuel, 2000 to 2021

100%

80%

60%

Gas

400

40%

Coal
0%
MexicoAPEC

Source: EGEDA (2023)

Renewable energy in Mexico, with a share of 7.8% of final energy
demand, is almost double the share observed in the APEC total. The
majority of final energy demand for renewables arises from the use ofsolid biomass for domestic use such as cooking and water heating.
Electricity comprises 27% of final energy demand in Mexico, which is
below the electricity’s share in the APEC total (33%). The highpenetration of oil products and the use of solid biomass for domestic
activities have limited a larger role of electricity in Mexico.

300
250
200
150

100
50
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Oil
20%

Electricity generation (TWh)

350

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

Power sector

Mexico’s CFE is the largest electricity generator in the economy. It has
a large power generation fleet that runs mainly on coal, oil and naturalgas. The private sector accounts for 46% of total electricity generationand its main sources of electricity generation are natural gas andrenewables.

In 2021, total electricity generation in Mexico increased by 19% from2020 levels. The rebound in electricity generation was driven by natural

In 2021, 58% of total electricity in Mexico was generated with gas.
Mexico’s gas pipeline capacity has expanded significantly, and its

Transformation

164

APEC ENERGY OVERVIEW 2024

ability to import natural gas at a relatively affordable cost hascontributed to a fuel switch from coal and oil to natural gas. In
comparison, in the APEC region, high domestic availability for coal atcompetitive prices has led to coal being the dominant source ofelectricity. Similar to gas, Mexico’s domestic production of oil andrefined products imports from the United States make oil, to a lesser
extent, a competitive fuel for power generation. Oil generationaccounted for 13% of total electricity generation.
In 2021, renewable electricity had a smaller share in Mexico than in the
APEC region. Hydro, geothermal, and other renewables (e.g., solar andwind) accounted for 19% of total generation in Mexico, while thesesources accounted for 25% of generation the APEC region. Mexico’s
CFE recently announced the development of new renewable energy
projects, and has also set out the objective of increasing investment inrenewables in its 2023-2027 business plan.
Figure 9: Electricity generation fuel share, Mexico and APEC, 2021
100%

OthersOther renewables
Geothermal
Nuclear

80%

60%
Gas
Oil

Coal

20%

0%
MexicoSource: EGEDA (2023)

Refining
Mexico has the policy priority of increasing its domestic refining
capacity. The economy is building its seventh refinery, Dos Bocas, inthe state of Tabasco that will have a capacity of 340 000 barrels perday. In recent years, Mexico’s government-owned oil company,
PEMEX, acquired the Texas Deer Park refinery to have increased
control over its refined product imports from the United States.

Energy Transition
Emissions
Mexico’s CO2 emissions follow the same trend as final energy
consumption; the trajectory in emissions reported between 2000 and
2021 is more influenced by changes in final energy consumption thanby decarbonisation efforts. However, Mexico has started to implement
emissions reduction measures, especially in the power sector.
In November 2022, during COP27, Mexico’s government made thecommitment to reduce greenhouse emissions by 35% by 2030.
Increased investments in renewable power generation are expected tohelp meet this goal.

Hydro

40%

In Mexico, the domestic availability of hydrocarbons and renewables
has discouraged nuclear capacity additions.

APEC

The decline in coal and oil use in the power sector has been the largest
driver of CO2 emissions reductions efforts in Mexico. From 2000 to
2010, oil use in the power sector declined by half, while natural gas
saw a 70% increase. From 2010 to 2021, electricity capacity additions
came from less intensive carbon sources than during the prior decade.
Natural gas generation increased by 18%, oil-fired generation remained
flat, and renewable electricity increased by 90%.
165

APEC ENERGY OVERVIEW 2024

Coal generation in Mexico started to decrease abruptly after peaking in
2016. Electricity generation from coal shrank by 50% between 2016
and 2021; natural gas was used to displace this fuel.
Figure 10: Mexico CO2 combustion emissions (million tonnes), 2000 to
2021
500

CO2 combustion emissions

450

Million tonnes CO2

400
350

decade, Mexico’s imports of oil refined products and natural gas haveincreased significantly.
The current development plan focuses on increasing energy security in
Mexico by increasing domestic oil and gas production, as well as
midstream capabilities. Although the production of hydrocarbons has
stabilised, further efforts are still needed to ensure continuous
successful upstream operations. Mexico will need to invest in natural
gas storage as well as diversify its energy supply base to reduce its
exposure to abrupt market changes and geopolitical challenges.

APEC Energy Goals

300
250

150

There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity and to
double the share of modern renewables.

100

Energy intensity goal50

In 2011, APEC member economies agreed to increase their target to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.

200

0
2000

2005

2010

2015

2020

Source: EGEDA (2023)
Energy security
Mexico has abundant hydrocarbon resources and renewable energy
potential. Oil and natural gas production in Mexico have been on adeclining trend due to lack of investment in upstream activity and anatural depletion of its large oilfields. At the same time, macroeconomic
factors have been increasing demand for energy in Mexico. The decline
in domestic production coupled with increased demand is expanding
the need for energy imports from the United States. Over the last

APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economy targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.
Total final energy consumption intensity in Mexico has decreased by
26% from the 2005 baseline. Most of the energy efficiency gains in thistime frame are attributed to the residential sector. Mexico focused on
improvements in energy-efficient construction, appliances and lighting(CEPAL, 2018).
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APEC ENERGY OVERVIEW 2024

Figure 11: Mexico’s total final energy consumption intensity index, 2000
to 2021 (2005 = 100)

Figure 12: Mexico’s modern renewable energy share, 2010 and 2021
8.0%

Energy intensity index (2005 = 100)

120

7.0%
Total final energy consumption energy
intensity

100

Change from2010 to 2021

6.0%

5.0%
80

4.0%
APEC-wide goal
2035

60

3.0%
2.0%

40

1.0%
0.0%
2010

20

Change2021

Source: EGEDA (2023)
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doublinggoal.

Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

From 2010 to 2021, there was a 3.1% increase in Mexico’s modern
renewable share, reaching a total of 6.8% in 2021. Increased private
sector participation in electricity generation contributed to an
acceleration in wind and solar capacity growth. Mexico has thepotential to be one of the most competitive producers of wind and solar
energy in the world. For this reason, it is expected that the CFE willplay an increased role in the development of modern renewable energy
projects.
Mexico’s renewable electricity generation share in 2021 was 19%, 1%
167

APEC ENERGY OVERVIEW 2024

lower than its share in 2000. One of the reasons why Mexico’s
renewables share in electricity mix has remained flat is that natural gas
generation expanded more rapidly to cover most of the growth inelectricity demand. Additionally, participation of the private sector inrenewable generation projects has only been possible since 2014 whenthe energy reform was implemented.
The government of Mexico has been cautious in its approach toincorporating larger volumes of renewable energy, due in part to gridreliability concerns. It is likely that new investments across the energy
sector will come from close private-public sector partnerships. The
government is increasingly interested in developing new renewableenergy projects to satisfy its growing energy demand, although there is
not a clear time frame or scale for these projects.
Figure 13: Mexico’s renewable generation share, 2000 to 2021
25%

Renewables share in electricity mix

Proportion

20%

15%

10%

5%

0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)
168

APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

Reference

National Development Plan
2019-2024

This plan outlines the main policy objectives and priorities of the current six-year (2018–2024)
presidential administration.

Office of the President

Energy Sector Program
2020-2024 (PROSENER)PROSENER is a planning instrument that determines the current administration's strategies andactions towards achieving six priority objectives: to ensure energy self-sufficiency, strengthen stateowned companies, organise research and development activities, attain energy efficiency andsustainability, ensure universal energy access and make the energy sector a lever of development.

Official Federal Gazette

Transition Strategy toPromote the Use of Cleaner
Technologies and Fuels

The Transition Strategy serves as the medium- and long-term guiding instrument for the government
policy regarding clean energy obligations, sustainable energy use and energy productivity
improvements.

Official Federal Gazette

Crude Oil and Oil Products
Perspectives 2023-2037

This report includes information regarding the current state of crude oil and oil products production in
Mexico. The document outlines the efforts to integrate new infrastructure projects.

Ministry of Energy

Natural Gas Perspectives
2023-2037

This report includes information regarding the current state of natural gas production in Mexico. The
document outlines the efforts to integrate new infrastructure projects.

Ministry of Energy

Electric System Perspectives
2023-2037

This report includes information regarding the current state of the electric system in Mexico. The
document outlines the efforts to integrate new infrastructure projects.

Ministry of Energy

Paris Agreement Nationally
Determined Contribution(NDC) 2022 Update

In November 2022, during COP27, the Mexican Government submitted an updated NDC. The
submission includes an unconditional emissions reduction target from business-as-usual by up to 35%
in 2030 for all greenhouse gases.

Ministry of Environment
and Natural Resources(SEMARNAT)

Paris Agreement Nationally
Determined Contribution(NDC) 2020 Update

Mexico updated its NDC in 2020, but it did not improve upon the ambitions of its original NDC, in which
the economy pledged to reduce greenhouse gas emissions by 22% by 2030, compared to a businessas-usual 2013 baseline. No additional emission reduction or decarbonisation plans have been
published to date.

Ministry of Environment
and Natural Resources(SEMARNAT)169

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

National Electricity System’s
Development Program 20232037 (PRODESEN)

This programme details the annual plans for the power sector with a 15-year horizon. It includes key
elements for generation capacity additions and retirements as well as for grid extensions andmodernisation.

Ministry of Energy(SENER)Oil and Gas Exploration and
Production Five-year Plan
2020-2024

This is a planning instrument that identifies the priority areas for oil and gas exploration and production,emphasising the potential for onshore and shallow-water resources. It excludes the development of any
unconventional resources for the time being. The document also reaffirms the administration’s
moratorium on oil and gas auctions.

Ministry of Energy(SENER)

Five-year Plan for the
Expansion of the National
Integrated Transportationand Storage System of
Natural Gas (SISTRANGAS)
2020-2024

This five-year plan provides an overview of the natural gas transportation and storage infrastructure aswell as the consumption and supply observed in recent years. The planning document details a set of
infrastructure projects that can help expand the storage and transportation networks.

Ministry of Energy(SENER)

National Program for the
Sustainable Use of Energy
2020–2024 (PRONASE)

This instrument establishes actions, projects and activities derived from the Transition Strategy for theaccomplishment of the stated energy efficiency goals.

Official Federal Gazette

Energy Efficiency Roadmap

This roadmap on energy efficiency details the energy efficiency goals, potential and sectoral scenarios
and the sectoral barriers to tapping into the full energy efficiency potential.

National Commission for
the Efficient Use ofEnergy (CONUEE)

Energy Transition Law (LTE)The LTE provides a framework for clean energy, energy efficiency and greenhouse gas emission
reduction. It establishes four planning instruments: a strategy to meet the clean energy and energy
efficiency goals, two special programmes to implement this strategy and a programme focused on
smart grids. The clean energy goals for power generation are as follows: 25% in 2018, 30% in 2021,
and 35% in 2024.

Official Federal Gazette

Second Regulation of theEnergy Transition Law

This secondary regulation or reglamento specifies, in greater detail, the obligations given in the LTE.
Among other issues, it provides the requirements for the methodologies involved in planning andpublishing progress reports and other clean energy benchmarking data.

Official Federal Gazette

Roadmap for Building
Energy Codes andStandards for Mexico

This document provides a pathway and policy framework for increasing energy efficiency in Mexico'sbuilding sector.

Ministry of Energy(SENER)170

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Minimum Energy
Performance Standards for
12 Appliance Groups

This set of standards regulates the energy consumption of appliances that, due to their energy demand
and massive use, offer substantial energy and cost savings to end users.

National Commission for
the Efficient Use ofEnergy (CONUEE)

National Program for Energy
Management Systems(PronasgeN)

This programme aims to support and bring together Energy Management Systems (EnMS),
contributing to EnMS market consolidation in Mexico. Case studies have demonstrated energy
efficiency improvements of at least 10% in industrial facilities upon implementing EnMS.

Official Federal Gazette

Guidelines for the Prevention
and Comprehensive Controlof Methane Emissions fromthe Oil and Gas Sector

These guidelines apply to new and existing sources across the value chain. Under the regulation,
facilities must develop a Program for Prevention and Integrated Control of Methane Emissions(PPCIEM). As a starting point, facilities must identify all sources of methane and calculate an emissions
baseline (base year must be within the last five years).

Ministry of Environment
and Natural Resources(SEMARNAT)

Pilot Emissions Trading
System (ETS)In 2020, this pilot ETS began its operations as part of a two-phase process to gradually establish afully-fledged ETS. The pilot ETS covers the power, oil and gas and industrial sectors, which account for
approximately 40% of Mexico’s greenhouse gas emissions. Entities with annual emissions from directsources greater than 100 kt-CO2 were covered under the pilot.

National Commission for
the Efficient Use ofEnergy (CONUEE)

Municipal Energy Efficiency
Project (PRESEM)PRESEM focuses on making energy efficiency investments in selected municipal sectors (pumping
water systems, street lighting and public buildings).

Department of Industry,
Science, Energy andResources

Electricity Subsidies for the
Residential and Agricultural
Sectors

The Ministry of Finance (SHCP) provides subsidised electricity rates to most users in the residential
and agricultural sectors. The final rates vary due to inflation but remain constant in real time. This rate
was roughly 0.12 USD/kWh in 2020, which was about 46% of the total cost of the service.

Inter-American
Development Bank(IADB)

Statistical Record 2021

This is a compendium of data on natural gas and petrochemicals, and it is presented in a clearlysummarised and accessible format on a monthly basis.

Ministry of Energy(SENER)

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APEC ENERGY OVERVIEW 2024

Notable Energy Developments
Energy development

Details

Reference

Amendment to the Electricity
Industry Law

After approval in both legislative chambers, this amendment – proposed by the President – waspublished in March 2021. The ultimate purpose of the law is to strengthen the national Comisión
Federal de Electricidad (CFE). Some of the changed provisions in the law include granting a dispatch
preference for CFE power plants, removing the obligation for service suppliers to procure electricity,and revoking self-supply permits.

Official Federal Gazette

Electricity Industry Law
Court Suspension

The recently approved amended electricity law is in an ongoing judiciary process. It was granted adefinitive suspension by a Mexican court, citing competition concerns and irreparable environmental
damage. Accordingly, the new amendment cannot take effect until a tribunal or the Supreme Court ofJustice makes a decision.

Official Federal Gazette

Amendment to theHydrocarbons Law

This presidential initiative was passed into law in May 2021. Among other provisions aimed atenhancing PEMEX (the state-owned company), the law grants the Ministry of Energy and the Energy
Regulatory Commission (CRE) power to suspend or revoke permits for oil and gas midstream activities,
including international trade, should they pose any imminent danger to security, energy security or the
economy.

Official Federal Gazette

Hydrocarbons Law Partial
Suspension

As with the Electricity Industry Law, this amendment was also challenged in court. However, unlike theElectricity Industry Law, a court granted a partial suspension of certain provisions of the law. The
process is ongoing, and a tribunal or the Supreme Court of Justice can overturn such a ruling.

Reuters

Revocation of Asymmetrical
Regulation to PEMEXThis law amendment takes away the CRE’s faculty to impose asymmetrical regulations for PEMEX'soil, gas, fuel and petrochemical activates. Asymmetrical regulation measures were initially aimed atlimiting PEMEX's former monopoly of storage and sales of these products.

Official Federal Gazette

Reliability Energy Policy

The Ministry of Energy published the Policy on Reliability, Stability, Continuity and Quality in the
National Electric System in May 2020, imposing stricter rules for new non-CFE generation permits andadditional restrictions for wind and solar plants. After a series of injunctions, a federal judge ordered its
general suspension. In March 2021, SENER cancelled the application of the policy ahead of thelegislative vote for amending the Electricity Industry Law, which contains many of the same provisions.

Official Federal Gazette

172

APEC ENERGY OVERVIEW 2024

Energy development

Details

Reference

Supreme Court's Invalidationof the Reliability Energy
PolicyThe above-mentioned Reliability Energy Policy was the subject of a constitutional controversy
promoted by the Federal Economic Competition Commission. Mexico's Supreme Court of Justiceinvalidated some of the key points of this policy, considering them unconstitutional.

Supreme Court of JusticeNational Centre for Energy
Control of Mexico(CENACE), Resolution to
Guarantee the Efficiency,
Quality, Reliability,
Continuity and Stability of
the National Electric Grid

In April 2020, CENACE, the grid operator, indefinitely suspended pre-operational tests for new solar
and wind projects and modified the rules for grid access. CENACE tried to justify these as part of aseries of measures to assure grid stability amidst decreases in demand caused by the COVID-19
pandemic. Private generators began legal proceedings, and a court definitively suspended theprocedure in June 2020.

National Centre forEnergy Control of Mexico(CENACE)PEMEX’s Purchase of theDeer Park Refinery

The state-owned oil company PEMEX agreed to a USD 596 million deal to buy Shell's majority interestin the joint venture 340 000 bpd refinery in Deer Park, Texas. PEMEX has acquired full ownership of
the refinery, thus increasing its share of gasoline and diesel.

PEMEX

Construction of the Dos
Bocas Refinery

A key aim of Mexico’s oil policy is to boost domestic refining. The construction of the emblematic Dos
Bocas refinery was one of the landmark infrastructure projects of this administration. The 340 000 bpd
refinery, with a wholly government-funded investment of more than USD 8 billion, is expected to be
operational by 2024 and to increase refining capacity by 25%.

Dos Bocas Refinery

Lakatch Dry Natural Gas
Offshore Field

Located in the state of Veracruz.
Joint venture between New Fortress Energy and PEMEX.
Potential production capacity of 300 million cubic feet per day over 10 years starting in 2024. Some 190
million cubic feet per day will be sold to New Fortress Energy who will liquefy and sell the gas to theinternational market. Initial LNG production of 1.4 million tonnes per year will increase to 7 million
tonnes per year.

Argus Media

Announcement of
Coatzacoalcos LNG Export
Project

CFEnergia, CFE, gas commercialisation unit.
Capacity: 4.5 million tonnes per year.
Export project from the port of Coatzacoalcos in the Gulf of Mexico, to sell gas to the international
market.

Ministry of Energy(SENER)173

APEC ENERGY OVERVIEW 2024

Energy development

Details

Reference

Altamira Floating LNG
Terminal

Located in the state of Tamaulipas.
US firm New Fortress Energy and CFE joint venture.
Total capacity estimated: 4.2 million tonnes per year. LNG exports directed to Europe.

New Fortress Energy
LNG

Energia Costa Azul LNG
Export Project Under
Construction

Located in the state of Baja California.
Sempra Energy and TotalEnergies joint venture.
Total capacity estimated: 3.5 million tonnes per year. Gas exports directed to Asia.

SEMPRA

Commissioning of First
Phase of CFE Solar Park in
SonoraState-owned utility company CFE with private sector.
Located in the state of Sonora, in the port of Penasco.

Presidencia de Mexico

Useful Links
Banco de México (Banxico) – www.banxico.org.mx
Centro Nacional de Control de Energía (CENACE) – www.cenace.gob.mx
Centro Nacional de Control del Gas Natural (CENAGAS) – www.cenagas.gob.mx
Comisión Federal de Electricidad (CFE) – www.cfe.gob.mx
Comisión Nacional para el Uso Eficiente de la Energía (CONUEE) – www.conuee.gob.mx
Comisión Nacional de Hidrocarburos (CNH) – www.cnh.gob.mx
Comisión Regulatoria de Energía (CRE) – www.cre.gob.mx
Comisión Nacional de Seguridad Nuclear y Salvaguardias (CNSS) – www.cnsns.gob.mx
Instituto Mexicano del Petróleo (IMP) – www.imp.mx
174

APEC ENERGY OVERVIEW 2024

Instituto de Investigaciones Eléctricas (IIE) – www.iie.org.mx
Instituto Nacional de Investigaciones Nucleares – www.inin.gob.mx
Instituto Nacional de Estadística y Geografía (INEGI) – www.inegi.org.mx
Petróleos Mexicanos (PEMEX) – www.pemex.com
Presidencia de la República – www.gob.mx/presidencia
Rondas México – https://rondasmexico.gob.mx/
Secretaría de Energía (SENER) – www.gob.mx/sener
Secretaría de Hacienda y Crédito Público (SHCP) – www.gob.mx/hacienda
Secretaría del Medio Ambiente y Recursos Naturales (SEMARNAT) – https://www.gob.mx/semarnat
Sistema de Información Energética (SIE) – http://sie.energia.gob.mx

References
SRE (2022), https://www.gob.mx/sre/prensa/conclusion-of-mexico-s-participation-at-the-27th-conference-of-the-parties-on-climate-change?idiom=en
CEPAL (2028), https://www.cepal.org/es/publicaciones/43612-informe-nacional-monitoreo-la-eficiencia-energetica-mexico-2018

175

APEC ENERGY OVERVIEW 2024

New ZealandIntroduction
Despite being one of the most geographically isolated economies in theworld, New Zealand thrives due to its strong integration into
international trade and financial markets. The economy benefits fromabundant natural resources, high global demand for its premium
agricultural products, and a robust services-based economy
When compared with almost all other developed economies, New
Zealand is a renewables powerhouse. Abundant hydro, geothermal,
and wind resources meant that renewables accounted for 87% ofelectricity generation in 2023.
In 2023, the newly elected New Zealand Government announced acommitment to double renewable electricity generation by 2050,
through removing regulatory barriers, and building new electricity
generation, transmission, and distribution. They also announced thecommitment to repeal the 2018 ban on new offshore exploration for oil
and gas. This comes at the same time as downward revisions in gas
reserves. New offshore exploration may alleviate current scarcity
issues for the short- to long-term.
COVID-19 movement and activity restrictions were still in place in New
Zealand in 2021, with the largest city, Auckland, subject to the moststringent pandemic policies.

The growth can be partially attributed to government pandemic support
measures. This support has brought about a higher government debt
burden and contributed to elevated inflation.
The Reserve Bank of New Zealand has responded to these inflationarypressures by raising interest rates. Inflation has fallen from near 7%, to4.7% in December 2023 (StatsNZ, CPI, 2024). However, persistently
high energy prices in recent years, and housing supply shortages(leading to rising rents), are challenging efforts to control inflation. Thiseconomic pressure has impacted energy transition plans, such as
abandonment of a proposed biofuel mandate that was intended to help
decarbonise the transport sector.
Table 1: New Zealand macroeconomic data and energy reserves
Key data a

Energy reserves b

Area (million km2)

268

Oil (billion barrels)

0.07

Population (million)

5.1

Gas (trillion cubic feet)

1.5

GDP (2017 USD billion
PPP)

225

Coal (million tonnes)

GDP per capita (2017
USD PPP)

44 042

Uranium (kilotonnes U< USD 130/kgU)

16 000-Source: a World Bank (2022); b Ministry of Business, Innovation and Employment(2023);
Note: Oil and gas reserves are total proved reserves and coal is in-ground resources.

Despite these restrictions, New Zealand's annual growth rate climbed
to 4.6% in 2021, surpassing pre-pandemic levels (World Bank, 2021).
176

APEC ENERGY OVERVIEW 2024

Energy Supply and Consumption

Figure 1: New Zealand energy supply, production, and net imports (PJ),
2000 to 2021

Total primary energy supply

Production of fossil fuels (252 PJ) continued to stagnate. The oil andgas exploration ban that the Government has committed to remove has
contributed to this stagnation, given that offshore oil and natural gas
exploration and production could only occur within a permitted area.
New Zealand’s crude and coal production is mostly exported, so New
Zealand’s current transition to more renewable energy has limited
impact on the current production of these energy commodities.
Most of New Zealand’s energy exports are coal (35 PJ, 51%) and crude
oil (25 PJ, 37%). Refined products exports (8 PJ, 12%) constituted theremainder in 2021, though these exports have now ended with theclosure of Marsden Point oil refinery (New Zealand’s only refinery) in
April 2022.
New Zealand’s energy imports were mostly made up of crude oil (145
PJ), refined products (130 PJ) and coal (37 PJ) in 2021. The energy
content of these imports was the same as in 2020, however, New
Zealand imported 15 PJ less crude oil and fully offset this with a 69%
increase in coal imports (15 PJ) for electricity generation.
The economy maintains a high share of renewables in its energy mix,
at 41% of TPES in 2021, which was facilitated by an 85% renewableelectricity generation share (excluding combined heat and power
plants).

Production, net imports and TPES (PJ)

TPES (total primary energy supply) in New Zealand in 2021 was 829
PJ, which was a 1.5% annual increase. The increase was associatedwith the beginning of a return to normal activity levels after COVID-19,
especially in the industrial and transport sectors.

900
800
Total Primary Energy Supply
700
600
Production

500
400

Net imports

300
200
100
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

The main sources of renewable energy supply are hydro (25%) for
electricity, biomass (11%) for direct use in manufacturing, andgeothermal (59%) for electricity generation.
While geothermal makes up a large portion of TPES, its conversion
efficiency is low (15%) resulting in a misleading view of available
renewable energy in the economy. Almost 200 PJ of geothermal input
energy translates into only 30 PJ of electricity generation. A small
amount is used for direct heat in industry (4 PJ), buildings (3 PJ) andagriculture (0.4 PJ).
Natural gas production fell 13% (24 PJ) in 2021. The largest contributor
to this fall was the Pohokura field, where production fell 31% (17 PJ).
The fall in production aligns with increasing gas scarcity, exacerbated177

APEC ENERGY OVERVIEW 2024

by a 342 PJ downward revision to proven plus probable (2P) gas
reserves estimates between 2021 and 2023, to 1 635 PJ (MBIE 2023).

figure, but New Zealand still has a larger supply of hydro and biomass
than the APEC region.

New Zealand’s 139 PJ of gas supply is consumed by thetransformation sector (28%), end use demand sectors (43%), and thenon-energy sector (25%). Electricity generation accounts for almost all
the gas consumed by transformation, whereas gas consumed by end
use sectors is mostly for industrial process heat, including heat for foodprocessing and chemicals production (fertiliser and methanol). The
non-energy sector consumes natural gas as a feedstock for chemicals
production.

The supply of coal in New Zealand is lower than for APEC, due to agreater reliance on renewable energy sources for electricity generation.

Figure 2: New Zealand energy supply by fuel (PJ), 2000 to 2021

Oil supply for New Zealand is much higher than for APEC, accounting
for 48%, compared to only 33% for APEC. More than 80% of the oil isused in transport, supported by New Zealand’s high rate of car
ownership, which is among the highest in the world (around 0.7 cars
per person).
Figure 3: Energy supply mix – New Zealand and APEC, 2021
100%

900

Other
Renewables

800
80%

TPES by fuel (PJ)

700

Gas

600
60%

500

Oil

400
40%

300
200

20%

100

Coal

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0
0%
New Zealand
Coal

Oil

Gas

Renewables

APEC

Others
Source: EGEDA (2023)

Source: EGEDA (2023)

New Zealand has a much larger proportion of renewable energy supply
than for the APEC region. Geothermal electricity generation inflates this178

APEC ENERGY OVERVIEW 2024

Transport saw a 13 PJ (7%) increase in refined product demand, whichis associated with less COVID-19 travel restrictions. This was
dominated by an 8 PJ (10%) increase in demand for diesel, whichaligns with increased freight activity to support a rebound in theconstruction, manufacturing, and agricultural sectors. The lower
increase in gasoline demand in 2021 was associated with continued
COVID-19 travel restrictions and lower tourism.
Jet fuel and fuel oil for domestic aviation and shipping dropped by 16%(2 PJ) and 25% (1 PJ) in 2021. New Zealand data shows that energy
use for domestic and international aviation and shipping has yet toreturn to pre-COVID-19 levels as of September 2023 (MBIE 2023).
International transport was impacted to a greater degree than domestictransport. Jet fuel for international transport (captured within the
bunkers supply category in EGEDA statistics) fell from 23 PJ to 14 PJ.
Diesel and fuel oil, for international maritime transport, fell from 8 PJ to
5 PJ.
Fluctuations in the domestic natural gas price and international
methanol prices impact demand for natural gas from the chemicals
industry. High prices for gas in 2021 were part of the reason for an 8 PJ
(18%) decrease in natural gas demand for non-energy use and a 4 PJ
(17%) decrease by the chemicals end-use sector. But it wasn’t solely
due to production adjustments to the short-term impact of higher prices.
Natural gas consumption was also lower due to Methanex mothballing
its Waitara Valley methanol plant in early 2021, which was the smallest
of Methanex’s three plants in New Zealand.

700
600
500
400
300
200
100
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

In 2021, New Zealand’s total final consumption was little changed from
2020, at 560 PJ.

Figure 4: New Zealand final consumption by sector (PJ), 2000 to 2021
Final energy demand by sector (PJ)

Total final consumption

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

Transportation continues to be the leading energy consumer,
accounting for more than one-third of total final consumption. As of2021, transport energy use is still much lower than pre-COVID-19(2019) levels. Recent data for 2023 suggests that transport energy use
has finally returned to 2019 levels, even when considering changes inbehaviour, such as higher rates of working from home (MBIE 2023).
Part of the return to pre-COVID-19 levels is because international
borders were fully reopened and all quarantine requirements dropped
in 2022 (DPMC 2023), which led to more tourism and immigration.
In 2021, the residential sector saw an increase in energy use of 2.3%,
which was partially a result of colder weather conditions. The
commercial sector saw an increase in demand of 1.0%, which is mostly

179

APEC ENERGY OVERVIEW 2024

due to an easing of COVID-19 restrictions compared to 2020, leading
to more retail and office activity.
The decrease in natural gas use by the chemicals subsector, wascomplemented by a 1.5 PJ (50%) decrease in demand from the wood,
pulp and paper manufacturing sectors, mostly due to the closure of the
Norske Skog Tasman Mill in June 2021. This mill also used geothermalenergy for heat, leading to a small reduction in industrial geothermal
consumption of 0.4 PJ. The closure of the Marsden Point oil refinery in
2022 has also caused a significant decrease in gas consumption, yet tobe observed in the EGEDA statistics.

Final energy demand
Electricity consumption in New Zealand represents all demand in theelectricity and others category in Figure 6. The relative use of electricity
in New Zealand is comparable to other APEC economies in theindustrial, residential and commercial sectors. However, New Zealandis small enough that its only aluminium smelter (Tiwai Point) is
influential enough to account for a significant proportion of electricity
consumption – 13% in 2021. Plans for the smelter are a significant
component in the economy's electricity generation planning.
Figure 6: New Zealand final energy demand by fuel (PJ), 2000 to 2021

Figure 5: Final consumption by sector, New Zealand and APEC, 2021
Final energy demand by fuel (PJ)

600
100%
Non-energy
Agriculture & others

80%

Residential
Commercial

60%

Transport
40%

500
400
300
200
100

20%

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0
Industry

Coal

Oil

Gas

Renewables

Electricity and others0%
New Zealand
Source: EGEDA (2023)

APEC

Source: EGEDA (2023)
Note: Does not include non-energy sector consumption of energy products.

Almost all direct use of coal in New Zealand (which excludes 45 PJ ofcoal use for electricity generation, cogeneration and non-energy use) is
180

APEC ENERGY OVERVIEW 2024

consumed by the industrial sector for process heat. Within the industrial
sector, 15 PJ (73%) of this is used by food and beverage
manufacturers, mainly by dairies for drying milk into milk powder.
Most direct use of renewable energy (geothermal heat, solar thermal
heat, biomass, biogas, renewable waste and liquid biofuels) in New
Zealand is consumed by the industrial sector for process heat. Biomass
accounts for 17 PJ of the 26 PJ of renewable energy consumption by
the industry sector. Remaining biomass consumption is spread
between residential (8 PJ), commercial (3 PJ) and agriculture (0.5 PJ)
sectors.
Oil accounts for a much higher proportion of New Zealand’s energy
demand than for APEC. Renewables consumption is also relatively
higher in New Zealand. The end-use consumption share of coal,natural gas and electricity in New Zealand are all much lower than for
the APEC region.
Figure 7: Final energy demand fuel share, New Zealand and APEC,
2021
100%
Electricity andothers80%

Renewables

60%

Gas
40%
Oil
20%
Coal

0%
New Zealand

APEC

Transformation
Power sector
In New Zealand, hydropower is the leading source of electricity
generation due to the economy's favourable natural landscape.
However, 2021 was an example of what can occur during a dry year.
The South Island, where most of New Zealand’s hydro storage lakes
are located, experienced dry conditions due to the La Niña
phenomenon during the first half of 2021; both hydro storage andinflows were below the 90-year average for the first half of the year.
Geothermal energy plays a significant role in New Zealand's generation
mix, accounting for 1 035 MW (10%) of installed capacity and 18% ofgeneration in 2021. This energy source, like hydro, provides baseload
generation, so it is especially important for enabling the energy
transition by balancing the low capacity-factor and non-dispatchable
generation from solar and wind.
Wind is becoming a major player in the generation mix, accounting forabout 6% of total electricity generation in 2021. Solar is also increasing(0.5% generation in 2021), though solar radiation potential is much
lower in New Zealand than for many other APEC economies. New
Zealand’s favourable wind conditions have contributed to significant
growth without subsidies. In late 2023, consultation on regulations toenable offshore renewable energy development was completed.
Current wind capacity and expected installations are all onshore. These
new offshore regulations have the potential to drive even more growthin wind capacity and generation.
Low rainfall (hydrological conditions), cold weather, and the high priceof gas meant that coal increased 7.2% of New Zealand’s electricity
generation in 2021, up from 5.2% in 2020. The Huntly Power Station is

Source: EGEDA (2022)
181

APEC ENERGY OVERVIEW 2024

the only coal-fired power station in the economy and accounts for about
5% of the total installed capacity. Huntly also uses gas; some units ofthe power station are flexible enough to switch between using either
coal or gas.
Like coal, natural gas generation is flexible enough to be turned on or
off according to supply from renewable sources. Despite low hydropotential in 2021 (low lake levels), high gas prices meant that gas
generation was less favoured than coal. Gas generation fell by 7% in
2021 relative to 2020.
Figure 8: New Zealand electricity generation by fuel, 2000 to 2021

Electricity generation (TWh)

50
45
40
35
30
25
20

15
10
5

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

decreasing by 36% from an average of NZD 113/MWh in 2020 to NZD
73/MWh in 2021.
During 2021, there was an agreement between the Tiwai Point
aluminium smelter and Meridian Energy to do an electricity swap aspart of a demand response to dry hydrology conditions. The electricity
swap allowed the smelter to be compensated for voluntarily reducing its
electricity consumption, to assist Meridian to meet electricity demandfor its other New Zealand customers.
Before 2023, the Tiwai Point aluminium smelter had exclusive accessto approximately 400 MW of the Manapouri dam hydroelectric plant(total capacity of 854 MW). Transmission network upgrades mean that
the Manapouri dam can now provide all its power to New Zealand’s
main grid.
Tiwai Point is now negotiating with multiple grid scale generators aboutsigning a long-term contract (scale of 5 to 15 years) for electricity. A
long-term agreement would support private investment in new
generation, given that these investments are currently subject to therisk of Tiwai Point closing and excess Manapouri generation being
unleashed onto the wholesale electricity market. These businessdevelopments in 2021 reflect a movement to a more fair andsustainable relationship between the Tiwai Point smelter and the rest of
New Zealand.

Others

Source: EGEDA (2023)

The average wholesale electricity price in the first three months of 2021
was nearly three times higher than the prices seen over the same
period in 2020. Favourable hydro conditions pushed prices down in thesecond half of 2020, with the prices in the final three months of the year
182

APEC ENERGY OVERVIEW 2024

Figure 9: Electricity generation fuel share, New Zealand and APEC,
2021
100%

In May 2023, the government announced a conditional partnership withNew Zealand Steel to use electric arc furnaces to replace half of thecoal being used at New Zealand’s only steel mill. The project isscheduled for completion as early as mid-2026. This has the potential
to reduce almost 8 PJ of coal use (most of which is in coke ovens). The
government portion of the funding for this project was provided throughthe Government Investment in Decarbonising Industry fund.

OthersOther renewables
Geothermal
Nuclear
Hydro

80%
60%

Gas
Oil

40%

Coal

20%
0%
New Zealand

Energy Transition

APEC

Source: EGEDA (2023)

Refining
The closure of New Zealand’s Marsden Point refinery was due todwindling profits and increased competition from overseas refineries.
The decision was finalised halfway through 2021 and the refinery
closed on 31 March 2022. In the last ten years, the refinery has been
producing around half of New Zealand’s gasoline and diesel
consumption requirements and almost all jet fuel. Imported crude wasrelied on due to indigenous crude production being too sweet for the
Marsden Point refinery. This meant that New Zealand was still subject
to price movements in the international oil market. Fuel from therefinery was also traded at the same price as the international market,
so the closure will likely have a limited impact on consumer prices. A
minimum fuel stockholding obligation for fuel importers will come into
effect on 1 January 2025. This is expected to improve fuel security.

New Zealand’s share of renewables in electricity generation is among
the highest in the world, at 87% in 2023. Additional gains in the shortto medium-term are uncertain given that fossil fuels provide valuablebaseload and backup functions. This topic is explored in the APEC
Energy Demand and Supply Outlook, 8th Edition with an update
available in the 9th Edition, due for publication second half of 2025.
New Zealand’s government has a plan to significantly increase thenumber of public EV chargers across New Zealand with a goal of 10000 charging points by 2030. This will support the EV transition byhelping to reduce charging anxiety for EV owners.
Emissions
Since 1990, New Zealand has seen a 31% increase in CO2 combustion
emissions from the energy sector. These emissions were initially rising
to 2005, declined, and then have followed an upward trend since 2010,
with a 7.0% drop in 2020 due to COVID-19, and rebound in 2021. The
long-term increase since 1990 is mostly due to growth in transport CO2
combustion emissions, which increased by 76%.
To help meet its 2050 climate goals, New Zealand has adopted asystem of emissions budgets. The first Emissions Reduction Plan
(ERP), released on 16 May 2022, outlines strategies and actions for the183

APEC ENERGY OVERVIEW 2024

2022–2025 period and sets the course for future budgets. The new
Government is expected to consult on the second emissions reduction
plan in late 2024.
Figure 10: New Zealand CO2 combustion emissions (million tonnes),
2000 to 2021

In November 2022, the government unveiled a policy package aimed atbolstering fuel resilience. This move was in response to the closure of
Marsden Point, evolving geopolitical dynamics, and the ongoingtransition towards a low-carbon energy sector. The policy's key
elements include:

25 000CO2 combustion emissions
20 000Million tonnes CO2

Closing the Marsden Point oil refinery has implications for how oilstocks are held. In late 2021, New Zealand held 25% of its domestic oilstock as crude oil. By late 2022, the share had fallen to 12%, and will
likely fall further as Marsden Point is decommissioned and theremaining crude oil is removed.

15 000•

Minimum fuel stockholding requirement: from 1 January 2025,
fuel importers with access rights to bulk storage facilities will be
under an obligation to maintain a minimum stock of fuel: anaverage of 28 days for gasoline, 24 days for jet fuel, and 21days for diesel•

Reserve diesel stock: the government is exploring various
strategies to manage a reserve diesel stock within New
Zealand, targeting a volume of approximately 70 million litres.
This quantity aligns with the economy's diesel consumption overseven days.

10 000
5 000
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
On 9 August 2021, New Zealand saw its highest ever peak electricity
demand. This demand, combined with insufficient available electricity
generation, led to supply interruptions that affected more than 34 000
households. Meeting the challenge of increasing peak demand cannot
be met by increasing non-dispatchable solar and wind capacity. A
complementary increase in flexible and dispatchable generation assets
or storage is required to facilitate a much higher build-out of solar andwind to meet this increasing peak demand. Demand-side solutions arealso being explored to play a part.

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.
Energy intensity goal
In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
184

APEC ENERGY OVERVIEW 2024

The original goal was a 25% improvement by 2030, relative to a 2005
baseline.

Doubling of renewables

Figure 11: New Zealand total final energy consumption intensity index,
2000 to 2021 (2005 = 100)

Figure 12: New Zealand modern renewable energy share, 2010 and
2021

Energy intensity index (2005 = 100)

APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economy targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.

The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doubling
goal.

140

30.0%

120

25.0%

Change from2010 to 2021

Total final energy consumption energy intensity

100

20.0%

80
15.0%
APEC-wide goal 2035

60

10.0%
40
5.0%

20
0
2000

0.0%
2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2022)

In 2021, New Zealand’s energy intensity was 2.3 PJ per billion USD
purchasing power parity (PPP) of GDP, which represents a 27%
improvement since 2005. This improvement is occurring at a similarpace to that of the wider APEC region.

2010

Change2021

Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

185

APEC ENERGY OVERVIEW 2024

New Zealand has the highest proportion of modern renewables in its
energy mix of all other APEC member economies, at 27.1% in 2021
and 30% in 2023. APEC's overall renewables share has increased to
9.9% in 2021. New Zealand has the potential to contribute to APEC's
goal of doubling renewables by 2030, but its current high share makes
additional contributions more difficult than for most other APEC
economies.
The use of renewables in electricity generation has been increasing inrecent years due to the installation of new renewable energy capacity.
However, dry weather affecting the levels of water in hydro storage
lakes has impacted continued growth. Dry weather in 2020 and 2021
was a large contributing factor to the share of renewable generation
falling to 80% and 81% respectively, down from 84% in 2019.
Figure 13: New Zealand renewable generation share, 2000 to 2021
Renewables share in electricity mix

90%
80%

Proportion

70%
60%
50%
40%
30%
20%

10%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

186

APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

Reference

Climate Change Response (Zero
Carbon) Amendment Act

In 2019, the Climate Change Response (Zero Carbon) Amendment Act set into law newdomestic 2050 targets of net zero emissions of all greenhouse gases other than biogenic
methane by 2050, and 24% to 47% below 2017 biogenic methane emissions by 2050,
including 10% below 2017 biogenic methane emissions by 2030.

Ministry for theEnvironment

NDC 2030 Target (2021-2030)

Updated in 2021, the NDC sets a headline target of a 50% reduction of net emissions
below the gross 2005 level by 2030.

Ministry for theEnvironment

Emissions Trading Scheme

This is currently limited to domestic credits and excludes agriculture; the emissions limits
are set on a five-year basis. The first period runs from 2021 to 2025, with a budget of 354
MtCO2eq. It contains price ceiling and price floor mechanisms to maintain market stability.
Currently, it excludes emissions from the agricultural sector.

Ministry for theEnvironment

Oil and Gas Exploration Ban
RepealNew Zealand Energy Efficiency
and Conservation Strategy(NZEECS)The Crown Minerals Amendment Bill ended all new offshore oil and gas exploration andlimited onshore exploration to a small region. However, the Government has committed torepeal this ban.
Between 2017 and 2022, NZEECS had the aim of decreasing the intensity of industrial
emissions. The role and scope of a revised energy efficiency and conservation strategy will
be considered in due course.

Ministry of Business,
Innovation and
Employment
NZEECSThe Gas Amendment Act 2021

Parliament has passed an Act that will improve information disclosure and increase themaximum financial penalty for breaching gas regulations.

Ministry of Business,
Innovation and
Employment

Māori and Public Housing
Renewable Energy FundThe government has allocated NZD 28 million to trial small-scale renewable energy
technologies to help decrease energy bills and encourage greater use of heating, leading
to warmer and healthier homes.

Ministry of Business,
Innovation and
Employment

Funding for Heaters andInsulation

Warmer Kiwi Homes is a government programme offering grants covering two-thirds of thecost of ceiling and underfloor insulation.

Energy Efficiency andConservation Authority

Public Sector Decarbonisation

The Carbon Neutral Government Program requires public sector agencies to measure andpublicly report their emissions and deliver offsets. The Program is backed by the NZD 200
million State Sector Decarbonisation Fund.

Energy Efficiency andConservation Authority

187

APEC ENERGY OVERVIEW 2024

Notable Energy Developments
Energy development

Details

Reference

Marsden Point Oil Refinery
Converted into an Import
Terminal

In 2022, Refining NZ shut down New Zealand's only oil refinery and it is being converted
into an import terminal with the potential to improve New Zealand's security of supply.

Argus MediaNew Zealand’s Battery ProjectCancellation

New Zealand’s new government has cancelled the 3-8.5 TWh Lake Onslow pumped hydroproject. It was only in the planning stage at the time of cancellation.

Ministry of Business,
Innovation and
Employment

Emissions Reduction Plan (ERP)
Released in 2022

Hydrogen Development

Geothermal Research Funding

Chapter 11 of the ERP outlines how New Zealand will meet its first emissions budget(2022-2025) and sets out the government's long-term vision for the energy sector in 2050.
The Transport chapter (10) is also related to energy.
New Zealand issued an Interim Hydrogen Roadmap in August 2023. Numerous hydrogenprojects are currently under development or investigation in New Zealand, including
partnerships with Singapore; Japan, and Korea signalling their intention to jointly develophydrogen technology and supply in the future.
GNS (The Institute of Geological and Nuclear Sciences) was awarded a NZD 10 million
grant by the Ministry of Business, Innovation and Employment (MBIE) Endeavour Fund
research program in 2019 to undertake a five-year project on supercritical geothermal
resources in New Zealand.

Ministry for theEnvironment
Ministry of Business,
Innovation and
Employment

GNS Science
Ministry of Business,
Innovation and
Employment
Ministry of Business,
Innovation and
Employment

Investigation into Power Outages

An investigation was completed regarding the power outages that left more than 34 000
households without electricity on 9 August 2021.

Resource Strategy for Minerals
and Petroleum

In 2019, the government developed a Resource Strategy for minerals and petroleum,intended to cover 2019 to 2029.

Review of the Energy Efficiency
Regulatory System for Products
and Services

In December 2021, the Energy and Resources Minister decided a new five-year energy
efficiency and conservation strategy was to be developed. This will replace the current New
Zealand Energy Efficiency and Conservation Strategy 2017-2022 (NZEECS), which set theoverarching policy direction for government support and intervention for promoting energy
efficiency, energy conservation and the use of renewable sources of energy.

Ministry of Business,
Innovation and
Employment

New Energy Research
Development Centre (Ara Ake)

MBIE has funded Ara Ake, which provides support and funding for energy innovators to
help them commercialise and enter the market.

Ara Ake

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APEC ENERGY OVERVIEW 2024

Energy development

Details

Reference

Electricity Price Review (EPR)

The EPR investigated whether the current electricity market delivered a fair and equitableprice to consumers. Following the government’s response, agencies are now progressing
several work streams related to it.

Ministry of Business,
Innovation and
Employment

Huntly Coal Power Station
Transition Plan

The Huntly Power Station, New Zealand's only coal power station, has been determined to
be able to be maintained to 2030 and could be extended to at least 2040. There is anintention to trial biomass as an alternative fuel to coal.

Genesis Annual Report
2022

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APEC ENERGY OVERVIEW 2024

Useful links
Emissions Reduction Plan – https://environment.govt.nz/what-government-is-doing/areas-of-work/climate-change/emissions-reduction-plan/
Energy statistics and modelling (Ministry of Business Innovation and Employment [MBIE]) – https://www.mbie.govt.nz/building-and-energy/energy-andnatural-resources/energy-statistics-and-modelling/energy-statistics/
Energy and Natural Resources homepage (MBIE) – https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/
Energy in New Zealand annual report (MBIE) – https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/energy-statistics-andmodelling/energy-publications-and-technical-papers/energy-in-new-zealand/
Industrial heat pumps for process heat – https://www.eeca.govt.nz/insights/eeca-insights/industrial-heat-pumps-for-process-heat/
IEA Energy Policy Review for New Zealand – https://www.iea.org/reports/new-zealand-2023
Energy minister announcements - https://www.beehive.govt.nz/minister/hon-simeon-brown
Associate Energy Minister announcements - https://www.beehive.govt.nz/minister/hon-shane-jones

References
EGEDA (Expert Group on Energy Data Analysis, APEC Energy Working Group) (2021), APEC Energy Database –https://www.egeda.ewg.apec.org/egeda/database_info/index.html
Energy statistics and modelling (Ministry of Business Innovation and Employment [MBIE]) – https://www.mbie.govt.nz/building-and-energy/energy-andnatural-resources/energy-statistics-and-modelling/energy-statistics/
Department of the Prime Minister and Cabinet (DPMC) – https://www.dpmc.govt.nz/our-business-units/covid-19-group

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APEC ENERGY OVERVIEW 2024

Papua New
GuineaIntroduction
Papua New Guinea (PNG) is an island economy predominantly locatedon the eastern half of the island of New Guinea, the second-largest
island in the world. This eastern portion of New Guinea, along witharound 600 additional smaller islands, stretches from just south of theequator to near Cape York, Australia. PNG is the largest of the PacificIsland economies, encompassing a total land area of 462 840 square
kilometres. Its significant islands include New Britain, New Ireland andBougainville. The capital, Port Moresby, is situated in the south-easternpart of New Guinea, facing the Coral Sea. There are 839 known
languages of Papua New Guinea, making it the most linguisticallydiverse economy in the world. It is also one of the most rural
economies, with only 13.25% of its population living in urban centres in
2019. Most of its people live in customary communities.
PNG is an economy with abundant natural resources, encompassing awide range of minerals and renewables such as vast forests, richmarine ecosystems with substantial tuna stocks, and fertile land
suitable for agriculture in certain regions. However, its challenging
geography, characterised by steep mountains and scattered islands,
increases the costs and complexities of infrastructure development.

Compounding these difficulties are issues such as law-and-orderchallenges in some areas and the customary land title system, whichpose obstacles for external developers. However, these obstacles
provide a valuable safeguard for cultural heritage and community
rights, which is especially important for ensuring an equitable (‘just’)energy transition and economic development process.
PNG has a high rate of poverty and poor infrastructure. The poor
infrastructure can be seen in the low rate of access to electricity. Only
about 20% of the population has access to the grid, and so households
use alternative energy sources, especially fuelwood.
One of PNG’s key policy documents is the National Energy Policy
2017-2027, which expresses an overarching policy on energy that will
help to provide the enabling environment to achieve PNG’s mainenergy goals:•

The 2030 target for 70% electricity access to all households in
PNG (National Electrification Rollout Plan).

•

100% renewable electricity by 2050.

The National Energy Policy 2017-2027 also gave rise to the National
Energy Authority Act 2021, which establishes the National Energy
Authority (NEA) and provides for the roles and functions of the NEA
including policy, regulation, and implementation of energy projects. The
NEA is also intended to take over the regulation of the electricity sector
from publicly owned PNG Power and has been empowered to collectenergy statistics from private companies.
Subsistence agriculture serves as a primary livelihood for nearly 80% of
the population and, along with large-scale agriculture, contributes
approximately 30% to the Gross Domestic Product (GDP). Palm oil is
one of the top export commodities from PNG.
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APEC ENERGY OVERVIEW 2024

The mining sector, with its deposits of gold, silver, oil, gas, nickel,
cobalt, copper, oil and gas, is a major economic driver, accounting forabout three quarters of the economy's export revenue. PNG’s nickel
and cobalt reserves are significant and are important materials for theenergy transition. These are currently extracted from the Ramu nickelcobalt mine.
Papua New Guinea (PNG) exports more than twice its total energy use
as liquefied natural gas (LNG), amounting to 430 PJ, with the majority
destined for China and Japan. It is crucial for PNG to optimize thereturns from its gas resources to bolster economic growth. Various
factors, including project agreements, regulatory requirements,
economic incentives, social responsibility, energy security concerns,
and strategic partnerships, have prompted private gas companies(P’ynyang and PNG LNG) to commit to supplying 15% of their gas
extraction to the domestic market. This decision aligns with the National
Energy Policy, which plans to utilize this gas for industrial purposes orelectricity generation in the 2030s.
The Medium-Term Development Plan IV (MTDP4) 2023-2027 is key tothe economy avoiding an overreliance on its mining industry (the ‘Dutch
Disease’). The MDTP4 aims to improve all key socio-economic andenvironmental development initiatives. Key priorities include promoting
agriculture and fisheries development, enhancing infrastructure,
supporting small to medium-sized enterprises (SMEs), and improving
access to finance for businesses.
In 2021, PNG’s GDP was USD 36.5 billion (2017 USD purchasing
power parity [PPP]). Before the COVID-19 pandemic in 2020, PNG’s
GDP growth rate had been increasing at an average rate of 1.8% every
year since 2000. However, in 2020 and 2021, PNG was hit hard by the
COVID-19 pandemic, and this is probably the cause of a 3.2%
decrease in GDP between 2019 and 2020 and then only a 0.1%

improvement between 2020 and 2021 (IMF). However, as of January2024, it has since bounced back to around 4% GDP growth per annum
for the last two years.
Because of its largely informal economy, PNG has substantial difficultyin estimating data for its wide range of informal energy use as well asother economic statistics. For example, the population recorded inTable 1 was revised upwards by almost 1 million from 8.8 million in2020 to 9.9 million in 2021.
Table 1: PNG's macroeconomic data and energy reserves
Key data a

Energy reserves b, c

Area (million km2)

462 840

Population (million)

Oil (billion barrels)

0.16

9.9

Gas (trillion cubic feet)

5.8

GDP (2017 USD billion
PPP)

36.5

Coal (million tonnes)-

GDP per capita (2017
USD PPP)

3 670

Uranium (kilotonnes U< USD 130/kgU)-

Source: a World Bank (2022); b BP (2022); c UN (2022)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

Energy Supply and Consumption
Total primary energy supply
In 2021, the Total Primary Energy Supply (TPES) was 196 PJ, justunder a quarter higher than 2010. The growth was driven by increased
oil and gas supply in the transport and industry sectors. Renewable
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APEC ENERGY OVERVIEW 2024

energy supply remained steady with most demand coming fromresidential fuelwood use.

vehicles. The economy also exports all its naphtha (25 PJ), which is an
output from its oil refinery.

Renewable sources were the largest contributor to TPES in 2021,
making up 42%. Oil was a close second, contributing 41%. Oil wasused in the transport, industry, and electricity generation sectors.
Natural gas accounted for 18%.

Crude oil makes up about 50 PJ of the economy’s oil supply. The
economy exports all its oil production (about 50 PJ) but also imports thesame amount to be used in its refinery.

Figure 1: PNG's energy supply, production, and net imports (PJ), 2000
to 2021

Figure 2: PNG's energy supply by fuel (PJ), 2000 to 2021

600
Production

250

400

200

200

2005

2010

2015

2020

- 200
Net imports
- 400
- 600

Source: EGEDA (2023)

Most of PNG's refined oil supply is split mainly between imported diesel(28 PJ) and heavy fuel oil (20 PJ), with a small amount (1.5 PJ) of
gasoline supply and jet fuel (2.4 PJ). This is unique in comparison to
the rest of the APEC region, where gasoline is one of the refined oils
with the highest supply. It is different in PNG because of the relatively
low road transport activity, and higher ratio of diesel to gasoline fuelled

150
100
50
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Total Primary Energy Supply
0
2000

TPES by fuel (PJ)

Production, net imports and TPES (PJ)800

PNG has abundant gas resources, with significant production starting in
the mid-2010s. In 2021, 92% of the gas production was exported as
LNG, totalling 430 PJ, compared to 35 PJ of TPES for domestic use.
The high volume of exported gas results in a large negative net importbalance. Total gas supply has doubled since 2019.

Coal

Oil

Gas

Renewables

Others

Source: EGEDA (2023)

In PNG, all the gas that is used as well as what is transformed into
LNG, makes its way through the PNG LNG plant (475 PJ capacity pa.),
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APEC ENERGY OVERVIEW 2024

which is near Port Moresby. Of the 35 PJ of domestic use, the plantuses about 25 PJ of gas in the production process (which is consideredown use and losses). The last 10 PJ of domestic use is split between
auto producers (off-grid-connected industrial producers) (5 PJ), and thePort Moresby Gas Power Plant (5 PJ), which is connected to the Port
Moresby main grid.
Figure 3: Energy supply mix – PNG and APEC, 2021
100%

Other
Renewables

In 2021, PNG's total final energy consumption was around 143 PJ. The
residential sector accounted for about 43% of energy use, followed by
the industrial sector (27%) and the transport sector (17%). Even though
it makes up about 30% of GDP, the agricultural sector accounted for 5
PJ (3%) of energy use, of which the majority (about 93%) was diesel.

Gas
60%
Oil
40%

Energy demand in PNG has been growing since 2000, albeit at a
slower pace than GDP. The transport and industrial sectors havealmost doubled their energy use, which is because of an increase inindustrial output and transport activity. This highlights the crucial role ofenergy in driving economic growth.

Coal

0%

Papua New Guinea

PNG's TPES composition differs significantly from the wider APEC
region since the economy lacks coal-fired electricity generation and any
significant coal consumption. Oil and renewables have a larger share of
TPES compared to the APEC average.
Total final consumption

80%

20%

Besides the use of biomass, 4% of renewables TPES is hydro (3 PJ)
and geothermal (3 PJ) for electricity generation. The geothermal TPESis slightly exaggerated because of the low conversion efficiency ofgeothermal energy to electricity.

APEC

Source: EGEDA (2023)

TPES of renewables in PNG is primarily (86%, 70 PJ) traditional
biomass, which is mostly used for residential use, while a small amountis used by industry – mainly palm oil plants using their own waste forheat and electricity production. It should be noted that there issubstantial difficulty in correctly estimating traditional biomass use, so
this value is subject to significant uncertainty. As such, any indicators
involving this estimate should be treated carefully.

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APEC ENERGY OVERVIEW 2024

160
140
120
100
80
60
40
20
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Final energy demand by sector (PJ)

Figure 4: PNG's final consumption by sector (PJ), 2000 to 2021

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

Papua New Guinea's underdeveloped road infrastructure, absence ofused car quality import controls and high rural population reducestransport efficiency and energy use in the sector. The few roads
available are poorly maintained, and key regions like the populous
Highlands are not even connected by road to the capital, Port Moresby.
Despite a slight increase in road infrastructure from 2000 to 2015, thesubsequent decline and rapid population growth have reduced per
capita road availability, according to the Asian Transport Outlook.
These conditions have curbed the growth of transport activity andenergy use for road vehicles, making it modest compared to other
APEC economies. PNG’s NEA will work with Customs PNG and theTransport department to develop a regulation on used vehicle quality
standards and Engine capacities.

The residential sector is the largest energy consumer (43% of total final
consumption),but has only seen a 24% increase since 2000 (total final
consumption of all sectors increased by 47%). This comes from the fast
growth of the other sectors, which is to be expected as the economy
develops.
In the densely populated Highlands region, it is cold all year round andthis increase the need for fuelwood for heating. This increases thedemand for biomass, which increases the environmental and healthchallenges associated with traditional biomass use. Throughout PNG,
replacing the reliance on traditional biomass for cooking, heating andlighting with cleaner alternatives could have significant health impacts
for the population and preserve the local ecosystems.
Figure 5: Final consumption by sector, PNG's and APEC, 2021
100%
Non-energy
Agriculture & others
80%
Residential
Commercial

60%

Transport
40%

20%

Industry0%
Papua New Guinea

APEC

Source: EGEDA (2023)

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APEC ENERGY OVERVIEW 2024

Final energy demand
PNG's energy demand in 2021 was dominated by oil (39%) andrenewables (51% of which is fuelwood for residential use). The
residential sector accounted for 43% of final energy consumption, while
the industrial sector accounted for 27% and the transport sector 17%.
Electricity consumption was 10% of final energy demand and is mostly
consumed by the industrial sector. Renewable energy, mostly
fuelwood, contributes the largest share of final energy consumption.
Figure 6: PNG's final energy demand by fuel (PJ), 2000 to 2021

Figure 7: Final energy demand fuel share, PNG and APEC, 2021
100%
Electricity andothers80%

Renewables

60%

Gas
40%

160

Final energy demand by fuel (PJ)

their place. Use of renewables is especially high compared to othereconomies.

Oil

140

20%

120
Coal

0%

100

Papua New Guinea

80

APEC

Source: EGEDA (2023)

60

Transformation

40
20

Power sector
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)
Note: Does not include non-energy sector consumption of energy products.

Compared to the rest of APEC, PNG’s energy use comprises much
more oil and renewables. This largely stems from PNG having no useof coal and a negligible amount of gas use, so the other fuel types take

PNG’s electricity network is relatively undeveloped. Only around 21%of the population have access to the electricity network, and it is known
to have reliability issues. Because of the dispersed population andrough topography, building the network to reach people in rural areas isextremely challenging technically and financially.
Because of the rough topology of the land, the electricity network iscurrently split into different grids. The three main grids are the Port
Moresby, Gazelle and Ramu grids, while there are at least 19
geographically isolated mini grids that serve smaller provincial centres.
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APEC ENERGY OVERVIEW 2024

These mini grids are almost entirely powered by diesel and fuel oil
generators, which results in high generation costs.

some cases they do supply their excess power to their small local grids,
which helps to improve grid stability and access in these areas.

Given the geographical constrains of the economy, the government of
PNG, through the NEA, has developed the Off-Grid Regulation 2023,
which will be the enabling mechanism to drive the implementation of
the NEROP plan to connect 70% of PNG’s population to the grid by2030, but strictly from renewable energy sources. This is also expected
to be with financial assistance from other APEC economies. This will
help to stimulate economic activity, quality of life and improve energy
intensity. It will probably also involve connecting the grids, which may
help with improving network stability.

One other area of improvement has been the development of off-grid
solar for lighting, which means that around 60% of the population has
access to electricity if off-grid solar (for lighting) is considered (this does
not count towards the NEROP). However, fuelwood, charcoal, liquid
petroleum gas (LPG) and kerosene are still needed for cooking andheating.

Estimates show that two-thirds of electricity generation andconsumption in PNG is carried out by industrial sector auto producers,
such as mining facilities or plantations, which are quite far away fromurban centres and are not often connected to the grid. However, in

5
4

4
3
3
2
2
1
1
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Gas currently provides about 19% of total generation, of which 9% isfrom auto producers, and 10% is from the PNG LNG plant and isconnected to the Port Moresby Grid. Hydropower is the largest sourceof renewable electricity (23%) and geothermal contributes 2%. There isa small amount of generation using biomass (0.2%) in the palm oil
plantations and biogas (0.6%) from other auto producers.

5

Electricity generation (TWh)Partly due to the poor transmission infrastructure, PNG’s electricity use
is low compared to the APEC average, and total electricity generationis also low. A significant 55% of electricity generation is from diesel andheavy fuel oil, which is because of their mobility, lower upfront costs,
and operational flexibility during frequent blackouts. However, the useof oil for electricity generation is relatively expensive and inefficient in
the long term. So, it is expected that oil use for generation will decreasein future years with more investment in PNG's large reserves ofrenewable and natural gas resources.

Figure 8: PNG's electricity generation by fuel, 2000 to 2021

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

PNG uses a large proportion of oil for generation compared to the
APEC average, as it relies heavily on low-capacity oil generators forelectricity generation. The prominence of hydro and geothermal
generation in PNG is partly due to the small amount of generation

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APEC ENERGY OVERVIEW 2024

capacity needed to make those sources significant, relative to the
APEC average and the economy’s total.
In terms of input fuel quantities, there was 20 PJ of fuel oil use, 10 PJ
of natural gas and 6 PJ of diesel use for electricity generation. The
remaining generation came from renewables. It is estimated that these
inputs generated 16 PJ of electricity, although there could be significant
margin of error, especially because of the difficulty of estimating theelectricity output of diesel generators.
Figure 9: Electricity generation fuel share, PNG and APEC, 2021
100%

OthersOther renewables
Geothermal
Nuclear80%

One benefit of the development of the LNG plant is that the residential
sector has been able to use LPG (of which total consumption was 0.2
PJ), which is a cleaner alternative to kerosene (kerosene makes up
about 2.4 PJ of total residential energy use) or fuelwood (69 PJ) for
heating and cooking.

PNG’s energy transition goes hand-in-hand with its growth. One of
PNG’s biggest challenges is building the infrastructure it needs toenable the supply of new energy types to its population. This is madeeven harder by the difficult topography of the economy.

Gas

Oil

40%

The economy’s LNG plant, just outside of Port Moresby, has a capacityof 8.3 mtpa, which is equivalent to 475 PJ of natural gas, and produced
430 PJ of LNG in 2021. There is a new project, the Papua LNG project,which is expected to be completed by the end of 2027, and will
increase the plant’s capacity to almost 14 mtpa.

Energy Transition

Hydro
60%

refined in PNG is currently imported.

Coal

20%
0%
Papua New Guinea

APEC

Source: EGEDA (2023)

Refining
PNG has an oil refining capacity of 33 thousand barrels per day (73 PJ
per year), and the economy produced 56 PJ of petroleum products in
2021. This is not enough to satisfy domestic consumption, so theeconomy imports most of the refined oil it uses, and most of its
production is actually exported. Furthermore, the crude oil that is

The major project of increasing access to electricity will help to give
70% of the population alternatives to fuelwood and kerosene.
Increased access will probably also result in an increase in thereliability of the electricity network. These two improvements may help
to counter the reliance on oil generators, which are especially usedbecause they can be transported to remote areas, require less capital,and provide backup capabilities.
The economy has abundant gas resources, and currently exports mostof its gas as LNG. There are potential areas where this gas could be
used domestically, such as electricity generation and production ofother fuels (e.g., ammonia, LPG), or for industrial purposes. Also, if the198APEC ENERGY OVERVIEW 2024

Besides traditional biomass, which includes fuelwood, the economy
also has significant potential for non-traditional renewable energy,
especially renewable electricity generation types. As the government
continues to invest in electrification and renewable energy, the energy
mix in PNG is expected to shift away from imported oil and towards
renewable energies and natural gas, which are more economically andenvironmentally sustainable energy sources for the future.
Energy transition topics are further covered in the PNG chapter of the
APEC Energy Demand and Supply Outlook.
EmissionsFigure 10: PNG's CO2 combustion emissions (million tonnes), 2000 to
2021
9
8

CO2 combustion emissions

7

Million tonnes CO2

rest of the world transitions to gas instead of coal and oil, LNG exports
could become more profitable for the economy.

6
5

4
3
2
1

PNG emitted about 7 million tonnes of CO2 in 2021, but this is only
about one thousandth of APEC’s total emissions. PNG’s low amount ofemissions is expected to grow quickly over time as the economy
increases power generation, as well as industrial and transport activity.
The majority of PNG’s emissions currently come from electricity
generation (40%), transport (20%) and industry (20%). The emissions
from burning fuelwood are not considered.

0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
PNG’s energy security issues are defined by its reliance on imports formost of its oil use (40% of total consumption). In 2023, there was a 30day shortage of aviation fuel in PNG, forcing local airlines to suspend
flights. This was very costly for the economy, especially since muchdomestic transport is by aircraft. For example, the capital Port Moresby
is not connected by road to the second largest city, Lae, and thenearby, highly populated, Highlands region. Similar oil shortages
continue to affect the economy, which is linked to finance woes.
Means of improving the economy’s energy security could include
increasing the oil stockholding limits or diversifying the sources ofenergy supply. Improvements to the economy’s financial situation will
also be helpful.
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APEC ENERGY OVERVIEW 2024

PNG’s effort to improve access to and reliability of its electricity network
can be considered an important project for increasing energy security
as it will decrease reliance on oil for electricity generation. This will inturn decrease the negative effects of oil shortages.

energy intensity by 45% by 2035, compared to the 2005 baseline, but
this target is not applicable to individual economies.
Figure 11: PNG's total final energy consumption intensity index, 2000 to
2021 (2005 = 100)

APEC Energy Goals

Energy intensity goal
In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economy targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.
PNG has improved its energy intensity over the past two decades andthis improvement is expected to continue, particularly with theimplementation of the National Electrification Rollout Plan and theEnergy Labelling and Minimum Energy Performance Standards forAppliances, Equipment and Lighting Products Regulation 2024. The
economy's energy intensity was 65 PJ per billion USD PPP in 2021,
which was a 34% improvement from 2000. The improvement in energy
intensity is also driven by the growth of the economy through LNG
exports since 2014. The APEC region has set a goal of reducing

Energy intensity index (2005 = 100)

There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.

120
Total final energy consumption energy intensity

100
80
60

APEC-wide goal 2035

40
20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doubling
goal.

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APEC ENERGY OVERVIEW 2024

Figure 12: PNG's modern renewable energy share, 2010 and 2021
6.0%

Change from2010 to 2021

5.0%

industrial sector. The share of renewables in generation has remained
at about the same level since 2000. The intermediate variation was due
to new capacity developments such as the expansion of the Lihir Gold
Mine geothermal generation scheme.
Figure 13: PNG's renewable generation share, 2000 to 2021

4.0%

35%

3.0%

30%

Renewables share in electricity mix

25%

Proportion

2.0%
1.0%
0.0%
2010

Change2021

Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

20%
15%
10%
5%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

PNG has a modern renewable energy share of 5.8%. This has changed
very little since 2010, which is because all energy types increased byabout the same amount. Traditional biomass consumption is notincluded in PNG's modern renewables share, but if it were, therenewables share would be around 50%.
PNG has a renewable generation share of 26% and the majority of thiscomes from hydro (88%) and geothermal electricity generation (8%).
There is a small, but quickly growing amount of solar at 0.4%. The rest
comes from biogas (2%) and biomass (0.7%) generation in the201

APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

Reference

100% Renewable Energy

This is a target to achieve 100% renewable electricity by 2050.

Vision 2050

National Electrification Rollout Plan
(NEROP)
Enhanced Nationally Determined
Contribution (NDC) (2020)

Rate of 70% access to electricity by 2030 and 100% by 2050.
The NDC was revised to target a 78% share of installed capacity of renewable energy by 2030.

Vision 2050, National
Energy Policy 2017-2027
Enhanced Nationally
Determined Contribution
National Energy Policy
2017-2027

Domestic Resource Utilisation

The government will ensure 15% of gas reserves in new oil and gas projects will be madeavailable for domestic gas utilisation.

Energy Labelling and Minimum
Energy Performance Standards forAppliances, Equipment andLighting Products Regulation 2024

A drafted regulation for reducing the imports and use of low energy efficient and substandard
electrical appliances into PNG.

National Energy Agency

Governance

Build stronger institutions and governance frameworks for the energy sector.

National Energy Policy
2017-2027

National Energy Authority Act 2021

Passed in April 2021, it will decommission all the regularity powers and functions of PNG Power
Limited and vest them with the National Energy Authority. The National Energy Authority Act
also empowers the government’s ability to collect energy data from private groups for statistics.

Energy Authority Act

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APEC ENERGY OVERVIEW 2024

Notable Energy Developments
Energy development

Details

Reference

Amendment to the Mining Act andthe Oil and Gas Act

The Mining Amendments introduce a 'live data' reporting obligation and give entities priority intenement applications over 'reserved land'. The O&G Amendments give the minister greater
flexibility in determining whether to grant or refuse petroleum development licences and affectthe sanctity of petroleum agreements and gas agreements.

New PNG Energy laws
commence

Papua LNG Project

The project participants and the government have re-affirmed their commitment to this project,and it is expected to proceed. When complete it will add six mpta of LNG production.

NASDAQPNG Electrification Partnership

USD 1.7 billion of international funding from Australia; Japan; New Zealand; and the UnitedStates has been pledged to support achieving the target of 70% of electrification by 2030. Someof this money is already being committed to projects.

Post Courier

Proliferation of Off-grid Solar
Lighting

Some 60% of Papua New Guinean households are now using off-grid solar technology with offgrid solar lighting products and battery-based torches and lanterns, which are now effectively
replacing kerosene lamps.

PNG Off-Grid Report

Useful Links
United Nations – https://papuanewguinea.un.org/
The World Bank – https://www.worldbank.org/en/country/png
International Monetary Fund – https://www.imf.org/en/Countries/PNG
PNG Environmental Data Portal – https://png-data.sprep.org/
Asian Development Bank – https://www.adb.org/countries/papua-new-guinea/main
PNG Development Strategic Plan 2010-2030 – https://png-data.sprep.org/dataset/png-development-strategic-plan-2010-2030
National Energy Authority Policy Framework – https://nea.gov.pg/policy-legal-framework/203

APEC ENERGY OVERVIEW 2024

References
Asian Transport Outlook Country Profile – https://asiantransportoutlook.com/analytical-outputs/countryprofiles/profile-papua-new-guinea/

204

APEC ENERGY OVERVIEW 2024Peru

200 million would be allocated as part of the efforts to increase theaccess to natural gas. In April 2023, MINEM announced its goal ofreaching around 20% of households by the end of the year, incorporating
372 000 new natural gas clients.

Introduction

Additionally, several renewable energy projects were announced. Punta
Lomitas, the largest wind power plant in Peru with a capacity of 296 MW,
started commercial operations in June (Engie, 2023). This project
represents a milestone in the Peruvian electricity grid as it is one of thefirst major renewable energy projects developed outside the renewableenergy auction scheme.

Social unrest and climate events marked the year 2023 in Peru. The
gross domestic product (GDP) contracted by 0.6% during the first threequarters compared to the previous year (Instituto Nacional de
Estadísticas e Informática [INEI], 2023). A decrease of private spending
in several economic sectors and the effect of El Niño phenomenon 2,
which started in March 2023, contributed to a slower-than-expectedeconomic recovery. A strong or moderate-level El Niño is expected
between December 2023 and February 2024, which could affect the
Peruvian energy sector in the coming year.
Despite the challenges faced in 2023, several advancements in theenergy sector were observed in Peru. The Talara Refinery began its
gradual and progressive start-up process in 2023 after it underwent a
modernisation and upgrade process that started in 2014. The
modernisation process included the expansion of the crude oilprocessing capacity from 65 000 to 95 000 barrels per day (bpd). The
refinery is expected to fully operate by the end of 2023.
The policy to increase the use and availability of natural gas, also known
as the massification of natural gas, has progressed during 2023. The
Ministry of Energy and Mines (MINEM) announced that more than USD
2 El Niño is a climate phenomenon characterised by periodic warming of sea

surface temperatures in the central and eastern equatorial Pacific Ocean,disrupting normal weather patterns. In Peru, El Niño can lead to heavy rainfall
and flooding in some regions, severe drought in others, and increased

The contract to build the Peruvian side of the 500 kV transmission line
between Peru and Ecuador was awarded in July 2023 (Proinversion,2023). The project will interconnect both electric systems, taking
advantage of the complementarity of Peruvian and Ecuadorianhydrologies. The line is expected to be operational by 2027.
However, Peru suffered severe droughts that affected the reservoirs ofhydroelectric power plants. Consequently, natural gas-fuelled thermal
plants operated at maximum capacity, and diesel-based thermal plants
were utilised to satisfy the increasing electricity demand, thereby raising
the cost of electricity generation (Energiminas, 2023).
To face the challenges that appear in the energy sector, Peru has diverse
reserves of energy resources, encompassing fossil fuels and renewableenergy. Peruvian oil reserves rank 7th and natural gas reserves rank 5thin Latin America. Peru is actively seeking investments in exploration to
expand its hydrocarbon reserves.

temperatures, impacting various activities such as fisheries and agriculture. El
Niño is part of the El Niño-Southern Oscillation (ENSO) cycle and isassociated with La Niña, another climate phenomenon with opposite effects.
La Niña often follows El Niño as the climate system seeks to restore balance.
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APEC ENERGY OVERVIEW 2024

Table 1: Peru’s macroeconomic data and energy reserves
Key data a, b

Energy reserves c, dArea (million km2)

1.3

Oil (billion barrels)

0.7

Population (million)

33

Gas (trillion cubic feet)

9.2

GDP (2017 USD billion
PPP)

422

Coal (million tonnes)0

GDP per capita (2017
USD PPP)

12 500Uranium (kilotonnes U< USD 130/kgU)

33

Source: a INEI (2023, June 10); b World Bank (2022); c Energy Institute (2023); d
Nuclear Energy Agency & International Atomic Energy Agency (2023)

Interestingly, domestic primary energy production decreased 1.4%
during 2021. According to MINEM, domestic fossil fuel production fell
4.4% in 20213, a second year in a descending trend. Natural gas andassociated natural gas liquids production decreased 4.7%, while
domestic oil production decreased 3.5%. Due to insufficient domestic
demand, natural gas production has decreased, leading to the need toreinject into the wells. This process restricts the processing of associatedliquid, which in turn forces the import of crude oil to refine oil products.
Additionally, restrictions that originated during the 2021 pandemic havefurther impacted the domestic production of natural gas and crude oil. As
a result, in 2021, Peru returned to being a net importer of energy as theincrease of energy demand had to be satisfied by fuel imports.
Figure 1: Peru’s energy supply, production, and net imports (PJ), 2000
to 2021

Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

Total primary energy supply
Energy statistics for 2021 show a rebound of energy consumption fromthe levels observed in 2020, during the peak of the COVID-19 pandemic.
The total energy supply increased 17.5%, reaching 1 130 PJ in 2021
from 961 PJ in 2020. Specifically, the gas supply increased 19.5%, goingfrom 266 PJ in 2020 to 318 PJ in 2021. The oil supply increased 21.5%,
going from 385 PJ in 2020 to 467 PJ in 2021. Meanwhile, the supply of
renewables increased 9.4%, growing from 289 PJ in 2020 to 316 PJ in
2021. However, this level of total energy supply is still lower than the2019 level of 1 137 PJ.
3 In Peruvian statistics, primary energy supply considers the energy content of

Production, net imports and TPES
(PJ)

Energy Supply and Consumption

1 200
Production
1 000
800
Total Primary Energy Supply
600
400
200
Net imports
0
2000
- 200

2005

2010

2015

2020

Source: EGEDA (2023)

In contrast to the domestic production of hydrocarbon, renewable energy
natural gas and its associated liquids.
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APEC ENERGY OVERVIEW 2024

production, namely hydroenergy and biomass, increased 9.4%. Most of
the renewable energy is used in electricity generation where renewableenergy plants have priority to dispatch electricity to the grid. There wasalso an increase in the production of traditional biomass for cooking
consumption in buildings.
Figure 2: Peru’s energy supply by fuel (PJ), 2000 to 2021
1 200

supply mix in APEC, serving as a major source of electricity generation.
However, in Peru, coal plays a minor role, representing just 2% of theenergy supply mix.
Another important difference is observed between Peru’s and APEC’s
energy mix is the share of oil. Oil share was 41% in Peru while it was
27% in APEC in 2021. The disparity highlights the crucial role of thetransport sector in Peru, as illustrated in Figure 3.
Figure 3: Energy supply mix – Peru and APEC, 2021

TPES by fuel (PJ)

1 000
800

100%

Other
Renewables

600
80%

400

Gas

200

60%

- 200

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Oil
40%

Others

Source: EGEDA (2023)

Coal supply reached 28 PJ in 2021, growing from 21 PJ in 2020. This
growth is explained by an increase of coal demand in industry, mainlyin cement and metallurgy. There is also a growth of coal demand inelectricity generation, mainly in auto producers.
In 2021, natural gas and renewable energies supplied around 56% of theenergy in Peru. Most of these fuels are used in power generation. In
contrast, these fuels represent 32% of the energy supply mix in APEC.
Additionally, coal is an important fuel representing 35% of the energy

20%

Coal

0%
Peru

APEC

Source: EGEDA (2023)

Total final consumption
Energy demand in the residential sector grew 7.1% from 176 PJ in 2020
to 188 PJ in 2021. This growth rate was higher than the average annual
rate of 1.2% between 2010 and 2021. Energy demand in the residential
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APEC ENERGY OVERVIEW 2024

to slower-than-expected economic growth.

Figure 4: Peru’s final consumption by sector (PJ), 2000 to 2021

Figure 5: Final consumption by sector, Peru and APEC, 2021

1 000
900
800
700
600
500
400
300
200
100
0

100%
Non-energy

Agriculture & others
80%
Residential
Commercial

60%

Transport
40%

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Final energy demand by sector (PJ)

sector was the only one that grew in 2020.

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

Industry energy demand grew 18.1% from 207 PJ in 2020 to 244 PJ in
2021. However, this demand does not reach pre-pandemic levels at 251
PJ in 2019, indicating that industrial activity had not recovered despite
the economic reactivation measures implemented in Peru.
Other sectors showed a big increase in energy consumption. The
commercial sector grew 11.3% from 51 PJ in 2020 to 57 PJ 2021.
Transport, the main energy consumer, grew 30% from 296 PJ in 2020 to386 PJ in 2021, a response to the lift of transport restrictions that were
implemented during 2020.
Despite the observed growth in total final consumption across all sectors
in 2021, the overall trend following the pandemic suggests a slower rateof growth compared to pre-pandemic levels. This effect is more likely due

20%

Industry

0%
Peru

APEC

Source: EGEDA (2023)

Another important difference is observed in the share of non-energy,
which includes the use of fuels as a raw material for non-energy products
such as lubricants. In APEC, non-energy use represented 12% of final
energy consumption in 2021 while it is 0.8% in Peru.
Final energy demand
Demand for all fuels grew in 2021. The highest growth was observed incoal consumption, almost 46% from 16 PJ in 2020 to 23 PJ in 2021,
mainly due to an increase of coal consumption in industry. Natural gas
demand grew 29.4% from 76 PJ in 2020 to 98 PJ in 2021, however thisdemand did not reach the levels of 2019 at 102 PJ.
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APEC ENERGY OVERVIEW 2024

Oil products demand grew 26.6%, from 356 PJ to 451 PJ, mainly due
to the reactivation of the transport sector. This demand is 4.6% higher
than the 2019 level, meaning the demand for oil products is alignedwith the previous historical trend.
Renewable energy demand grew 9.4% going from 128 PJ in 2020 to
140 PJ in 2021. Renewable energy is the only fuel with constant growthduring the 2020 and it accounts for the increase of the use of fuelwoodin the residential sector.
Finally, electricity demand grew 9.4%, going from 164 PJ in 2020 to
179 PJ in 2021, almost the same demand reported in 2019.
Figure 6: Peru’s final energy demand by fuel (PJ), 2000 to 2021

The share of electricity in the final energy demand is bigger in APEC,
where it represents 34%, than in Peru, where it represents 20%. Thisdifference suggests the potential for increasing the electrification of theend-use energy demand in Peru by switching away from oil products
mainly used in transport (e.g., electrification of transport) and industry.
Figure 7: Final energy demand fuel share, Peru and APEC, 2021

1 000

Final energy demand by fuel (PJ)

compared with previous years, where oil and oil products satisfy almost
half of the final energy demand. The most important oil products arediesel, mainly commercialised as a blend with 5% of biodiesel and known
as DB5, and gasoline, mainly commercialised as a blend with 7.8% of
ethanol, and known as gasohol. These products are primarily used inroad transport. Additionally, LPG is used in buildings for cooking andwater heating, although a small share is also used in vehicles.

900

100%

800

179.2

700

Electricity andothers

80%

600

140.0

500
400

Renewables

60%

97.9

300

Gas

200
40%

100

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

Oil

Gas

Renewables

Oil

450.7
20%

Electricity and others

23.2

Coal

0%
Source: EGEDA (2023)
Note: Does not include non-energy sector consumption of energy products.

Peru’s final energy demand fuel share did not change drastically when

Peru

APEC

Source: EGEDA (2023)

Natural gas appeared in Peru’s final energy demand mix in 2004 when209

APEC ENERGY OVERVIEW 2024

Power sector
In 2021, Peru's electricity generation totalled 57 517 gigawatt hours(GWh), a growth of 8.9% from 2020. Renewable sources provided 61.1%
of electricity: hydropower produced 55.5% and non-conventional
renewable energy produced 5.6% of electricity. Electricity produced fromhydropower and renewable energy grew 4.6% and 2.4% respectively.
The rest of the electricity was produced mainly in thermal plants, mainly
natural-gas-based in combined cycle. Only a small share of electricity,
around 1.3%, came from coal and diesel (EGEDA, 2023).
Natural gas-based power generation grew 19.5% from 18 105 GWh in
2020 to 21 633 GWh in 2021. Power generation from coal and diesel fell
28.4% from 2020.
While the impact of the droughts experienced in 2023 will be observedin future Overviews, the Peruvian electricity generation fuel mix in 2021
already indicated a potential vulnerability to extreme weather events that
may affect renewable energy resources. This vulnerability is noteworthy
as it corresponds to more than half of electricity generation.
In 2023, the reduction of water resources for electricity generation was

Figure 8: Peru’s electricity generation by fuel, 2000 to 2021
70

60
50

40
30

20
10

0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Transformationcompensated by an increase of thermal generation, including diesel andcoal plants.

Electricity generation (TWh)Camisea, the main natural gas project, started operation. Since then,natural gas has increased its share in the final energy demand to
approximately 11% in 2021. In final energy consumption, demand ofnatural gas has not completely recovered its 2019 level although it
experienced constant growth in the residential sector. The share ofnatural gas in the final energy demand in Peru is half of what is observedin APEC, indicating the challenges to expand natural gas coverage in theeconomy, although advancements are reported constantly.

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

Peru exhibits a relatively clean electricity generation mix compared toother APEC economies. According to the National Greenhouse Gas
Inventory Report of Peru 2019 (MINAM, 2023), electricity generationaccounts for 6.7% of greenhouse gas emissions in the energy sector.
The newly announced projects are predominantly centred around solar
and wind power plants. Nevertheless, there remains a need to secure
investments in clean and energy efficient power generation projects toensure a stable electricity supply, especially in the southern region of
Peru. Exploiting its high potential of renewable energy, the southern
region of Peru could reduce the dependency on electricity transmission
from the central region and on local fossil fuel generation in the future.
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APEC ENERGY OVERVIEW 2024

Figure 9: Electricity generation fuel share, Peru and APEC, 2021
100%

OthersOther renewables
Geothermal
Nuclear

80%

Figure 10: Peru CO2 combustion emissions (million tonnes), 2000 to
2021

Hydro
60%

This growth can be attributed to an increase of energy demand andconsumption, particularly in diesel and gasoline. Additionally, there wasan increase in the use of emitting fuels such as traditional biomass, which
had been on a declining trend before the pandemic.

Gas

60

Oil

40%

Coal

20%
0%
Peru

APEC

Source: EGEDA (2023)

Refining
The Talara Refinery began its gradual and progressive start-up process
in 2023 after it underwent modernisation and upgrading. The
modernisation includes the expansion of the crude oil processing
capacity from 65 000 to 95 000 barrels per day (bpd). The refinery is
expected to operate at 100% by the end of 2023.

Energy Transition
Emissions
CO2 combustion emission rebounded in 2021, as expected, due to theeconomic reactivation. The emissions increased by 24.1%, rising from42 617 kt-CO2 in 2020 to 52 909 kt-CO2 in 2021. This increase meantthat emissions in 2021 were slightly higher than those in 2019 by 0.8%.

Million tonnes CO250

CO2 combustion
emissions

40
30
20
10
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
The diversification of the energy matrix, with an emphasis on renewableenergy and energy efficiency, along with the development of the natural
gas industry, are important objectives outlined in the Peru’s National
Energy Policy 2010-2050. These are regarded as two cornerstones ofthe strategy to strengthen energy security.
In recent years, Peru has experienced extreme weather events, making
it a priority to promote investments that contribute to achieving the
aforementioned goals. Electricity generation has been adversely
211

APEC ENERGY OVERVIEW 2024

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity and to
double the share of modern renewables.
Energy intensity goal
In 2011, APEC member economies agreed to increase their target to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline. The
original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The goal
does not impose individual economy targets, but it is possible to track
the progress of individual APEC economies relative to the overarching
proportional improvement.

Figure 11: Peru’s total final energy consumption intensity index, 2000 to
2021 (2005 = 100)
140

Energy intensity index (2005 = 100)

affected by droughts, attributed to the effects of the El Niño phenomenon,
which reduced hydroenergy production in 2023. Additionally, Peru faced
LPG shortages several times in 2023 due to extreme sea conditions, aphenomenon that is becoming more frequent. Lima, the capital city ofPeru, heavily relies on sea transport for its LPG supply. During
shortages, vehicular LPG supply, the fuel used in light passenger
vehicles, is restricted to protect LPG supply to buildings (El Comercio,
2023a)

120
Total final energy consumption energy intensity

100
80

APEC-wide goal 2035

60
40
20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

The energy intensity index increased by 5.5% in 2021. This increase
can be attributed primarily to the slower-than-expected economic
growth in Peru during 2021. It is anticipated that the decreasing trend
will resume when economic growth accelerates in the coming years.
Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doubling
goal.

212

APEC ENERGY OVERVIEW 2024

Figure 12: Peru’s modern renewable energy share, 2010 and 2021
18.0%

Change from2010 to 2021

16.0%

the region. Considering the untapped potential for renewable energy in
Peru, doubling the economy's share of modern renewable energy to 30%
by 2030 appears feasible.
Figure 13: Peru’s renewable generation share, 2000 to 2021

14.0%

90%

12.0%

80%

70%

8.0%

60%

Proportion

10.0%

6.0%
4.0%

Renewables share in electricity mix

50%
40%
30%

2.0%

20%

0.0%
2010

Change2021

Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

Peru’s modern renewable energy share was 15.9% in 2021, showing adecrease from the 19% reported in 2020. This decline can be attributed
to a growth in demand, mainly satisfied by fossil fuel, particularly in thetransport and industry sectors. Peru’s share of modern renewableenergy remains one of the highest among APEC economies,
comparable to Indonesia at 16.6% and Thailand at 14%, ranking 6th in

10%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

The renewable share in electricity mix did not show improvement in
2021, as a slight decrease of 3% was observed. This decrease was maily
due to increased thermal generation to meet additional electricity
demand. Although the Puntal Lomitas wind farm started operating in
2023, the share of renewable energy generation is expected to decrease
due to the impact of droughts affecting hydroenergy.

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APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

Reference

Natural Gas Massification

Massification of natural gas via the use of the Social Energy Inclusion Fund. The
government plans to build a natural gas distribution network for seven regions.

ProInversion

National Plan for Rural
Electrification

The objective of the Rural Electrification Plan is to achieve a reduction in greenhouse gas
emissions using renewable energy in rural areas for the provision of electricity. In 2018,
rural electrification reached 87% of coverage; economy-wide electrification was 92%. The
policy target is to reach 100% by 2022.

Ministry of Energy and MinesThe Southern Peruvian Gas
Pipeline

This pipeline will increase the natural gas transportation capacity to 800 million cubic feetper day by 2025 through the following pipelines:• Camisea-Lima (500 km); Peru LNG (300 km).
• Ica-Marcona (300 km); Marcona-Mollendo loop (500 km).
• Central Highlands-Trujillo (1 100 km); Trujillo-Piura (500 km); Piura-Tumbes (400 km).

Ministry of Economy and FinanceElectric Vehicle Charging
Infrastructure
Energy Efficiency Audits
Energy Efficiency Labelling
Regulation

Peru has approved statutory provisions for the charging infrastructure and electricity supply
for electric vehicles. A proposal for specific regulations for the installation and operation ofelectric vehicle charging stations has been presented.
In 2021, Peru approved legal requirements for energy efficiency audits to promote energy
efficiency in public and private buildings.
In 2017, the technical regulation for energy efficiency labelling for 12 types of equipment
was approved. However, the requirement of presenting a certificate of conformity before
using the labels was postponed.

Ministry of Environment
Ministry of Environment
Ministry of Energy and Mines

Energy Efficiency Standards

A new set of technical specifications for washing machines and lights for street lighting has
been approved. The government is obligated to acquire new products according to these
new specifications.

Ministry of Energy and Mines

Nationally Determined
Contribution (NDC)

Peru has updated the unconditional and conditional NDCs. The unconditional targetchanged from 20% to 30% and the conditional target changed from 30% to 40% emission
reductions by 2030.

Ministry of Environment

Peru declared the climate emergency as an emergency of the utmost interest and prioritised
Declaration of Climate Emergency
actions to implement NDCs, including setting a goal of achieving 20% non-conventional
Ministry of Environment
as Utmost Interest
renewable energy in the electricity mix.

214

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Road map for Smart Grids inDistribution 2023-2030

This document proposes actions to modernize the electric distribution system that includes
regulatory reforms and development of incentives and financing of smart grid projects.

Ministry of Energy and Mines

Notable Energy Developments
Energy development

Details

Reference

Punta Lomitas Started Operation

The Punta Lomitas, 296 MW wind project, started operation in June 2023. This project has
an investment of USD 300 million.

Ministerio de Energia y Minas

The project involves the construction and extension of facilities aimed at increasing refining
capacity from 65 000 to 95 000 barrels per day (bpd), producing cleaner fuels, reducing
Talara Refinery Started Operation imports of such products, and thereby improving Peru's trade balance. The Talara Refinery
began its gradual and progressive start-up process in 2023 after it underwent a
modernisation and upgrade process that started in 2014.
The contract to build the Peruvian side of the 500 kV transmission line between Peru and
500 kV Transmission Line
Ecuador was awarded in July 2023 (Proinversion, 2023). The project will interconnect both
Between Peru and Ecuador
electric systems, taking advantage of the complementarity of Peruvian and Ecuadorianhydrologies. The line is expected to be operational by 2027.

Petroperú

Proinversion

Useful links
Government
Central Reserve Bank, Banco Central de Reserva – https://www.bcrp.gob.pe/
Committee for the Efficient Operation of the System, Comité de Operación Económica del Sistema Interconectado Nacional –https://www.coes.org.pe/portal/
National Institute of Statistics and Information, Instituto Nacional de Estadísticas e Informática – https://www.gob.pe/inei/
215

APEC ENERGY OVERVIEW 2024

Ministry of Energy and Mines, Ministerio de Energía y Minas – http://www.minem.gob.pe/index2.php http://www.minem.gob.pe/index2.php
Ministry of the Environment, Ministerio del Ambiente – https://www.gob.pe/minam
Supervisory Body of Investment in Energy and Mining, Organismo Supervisor de la Inversión de Energía y Minería –https://www.osinergmin.gob.pe/Paginas/en/index.html
Official National Newspaper El Peruano, Diario oficial el Peruano – https://elperuano.pe/
Energy associations
National Society of Mining, Oil and Energy – https://www.snmpe.org.pe/
National Society of Industries – https://sni.org.pe/

References
Argus Media (2021) PetroTal to test Peru-Brazil river route for crude https://www.argusmedia.com/en/news/2176296-petrotal-to-test-perubrazil-riverroute-for-crude
BBVA Research (2023, January 16) Peru | Economic activity continues to show signs of weakness.
https://www.bbvaresearch.com/en/publicaciones/peru-economic-activity-continues-to-show-signs-of-weakness/
Energy Institute (2022) Statistical Review of World Energy. Retrieved from https://www.energyinst.org/statistical-review/resources-and-data-downloads
Bnamericas (2022, November 11) Peru LNG to expand dispatch capacity. https://www.bnamericas.com/en/news/peru-lng-to-expand-dispatch-capacity
Expert Group on Energy Data Analysis, APEC Energy Working Group (2021), APEC Energy Database.
https://www.egeda.ewg.apec.org/egeda/database_info/index.html
El Comercio (2023a) Desabastecimiento de GLP. https://elcomercio.pe/noticias/desabastecimiento-de-glp/
El Comercio (2023b) Oleaducto Norperuano. https://elcomercio.pe/noticias/oleoducto-norperuano/
El Peruano (2020) Decreto Supremo que aprueba la reanudación de actividades económicas en forma gradual y progresiva dentro del marco de la
declaratoria de Emergencia Sanitaria Nacional por las graves circunstancias que afectan la vida de la Nación a consecuencia del COVID-19

216

APEC ENERGY OVERVIEW 2024

https://busquedas.elperuano.pe/normaslegales/decreto-supremo-que-aprueba-la-reanudacion-de-actividades-ec-decreto-supremo-n-080-2020pcm-1865987-1/
El Peruano (2022) Decreto Supremo que declara de interés nacional la emergencia climática. https://busquedas.elperuano.pe/normaslegales/decretosupremo-que-declara-de-interes-nacional-la-emergenci-decreto-supremo-n-003-2022-minam-2033317-1/
El Peruano (2022, September 28) El inicio de Quellaveco https://elperuano.pe/noticia/192720-el-inicio-de-quellaveco
Energiminas (2023, Octubre 5) Impacto de sequía en el Perú provoca que el costo de la generación eléctrica se multiplique hasta por seis en agostor.
https://energiminas.com/impacto-de-sequia-en-el-peru-provoca-que-el-costo-de-la-generacion-electrica-se-multiplique-hasta-por-seis-en-agosto/
Engie (2023, June 19) Central Eólica Punta Lomitas entra en operación comercial. https://engie-energia.pe/notas-de-prensa/central-eolica-puntalomitas-entra-en-operacion-comercial
Expert Group on Energy Data Analysis, APEC Energy Working Group (2023), APEC Energy Database.
https://www.egeda.ewg.apec.org/egeda/database_info/index.html
Gestión (2022, September 19) Reportan escasez del combustible en grifos de Lima. https://gestion.pe/economia/reportan-escasez-del-combustibleen-grifos-de-lima-desabastecimiento-de-glp-rmmn-noticia/
Instituto Nacional de Estadística e Informática (2022) Producción y Empleo Informal en el Perú, Cuenta Satélite de la Economía Informal 2007-2021.
https://www.gob.pe/institucion/inei/informes-publicaciones/3799186-produccion-y-empleo-informal-en-el-peru-cuenta-satelite-de-la-economiainformal-2007-2021
Instituto Nacional de Estadística e Informática (2023) Situación de la Población Peruana una mirada hacia los jóvenes 2023.
https://www.inei.gob.pe/media/MenuRecursivo/publicaciones_digitales/Est/Lib1911/libro.pdf
Instituto Nacional de Estadística e Informática (2023a) Informe de precios. https://m.inei.gob.pe/biblioteca-virtual/boletines/informe-de-precios/1/#lista
Instituto Nacional de Estadística e Informática (2023b) PBI trimestral. https://m.inei.gob.pe/biblioteca-virtual/boletines/pbi-trimestral/1/#lista
Ministerio del Ambiente (2022, February 15) Minam presenta un balance del trabajo realizado en la zona del derrame de petróleo por operaciones deRepsol https://www.gob.pe/institucion/minam/noticias/583876-minam-presenta-un-balance-del-trabajo-realizado-en-la-zona-del-derrame-depetroleo-por-operaciones-de-repsol
Ministerio de Energía y Minas (2020) Boletín Mensual de Energías Renovables 2020.
https://eficienciaenergetica.minem.gob.pe//es-pe/pagina/boletin-mensual-de-energias-renovables-2020
Ministerio de Energía y Minas (2023, July) Balance Nacional de Energía 2021.
217

APEC ENERGY OVERVIEW 2024

https://www.minem.gob.pe/_publicaSector.php?idSector=12
Ministerio de Energía y Minas (2023, April 13) MINEM tiene como meta que el 20% de familias del Perú esté conectada al servicio de gas natural enel 2023 https://www.gob.pe/institucion/minem/noticias/741950-minem-tiene-como-meta-que-el-20-de-familias-del-peru-este-conectada-al-serviciode-gas-natural-en-el-2023
Ministerio de Energía y Minas (2023, July 11) MINEM: Central Eólica Punta Lomitas es una muestra de que el Perú sigue brindando confianza a losinversionistas https://www.gob.pe/institucion/minem/noticias/795945-minem-central-eolica-punta-lomitas-es-una-muestra-de-que-el-peru-siguebrindando-confianza-a-los-inversionistas
Ministerio de Energía y Minas (2023) Publicaciones https://www.minem.gob.pe/_publicaSector.php?idSector=5
Nuclear Energy Agency & International Atomic Energy Agency (2023) Uranium 2022 Resources, Production and Demand.
Proinversión (2023) Proinversión adjudica interconexión eléctrica Perú-Ecuador a Española Celeo Redes. https://www.investinperu.pe/es/pi/detallenoticia/proinversion-adjudica-interconexion-electrica-per
Perú Energía (2022, October 13) Cobertura de gas natural en el Perú creció 14% en el último año. https://peruenergia.com.pe/cobertura-de-gasnatural-en-el-peru-crecio-14-en-el-ultimo-ano/
Redacción ProActivo (2023) Impacto de sequía en el Perú provoca que el costo de generación eléctrica se multiplique hasta por seis en agosto.
https://proactivo.com.pe/impacto-sequia-peru-generacion-electrica/
Revista Energía y Negocios (2022, October 13) Cobertura del gas natural en el Perú avanzó un 14% más en el 2022
https://revistaenergiaynegocios.com/2022/10/13/el-gas-natural-en-el-peru-avanzo-un-14-mas-en-el-2022/
Riolo P. (2023) Producción hidroeléctrica en déficit debido a Fenómeno del Niño: podría subir la luz en el mercado no regulado
Vigilante.pe
https://vigilante.pe/2023/06/09/produccion-hidroelectrica-en-deficit-debido-a-fenomeno-del-nino-podria-subir-la-luz-en-el-mercado-no-regulado/
United Nations Climate Change (2023) Nationally Determined Contributions Registry. https://unfccc.int/NDCREG
World Bank. (2021). Peru. Retrieved from https://data.worldbank.org/country/peru

218

APEC ENERGY OVERVIEW 2024

The Philippines

Philippines is co-chair of the Energy Resiliency Task Force alongside
the United States. These initiatives underscore the economy’scommitment to fortifying its energy infrastructure against diverse
challenges.

Introduction

In tandem with energy resiliency policies, discussions on navigating thechallenges of the energy transition are underway. The proposed
strategy to facilitate this transition in the Philippines includes thefollowing key components: 1) accelerate the deployment of renewableenergy projects and clean energy technologies and solutions; 2) buildand develop a green and smart transmission system; 3) build andexpand the necessary port infrastructure to support offshore wind andother marine-based energy resource development projects, and; 4)voluntary early decommissioning and/or repurposing of existing coalfired power plants.

The Philippines continues its efforts to ensure universal energy access.
Spanning 7 641 islands and three major regions – Luzon, Visayas, andMindanao – achieving 100% household electrification posed aformidable challenge. Nonetheless, as of December 2021, theeconomy achieved a commendable 95% household electrification rate.
Luzon leads with a 99% electrification rate, closely trailed by Visayas at
97%, and Mindanao at nearly 86%. Remarkably, the National Capital
Region (housing the economy’s capital, Manila), and the administrative
region of CARAGA, have both attained total electrification status (DOE,2022).
The economy is steadfast in its pursuit of enhancing energy
infrastructure resilience. The Philippines faces recurring naturalcalamities, including typhoons, earthquakes and volcanic eruptions.
According to the 2022 World Risk Index, the Philippines ranked highest
among 193 economies in terms of disaster vulnerability, sustaining
billions of pesos in damage and losses primarily from tropical cyclones
alone (NEDA, 2023).
In 2018, a circular issued by the Department of Energy (DOE)
mandated all energy industry participants to devise and submit their
Resiliency Compliance Plans (RCPs). A supplemental policy wasissued in 2022 to further enhance and broaden the scope of the Energy
Resiliency Policy and expand the membership of the Task Force on
Energy Resiliency. In the APEC Energy Working Group (EWG), theIn alignment with this proposed strategy, the DOE shall continue andfurther intensify the implementation of the Energy Efficiency andConservation Act and Electric Vehicle Industry Development Act rollout.
Table 1: The Philippines’ macroeconomic data and energy reserves
Key data a, b

Energy reserves c, dArea (thousand km2)

343

Oil (million barrels)

3.9

Population (million)

113

Gas (billion cubic feet)265

GDP (2017 USD billion
PPP)

921

Coal (million tonnes) d

2 370

GDP per capita (2017
USD PPP)

8 095

Uranium (kilotonnes U< USD 130/kgU)

Sources: a gov.ph, b (World Bank, 2024), c, d (DOE, 2021)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.
219

APEC ENERGY OVERVIEW 2024

The Philippines is one of the fast-growing economies in SEA APEC
region. The economy has struggled from the effects of the COVID-19
pandemic but was able to start its recovery. In 2021, its GDP
rebounded by 5.7% to USD 922 billion (2017 USD PPP). Relatedly, theGDP per capita increased by 4.1%.
Since the enactment of the Renewable Energy Act in 2008, thePhilippines has made considerable progress in advancing its
domestically produced energy sources, consequently increasing therenewable share in the economy’s energy mix. In view of the expectedhuge amount of renewable energy capacities that will be added in thegrid, the DOE has formulated the Smart and Green Grid Plan (SGGP).
This will assist the DOE in making policy decisions, enhancing
technical competencies, identifying policy gaps and challenges, as well
as recommending appropriate solutions through policy development
and government interventions.
The SGGP aims to complement the 2023-2050 Philippine Energy Plan
encapsulating the strategic plans and programmes of the government
geared towards the holistic development of the transmission sector in
the near-term horizon and beyond.
The Philippines has a modest amount of domestic resources. As of
December 2021, indigenous petroleum production reached 7 million

barrels of crude oil, 23 million barrels of condensate, and 843 billion
cubic feet of natural gas, while coal production stood at 81 million
tonnes (DOE, 2022).

Energy Supply and Consumption
Total primary energy supply
The Philippines has historically been a predominant net importer,
primarily of oil and coal. While net imports had been on a declining
trajectory in the preceding two years, they experienced a notablerebound of 7.3% in 2021. This resurgence was primarily in response to
the heightened domestic energy demand resulting from the resumptionof economic activities and the relaxation of pandemic-related
quarantine restrictions.
Figure 1: The Philippines’ energy supply, production, and net imports(PJ), 2000 to 2021
3 000

Production, net imports and TPES
(PJ)

Other notable issuances related to the energy transition include: a)
Coal Moratorium entitled, Advisory on the Moratorium of Endorsements
for Greenfield Coal-fired Power Projects in line with improving the
Sustainability of the Philippines Electric Power Industry; b) enabling
policies to encourage the deployment and adoption of advanced andemerging technologies for power generation, such as the energy
storage systems, and c) DC2024-01-0001 entitled, Providing a National
Policy and General Framework, Roadmap, and Guidelines for
Hydrogen in the Energy Sector.

Total Primary Energy Supply

2 500
2 000
1 500

Production
1 000

Net imports

500
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)
220

APEC ENERGY OVERVIEW 2024

Notably, both coal and oil imports contributed to this uptrend
significantly. Coal imports saw a 5.8% increase in 2021, while oil
imports surged by 8.2%, bringing back its share of total imports close to
its historical value of 60% or above (Figure 1).
In 2021, the initial steps toward recovery from the widespread impact of
the COVID-19 pandemic began. Notably, the Philippines experienced arebound in its total primary energy supply (TPES), rising by 3.8% toreach 2 523 PJ. The increase in oil imports led to a more than 4% risein oil supply. Conversely, other fuel sources, including non-renewableenergy wastes, saw a significant decline of more than 40% during thesame period. The looming depletion of the economy’s single gas
source, coupled with a scheduled maintenance shutdown at the gas
platform, has contributed to a dip in the gas supply of more than 14%(DOE, 2022).

Renewables and coal, together constituting more than 60% of theeconomy’s energy supply, showed notable increases of 2% and 9%,
respectively. Biomass and geothermal, the leading contributors within
the renewables sector, maintained their prominence. While biomass
output saw a slight increase of 0.6%, geothermal output experienced aminor decline of 0.7%. Despite efforts to stabilise domestic oil supply
through increased imports, the rise was modest. Meanwhile, coalmaintained its position as the largest fuel source of the economy(Figure 2).
Figure 3: Energy supply mix – The Philippines and APEC, 2021
100%

Other
Renewables

80%
Gas

Figure 2: The Philippines’ energy supply by fuel (PJ), 2000 to 2021
60%

3 000

Oil

TPES by fuel (PJ)

2 500

40%

2 000
20%

1 500

1 000

Coal

0%
Philippines

500

APEC

Source: EGEDA (2023)

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal
Source: EGEDA (2023)

Oil

Gas

Renewables

Others

While it may possess a smaller energy supply compared to othereconomies within APEC, the Philippines stands out for its commitment
to harnessing domestic energy sources. Notably, renewable energy,
primarily generated locally, held a relatively prominent position within
221

APEC ENERGY OVERVIEW 2024

the economy in 2021, surpassing the APEC average. The share of oilin the energy mix remained comparable to the APEC average.
Similarly, coal, predominantly utilised for power generation, maintained
a proportionate share in line with APEC levels. However, gas and otherfuel sources constituted a relatively smaller portion of the energy mix
compared to the broader APEC region (Figure 3).
Total final consumption
In 2021, the gradual relaxation of community quarantines, accelerated
vaccination efforts, and a resurgence in major economic activities
helped the Philippines in its pandemic recovery. This resurgence wasfurther bolstered by the reopening of key transportation routes
economy-wide. These collective efforts propelled the economy’s total
final consumption (TFC) to surge by 8.5%, reaching 1 473 PJ
compared to the previous year’s level of 1 357 PJ (Figure 4).

1 600
1 400
1 200
1 000
800
600

Industry and services sectors rebounded from the downturn of theprevious year, each recording notable increases in energy
consumption: 10% for industry and 5.2% for services. The relaxation ofcommunity quarantines allowed most establishments to resume
operations, with expanded workforce capacities. Together, these
sectors accounted for a significant portion of TFC, totalling 33%.
Consequently, the demand for energy forms used as raw materials
surged by 26%, reflecting the reopening of major factories and theresumption of assembly lines. Agriculture emerged as the fastestgrowing sector, with a remarkable 51% increase in energy usage,
driven by the need to maintain production despite sectoral challenges.
Even with its vital role, agriculture remains the smallest contributor to
TFC, holding a modest share of 1.9% (DOE, 2022).

400

200
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Final energy demand by sector (PJ)

Figure 4: The Philippines’ final consumption by sector (PJ), 2000 to 2021

During the year, all end-use economic sectors saw an increase in theirenergy consumption. The transport sector reclaimed its position as themost energy-intensive sector, contributing 31% to the total final
consumption. Benefitting from reduced mobility restrictions, it
experienced a notable 12% acceleration in energy utilisation. Following
closely, the household sector accounted for a 28% share, albeit with amodest 1.5% increase in energy consumption. This growth reflects thegradual return of employees to work, even with the continued adoptionof alternative work arrangements.

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)
222

APEC ENERGY OVERVIEW 2024

Figure 5: Final consumption by sector, The Philippines and APEC, 2021
100%

6.5%. Additionally, renewables saw a modest increase of 1.8% during
the same period.
Figure 6: The Philippines’ final energy demand by fuel (PJ), 2000 to
2021

Non-energy
Agriculture & others
80%

1 600

Final energy demand by fuel (PJ)

Residential
Commercial

60%

Transport
40%

20%

Industry

1 400
1 200
1 000
800
600
400
200

Philippines

APEC

Source: EGEDA (2023)

The transport, residential, and services sectors held greater
prominence in the Philippines compared to the broader APEC region.
While these sectors were directly impacted by the pandemic, they
displayed resilience and began to recover following the relaxation ofquarantine restrictions (Figure 5).
Final energy demand
Total final energy consumption (TFEC-excluding non-energy)
expanded by 7.7% to just over 1 404 PJ in 2021. Despite the waning
impact of the COVID-19 pandemic, gas consumption continued its
downward trend, nearly halving. Electricity emerged as a major fuelsource, constituting 23% of the Philippines’ TFEC, with a growth of

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

0%

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)

Coal consumption, primarily associated with industrial use, reboundedby 30%, signalling a resurgence in industrial activity. Meanwhile, oilconsumption, predominantly utilised for transportation purposes,
increased by almost 9.3%. In the household sector, electricity remained
the primary fuel source, with households accounting for the majority of
consumption, holding a 40% share. However, consumption levels saw
a slight decline of 2% compared to the previous year’s 12%
acceleration. This slowdown can be attributed to strict adherence toquarantine ordinances aimed at curbing the spread of the COVID-19
With the support of guidelines addressing business continuity concerns,
223

APEC ENERGY OVERVIEW 2024

the industry, services, transport, and agriculture sectors experienced arecovery in electricity consumption in 2021. These sectors saw growth
rates of 8%, 1.9%, 28%, and 86%, respectively, rebounding from thecontraction experienced in 2020 (Figure 6).

compared to APEC (Figure 7).

Figure 7: Final energy demand fuel share, the Philippines and APEC,
2021

Power sector

100%Electricity andothers80%

Renewables

60%

Gas

Transformation
The Philippines’ electricity generation surged by 4.3%, reaching 106
TWh in 2021 (Figure 8). Notably, the contribution from oil, which had
been fluctuating over the past decade, experienced a substantial 35%
decrease, marking the most significant decline among the various fuelsources for power generation. Conversely, coal, comprising over 50%of the economy’s power generation mix, exhibited a robust 6.7%
increase (62 TWh), primarily driven by the commissioning of new coalfired power plants during the year.
Figure 8: The Philippines’ electricity generation by fuel, 2000 to 2021

40%
Oil

Coal
0%
Philippines

APEC

Source: EGEDA (2023)

The Philippines maintained its dependence on oil for transportationneeds, as reflected in its relative share compared to APEC as a whole.
With many households still relying heavily on biomass for their energy
needs and the economy’s growing utilisation of renewable sources, theshare exceeded that of APEC. While electricity consumption is lower in
the Philippines compared to APEC, its proportion in the economy’s fuelmix remains significant. Direct coal usage is confined to specificindustrial sub-sectors in the Philippines, resulting in a smaller share

100
80

60
40
20
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

20%

Electricity generation (TWh)

120

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

224

APEC ENERGY OVERVIEW 2024

Renewable energy sources collectively experienced the mostsubstantial surge in power generation. Specifically, biomass, solar, andother renewables witnessed a notable 10% increase in output in 2021.
The remarkable expansion in capacity from solar, biomass, andhydroelectric power installations played a crucial role in meeting thePhilippines’ energy demand throughout the year. Despite a slight dip in
geothermal electricity generation by nearly 1%, hydropower production
rebounded significantly by 28% in 2021, largely due to the effects of theclimate pattern, La Niña.

electricity generation, its share stands out prominently relative to its
APEC counterparts. Meanwhile, oil-based power generation slightly
exceeds the APEC average, whereas gas, owing to depleting reserves,
falls below the current APEC level. The relative shares of othergeneration sources either stand at zero (in the case of nuclear) or are
smaller compared to the APEC-wide power generation mix (Figure 9).

Figure 9: Electricity generation fuel share, the Philippines and APEC,
2021

The Philippines made a significant commitment to address climatechange by submitting its Nationally Determined Contribution (NDC) to
the United Nations Framework Convention on Climate Change. The
NDC outlines a bold target: a 75% reduction in greenhouse gas (GHG)
emissions compared to the business-as-usual scenario spanning 20202030. This mitigation goal comprises both unconditional and conditional
elements, with 2.7% being unconditional and 72% conditional uponreceiving resources from developed economies. These resources are
essential for implementing mitigation actions across various sectors
including agriculture, waste management, industrial processes, productuse, transport, and energy (NEDA, 2023).

100%

OthersOther renewables
Geothermal
Nuclear

80%

Hydro
60%
Gas

Oil

40%

Coal

20%

0%
Philippines

APEC

Energy Transition

Under the Marcos Administration’s Philippine Development Plan 20232028, the transition to a low-carbon economy stands out as a key
strategy in the government’s efforts to address climate change andbolster disaster resilience (NEDA, 2023). This underscores the
economy’s commitment to sustainable development and emphasises
the importance of collaborative efforts on both economy andinternational levels to tackle the challenges posed by climate change.

Source: EGEDA (2023)

Although geothermal power generation experienced a marginal
decrease in 2021, its relative share remains noteworthy whencompared to APEC. Given the Philippines’ heavy reliance on coal for

Emissions
In 2021, the total GHG emissions experienced a significant rebound,increasing by 6.9% to reach 132 MtCO2eq, compared to 123 MtCO2eq
225

APEC ENERGY OVERVIEW 2024

in 2020. The resumption of economy-wide economic activity and theeasing of mobility restrictions drove this resurgence.

ensuring optimal efficiency and sustainability in energy practices (DOE,2023).

Notably, emissions from the utilisation of coal in power generation andcement manufacturing emerged as the primary contributors to theoverall GHG emissions. Following closely behind was the consumptionof oil in the transport sector.

Recent events, including the COVID-19 pandemic, rapid shifts intechnology, and geopolitics, have presented notable challenges to theeconomy’s supply security, particularly in areas such as liquefied
petroleum gas (LPG). For instance, in February 2022, the global priceof LPG experienced a sharp escalation. Sanctions levied against
Moscow prompted buyers to seek alternative sources, exacerbating thesituation. Coupled with soaring spot premiums and freight rates, thesefactors collectively exerted significant upward pressure on LPG prices.

Figure 10: The Philippines’ CO2 combustion emissions (million tonnes),
2000 to 2021
160
CO2 combustion
emissions

Million tonnes CO2

140

These events called for the economy to increase the use of alternative
fuels and explore more of the economy’s local energy sources such as
renewables. The depletion of the Philippines' sole natural gas
resources is also threatening a shortage of more than 20% in the power
supply. With the introduction of liquefied natural gas (LNG) in thePhilippines, it now has two receiving and regasification facilities forimported LNG that will support the five existing gas-powered plants
within the economy (DOE, 2023).

120

100
80
60
40
20

0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
Energy security stands as a paramount pillar within the Philippine
Energy Plan (PEP) 2020-2040, underscoring its commitment tofostering a robust and resilient economy. Embracing a forward-looking
approach, the PEP 2020-2040 champions the advancement andprudent utilisation of both established and emerging technologies,

By the end of December 2021, the Philippines sustained a 38-day
inventory level of crude oil and petroleum products, totalling 2 610
million litres. This comprised 26 days of in-economy stocks (onshore)
and an additional 13 days’ worth of crude oil and petroleum products intransit (DOE, 2022).
The Philippines stands as a signatory to the ASEAN Petroleum
Security Agreement (APSA), which was initiated in 1986. APSA’s
primary goal is to foster regional collaboration in ensuring energy
security during periods of oil oversupply or undersupply. While APSA
has yet to be ratified, the Philippines, as an active member of ASEAN,
eagerly awaits its enactment, recognising the crucial role it can play inenhancing regional energy stability.
226

APEC ENERGY OVERVIEW 2024

APEC Energy Goals
APEC member economies have collectively committed to achieving two
significant energy-related objectives: improving energy intensity anddoubling the share of modern renewables.

Figure 11: The Philippines’ total final energy consumption intensity
index, 2000 to 2021 (2005 = 100)
140

Energy intensity index (2005 = 100)

As economic activities rebound following the COVID-19 pandemic, thegovernment remains steadfast in assuring consumers of a reliable andconsistent power supply. Throughout previous years, efforts persisted
in rehabilitating and refurbishing both grid and off-grid facilities, withnotable expansions in installed capacities also documented. Theseongoing initiatives underscore the commitment to bolstering
infrastructure and ensuring the resilience of the economy’s energy
supply.

120
Total final energy consumption energy intensity

100
80

APEC-wide goal 2035

60
40
20

Energy intensity goal
In 2011, APEC member economies agreed to increase their target to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal from 2007 was a 25% improvement by 2030.
APEC is currently making strides toward achieving this energy intensity
improvement target. While the goal does not mandate specific targets
for individual economies, it allows for tracking the progress of each
APEC member relative to the overall proportional improvement.

0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

The Philippines has witnessed a steady annual improvement in final
energy intensity, averaging 2.2% since 1990. By 2021, the final energy
intensity had improved to 30% compared to 2005 levels. This trend islikely to persist, buoyed by recent initiatives such as RA 11285, also
known as the Energy Efficiency and Conservation Act of 2019. Thislegislation has transitioned energy efficiency efforts from voluntary to
mandated activities, indicating a promising trajectory for continued
enhancement in energy efficiency.
Doubling of renewables
The second energy goal aims to double the proportion of modern
renewables in the APEC energy mix from 2010 to 2030. While there is227

APEC ENERGY OVERVIEW 2024no specific target set for individual member economies, advancements
made by each economy will collectively contribute to achieving theoverarching doubling goal.
Figure 12: The Philippines’ modern renewable energy share, 2010 and
2021
Change from2010 to 2021

12.0%

resource adoption, both for end-users and power generation. However,despite these endeavours, the share of renewables in final energy
consumption experienced a marginal decrease from 10% in 2010 to
9.4% in 2021. If the economy aspires to double the share of
renewables in the final energy demand by 2030, an additional increaseof 10.5% would be necessary (Figure 12).
In 2021, there was a notable 10% increase in the share of renewables
within the power generation mix compared to the previous year.
However, a closer examination reveals a concerning long-term trend.
Since 2010, the share of renewables in power generation has beensteadily declining at an average annual rate of 1.4%. This trend has
resulted in a decrease in the share of renewables from 26% in 2010 to
22% in 2021 (Figure 13).

10.0%
8.0%
6.0%

Figure 13: The Philippines’ renewable generation share, 2000 to 2021

4.0%

50%
2.0%

45%
40%

0.0%
ChangeSource: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

The enactment of the Renewable Energy Act in 2008 marked asignificant step towards propelling the Philippines’ renewable energy
sector forward, emphasising the utilisation of locally sourced energy.
Subsequent efforts have been dedicated to promoting renewable

Renewables share in electricity mix

35%

2021

Proportion

2010

30%
25%
20%
15%
10%

5%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)
228

APEC ENERGY OVERVIEW 2024

Significant adjustments are necessary to effectively double the share of
renewables in the power generation mix. To achieve this objective, thetrend must experience an average annual increase of 10%, ultimately
reaching 53% by 2030. This underscores the critical need for concerted
efforts and innovative strategies to accelerate the integration andadoption of renewable energy sources within the power generation
infrastructure.

229

APEC ENERGY OVERVIEW 2024

Energy Policy
The energy sector is continuously guided by its long-term vision known as AmBisyon Natin 2040 (NEDA, 2023). The sectoral roadmap was formulated
to realise this vision, which is updated for each energy subsector. It contains long-term objectives, deliverables, and targets consistent with theStrategic Focus Areas cited in PEP 2020-2040 and will provide direction on how to achieve the clean energy path (DOE, 2022).
Energy policy

Details

Reference

NDC Targets

This policy targets an economy-wide 75% reduction of GHG emissions by 2030, relative to thebusiness-as-usual scenario from 2000 to 2030.
Of the 75% reduction target, identified policies and measures (PAMS) account for 11% or 365
MtCO2eq reduction from the business-as-usual (BAU)/Reference Scenario. Of this total, theenergy sector is expected to contribute 46 MtCO2eq (13% share of the total), which translates
to a 1.4% reduction in the sector’s GHG emission over the BAU. PAMS yet to be identified willaccount for 64% avoidance, thereby completing the target of 75% GHG.

UNFCC

Philippine Development Plan PDP
2023-2028

A plan framed by the new administration’s 8-Point Socioeconomic Agenda which seeks toaddress both short-term issues and medium-term constraints to growth and inclusion.

NEDA

Philippine Energy Plan (PEP)
2020-2040
Towards a Sustainable and Clean
Energy Future

The DOE's blueprint to secure the economy's energy future was created following regional
consultations and information, education, and communication campaigns (IECs).
This is a comprehensive energy blueprint supporting the government’s long-term vision known
as AmBisyon Natin 2040.
PEP 2020-2040 is a transformational plan to bring in more of the clean energy fuels andtechnologies that will dominate the economy's portfolio of plans and programmes for the next
two decades.

Department of Energy

Power Development Plan
2020-2040

This is a master plan that integrates all the development plans for the generation, transmission,
distribution, and supply sectors in grid and off-grid areas.
It also outlines the recent developments in the electricity market and in off-grid and missionary
areas, household electrification, and institutional support mechanisms.

Department of Energy

Republic Act (RA) 9367 (Biofuels
Act 2006)

Approved on 12 January 2007, this act directs the use of biofuels by establishing the biofuel
programme and appropriating funds for the said programme and for other purposes.

Department of Energy

RA 9513 (Renewable Energy Act
of 2008)

Approved on 16 December 2008, this act promotes the development, utilisation andcommercialisation of renewable energy resources and for other purposes.

Department of Energy

230

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

RA 11285 (Energy Efficiency andConservation Act of 2019)

This act institutionalises EE and C, enhancing the efficient use of energy and granting
incentives to energy efficiency and conservation projects.
It facilitates the implementation of projects and programmes under the National Energy
Efficiency and Conservation Plan (NEECP).

Department of Energy

RA 11234 (Energy Virtual One
Stop Shop Act of 2019)

This act was established for the purpose of streamlining the permitting process of power
generation, transmission, and distribution projects.
An online platform was built to streamline the processing of energy-related applications.

Department of Energy

RA 11646 (Microgrid Systems Act)An act that was promulgated to promote the use of microgrid systems to accelerate the total
electrification of unserved and underserved areas in the Philippines.
The Philippines Department of Energy will lead the implementation of the National Total
Electrification Roadmap.

Department of Energy

RA 11697 (The Electric Vehicle
Industry Development Act of 2022)

An act establishing the Comprehensive Roadmap for the Electric Vehicle (EV) Industry toaccelerate the development, commercialisation and utilisation of EVs.

Department of Energy

National Renewable Energy
Program (NREP)The NREP outlines the policy framework stipulated in Republic Act 9513.
The strategies set out in the Biofuels Act of 2006 form part of the implementation of theRenewable Energy Law, which is included in the NREP.
A 20-year RE target capacity in addition to tripling the 2010 installed capacity from 5 440 MW to
15 300 MW by 2030.

Department of Energy

National Energy Efficiency andConservation Plan (NEECP) 20232050
RE Roadmap

The NEECP is a comprehensive framework and plan that institutionalises energy efficiency andconservation in the Philippines across key sectors of the economy in accordance with the EE
and C Act.
This focuses on attaining the target of at least a 35% renewable energy share in the power
generation mix by 2030 and 50% by 2040.

Department of Energy
Department of Energy231

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

FiT Installation Target (MW)Policy mechanism under RE Law• Run-off river hydro (250 MW).
• Biomass (250 MW).
• Wind (400 MW).
• Solar PV (500 MW).
• Ocean (10 MW).

Department of Energy

Biofuels Roadmap

The aim is to continue the implementation of blending targets set in the Biofuels Act of 2006,
with the following measures from 2020 to 2040:• Implement a 5% biodiesel blend (B5) and maintain 10% ethanol (E10).
• Revisit the biofuel blend requirements and available feedstock.
• Implement Research and Development (R&D) activities and demonstration projects using
Jatropha, waste cooking oil, microalgae, rubber and seed oil for biodiesel; and sweetsorghum, cassava, microalgae, Nipa sap, and cellulosic material for bioethanol.

Department of Energy

Power Generation Roadmap

Short-term goals (2021–2022):• Implement the coal moratorium.
• Establish guidelines for power plant decommissioning.
• Firm up the privatisation plan for the government’s remaining power generation assets.
Long-term goals (2023-2040):• Utilize cleaner technologies for power generation.
• Increase flexibility in power generation.

Department of Energy

Off-Grid Development Roadmap

Energy access for all by 2040
• Graduation and rationalisation of the Universal Charge-Missionary Electrification (UC-ME)
subsidies in off-grid areas, while the “electricity access for all by 2040” is the objective of the
Total Electrification Program (TEP).

Department of Energy

Alternative Fuels and Energy
Technologies (AFET) Roadmap

This roadmap lays down the framework for the adoption and commercialisation of emerging andefficient energy technologies in the economy.
Medium-term goal (2020-2022):• Identification of AFETs for application.
Long-term goal (2023–2040):• Preparation of the regulatory and infrastructure requirements of the identified AFETs.

Department of Energy

Upstream Oil and Gas Roadmap

This roadmap focuses on attaining the following objectives by 2040:• Increase indigenous petroleum reserves to 116 million barrels oil and 5.9 TCF gas.
• Produce 66 million barrels crude oil and 3.5 TCF natural gas.

Department of Energy232

APEC ENERGY OVERVIEW 2024

Energy policy
Upstream Coal Roadmap
Downstream Oil Roadmap
Downstream Natural Gas
Roadmap

Details
Targets the increase of delineated mineable coal reserves up to 766 million tonnes by the endof 2040 with additional reserves of 65 million tonnes in the medium term and 223 million tonnes
in the long term.
Improved policy governing the downstream oil industry to ensure a continuous supply of highquality and the right quantity of petroleum products in the market by 2040.
To establish a world-class, investment-driven, and efficient natural gas industry that makes
natural gas the preferred fuel by all end-use sectors by 2040.

Reference
Department of Energy
Department of Energy
Department of Energy

Energy Efficiency andConservation Roadmap

Measurable reduction in energy intensity and consumption per year versus BAU by 2040:• Medium-term and long-term framework focusing on two priority areas, namely, theStrengthening and Sustaining of EE and C policies and initiatives.

Department of Energy

Executive Order (EO) 116

Establishes the NEP-IAC, an inter-agency task force led by the DOE which is tasked to conduct
a study for the adoption of the economy position on Nuclear Power Plant (NPP) in accordancewith pertinent International Atomic Energy Agency (IAEA) guidelines, relevant laws, rules andregulations.

Department of Energy

DC2018-01-0001

Adoption of Energy Resiliency in the Planning and Programming of the Energy Sector to
Mitigate Potential Impacts of Disasters

Department of Energy

DC2020-11-0024

Adopting the Guidelines Governing the 3rd Open and Competitive Selection Process (OCSP3)
in the award of the Renewable Energy Service Contract, and for other purposes

Department of Energy

DC2022-02-0002

Prescribing the Policies and Programs to Promote and Enhance the Development of Biomass
Waste-to-Energy (WTE) Facilities

Department of Energy

DC2022-06-0028

Supplementing DC 2018-01-0001 on the Energy Resiliency Planning and Programming of theEnergy Sector to Mitigate Potential Impacts of Disasters

Department of Energy233

APEC ENERGY OVERVIEW 2024

Notable Energy Developments
The Philippines EWG representative reported the following at EWG 66 hosted by Thailand on 28-29 November 2023.
Energy development

Details

Reference

Natural Gas as a Transition Fueland Recognised to Aid in the
Gradual Shift from Traditional
Coal to Cleaner Sources ofEnergyAdditional Strategic Investment
to Strengthen the Philippines'
Renewable Energy Sector

Two receiving and regasification facilities for imported liquefied natural gas recently went into
commercial operation in the Philippines. These facilities will support the five existing gas-poweredplants and aid in the energy transition plans of the government for cleaner energy.

Department of Energy

Formulation of the Smart andGreen Grid Plan

The President of the Philippines inaugurated the largest wind farm, which is situated in thenorthern part of the economy. It is a 160 MW onshore wind farm with USD 200 million worth ofinvestment. Likewise, the Philippines Department of Energy has awarded six Solar Energy
Operating Contracts with a combined capacity of 610.5 MW for the construction of large-scale
floating solar projects in Laguna Lake.
The Philippines Department of Energy formulated the Smart and Green Grid Plan (SGGP), which
will assist the DOE in making policy decisions, enhance technical competencies, identify policy
gaps and challenges, as well as recommend appropriate solutions through policy development
and government interventions.

Department of Energy

Department of Energy

The SGGP aims to complement the 2023-2050 Philippine Energy Plan encapsulating thestrategic plans and programmes of the government geared towards the holistic development of
the transmission sector in the near-term horizon and beyond.

Useful links
Asian Development Bank – www.adb.org
Climate Change Commission (CCC) – www.climate.gov.ph
Department of Energy, Republic of the Philippines (DOE) – www.doe.gov.ph
Department of Science and Technology (DOST) – www.dost.gov.ph/Department of Trade and Industry (DTI) – www.dti.gov.ph/Department of Transportation (DOTr) – www.dotr.gov.ph234

APEC ENERGY OVERVIEW 2024

Independent Electricity Market Operator of the Philippines (IEMOP) – www.iemop.phNational Power Corporation (NPC) – www.napocor.gov.phNational Transmission Corporation (TransCO) – www.transco.phPhilippine National Oil Company (PNOC) – www.pnoc.com.phPhilippine Electricity Market Corporation (PEMC) – www.wesm.ph
World Bank – https://www.worldbank.org/en/country/philippines

References
DOE (Department of Energy) (2021). DOE. Retrieved from Philippine Energy Plan: https://www.doe.gov.ph/pep.
– (2022). Philippine Energy Situationer and Key Energy Statistics, https://www.doe.gov.ph/energy-statistics?q=energy-statistics/2021-energy-supplyand-demand-situationer.
– (2022). Energy Sector Accomplishment Report 2016-2022. https://www.doe.gov.ph/esar– (2023). Philippine Energy Plan 2020-2040: Towards Sustainable and Clean Energy Future. https://www.doe.gov.ph/pep
EGEDA (Expert Group on Energy Data Analysis, APEC Energy Working Group) (2022), APEC Energy Database.
https://www.egeda.ewg.apec.org/egeda/database_info/index.html
NEDA (National Economic and Development Authority) (2023). Philippine Development Plan 2023-2028. https://neda.gov.ph/philippine-developmentplan-2023-2028/
WB (World Bank) (2024). https://databank.worldbank.org/source/world-development-indicators.

235

APEC ENERGY OVERVIEW 2024

RussiaIntroduction
Russia has the largest land area globally, spanning more than 17
million square kilometres in both Eastern Europe and Northern Asia.
The combination of geography and population settlement in Russia
makes it necessary for the economy to use a significant amount ofenergy to provide comfortable living conditions for most of the
population for most of the year, which is one of the critical factors
contributing to the economy having the highest energy intensity of GDP
among APEC economies.
These factors have determined the development in Russia of not only
centralised power supply systems but also of centralised heat supply
systems, which, in turn, has led to the widespread development ofthermal power plants with combined heat and power generation. Now
Russia has the world’s largest district heat supply systems in mostmajor cities.
Its population of 146 million people lives mostly in urban areas (74%),
and 68% of the population lives in the European part of Russia, which
accounts for 21% of the territory.
In 2021, Russia’s GDP grew by more than 5% to 4 112 billion 2017
USD PPP due to the economy's gradual recovery after the COVID-19
pandemic. GDP remained the 4th largest in APEC. Russia’s GDP per
capita grew by more than 5%, similar to GDP growth.
Russia remained the third-largest energy producer in APEC. More thanhalf of this energy was consumed within the economy, while the rest
was exported. Russia was the world’s largest energy exporter overall,exporting about 28 EJ in 2021.
Russia was the third-largest power producer in APEC, accounting for6.2% of APEC’s total electricity generation in 2021, and the largest heatproducer.
Russia has significant reserves of fossil fuels and uranium.
Table 1: Russia macroeconomic data and energy reserves
Key data a, b

Energy reserves c, dArea (million km2)

17.1

Oil (billion barrels)

Population (million)

146.4

Gas (trillion cubic feet)

1 321

GDP (2017 USD billion
PPP)

4 112

Coal (million tonnes)

162 166

GDP per capita (2017
USD PPP)

28 668Uranium (kilotonnes U< USD 130/kgU)

108

206

Source: a ROSSTAT (2023); b World Bank (2023); c Energy Institute (2023); d UN
(2023)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

Energy Supply and Consumption
Total primary energy supply
Russia is the third-largest energy producer in both APEC and the world,
236

APEC ENERGY OVERVIEW 2024

Energy production has grown consistently since 2000 with a compound
annual growth rate (CAGR) of 2.4%. The only year of decline for theperiod was in 2009 due to lower domestic consumption. In 2020,
production declined more than 6%, and in 2021, it rebounded to 2019
levels due to a recovery in demand mostly on domestic markets.
Net exports grew at a much higher rate than production, with a CAGR
of 3.9% from 2000 to 2019, but declined by nearly 9% in 2020. In 2021,
net exports remained similar to 2020 levels.
Figure 1: Russia’s energy supply, production, and net imports (PJ),
2000 to 2021

Production
60 00040 000-20 000

40 00035 00030 00025 000
20 000
15 000

10 000
5 000

Total Primary Energy Supply

20 000
0
2000

Figure 2: Russia’s energy supply by fuel (PJ), 2000 to 2021

0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Production, net imports and TPES
(PJ)

80 000(55%), crude oil and petroleum products (19%), coal (15%) andrenewables and others, including nuclear and hydro (11%). For the
2000-2019 period, TPES volumes of coal remained stable; oilincreased by 19%, others, including nuclear and hydro, increased by
67%, and renewables increased by 10%, while the volume of gas
increased by 31% or over 4 000 PJ. In 2021, TPES increased by morethan 9% due to increased generation from gas-fired power plants.

TPES by fuel (PJ)

after China and the US. Russia’s total primary energy supply (TPES) in
2021 was 34 886 PJ, a 10% increase compared to 2020 levels.

2005

2010

2015

Coal

2020

Net imports-40 000
Source: EGEDA (2023)

Russia’s TPES fuel mix was virtually unchanged for 2000-2021; natural
gas accounted for more than half, with a slight decrease in the share ofcoal. In 2021, the TPES fuel mix comprised the following: natural gas

Oil

Gas

Renewables

Others

Source: EGEDA (2023)

Russia’s TPES fuel mix is substantially different from the entire APEC
region. The share of natural gas in Russia is more than twice as high,which is explained by its large natural gas reserves and the
predominance of gas-fired power plants, which account for more than
70% of the electricity produced by thermal power plants.
Gas consumption is distributed unevenly across the regions, as the237

APEC ENERGY OVERVIEW 2024

developed network of distribution pipelines is concentrated in thewestern part of the economy. In contrast, the shares of coal andrenewables in Russia are less than half of APEC’s. The modest shareof renewables in electricity generation is due to the uneven distributionof renewable energy sources, a large share of which is concentrated inremote areas, and limited government support for new projects.
Figure 3: Energy supply mix – Russia and APEC, 2021
Other
Renewables

80%
Gas

Non-energy use has more than doubled since 2000, accounting for
17% of Russia’s energy use in 2021. Agriculture and the commercial
sector accounted for the remaining 11%.

Oil

Figure 4: Russia’s final consumption by sector (PJ), 2000 to 2021

40%

20%

Coal

0%
RussiaAPEC

Source: EGEDA (2023)

Total final consumption
Russia’s final consumption in 2021 was 22 800 PJ, almost 7% higher
than in 2020. Russia remained the third-largest energy consumer in
APEC after China and the US.
The industrial (6 309 PJ, 28%) and the residential sector (6 085 PJ,
27%) accounted for the two most significant shares of final energy

25 000
20 000
15 000
10 000
5 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

60%

Final energy demand by sector (PJ)

100%

consumption. Energy consumption in industry grew by 5% compared to2020 levels and exceeded 2019 levels by 3%. In residential buildings,
consumption slightly increased largely due to seasonal factors. One of
the main reasons residential buildings is the largest consuming sector
is the significant energy consumption for heating for more than half ofthe year. According to EGEDA, consumption in buildings began toincrease significantly from 2017. This notable increase was due to therise in gas consumption in residential buildings, which does notcorrespond to the member economy statistics. The third-largest sector
was transport (4 090 PJ, 18%). Energy consumption in the transport
sector grew by 8% but hasn’t exceeded pre-pandemic levels.

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)
238

APEC ENERGY OVERVIEW 2024

Russia, like APEC, has the same major consumer sectors: industry,transport and residential. Their overall share is almost the same,accounting for about three-quarters of total consumption. However, thefraction of each sector is different in Russia and APEC. The share of
the residential sector in Russia is much higher than in APEC due to its
significant heat consumption, while the share of industry and transport
is lower. The non-energy use share is higher than in APEC due to theconsiderable consumption of petroleum products and natural gas as afeedstock in the chemical industry.
Figure 5: Final consumption by sector, Russia and APEC, 2021
100%
Non-energy
Agriculture & othershigher than in 2020. About 40% of the final energy consumption in
2021 was supplied by electricity and heat, the share of which
decreased by 10% compared to 2000 due to a significant decrease inheat consumption. Correspondingly, the share of fossil fuels increased
from 50% in 2000 to 59% in 2021. Natural gas accounts for more thanhalf of the consumption of fossil fuels, and oil and petroleum products
for slightly more than a third. Despite a slight increase in consumption,
the share of coal is gradually decreasing. According to EGEDA, gas
consumption has started to increase significantly since 2017. EGEDA
reports a significant increase in gas consumption starting in 2017,
which is attributed to increased gas use in residential buildings.
Russia's official statistics do not report any significant increase in gas
consumption over this period.
Figure 6: Russia’s final energy demand by fuel (PJ), 2000 to 2021

80%
Residential

Final energy demand by fuel (PJ)

20 000Transport
40%

20%

Industry0%
RussiaAPEC

Source: EGEDA (2023)

Final energy demand
Russia’s final energy consumption in 2021 was 18 991 PJ, almost 8%

18 000
16 000
14 000
12 000
10 000
8 000
6 000
4 000
2 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Commercial

60%

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)

239

APEC ENERGY OVERVIEW 2024

Note: Does not include non-energy sector consumption of energy products.

In Russia, fossil fuels accounted for almost 60% of final energy
consumption in 2021, 2% less than the APEC total. Electricity and heataccounted for about 40%. In the APEC region, the share of electricity(and to a much lesser extent heat) was almost a third.
Figure 7: Final energy demand fuel share, Russia and APEC, 2021
100%

the largest share of this generation (61%), of which natural gas
contributed more than 70%. The remaining 40% of electricity
generation came from hydropower and nuclear power in roughly equalshares.
Electricity generation at gas-fired power plants reached 2019 levels andaccounted for two-thirds of the increase in electricity generation in
2021.
Figure 8: Russia’s electricity generation by fuel, 2000 to 2021

Electricity andothers

1 400

Electricity generation (TWh)80%

Renewables

60%

Gas
40%
Oil
20%
Coal

1 200
1 000
800
600
400
200

0%
APEC

0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

RussiaSource: EGEDA (2023)

Transformation
Power sector
Electricity generation has grown consistently since 2000 (with a few
exceptions) with a CAGR of 1.3%. In 2020, Russia generated almost
3% less than the previous year. In 2021 electricity generation exceeded
pre-pandemic levels by 6% to 1 158 TWh. Fossil fuels accounted for

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

The fuel mix for power generation in Russia and the APEC region isquite similar in terms of the shares of fossil and non-fossil fuels. In
Russia, fossil fuels comprise 61% of the generation mix, and in APEC,
they account for 65%. However, the fossil fuels with the largest share in
Russia and APEC differ. Natural gas accounts for a much larger share240

APEC ENERGY OVERVIEW 2024

(44%) in Russia, while coal accounts for a much larger share (43%) in
APEC.
The share of hydro is also different, amounting to 19% in Russia and
14% in APEC. Nuclear energy in Russia accounts for 19%, more than
twice as much as in APEC.
Russia lags far behind in solar and wind power generation in relation to
the APEC-wide region. In APEC, the share of other renewables(primarily solar and wind) in 2021 exceeded 11%, while that share islower than 1% in Russia.
Figure 9: Electricity generation fuel share, Russia and APEC, 2021
100%

OthersOther renewables
Nuclear

80%

Hydro
60%

Gas
Oil

40%

Coal

20%

0%
RussiaAPEC

Source: EGEDA (2023)

Refining
Oil refinery capacity in Russia in 2021 was about 6.9 million barrels perday (Energy Institute, 2023), which is the third highest in the world after
the US and China. In 2021, 54% of all produced oil was refined

domestically (EGEDA, 2023). Diesel fuel (30%), fuel oil (18%), motor
gasoline (15%) and naphtha (10%) dominated in the petroleum productoutput mix. More than half of the top three refined products by volume
are exported. The share of fuel oil exports in 2021 was 90%, naphtha –68%, and diesel – 47%.

Energy transition
The presidential decree On Reducing Greenhouse Gas Emissions,adopted in November 2020 led to significant activity. It instructed thegovernment of the Russian Federation to develop a Strategy for SocioEconomic Development of the Russian Federation with Low
Greenhouse Gas Emissions until 2050.
The Strategy of Socio-Economic Development of the RussianFederation with Low Greenhouse Gas Emissions up to 2050 was
approved at the end of October 2021, just before the COP26 summit.
The strategy recognises the development of nuclear power generationand the expansion of the Agriculture, Forestry and Other Land Use(AFOLU) absorption capacity as the most significant contributors to the
reduction of greenhouse gas net emissions. From the point of view ofthe global community, both areas seem insufficient to reduce Russia’scontribution to greenhouse gas emissions. Nevertheless, even thesestatements demonstrate significant progress in understanding the
problem and finding feasible ways to reduce greenhouse gas
emissions. Currently, this strategy is the only document concerning
strategic development until 2050 in the Russian Federation.
In 2021, essential documents were adopted that set the contours of thedevelopment of energy subsectors that promote decarbonisation: theFederal Law – On Limiting Greenhouse Gas Emissions (July 2021),
The concept of the development of hydrogen energy in the Russian241

APEC ENERGY OVERVIEW 2024

The Federal Law, On Limiting Greenhouse Gas Emissions, provides
the introduction of a staged model for regulating such emissions. This
includes the introduction of mandatory carbon reporting, collected andsummarised by the authorised government body.
The document also introduces the notion of a greenhouse gas emission
reduction target. Set by the government on the scale of the Russian
economy, the target will take into account the AFOLU and the need toensure sustainable and balanced socio-economic development. The
law proposes the creation of a roster of greenhouse gas emissions.
This roster will be the state information system, which the authorised
federal executive body will maintain.
The Climate Doctrine of the Russian Federation was adopted in
October 2023 by the presidential decree. The document notes Russia's
significant contribution to achieving the United Nations Framework
Convention on Climate Change goals. Within the framework of longterm socio-economic development of the Russian Federation, it isenvisaged to achieve, considering domestic interests and development
priorities, a balance between anthropogenic greenhouse gas emissions
and their absorption no later than 2060. To achieve this goal, additional
measures have been identified to decarbonise economic sectors andincrease the absorption capacity of managed ecosystems.
Implementation of these measures will make it possible to ensure thatby 2030 the volume of greenhouse gas emissions will be at the level of
1 673 million tonnes of CO2 equivalent (54% of the 1990 level).
Russia’s goal is to decrease CO2 emissions by 20 million tonnes by2035 and to achieve a balance between anthropogenic greenhousegas emissions and their absorption no later than 2060.

Emissions
CO2 combustion emissions have increased steadily since 2000 due toeconomic growth and development after the recession of the 1990s.
The decrease in emissions, particularly in 2009 and 2020, reflects thedecline in economic activity during economic crises.
After a significant decrease in 2013, the level of emissions hasremained at about the same level for four years. This notable increasein 2017-2018 was mainly due to the rise in gas consumption inresidential buildings, which does not correspond to the domestic
statistics. The goal is to decrease CO2 emissions by 20 million tons by2035. Moreover, according to the Low Carbon Social and Economic
Development Strategy of the Russian Federation to 2050 Russia’s net
GHG emission must be reduced by 80% from the 1990 level and by
60% from the 2019 level in 2050
Figure 10: Russia’s CO2 combustion emissions (million tonnes), 2000
to 20211 500

CO2 combustion
emissions

1 450

Million tonnes CO2

Federation until 2035 (August 2021), The concept for the developmentof production and use of electric vehicles in the Russian Federation
until 2030 (August 2021).

1 400
1 350
1 300
1 250
1 200
2000

2005

2010

2015

2020

Source: EGEDA (2023)
242

APEC ENERGY OVERVIEW 2024

Energy security

Energy intensity goal

In 2019, the Doctrine of Energy Security of the Russian Federation was
adopted by decree of the President of the Russian Federation.
According to the Doctrine, Russia, as a major exporter of energy
resources, seeks on the one hand, to provide a reliable supply ofenergy to consumers within the economy, and on the other hand, toensure energy supplies to the world market.

In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline. APEC is on track to achieve this energy intensity
improvement. The goal does not impose individual economy targets,
but it is possible to track the progress of individual APEC economies
relative to the overarching proportional improvement. As thenorthernmost economy in the APEC region with vast Arctic territories(28% of its land area), Russia is the most energy-intensive economy in
the APEC region. However, improvements are taking place. In 2020,
Russia’s total final energy consumption (excluding non-energy)
intensity improved by 14% compared to that in 2005.

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.

Figure 11: Russia’s total final energy consumption intensity index, 2000
to 2021 (2005 = 100)
160

Energy intensity index (2005 = 100)

The Doctrine refers to the following as external challenges to energy
security: shifting the centre of global economic growth to the AsiaPacific region; a slowdown in global demand for energy resources anda change in its mix, including the replacement of petroleum products byother types of energy resources and the development of energy saving
and energy efficiency; an increase in the world resource base ofhydrocarbons; increased competition among energy exporters;changes in the international regulatory framework in the energy sector
and conditions of the world energy markets, strengthening the positionof consumers; the growth of LNG production and its share on the worldenergy markets; the formation of a global natural gas market; anincrease in the share of renewable energy sources in the global energybalance, and in general increased international efforts to implement
climate policy and accelerate the transition to a green economy.

140
120
Total final energy consumptionenergy intensity

100
80
60

APEC-wide goal 2035

40
20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)
243

APEC ENERGY OVERVIEW 2024

Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doubling
goal. Russia’s share of modern renewables to final energy consumption
in 2010 was 2.9%. In 2021, this share increased to 3.1%, as shown in
Figure 12. This slight increase highlights the complexities of expanding
renewables in Russia. As a result of competition, over the past 8 years,
prices for electricity from renewable energy generation facilities havedecreased by 85% for wind power plants and by 87% for solar power
plants and are closer to global analogues.
Figure 12: Russia’s modern renewable energy share, 2010 and 2021
3.5%

traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

The share of electricity generated by renewable energy sources in
2000-2021 averaged 17-18%. Large hydropower plants (HPPs)
generate almost all electricity. In this regard, changes in the share of
HPPs in some years are associated with low-water periods. The shareof generation by solar and wind power plants is less than 1%. The
modest share of renewables in electricity generation is due to theuneven distribution of renewable energy sources, a large share ofwhich is concentrated in remote areas, and limited government support
for new projects.
Figure 13: Russia’s renewable generation share, 2000 to 2021

Change from2010 to 2021

25%

3.0%
20%

Renewables share in electricity mix

Proportion

2.5%

2.0%
1.5%
1.0%

15%

10%

5%

0.5%
0%
2000

0.0%
2010

Change

2005

2010

2015

2020

2021
Source: EGEDA (2023)

Source: EGEDA (2023)

However, large shares of Russia’s electricity generation is carbon-free,

Note: Biomass used in the residential and commercial sectors is assumed to be
244

APEC ENERGY OVERVIEW 2024with 20% of electricity from nuclear power plants, 20% fromhydropower, and 2% from modern renewable sources.

245

Energy Policy
Energy policy

Details

Reference

Export of energy resources

Russia’s Energy Strategy 2035, adopted in 2020, assumes an increase in energy exports by 915% by 2024 compared to 2018.

Ministry of Energy

LNG production
LNG exports
Gas processing

Planned increase on liquefaction capacity to 46-65 mtpa by 2024 and 80-140 mtpa by 2035
(2.4-3.4 times growth to 2018 level); development of x (or x mtpa) small-scale LNG plants.
The Russian Government intends to ease restrictions on exports of LNG and allow newcompanies to export on their own, unlike exports of pipeline gas, where Gazprom is amonopoly.
Russia’s Energy Strategy 2035 assumes the share of processed natural gas liquids (NGLs) will
increase to 30% by 2024 and to 35% by 2030.

Ministry of Energy
Ministry of Energy
Ministry of Energy

Hydrogen exports

Start hydrogen exports up to 0.2 mtpa by 2024, 2-12 mtpa by 2035, 15-50 mtpa by 2050.

The Russian
Government

Oil production

Russia’s Energy Strategy 2035 assumes that oil production by 2024 will remain at the current
level of 11.6-11.7 million bpd, with a possible reduction to 10.2 by 2035.

Ministry of Energy

Gas consumption in thetransport sector

Russia’s Energy Strategy 2035 assumes an increase of gas consumption in the transport sector
to 2.7 bcm by 2024 and to 10-13 bcm by 2035.

Ministry of Energy

Use of associated gas

Russia’s Energy Strategy 2035 assumes the use of associated gas will increase to 90% by
2024 and 95% by 2035.

Ministry of Energy

Own use in gas pipelines

Russia’s Energy Strategy 2035 assumes a reduction of unit consumption of energy as own use
in gas pipelines of 12% by 2024 and 17% by 2035, with respect to the 2018 level.

Ministry of Energy

Russia’s Energy Strategy 2035 assumes an increase of the thermal efficiency in the power
sector to 43% by 2024 and 48% by 2035.

Ministry of Energy

Russia’s Energy Strategy 2035 assumes an increase in the share of regions with access to thedomestic gas transportation system to 75% by 2024 and 83% by 2035.

Ministry of Energy

Energy security is the foundation of domestic and economic security. Russia employs a multilevel approach to ensuring energy security, based on a balance of interests and risk
minimization. Through government regulation, legislative, and other measures designed toachieve strategic goals: ensuring uninterrupted energy supply, fulfilling export contracts, andmeeting international obligations.
The Doctrine’s principles are legality, priority of the domestic market, stability of the regulatory
framework, resource, financial, and personnel security of the fuel and energy complex, rational

Ministry of Energy

Thermal efficiency in the
power sector
Share of regions with accessto the domestic gastransportation system

Russia’s Energy Security
Doctrine

246

Energy policy

Details

Greenhouse gases emission
level

resource management and energy efficiency, public-private partnership, consideration of theinterests of all stakeholders and the population, integration into international security systems,
environmental safety requirements, and the continuity of the energy security process.
Key initiatives include improving energy security governance, maintaining the mineral and raw
material base of the fuel and energy complex and the main production facilities of fuel andenergy organizations at a level necessary to ensure energy security.
The Doctrine envisions international legal protection of the interests of Russian fuel and energyorganizations and power engineering, support for the export of their products, technologies, andservices.
Planned import substitution in critically important areas of activity for the sustainable functioningof the fuel and energy complex, including the localization of production of foreign equipment or
the creation of its domestic analogues, the development of technologies (including informationand communication technologies) and software.
One of the strategic tasks is ensuring the technological independence of the Russian fuel andenergy complex.
Russia is carrying out targeted activities to implement new approaches to the development of
low-carbon energy throughout the entire life cycle in the field of nuclear power generation,hydrogen energy, renewable energy sources, and energy storage systems, using new domestic
breakthrough high-tech solutions for the entire technological chain of production and use ofenergy resources, meeting the requirements of economy, environmental friendliness, andreliability at the same time. Such solutions in the global space determine not only the level ofcompetitiveness and technological independence, as one of the strategic positions in ensuring
an acceptable level of energy security, but also play a key role in shaping the basis for theenergy of the future.
In the modern manifestations of new challenges and rapidly transforming hybrid threats in theaggravated period of geopolitical relations, the priority activity of the Russian Federation is
aimed at protecting domestic priorities, preserving sustainable economic development, and thequality of life of the domestic population.
To ensure timely response: to energy security challenges and threats, operational response totrends in their changes, monitoring of external and internal threats and risks in the field ofenergy security is carried out, including the development of pre-emptive measures to minimize
possible damage associated with existing and potential threats, continuous assessment of the
impact on ongoing changes, revision of the focus of measures and the choice of the mosteffective ways to manage energy security in accordance with the updated tasks of the strategic
directions of development of the energy sector of the Russian Federation. Energy security risk
management is carried out within the framework of the energy policy of the Russian Federation.
Russia’s NDC proposes reducing GHG emissions to 70% by 2030 from the 1990 baseline. The
NDC level of emissions was approved by presidential decree in November 2020.

Reference

Presidential Decree247

Energy policy

Details

Reference

Carbon Neutrality Commitment

After the approval of the low-carbon development strategy, the President of Russia announced
that Russia will achieve carbon neutrality by 2060.

The Russian
Government

Limiting Greenhouse Gas
Emissions

The Federal Law, On Limiting Greenhouse Gas Emissions, provides the introduction of astaged model for regulating such emissions. This model includes the introduction of mandatory
carbon reporting, collected and summarised by the authorised government body. Subject toregulation will be the largest emitters of greenhouse gases with a mass equivalent of 150 000
tonnes of CO2 per year or more for the period until 1 January 2024. Such companies will haveto report starting on 1 January 2023. Those who produce 50 000 tons of CO2 per year or moreare subject to regulation from 1 January 2024. They will have to submit reports on greenhousegas emissions on 1 January 2025. The document also introduces the notion of a greenhousegas emission reduction target. Set by the government on the scale of the Russian economy, thetarget will take into account the AFOLU and the need to ensure sustainable and balanced
socio-economic development. The law proposes the creation of a roster of greenhouse gas
emissions. This roster will be the state information system, which the authorised federal
executive body will maintain.

Federal Law

Development of electrictransport

The Concept for the Development of Production and Use of Electric Vehicles in the RussianFederation until 2030 provides three scenarios for the development of electric transport until
2030. The target scenario proposes an increase in production of electric vehicles to 217 000
units (100 times) by 2030, an increase in the share of electric vehicles in the overall vehicle fleet
to 15%, and an increase in the number of charging stations to more than 14 000 units (eighttimes).

The Russian
Government

Increase renewable energy
sources

Russia plans to increase the level of renewable energy sources by 2030, not counting largehydroelectric power plants, to 12.1 GW, Specifically, doubling the existing indicator, and in thelonger term, by 2050, to achieve even more intensive growth in this segment - up to 9% in thegeneration structure or 67 GW.

Ministry of Energy

Notable Energy Developments
Energy development

Details

Reference248

Arctic LNG-2

The project includes the construction of three LNG trains, with a capacity of 6.6 mtpa of LNG
each. The total LNG capacity of the three trains will be 19.8 mtpa. Arctic LNG is currently underconstruction. Arctic LNG 2's first train built on a concrete gravity-based floating foundation was
towed to the western shore of the Gydan Peninsula in summer 2023 and is set to produce thefirst LNG in the first quarter of 2024. It is expected to reach full capacity by 2025.

Novatek

Gazprom LNG Portovaya

In September 2022, an LNG plant with a capacity of 1.5 million tonnes per year was put into
operation near the Portovaya compressor station. The plant consists of two trains.

Gazprom

Increase in the capacity of oilpipeline system East Siberia
Pacific Ocean

The capacity of the pipeline part of the ESPO oil pipeline system was increased by 4% in 2022.
The capacity of the Kozmino oil port was increased from 36 to 43 million tons per year.

Transneft

Power of Siberia

Gas supplies began on 2 December 2019. Design capacity of 38 billion cubic metres of natural
gas exports to China will be reached by 2025. At the end of 2022, the Kovykta gas-condensate
field was connected to the gas pipeline system. In 2023, gas supplies amounted to about 23
bcm.

Gazprom

Power of Siberia 2

Gazprom continues surveys for the route of the new Power of Siberia 2 pipeline, which will makeit possible to supply gas from the Yamal Peninsula fields to China via Mongolia with a planned
export capacity of about 50 bcm per year. The feasibility study for the construction of the pipeline
section that will pass through Mongolia, which is named Soyuz Vostok, was completed in
January 2022.

Gazprom

The Sakhalin Experiment

A set of measures to achieve hydrocarbon neutrality in the Sakhalin region, including:
1. stimulation and implementation of technologies to reduce greenhouse gas emissions andincrease their absorption
2. formation of an independent verification system
3. creation of a system for the circulation of hydrocarbon units and quota fulfilment units. As partof the experiment, the first greenhouse gas emission quotas in Russia were established,
Emitters who exceed the quotas will be charged one thousand RUB per ton of CO2-equivalent,This experiment will facilitate achievement of carbon neutrality in the constituent entities of theRussian Federation and on an economy scale, and contribute to achieving the goals of theStrategy for the long-term development of the Russian Federation with low greenhouse gas
emissions until 2050.

Useful links
Ministry of Energy of the Russian Federation – http://minenergo.gov.ru/en
Ministry of Natural Resources and Environment of the Russian Federation – https://www.mnr.gov.ru/en/249

Ministry of Economic Development of the Russian Federation – https://en.economy.gov.ru
Federal State Statistics Service of the Russian Federation – https://eng.gks.ru
Ministry of Industry and Trade of the Russian Federation – https://minpromtorg.gov.ru/en/
Federal Customs Service – https://eng.customs.gov.ru
Federal Tariff Service – http://www.fstrf.ru/eng
AtomEnergoProm – http://atomenergoprom.ru/en/
Rosseti, Public Joint Stock Company (PJSC ROSSETI) – http://www.rosseti.ru/eng/
Association NP Market Council – http://www.en.np-sr.ru/index.htm
Gazprom – http://www.gazprom.com/
Rosneft – https://www.rosneft.com/
RusHydro – http://www.eng.rushydro.ru/
Transneft – http://www.en.transneft.ru/
Central Dispatching Department of Energy Sector – http://www.cdu.ru/en/

250

Singapore

bunkering vessel. With Singapore developing hydrogen as a major
decarbonisation pathway, this could help facilitate the economy tobecome a renewable energy hub in the future, given its ambitious plan
to procure low-carbon electricity from neighbouring economies.

Introduction

Table 1: Singapore macroeconomic data and energy reserves
Key data a, b

Singapore continues to excel across all elements of the energy triangle(economic development and growth, environmental sustainability, andenergy security and access indicators) based on the latest assessmentby the World Economic Forum (WEF), reflecting Singapore’s robust
existing energy systems and growing readiness to energy transition.
Continuing to be at the forefront of Asia Pacific’s energy transition,
Singapore, in collaboration with the International Energy Agency (IEA),
is to establish an IEA Regional Cooperation Centre that is expected to
be operational in the second half of 2024. The Centre will provide various
services from policy guidance to capacity building for Southeast Asia andbeyond, in addition to scaling up renewables and other clean energy
technology deployments.
For decades, Singapore has been one of the top three global oil trading
and refining hubs, capitalising on its strategic location. Given increasing
demand for LNG in the region as well as potential growth in greenhydrogen demand, Singapore is now ramping up efforts to establish itself
as a key trading centre for both fuels.
The Maritime and Port Authority (MPA) has allocated incentives forvessels calling at Singapore, such as port due concessions and cofunding for building LNG-fuelled bunker tankers. In addition, agreements
have also been made between Singapore and other ports worldwide toinitiate the use of LNG as a bunker fuel. CMA CGM, a global shipping
and logistics company, had its containership CMA CGM SCANDOLA
fuelled with 7 100 m3 of LNG from FueLNG Bellina, Singapore’s first LNG

Energy reserves

Area (million km2)

728

Oil (billion barrels)

0

Population (million)

5.5

Gas (trillion cubic feet)0

GDP (2017 USD billion
PPP)

587.6

Coal (million tonnes)0

GDP per capita (2017
USD PPP)107 741

Uranium (kilotonnes U< USD 130/kgU)

0

Source: a DOS (2023); b World Bank (2022)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

Energy Supply and Consumption
Total primary energy supply
Being a net energy-importing economy, Singapore imported a total of
6 256 PJ of energy commodities in 2021, 60% and 32% of which were
petroleum products and crude oil, respectively. Imported crude oil serves
the needs of Singapore’s oil refineries whose refined products accounted
for more than 98% (or 3 120 PJ) of the economy’s total exports to theneighbouring APEC economies. Import of gas increased by 4% in 2021
from 2020 levels, attributed to increased piped natural gas procurementfrom Indonesia and Malaysia, in parallel to the decline in LNG imports.
251Such decline was likely driven by increased LNG spot price in 2021.
Looking at the overall net energy imports, Singapore registered a declineof 1.9% between 2020 and 2021, attributed mainly to lower petroleum
products imports (Figure 1). The economy’s total energy supply in 2021
totalled 1 259 PJ, down by 1.9% from 2020 levels.

economy’s supply mix. In addition to piped natural gas imports fromIndonesia and Malaysia, Singapore has been procuring LNG since 2013,
with Australia accounting for most of the economy’s LNG imports.
Figure 2: Singapore energy supply by fuel (PJ), 2000 to 2021
1 400

The Port of Singapore remained connected to the global maritime in
2021 despite the COVID-19 pandemic, and thus its energy demandrebounded modestly from 2020 levels. International aviation also
recorded a positive increase of 2% between the same period, on theback of the gradual recovery of the aviation and tourism-related sectors.
Figure 1: Singapore energy supply, production, and net imports (PJ),
2000 to 2021

1 200
1 000
800
600

400
200

4 000
Net imports

Coal

Oil

Gas

Renewables

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2000

3 000

2001

0

3 500

Others

2 500
Source: EGEDA (2023)

2 000
1 500

Total Primary Energy Supply

1 000
500
0
2000

Production
2005

2010

2015

2020

With respect to APEC, Singapore was more dominant on the shares ofoil and gas than APEC was in 2021. At the same time, the share of coalin Singapore was significantly lower than APEC’s coal share, given
marginal utilisation in the economy’s power sector. Renewables share
was also significantly lower than APEC’s share, attributed to constraints
in land size, low wind speeds and lack of hydro and geothermal
resources.

Source: EGEDA (2023)

Despite the dominance of oil (crude oil and petroleum products) in
Singapore’s energy supply mix (Figure 2), its share has been dwindlingover the past two decades, given the increased role of natural gas in the252

Figure 3: Energy supply mix – Singapore and APEC, 2021
100%

Figure 4: Singapore final consumption by sector (PJ), 2000 to 2021

Other
Renewables

900

80%

800
Gas

700
600

60%

500
Oil

400

40%

300
200
100

Coal

Singapore

APEC

Source: EGEDA (2023)

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

0%

2002

2000

0

2001

20%

Source: EGEDA (2023)

Total final consumption
The gradual easing of COVID-19 restrictions in Singapore drove therebound in the sectoral final consumption in 2021, which reached 792 PJ(Figure 4). Industry, commercial and non-energy sectors were
responsible for most of this consumption increase, while transport andresidential sectors recorded marginal declines.
The industry and non-energy sectors remained the largest contributors
to Singapore’s final consumption, accounting for 38% and 36% in 2021,
respectively. Thanks to the large-scale petrochemical industry in Jurong
Island, Singapore has grown to become one of Asia’s and one of theworld’s leading petrochemical hubs, housing over 100 firms that operate
an integrated mix of refining and petrochemical productions.

Singapore was well positioned above APEC in terms of the non-energy
sector and industry sectors in 2021, given the significance of theeconomy’s petrochemical landscape (Figure 5). Similarly, Singapore
was also ahead of APEC in terms of the commercial sector’s share.
Being a small-city economy, residential and transport activities werelower than other economies, resulting in lower shares of these sectors
compared to those of APEC.

253

Figure 5: Final consumption by sector, Singapore and APEC, 2021
100%

Figure 6: Singapore final energy demand by fuel (PJ), 2000 to 2021
600

Non-energy
Agriculture & others

500

Residential

400

Commercial

300

80%

60%

200

Transport
40%

100

Coal

0%
Singapore

Oil

Gas

Renewables

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

Industry

2001

2000

0

20%

Electricity and others

APEC
Source: EGEDA (2023)

Source: EGEDA (2023)

Note: Does not include non-energy sector consumption of energy products.

Final energy demand

Singapore’s final energy demand mix structure was almost identical tothat of APEC, albeit with a distinct magnitude of shares (Figure 7). Oilmade up a larger share of Singapore’s demand mix structure than of
APEC’s, driven by significant use of naphtha as feedstock for its
petrochemical industry. Likewise, the share of electricity in Singapore
was slightly higher than APEC’s, given the 100% access to electricity
that has been achieved in Singapore.

Singapore’s final energy demand grew by 4.7% to reach 508 PJ in 2021
(Figure 6). Oil (petroleum products), gas and electricity demands
increased significantly on the back of growth in industrial activities
between 2020 and 2021, while increased commercial sector’s activities
contributed to significant rise in electricity and gas demands in that sector
between the same period. Demand for coal remained marginal in theindustry sector.

254

Figure 7: Final energy demand fuel share, Singapore and APEC, 2021

MWac in solar PV generation capacity, most of which came from private
sector.

100%

Figure 8: Singapore electricity generation by fuel, 2000 to 2021
80%

60%

Electricity andothers60

Renewables

50

Gas

40

40%

30
Oil

20

20%

10

Source: EGEDA (2023)

Transformation
Power sector
Electricity generation in Singapore rose by more than 5%, reaching 55
789 GWh in 2021 from 2020 levels (Figure 8). Of the total electricity, 95%
came from natural gas, while coal and oil accounted for marginal sharesof 1.2% and 1.0%, respectively. Parallel to electricity generation
increase, Singapore’s peak demand grew from 7 376 MW in August 2020
to 7 725 MW in October 2021.

Coal

Hydro

NuclearGeothermal

Other renewables

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

Gas

2006

Oil

2005

2004

0

2003

APEC

2002

Singapore

2001

0%

2000

Coal

Others

Source: EGEDA (2023)

With respect to APEC, the prevalence of natural gas in Singapore’s
electricity generation fuel share placed Singapore well above APEC interms of gas share in 2021 (Figure 9). Conversely, Singapore had
proportionally less electricity generation from coal and renewables thanthat of APEC.

Total electricity generation capacity stood at 12 179 MW in 2021, up by
1.3% in the previous year. This increase was primarily due to a significant
jump in solar PV generation capacity, which rose by approximately
46.4%. The increase was primarily due to a significant jump of 154.5
255

Figure 9: Electricity generation fuel share, Singapore and APEC, 2020
100%

output of sustainable products by 1.5 times from 2019 levels.

Energy transition

OthersOther renewables
Geothermal

Nuclear

80%

Over the last five decades, Singapore has transformed its power
generation landscape from oil to natural gas. The penetration of solar
energy also has increased significantly. In order for Singapore to meetits net zero emissions goal by 2050, Singapore introduced the ‘4
Switches’ strategy that focuses on the following: 1) natural gas as thedominant fuel, 2) increasing solar PV capacity to at least 2 GWp by 2030,
in addition to at least 200 MW of energy storage beyond 2025, 3) tappingon cost-competitive regional power grids, and 4) exploring emerging lowcarbon solutions that could potentially reduce the carbon footprint.

Hydro
60%
Gas
Oil

40%

Coal

20%

0%
Singapore

APEC

Source: EGEDA (2023)

Refining
Singapore is home to more than 100 refinery and petrochemical firms,
thus making the economy one of the leading refinery and petrochemicalhubs in the world. In line with the recovery of demand for oil products
after the onset of COVID-19 pandemic, refinery activities gradually
rebounded in 2021. Crude oil input volume increased by 1.3% from 0.65
mb/d to 0.66 mbd between 2020 and 2021, while input of refinery
feedstocks also rose by 13.2% from 0.14 mb/d to 0.16 mbd between thesame period.
To make Singapore’s Jurong Island refinery hub more sustainable, theeconomy aims to implement at least 2 million tonnes of carbon captureby 2030. Shell and Exxon Mobil, whose plants are on the island,
expressed their interest in building carbon capture and storage units inSoutheast Asia. In addition, Singapore also set a target to increase the

A new Future Energy Fund worth initially at SGD 5 billion will be set upby the government to help construct critical infrastructure required torealise Singapore’s shift to low-carbon electricity.
EmissionsSingapore’s CO2 emissions reached the highest level yet in 2021,
totalling 45.5 million tonnes (Figure 10). The significant increase of 16%
from 2020 levels was attributed to the resumption of economic activities
after the onset of COVID-19 pandemic.
Singapore unveiled new two-tier emission standards for its new andrepowered thermal power plants to leverage on developing clean andefficient thermal plants. Tier 1 standard, which has an emissions
threshold of 0.355 tonnes of CO2-equivalent per MWh, is applicable for
efficient power plants (for example, plants with combined cycle gas
turbine units) that run regularly. Tier 2 units will need to keep within anemissions cap in a year, to allow the entry of other generation
technologies that are less efficient but essential for ensuring energy
security and flexibility to operate. Thermal power plants that fall under256

these tiers also will be required to be able to absorb at least 30% ofhydrogen by volume, with the ability to uptake 100% of hydrogen in the
future.
Figure 10: Singapore CO2 combustion emissions (million tonnes), 2000
to 202150

In addition, Singapore LNG (SLNG) plans to add a second LNG importterminal at the end of this decade on top of the existing terminal. The
new import terminal, with a capacity of 5 million tonnes per annum(mtpa), will potentially utilise the concept of FSRU (Floating Storage andRegasification Unit), offering greater flexibility in redeploying it at any
location when necessary.

CO2 combustion emissions

45
40
35
30
25
20
15

10
5
0
2000

2005

2010

2015

company (Gasco). From 2024, Gasco will function to centralise theprocurement of gas and supply of gas for the power sector byaggregating gas input from generation utilities. Through thisestablishment, Singapore is hoping to diversify its gas import sources toreduce supply risk and enter long-term contracts to provide more stablesupply and prices.

2020

Source: EGEDA (2023)

Energy security
Energy security is key to achieving Singapore’s net zero emissions
ambition. Ensuring a stable and robust gas-centric power system is vitalin addressing potential energy shortages and volatility in electricity prices
in Singapore.
Given Singapore’s pragmatic approach in having natural gas as the main
source of the economy’s electricity generation in the next few decades,
Singapore recently announced that it will establish a centralised gas
procurement framework, which will be under the purview of a central gas

Singapore has set a target to import up to 4 gigawatts (GW) of lowcarbon electricity by 2035. This will constitute around 30%, or about onethird of Singapore’s electricity supply. This will contribute to efforts indeveloping an ASEAN Power Grid, which would drive investments in lowcarbon projects, accelerate renewable energy developments in theregion, and enhance mutual energy security and grid resilience. In June
2022, the Lao PDR-Thailand-Malaysia-Singapore Power Integration
Project (LTMS-PIP), which imports up to 100 megawatts (MW) ofrenewable hydropower from Lao PDR to Singapore via Thailand andMalaysia using existing interconnections, successfully commenced. In
2023, Singapore awarded Conditional Approvals to projects from various
sources, comprising 1 GW from Cambodia, 2 GW from Indonesia and
1.2 GW from Viet Nam.

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.
257

Energy intensity goal
In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline. The
original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The goal
does not impose individual economy targets, but it is possible to track
the progress of individual APEC economies relative to the overarching
proportional improvement.
Figure 11: Singapore total final energy consumption intensity index,
2000 to 2021 (2005 = 100)
120

energy intensity by 17% in 2021, halfway through to achieving its targetof 36% intensity reduction by 2030.
Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doubling
goal.
Figure 12: Singapore modern renewable energy share, 2010 and 2020
1.2%
1.0%

Change from2010 to 2021

Total final energy consumption energy intensity

100

0.8%

80
0.6%

APEC-wide goal 2035

60

0.4%

40

20
0
2000

0.2%
2005

2010

2015

2020

2025

2030

2035

0.0%
2010

Change2021

Source: EGEDA (2023)

Following an increase in 2020 due to the COVID-19 pandemic,
Singapore’s energy intensity reduced by 4% in 2021 (Figure 11), as its
GDP rebounded considerably by almost 9% with energy demand growthslowed by almost 5%. From 2005 levels, Singapore has reduced its

Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.
258

Singapore had a very low modern renewable energy share in 2010, given
the prevalence of fossil fuels in its supply mix. The low renewable energy
share in the economy is primarily due to the small size of the city
economy and its dense urban landscape, which challenge the adoptionof conventional variable wind and solar renewables at an island-wide
scale. Beyond land constraints, Singapore is alternative energydisadvantaged and solar is the only viable form of renewable energy.
Renewables accounted for 3% of Singapore’s total electricity mix in
2021, a significant jump from 2020 levels (Figure 13). This was driven by
the considerable increase in electricity generation from solar, from 499
GWh to 761 GWh between 2020 and 2021, as Singapore continues tosteadily scale up its solar capacity targets in both economy-wide andhousing unit targets throughout the current decade.

Figure 13: Singapore renewable generation share, 2000 to 2021
4%
3%
Renewables share in electricity mix
3%
2%
2%
1%
1%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

259

Energy Policy
Energy policy

Details

Reference

Singapore Carbon Tax

Carbon tax will be raised to SGD 25 per tonne of CO 2 equivalent in 2024 and 2025, and SGD 45
per tonne of CO2 equivalent in 2026 and 2027. This will further rise to SGD 50-80 per tonne of
CO2 equivalent by 2030.

National Climate Change
Secretariat (2023)

National Hydrogen Strategy

In October 2022, Singapore announced a National Hydrogen Strategy to develop hydrogen as amajor decarbonisation pathway to support the transition towards net zero emissions by 2050.
Depending on technological developments and the development of other energy sources,hydrogen could supply up to half of Singapore’s power needs by 2050. The five key thrusts are:Nationally Determined Contribution(NDC)• Experimenting advanced hydrogen technologies that are commercially ready.
• Investment in research and development.
• Collaboration with international partners to establish hydrogen supply chain.
• Undertaking long-term land and infrastructure planning, and• Supporting workforce training and development.
Singapore’s second update of its first NDC mentions the aim of reducing emissions to around60 million tonnes of CO2 equivalent in 2030, after peaking its emissions earlier.

Long-Term Low Emissions
Development Strategy (LEDS)

Singapore strengthened its long term LEDS to a commitment to achieve net zero emissions by
2050.

Singapore Green Building
Masterplan (SGBMP) – 4th edition

Electric Vehicles Vision

Green Efforts in Schools

Serving as a roadmap to decarbonise Singapore’s buildings, the SGBMP aims to achieve an‘80-80-80’ target by 2030:• 80% of the buildings by gross floor area to be green by 2030.
• 80% of new developments to be Super Low Energy, and• 80% improvement in energy efficiency, relative to 2005 levels, for best-in-classbuildings by 2030.
Singapore aims to reduce peak emissions from land transport by 80% by or around midcentury, primarily through electrification of vehicles:• Every Housing & Development Board (HBD) town to be an EV-ready town by 2025.
• Displacement of 400 diesel buses with electric buses by 2025.
• 60 000 EV charging points by 2030.
• Half of Singapore’s public buses and taxi fleet are electrified by 2030.
• 100% of vehicles to run on cleaner energy by 2040.
Singapore aims to:• Achieve a two-thirds reduction of net carbon emissions from the schools sector.

Ministry of Trade andIndustry (2022)

National Climate Change
Secretariat (2022)
National Climate Change
Secretariat (2022)

Building andConstruction Authority(2022)

Land Transport Authority(2023)

Singapore Green Plan
2030 (2021)
260

Energy policy

Details•

Green Energy

Greener Infrastructure andBuildings

Sustainable Towns and Districts

Sustainable Aviation

Sustainable Maritime
SolarNova Programme

Adjusted Early Turnover Scheme(ETS)

Reference
Achieve the goal of making 20% of schools carbon neutral.

Singapore aims to:• Deploy at least 2 GWp of solar energy, capable of generating electricity for 350 000
households, by 2035.
• Have best-in-class power generation technology that meets emission standards andreduces carbon emissions.
Singapore aims to:• Decrease energy consumption of desalination process from 3.5 kWh/m 3 (current) to 2
kWh/m3 by 2025, and further to 1 kWh/m3 by 2030.
• Make Tuas Nexus, the economy’s first integrated waste and used water treatment
facility, 100% energy self-sufficient by 2025.
• Green 80% of its buildings (by gross floor area) by 2030.
• Have 80% of new buildings to be super low energy buildings (by gross floor area) from2030.
• Have 80% improvement in energy efficiency of best-in-class green buildings by 2030
from 2005 levels.
Singapore aims to reduce energy consumption in existing HDB towns by 15% by 2030.
Singapore aims to:• Have electrified new airside light vehicles, forklifts, and tractors at Changi Airport from2025.
• Have all airside vehicles running on cleaner energy at Changi Airport by 2040.
Singapore aims to:• Have all new harbour craft operating in port waters powered by electricity, B100
biofuels and other net zero fuels from 2030.
Targeting 540 MWp of solar on HDB housing blocks by 2030.
ETS provides an incentive to deregister older, more polluting vehicles and replace them withnewer, less emitting models. The incentive comes in the form of a discounted certificate ofentitlement on the registration of the new vehicle.

Singapore Green Plan
2030 (2021)

Singapore Green Plan
2030 (2021)

Singapore Green Plan
2030 (2021)
Singapore Green Plan
2030 (2021)
Singapore Green Plan
2030 (2021)
Housing & Development
Board (2022)

Land Transport Authority(2023)

Under the adjusted ETS, existing Euro II, III and IV Category C diesel vehicles are eligible for
the ETS incentive. This will commence from 1 April 2023 to 31 March 2025.

261

Notable Energy Developments
Energy development
Centralised Gas Procurement
and Supply

Future Energy Fund

Residential Demand Response
Programme (R-DR)

Low- or Zero-Carbon Ammonia
for Power Generation and
Bunkering Project

Details
The Ministry of Trade and Industry (MTI) and the EMA will establish an entity called Gascothat functions to centralise the procurement and supply of gas for the power sector throughgas aggregation from the generation companies. Gasco will procure the additional gas
needed when the electricity demand exceeds the gas supply.
Singapore is to set up a dedicated fund to support infrastructure investment for its energy
transition towards a net zero future. Examples of infrastructure include undersea cables tofacilitate the import of low-carbon electricity, and hydrogen terminals and pipelines.
The EMA and SP Group will be piloting a Residential Demand Response (R-DR) programme,
involving households equipped with smart meters provided by SP Group. Households will
receive alerts from an SP app to temporarily reduce or defer their electricity usage during
demand peaks.
The EMA and Maritime Port Authority of Singapore (MPA) have shortlisted six consortiums
for a closed Request for Proposal (RFP) for a low- or zero- carbon ammonia for power
generation and bunkering project on Jurong Island:• 55-65 MW of electricity from imported low- or zero-carbon ammonia via gas
turbine/combined-cycle gas turbine.
• Facilitate ammonia bunkering at a capacity of at least 0.1 mtpa, starting with shoreto-ship bunkering followed by ship-to-ship bunkering.

Reference
Energy Market
Authority (2023)
Energy Market
Authority (2024)
Energy Market
Authority (2023)

Energy Market
Authority (2023)

New Emission Standards forPower Generation Units

Emission standards are expected to be enforced for new and repowered fossil fuel-fired
power generation units from 2024 onwards.

Energy Market
Authority (2023)

Singapore’s Second LNG
Terminal

Singapore LNG (SLNG) will develop and operate the second LNG terminal in Singapore witha capacity of 5 mtpa. The terminal, which will potentially be based on the floating storage
and regasification unit (FSRU), is aimed to be operational by the end of this decade.

Singapore LNG
Corporation (2023)

In February 2023, Sembcorp Industries (Sembcorp) and EMA officially opened theSembcorp Energy Storage System (ESS). The ESS is Southeast Asia’s largest utility-scale
ESS at 285 MWh. It enhances Singapore’s grid resilience by mitigating solar intermittency.

Energy Market
Authority (2023)

Energy Storage System (ESS)262

Useful links
Building and Construction Authority – https://www1.bca.gov.sg/
Department of Statistics Singapore – https://www.singstat.gov.sg
Economic Development Board – https://www.edb.gov.sg/
Energy Efficiency Programme Office – http://www.e2singapore.gov.sg/
Energy Market Authority – https://www.ema.gov.sg
Housing & Development Board – https://www.hdb.gov.sg/cs/infoweb/homepage
Land Transport Authority – https://www.lta.gov.sg
Ministry of National Development – https://www.mnd.gov.sg/
Ministry of the Environment and Water Resources – https://www.mewr.gov.sg
Ministry of Trade and Industry – https://www.mti.gov.sg
National Environment Agency – https://www.nea.gov.sg
National Climate Change Secretariat – https://www.nccs.gov.sg/
Public Utilities Board – https://www.pub.gov.sg/
Singapore Department of Statistics – https://www.singstat.gov.sg/
Singapore LNG Corporation (SLNG) – https://www.slng.com.sg/website/index.aspx
Solar Energy Research Institute of Singapore (SERIS) – http://www.seris.nus.edu.sg/
Temasek Holdings – https://www.temasekholdings.com.sg

263

References
BCA(BuildingandConstruction
Authority)(2021),‘Singapore
https://www1.bca.gov.sg/buildsg/sustainability/green-building-masterplans

Green

Building

Masterplan(SGBMP)’,

March

2021,

EMA (Energy Market Authority) (2023), ‘Centralising Gas Procurement for Singapore’s Power Sector’, October 2023, https://www.ema.gov.sg/newsevents/news/media-releases/2023/centralising-gas-procurement-for-singapore-power-sector
EMA (Energy Market Authority) (2023), ‘New Emission Standards for Power Generation Units’, October 2023, https://www.ema.gov.sg/newsevents/news/media-releases/2023/new-emission-standards-for-power-generation-units
EMA (Energy Market Authority) (2023), ‘New Residential Demand Response Pilot to Empower Households to Reduce Electricity Consumption During
Demand Peaks’, October 2023, https://www.ema.gov.sg/news-events/news/media-releases/2023/new-residential-demand-response-pilot-to-empowerhouseholds-to-reduce-electricity-during-demand-peaks
EMA (Energy Market Authority) (2023), ‘Singapore Launches Next Stage of Selection of Low- or Zero-Carbon Ammonia Power Generation and Bunkering
Project Developer’, October 2023, https://www.ema.gov.sg/news-events/news/media-releases/2023/singapore-launches-next-stage-selection-of-lowzero-carbon-ammonia-power-generation-bunkering-project-developer
EMA (Energy Market Authority) (2023), ‘Singapore Launches Next Stage of Selection of Low- or Zero-Carbon Ammonia Power Generation and Bunkering
Project Developer’, October 2023, https://www.ema.gov.sg/news-events/news/media-releases/2023/singapore-launches-next-stage-selection-of-lowzero-carbon-ammonia-power-generation-bunkering-project-developer
EMA (Energy Market Authority) (2023), ‘Singapore Launches Next Stage of Selection of Low- or Zero-Carbon Ammonia Power Generation and Bunkering
Project Developer’, October 2023, https://www.ema.gov.sg/news-events/news/media-releases/2023/singapore-launches-next-stage-selection-of-lowzero-carbon-ammonia-power-generation-bunkering-project-developer
EMA (Energy Market Authority) (2024), ‘Establishment of Future Energy Fund to Support Singapore’s Infrastructure Investments’, March 2024,
https://www.ema.gov.sg/news-events/news/media-releases/2024/establishment-of-future-energy-fund-to-support-singapore-infrastructure-investments
EMA (Energy Market Authority) (2024), ‘Establishment of Future Energy Fund to Support Singapore’s Infrastructure Investments’, March 2024,
https://www.ema.gov.sg/news-events/news/media-releases/2024/establishment-of-future-energy-fund-to-support-singapore-infrastructure-investments
FueLNG (2021), ‘FueLNG completes Singapore’s first ship-to-ship bunkering of an LNG-fuelled oil tanker’, May 2021, https://www.fuelng.com.sg/fuelngcompletes-singapores-first-ship-to-ship-bunkering-of-an-lng-fuelled-oil-tanker/
HDB (Housing and Development Board) (2022), ‘HDB to Bring Solar Energy to Over 8 000 Blocks through SolarNova Programme’, February 2022,264https://www.hdb.gov.sg/about-us/news-and-publications/press-releases/HDB-to-bring-solar-energy
IEA (International Energy Agency) (2024), ‘IEA partners with Singapore for its first office outside of its Paris headquarters, to deepen engagement inSoutheast Asia’, February 2024, https://www.iea.org/news/iea-partners-with-singapore-for-its-first-office-outside-of-its-paris-headquarters-to-deepenengagement-in-southeast-asia
LTA (Land Transport Authority) (2023), ‘Early Turnover Scheme’, https://onemotoring.lta.gov.sg/content/onemotoring/home/buying/vehicle-types-andregistrations/commercial-vehicle/early-turnover.html
MTI (Ministry of Trade & Industry) (2022), ‘Singapore’s National Hydrogen Strategy’, https://www.mti.gov.sg/Industries/Hydrogen
NCCS (National Climate Change Secretariat) (2022), ‘Singapore Commits to Achieve Net Zero Emissions by 2050’, October 2022,
https://www.nccs.gov.sg/media/press-releases/singapore-commits-to-achieve-net-zero/ https://www.nccs.gov.sg/media/press-releases/singaporecommits-to-achieve-net-zero/Singapore Green Plan (2021), ‘Our Key Targets for the Green Plan’, https://www.greenplan.gov.sg/targets/
SLNG (Singapore LNG Corporation) (2023), ‘SLNG to Develop, Own and Operate Second LNG Terminal in Singapore as it Marks 10 Years ofCommercial Operations’, October 2023, https://www.slng.com.sg/node/317
UNFCCC (United Nations Framework Convention on Climate Change) (2022), ‘Singapore’s Second Update of its First Nationally Determined
Contribution
(NDC)
and
Accompanying
Information’,November2022,
https://unfccc.int/sites/default/files/NDC/202211/Singapore%20Second%20Update%20of%20First%20NDC.pdf
WEF (World Economic Forum), ‘Fostering Effective Energy Transition
https://www3.weforum.org/docs/WEF_Fostering_Effective_Energy_Transition_2023.pdf

2023

Edition–Insight

Report’,

June

2023,

265

APEC ENERGY OVERVIEW 2024

Chinese Taipei
Introduction
Chinese Taipei’s GDP in 2021 reached 1 334 billion (2017 USD
purchasing power parity (PPP)), a 6.5% increase from the 2020 level.
The population in 2021 stayed at the 23 million level, but it is expectedthat there will be a decreasing trend in population in the coming
decades. In addition, Chinese Taipei’s GDP per capita still remained at
a high level relative to the APEC region, at USD 57 062 PPP in 2021.
Chinese Taipei has limited energy reserves. According to data from theCIA's World Factbook, Chinese Taipei holds only 1 million tonnes ofproven coal reserves, 2.4 million barrels of proven oil reserves, and 6.2
billion cubic metres of proven gas reserves (CIA, 2024). While there islimited crude oil and natural gas production, the economy heavily relies
on energy imports.
In March 2022, Chinese Taipei proposed the policy framework for the2050 net zero emissions target. The previous greenhouse gas (GHG)
net emissions target was 50% of the 2005 level by 2050; the new andambitious GHG net emissions target is net zero by 2050. Twelve key
strategies were proposed to achieve this target, including integrating
wind, solar PV, hydrogen, innovative energy, storage, carbon capture,utilisation and storage (CCUS), energy efficiency, etc. (NDC, 2022).
In December 2022, under the 2050 net zero emissions target, Chinese
Taipei further announced the Phased Goals and Actions Toward NetZero Transition, which targeted 27-30% of renewables, 50% of gasfired and 20% coal-fired power generation by 2030. By 2050, the target

is 60-70% of renewables, 9-12% of hydrogen, and 20-27% thermal
power generation with CCUS in power generation. Chinese Taipei also
updated its NDC to enhance net emission reduction by 20% to 23-25%
against the 2005 level by 2030, with reference to the Paris Agreement
to ensure a basis to strengthen reduction ambitions and reach the net
zero emissions goal by 2050.
In addition, Chinese Taipei amended the Greenhouse Gas Reduction
and Management Act, renaming it the Climate Change Response Act inFebruary 2023. This includes a binding 2050 net zero emission target(Article 4), defined roles among governments (Article 8), a carbon fee
mechanism (Article 28), the creation of the GHG Management Fund
(Article 32), and transition action programmes (Article 46). Legislativechanges were also initiated in energy-related regulations, including
revisions to the Renewable Energy Development Act and Energy
Administration Act to facilitate energy transition.
Table 1: Chinese Taipei’s macroeconomic data and energy reserves
Key data a

Energy reserves b

Area (million km2)

0.03

Oil (million barrels)

2.4

Population (million)

23

Gas (billion cubic
metres)6.2

GDP (2017 USD billion
PPP)

1 334

Coal (million tonnes)

1

GDP per capita (2017
USD PPP)

57 062

Uranium (kilotonnes U< USD 130/kgU)--

Source: a IMF (2023); b CIA (2024)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

266

APEC ENERGY OVERVIEW 2024

Energy Supply and Consumption
Total primary energy supply
The total primary energy supply (TPES) in Chinese Taipei goes up by
3% to 4 446PJ in 2021 (Figure 1). This increase can be attributed to thesignificant rise in coal (+7.4%) and gas (+8.8%), which comprised 35%
and 22% of TPES in 2021, respectively. In addition, renewable energy
increased by 6% between 2020 and 2021, which comprised only 2% of
TPES in 2021, while oil in TPES decreased by 1.5%, continuing thedownward trend of its (34%) share of TPES in 2021, with a relatively
low compound annual growth from 2000 to 2021 (0.0%).
Figure 1: Chinese Taipei’s energy supply, production, and net imports(PJ), 2000 to 2021

continually grew by 3.3% (from the 2020 level (Figure 1).
Oil and coal account for the majority of Chinese Taipei’s energy supply,with a total of 3 056 PJ (almost 70% of TPES) in 2021. Coal is mainly
used for power generation, and the oil supply is mainly used as afeedstock for the economy’s fuel refinery. Gas supply, which is mainly
used for power generation and industrial processes, has consistently
grown for the last two decades, and increased by 8.8% to 973 PJ in
2021(Figure 2). To achieve its energy transition target, Chinese Taipei
has actively promoted renewable energy in recent years. In fact, there
is an increasing trend in renewables: renewables in TPES increased by
6% to 87.8 PJ in 2021, mainly caused by a significant rise ingeothermal (375%) and other non-hydro renewables (13.9%).
Figure 2: Chinese Taipei’s energy supply by fuel (PJ), 2000 to 2021
5 000

Total Primary Energy Supply

4 500
4 000

4 000

Net imports

3 500

3 000
2 500
2 000
1 500
1 000

Production

3 000
2 500

2 000
1 500
1 000
500

500
0
2000

3 500

0
2005

2010

2015

2020

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

4 500

TPES by fuel (PJ)

Production, net imports and TPES
(PJ)

5 000

Coal

Source: EGEDA (2023)

Chinese Taipei is heavily dependent on foreign energy supplies. In
2021, net imports accounted for more than 90% of TPES, and

Oil

Gas

Renewables

Others

Source: EGEDA (2023)

Regarding the percentage shares, compared to the aggregate APEC
267

APEC ENERGY OVERVIEW 2024

Figure 3: Energy supply mix – Chinese Taipei and APEC, 2021
100%

Other
Renewables

80%
Gas
60%
Oil

3 500
3 000
2 500
2 000
1 500
1 000
500
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

40%

Figure 4: Chinese Taipei’s final consumption by sector (PJ), 2000 to
2021
Final energy demand by sector (PJ)

TPES, the Chinese Taipei TPES contains a higher share of oil and coal
but a lower share of renewable energy than the APEC region.

20%

Coal

Industry0%

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)
Chinese Taipei

APEC

Source: EGEDA (2023)

Total final consumption
Total final consumption (non-energy included) in Chinese Taipei in
2021 was 2 980 PJ, which was 3.6% higher than the 2020 level (Figure4). The increase can be attributed to the rise in demand by the industry
and non-energy sectors in 2021. The former reached its highest
recorded point in the past 20 years, while the latter was still lower thanthe 2018 level.

The industrial sector, the largest energy-consuming sector, increasedby 7.4% in 2021, with a 36% share in TFC in 2020. It is worth notingthat the machinery sector mainly comprises of electrical and electronic
machinery. In 2021, Chinese Taipei’s transport sector slightly declined
by 5.2% to 459.2 PJ and accounted for a 15%share of TFC due to thepandemic outbreak in late April 2021.
In 2021, the share of the non-energy sector in TFC in Chinese Taipei(around 31%) remained much greater than the whole APEC economy(12%). This reflects the extensive use of petroleum products asfeedstock for the economy’s refining and petrochemical industry. In
contrast, except for the industry sector, the shares of the other sectors(transportation, buildings, agriculture, and others) were all less than the
APEC region (Figure 5).
268

APEC ENERGY OVERVIEW 2024

Figure 5: Final consumption by sector, Chinese Taipei and APEC, 2021

the industrial and residential sectors.
Figure 6: Chinese Taipei’s final energy demand by fuel (PJ), 2000 to
2021

100%

Non-energy
Agriculture &…

2 500

Final energy demand by fuel (PJ)

80%
Residential
Commercial

60%

Transport
40%

20%

Industry

2 000
1 500
1 000
500

Chinese Taipei

APEC

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0
0%

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)

Final energy demand

Source: EGEDA (2023)

Total final energy consumption (TFEC) (non-energy excluded) in
Chinese Taipei in 2021 was 2 063 PJ, slightly higher than the 2020
level. Increases were in coal, gas, and electricity and others, where oiland renewable both declined (Figure 6).

Note: Does not include non-energy sector consumption of energy products.

From 2010 to 2021, the compound annual growth rate (CAGR) of
TFEC was 0.6%. Although the CAGR of coal (-1.3%), oil (-1.6%) andrenewables (-2.8%) were all negative, these falls were offset by the
positive CAGR of gas (6.9%) and electricity (1.8%). The strong growthtrend in gas was mainly due to contributions from the industrial sector,
while the moderate growth trend in electricity and others resulted fromIn 2021, electricity and others accounted for half of TFEC (50%) in
Chinese Taipei, greater than most APEC economies except for Hong
Kong, China. The relatively high share of electricity and others in TFEC
was mainly due to the higher electrification rate of the industry andbuilding sectors, especially in regard to electrical and electronic
machinery. The share of oil in TFEC was 30%, which was slightly lessthan the whole APEC economy. The share of oil in TFEC was mainly
driven by the transport sector, and it is expected to decrease with therise of electric vehicle (EV) adoption (Figure 7).

269

APEC ENERGY OVERVIEW 2024

Figure 7: Final energy demand fuel share, Chinese Taipei and APEC,
2021

Renewables

3.6%), oil (-6.4%), and hydro (-0.8%) was negative, while electricity
generated by renewables (5.7%), gas (5.5%), and coal (0.5%) was
positive. It is worth noting that nuclear power dropped by 12% in 2021,
reflecting the decommissioning of Chinese Taipei’s current nuclear
power plant. According to the CAGR of electricity generation, Chinese
Taipei has transitioned to more gas and renewables and reduced theamount of electricity generated by oil and nuclear during the past
decade.

Gas

Figure 8: Chinese Taipei’s electricity generation by fuel, 2000 to 2021

100%
Electricity andothers

80%

60%

40%

Oil
20%
Coal
0%
Chinese Taipei

APEC

Source: EGEDA (2023)

Transformation

Electricity generation (TWh)

350
300
250
200
150
100
50

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Power sector
Chinese Taipei’s electricity generation was 291 TWh in 2021, 3.9%
higher than in 2020 (Figure 8). The electricity generation mix in
Chinese Taipei was dominated by fossil fuel power plants (coal, gas
and oil), with a share of more than 83% in 2021. Among fossil fuelpower plants, coal accounted for the largest share, accounting for 44%
of electricity generation, followed by gas (37%) and then oil (2%) in
2021.
From 2010 to 2021, the CAGR of the electricity generated by nuclear (-

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

In 2021, coal constituted nearly half of Chinese Taipei's electricity
generation, mirroring the broader APEC economy trend (Figure 9).
Notably, the share of gas-fired electricity generation in Chinese Taipei
was much higher than the overall APEC economy. This percentage isanticipated to rise further, aligning with Chinese Taipei's ambitious
270

APEC ENERGY OVERVIEW 2024

energy transition policy, where gas-fired generators are considered a
viable option for reducing GHG emissions compared to coal-fired
generation.
Figure 9: Electricity generation fuel share, Chinese Taipei and APEC,
2021
100%

OthersOther renewables
Geothermal
Nuclear80%

140 kb/day. CPC Dalian Refinery and FPCC Mailiao Refinery are highly
integrated with petrochemical production.
However, due to China's cancellation of the Cross-Straits ECFA
(Economic Cooperation Framework Agreement) tariff preferences on
petrochemical products, the short-term refining market in Chinese
Taipei is expected to be sluggish. With the massive adoption of EVs forthe coming decades – based on the net zero policy – Chinese Taipei’s
refineries may respond by developing high-quality petrochemical
production lines.

Hydro
60%

Energy Transition

Gas
Oil

40%

Coal

20%
0%
Chinese Taipei

APEC

Source: EGEDA (2023)

Refinery
The refining market in Chinese Taipei is an oligopoly dominated by twocompanies, CPC and FPCC (Formosa Petrochemical Corp. Company).
CPC is a public-owned enterprise primarily focused on gasoline anddiesel production, mainly for meeting domestic oil demands. FPCC, on
the other hand, specialises in producing petrochemical products, with
an emphasis on exporting petrochemical products, gasoline and diesel.
Currently, three refineries are operating in Chinese Taipei: CPC
Taoyuan Refinery (200 kb/day), CPC Dalian Refinery(400 kb/day), and
FPCC Mailiao Refinery(540 kb/day); total capacity currently reaches 1

To stabilise the power supply, improve air quality, and create a nuclearfree homeland, Chinese Taipei aims to achieve 60-70% renewables,
20-27% thermal power with CCUS, 9-12% hydrogen, and 1% others in
its power mix by 2050. All of the economy’s the nuclear power plants
are also expected to be decommissioned by 2025. In addition, the GHG
emission reduction goal was initially set to be 24±1% lower than the2005 level by 2030 and reach the net zero emissions goal by 2050,
which is committed legally in the Climate Change Response Act.
Emissions
The CO2 combustion emissions in Chinese Taipei have decreased
since 2017. However, in 2021, the rebound emissions were 266 million
tonnes of CO2, around 3.9% higher than the 2020 level (Figure 10). In
addition, the emissions level has exceeded 250 million tonnes of CO2
since 2010, 7% higher than the 2005 level. At the current reduction
speed, it seems challenging to achieve the net zero GHG emission goalby 2050.

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APEC Energy Goals

Figure 10: Chinese Taipei’s CO2 combustion emissions (million
tonnes), 2000 to 2021

There are two energy-related objectives that APEC member economies
have agreed to meet as a collective – to improve energy intensity andto double the share of modern renewables.

300

CO2 combustion
emissions

200

Energy intensity goal
In 2011, APEC member economies agreed to increase their target to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was to improve by 25% by 2030, relative to the 2005
baseline. APEC is on track to achieve this energy intensity
improvement. The goal does not impose individual economy targets,
but it is possible to track the progress of individual APEC economies
relative to the overarching proportional improvement.

150
100
50

0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
Promoting energy transition in Chinese Taipei is driven by the goal ofenhancing energy security. The strategic approach involves maximising
renewable energy utilisation over the coming decades, coupled with
substantial investments in grid infrastructure, demand flexibility, andelectric energy storage. This is aimed at reducing dependency on
imported energy and ensuring stability in the energy supply.
Additionally, as part of the energy transition plan, there is an increased
focus on natural gas usage. Existing LNG terminals are being
expanded, with five additional LNG terminals currently underconstruction or in the planning stage. Diversifying LNG import sourcesand establishing long-term LNG contracts are also seen as measures
to bolster energy security and address potential energy crises.

Figure 11: Chinese Taipei’s total final energy consumption intensity
index, 2000 to 2021 (2005 = 100)
120

Energy intensity index (2005 = 100)Million tonnes CO2

250

Total final energy consumption energy intensity

100
80
60

APEC-wide goal 2035

40

20
0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)
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APEC ENERGY OVERVIEW 2024

In 2021, the final energy intensity of Chinese Taipei’s TFEC improvedby 39%, compared with the 2005 level (Figure 11). A similar energy
intensity trend is also seen in energy intensity based on TPES and
TFC.
Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to meeting the
doubling goal.
Figure 12: Chinese Taipei’s modern renewable energy share, 2010 and
2021
4.0%

Change from2010 to 2021

Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

Chinese Taipei’s share of modern renewables in TFEC was 2.6% in
2010. It increased to 3.6% in 2021, representing a 39% improvementfrom 2010 to 2021 (Figure 12). The APEC-wide doubling goal will
require the share of APEC’s modern renewables to reach 12% by
2030.
The electricity generation of renewable energy increased slightly by
14.8% in 2021, and its share also went up from 6.0% to 6.5% in
Chinese Taipei in 2021 (Figure 13). Notably, geothermal generation
has had a significant surge – more than triple in 2021 compared to2020.
Figure 13: Chinese Taipei’s renewable generation share, 2000 to 2021

3.5%

7%

3.0%

Renewables share in electricity mix

6%

2.5%

5%

Proportion

2.0%
1.5%
1.0%

4%
3%
2%

0.5%

1%

0.0%
2010
Source: EGEDA (2023)

Change

2021

0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)
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APEC ENERGY OVERVIEW 2024

The share of renewables in electricity generation was relatively stablein the 2000s, but has been slowly growing over the past decade since
the adoption of the feed-in tariff (FiT) mechanism in 2010. It is expectedthat the share of renewable generation can further grow as Chinese
Taipei aims to expand its share to 60-70% by 2050 (NDC, 2022).

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Energy Policy
Energy policy

Energy Transition Promotion
SchemeEnergy Transition White Paper

Energy Transition White Paper –Progress Report 2022

Details
To achieve a target of 20% renewable power generation by 2025, the goal for photovoltaic (PV)energy has been set at 20 GW, while offshore wind power is expected to reach 5.6 GW by
2025.
To increase the share of natural gas in power generation to 50% by 2025, the plan involves
converting coal-fired generators to gas-fired ones.
There will be no construction of new coal-fired power generators before 2025 to reduce relianceon coal-generated electricity.
There are no plans to extend the service span of existing nuclear power plants, and the fourth
nuclear power plant will not be restarted.
To reflect the demand and expectation of stakeholders, MOEA has released the official energy
transition policy document, outlining several significant targets, policies and plans:

Reference

Ministry of Economic
Affairs [MOEA] (2019)• Achieving a 20% renewable power generation target by 2025, with specific renewable power
capacity targets identified for various technologies like solar, wind, geothermal power,
among others.
• Decreasing the average annual energy intensity and electricity intensity by 2.4% and 2%
respectively from 2017 to 2025.
• Focusing on the development of electrical energy storage and the smart grid infrastructure.

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2020)

According to the Energy Transition White Paper's plan, the Energy Administration is tasked withproposing a progress report annually and a comprehensive review report every five years. As ofnow, progress reports have been issued twice, in 2021 and 2022.

Energy Administration,
Ministry of Economic
Affairs[MOEA] (2022)

On 15 February 2023, the President announced the amendment renaming the Greenhouse Gas
Management Act to the Climate Change Response Act. Key revisions include:

Climate Change Response Act• Setting a legally binding long-term goal of achieving net zero greenhouse gas emissions by
2050.
• Incorporating discussions on a just transition into policy dialogues to improve information
disclosure and public involvement.
• Introducing a carbon fee mechanism targeting significant greenhouse gas emitters andestablishing a dedicated fund to incentivise investments in low-carbon fuels, negativeemission technologies, energy efficiency and renewable energy.
• Establishing a distinct chapter dedicated to climate change adaptation, emphasising
capacity building, science-driven assessments, and the formation of a governance

Ministry of Environment[MOE] (2023)

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APEC ENERGY OVERVIEW 2024

Energy policy

Details

Referenceframework.

Update of NDC

Regulations for Periodic Regulatory
Goals and Approaches of theGreenhouse Gas Emissions

Pathway to Net-Zero Emissions in
2050

Chinese Taipei’s NDC is based on its 2015 INDC, which set a target to reduce net emissions by
20% against the reference year (2005) by 2030. The updated NDC aims to enhance thereduction target further to 23-25% by 2030, with reference to Article 3 of the Paris Agreement(common but differentiated responsibilities) to ensure a basis to strengthen reduction ambitions
and endeavour to reach the net zero emission goal by 2050.
In accordance with Article 10 of the Climate Change Response Act (formerly known as theGreenhouse Gas Reduction and Management Act), the GHG regulatory objectives are set on a
five-year cycle, encompassing periods from 2016 to 2020, 2021 to 2025, and 2026 to 2030.
Each sector is required to devise action plans and submit annual progress reports. The GHG
regulatory goals should encompass the following elements:• Economy-wide periodic regulatory objectives.
• Periodic regulatory goals for sectors including energy, industry, building, transportation,
agriculture, and the environment.
• Periodic targets for electricity carbon emission factors.
• The latest annual progress report was released in September 2022.
• The third phase of regulatory objectives will be released by 2024.
In March 2022, Chinese Taipei officially introduced the Pathway to Net-Zero Emissions in 2050,
outlining the action steps to achieve the 2050 net zero emissions. Key points from the pathway
include:• Establishment of four major transition strategies: energy transition, industrial transition,
lifestyle transition, and social (just) transition.
• Setting a target for achieving net zero emissions by 2050.
• Aiming for a net zero power generation mix by 2050, 60-70% renewable power generation,
9-12% hydrogen power generation, and 20-27% thermal power generation with CCUS by
2050.
• Allocating nearly NTD 900 billion (approximately USD 29 billion) by 2030 for major plans
related to the 2050 net zero transition.
• Initiating updates to climate-related laws and regulations, including the Climate Change Act,
the Energy Administration Act, the Electricity Act, the Renewable Energy Development Act,and so on.

Climate Change
Administration, Ministryof Environment [MOE](2023)

Climate Change
Administration, Ministryof Environment [MOE](2022)NDC (2022)

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Energy policy

Details

Reference

In December 2022, Chinese Taipei released a set of supplementary policy documents outlining
the roadmap for achieving the Pathway to Net-Zero Emissions in 2050. Significant points fromthese documents include:

Phased Goals and Actions Toward
Net Zero Transition

Energy Administration Act(Branches Regulations revision)

Hydrogen Fuel as an Energy
Source in Law• Strengthening the target to achieve a net emission reduction of 24±1% compared to thereference year (2005) by 2030, aligning with the objectives outlined in the COP26 Glasgow
Climate Pact.
• Introducing 12 key strategies for the 2050 net zero transition, encompassing areas such as
wind and solar energy, hydrogen technologies, innovation in energy, power systems, andenergy storage, energy efficiency and conservation, CCUS, carbon-free and EVs, resource
recycling and zero waste management, carbon sinks, promoting green lifestyles, green
finance, and ensuring a just transition for affected communities.
According to Paragraph 2, Article 12 of the Energy Administration Act, energy users whose
consumption meets the criteria set by the central Competent Authority are required to submit
their energy consumption data to said authority. The regulations titled Categories, Quantities,
Items, Efficiency, Period, and Methods for the Submission of Energy Consumption Which Shall
Be Reported by the Energy Users under the Energy Administration Act underwent revisions in
2021 and 2023. These revisions encompass:• Mandatory annual reporting of the 12-month operational energy performance indicators for
HVAC and compressed air systems, such as kW/RT for HVAC and kW/CMM forcompressed air systems (only for the energy users whose HVAC system capacity reaches 1
000 RT and over, compressed air system power reaches 500 HP and more).
• Energy users engaged in electricity trading are permitted to report their energy savings tofulfil the legally mandated 1% measured electricity savings requirement.
• Energy users operating data centres are required to report the environmental temperature
settings and indicate whether they have installed submetering systems for Power Usage
Effectiveness (PUE) measurement.
In July 2023, Chinese Taipei enacted a revision to broaden the legal definition of energy,
officially designating hydrogen fuel as an energy source within the framework of Article 2,
Paragraph 6 of the Energy Administration Act. This revision serves as an interim measure,
explicitly authorising the governance scope of designated energy products as a regulatory
foundation until specific legislation solely focused on hydrogen is established.

NDC (2022)

Ministry of Economic
Affairs [MOEA](2023)

Ministry of Economic
Affairs [MOEA] (2023)

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APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

In May 2023, Chinese Taipei made significant revisions to the Renewable Energy Development
Act, the primary legislation governing renewable energy initiatives. Key changes include:
Renewable Energy Development
Act (Act Revision)• Mandating that new, expanded, or renovated buildings install solar PV power generation
systems of specific capacity.
• Implementing explicit administrative protocols for the development of geothermal energy
resources.
• Eliminating restrictions related to territorial sea areas, returning to more precise technicaldefinitions in the legislation.

Ministry of Economic
Affairs [MOEA] (2022)

Commodity Tax Act(Act Revision)

In June 2023, the Chinese Taipei made amendments to Article 11-1 of The Commodity Tax Act.
The revised article specifies that from 15 June 2023, to 14 June 2025, individuals purchasing
new refrigerators, air conditioners (cooling/heating), or dehumidifiers (hereinafter referred to asenergy-efficient appliances) certified by the Ministry of Economic Affairs as level 1 or level 2 inenergy efficiency grading, and not intended for resale, exchange, or return, will be eligible for a
maximum tax reduction of NTD 2 000 (USD 64) per unit on the Commodity Tax.

Ministry of Finance[MOF] (2023)

Parking Facility Act(Act Revision)

In November 2022, Chinese Taipei introduced amendments to Article 27-1 of The Parking
Facility Act. The updated article mandates that public parking facilities must be furnished withdesignated spaces and charging infrastructure for EVs.

Ministry ofTransportation andCommunications [MOTC](2022)

2022 Long-term Power
Development Plan

Subsidies for Energy-Efficient
Residential Gas Appliances

In June 2023, based on the requirement of Article 91 of the Electricity Act, Chinese Taipei
released the 2022 Long-term Power Development Plan report, which reveals the electricity
consumption projection trend from 2023 to 2029 and the power generator planning to 2029. The
key information includes:• Electricity consumption growth rate will reach 2.03% on average between 2023 and 2029.
• The ratio of renewable energy in power generation will reach 15.5% in 2025 and 20% in
October 2026 to fulfil the energy transition target.
In December 2023, Chinese Taipei announced Subsidies for Energy-Efficient Residential Gas
Appliances to allocate a budget of NTD 400 million (approximately USD 128 500) in 2024. This
project aims to encourage households to replace old gas stoves and purchase gas stoves andwater heaters with level 1 or level 2 energy efficiency ratings. It is expected to subsidise around
230 000 energy-saving products. The maximum subsidy amount per unit is set at NTD 3 000(around USD 96), with a limit of one gas stove and one water heater per household for
application.

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2022)

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2023)

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APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Energy-Efficient Subsidies for
Residential Appliance Replacement

In December 2022, Chinese Taipei introduced the Energy-Efficient Subsidies for Residential
Appliance Replacement, earmarking a budget of NTD 8 billion (approximately USD 257 million)
from 2023 to 2026. The initiative seeks to incentivise households to replace outdated airconditioners and refrigerators with new units with Level 1 energy efficiency ratings. The
maximum subsidy per unit is capped at NTD 3 000 (USD 96), with each household eligible toapply for one air-conditioner and one refrigerator under this programme.

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2023)

Demand Response LoadManagement Program 2024
UpdateIn January 2024, Taipower updated the Demand Response Load Management Program, which
encompasses planned demand response, emergency demand response, demand bidding,
direct load control (exclusive to schools), and demand response by electrical energy storage(limited to regulated users under the Renewable Development Energy Act).

Taipower (2024)

Subsidies for Installation of
Stationary Fuel Cell Power
Generation System

In January 2022, Chinese Taipei introduced Subsidies for Installation of Stationary Fuel Cell
Power Generation System to pilot the distributed generation application for the commercial
planning of the decentralised power generation system. These grants restrict installations to a
rated capacity of 1 kW or more, but not exceeding 500 kW. The maximum subsidy for systeminstallation is set at NTD 70 000 (around USD 2 240) per kW.

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2022)

2023 Feed-in Tariffs of Renewable
Energy Electric Power

Since 2010, Chinese Taipei has been introducing the feed-in tariffs (FiT) mechanism to promoterenewable energy and updated the FiT rate on an annual basis by holding the hearing andreview board to confirm the parameters. The FiT encompasses several renewable energy
technologies, including solar PV, wind, biomass, waste, small hydropower, geothermal andmarine. The auction system has only been introduced in solar PV.

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2023)

Regulations Governing Approval for
Hydrogen Fuel Sales Operation at
Hydrogen Refueling Stations

In November 2023, Chinese Taipei announced the Regulations Governing Approval for
Hydrogen Fuel Sales Operation at Hydrogen Refueling Stations to regulate the supply facilities
for hydrogen transport based on the Energy Administration Act.

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2023)

Motor-Driven and Public Utility
Equipment Subsidy Program

Since 2016, through an annual revision, Chinese Taipei has been offering grants for the
replacement of motor-driven and public utility equipment in industrial sites and institutions,
including hospitals and medical institutes. This grant specifically covers air compressors(3.75~200 kW), fans (0.75~200 kW), and pumps (0.75~200 kW). The subsidy for equipment
installation ranges from NTD 700 to 5 000 (approximately USD 22 to 160) per kW. For small
and medium-sized enterprises, this grant offers an additional 20% subsidy for each piece ofequipment.

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2023)

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APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Equipment Energy Efficiency
Regulation Update

Chinese Taipei implemented minimum energy performance standards (MEPS) in 2000 andenergy labelling in 2009 to regulate the energy performance of equipment and home appliancesin the sales market, aiming to guide consumers towards more energy-efficient choices. Chinese
Taipei introduced the MEPS for ventilators in July 2023 (effective from July 2024) and updated
the MEPS and energy labelling for dehumidifiers in November 2023 (effective from January2026).

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2023)

Subsidy of Wasted-heat andWasted-cold Recycling Application
and Demonstration Program

Subsidy of EPC (Energy
Performance Contracting) Project

Since 2012, as part of a periodic revision, Chinese Taipei has provided grants for wasted-heatand waste-cold recycling technologies. The initiative is directed towards energy users with
contracted capacities exceeding 100 kW. The subsidy covers one-third of the project budget,with a maximum subsidy of NTD 5 million (approximately USD 160 000) per project. Three
weeks of measurements for testing, adjusting, and balancing (TAB) are required.
Since 2010, through an annual revision, Chinese Taipei has been providing grants for energy
performance contracting in factories, medical institutes, government institutions and schools.
This initiative targets energy users with contracted capacities exceeding 100 kW or a cumulative
contracted capacity within the same organisation exceeding 500 kW. The subsidy covers 20%of the project budget, with a maximum subsidy of NTD 5 million (approximately USD 160 000)
per project. Achieving a minimum energy-saving rate of 10% for each project is a mandatory
requirement. Additionally, for small and medium-sized enterprises and specific projects, thisgrant offers an additional 10% subsidy for each project.

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2023)

Energy Administration,
Ministry of Economic
Affairs [MOEA] (2023)

Subsidy for System Energy Saving
Project of the Commercial Service
Industry

In March 2023, Chinese Taipei initiated a subsidy programme for system energy performance
contracting in commercial buildings. This programme is designed for energy users with
contracted capacities exceeding 100 kW. The subsidy amounts to one-third of the projectbudget, with a maximum subsidy of NTD 5 million (approximately USD 160 000) per project.
Achieving a minimum energy-saving rate of 10% for each project is a mandatory requirement.

Administration ofCommerce, Ministry of
Economic Affairs [MOEA](2023)

Subsidy for Energy Saving
Equipment Replacement of theCommercial Service Industry

In March 2023, Chinese Taipei launched a subsidy programme aimed at replacing old air
conditioners and lighting fixtures with new units that have Level 1 energy efficiency ratings or
LED lighting. The maximum subsidy for each air conditioner is NTD 2 500 per kW (refrigerationton), with an overall maximum subsidy of NTD 35 000. For lighting, the subsidy covers 50% of
the lighting purchase amount, with a maximum subsidy of NTD 500 per unit.

Administration ofCommerce, Ministry of
Economic Affairs [MOEA](2023)

Taipower 2024 SavePower

Since 2010, the Taipower SavePower programme is primarily designed to encourage the public
to save energy. As long as users' electricity consumption for the current period is lower than thesame period last year, they are eligible to receive a reward of NTD 0.6 per kWh. The incentives
primarily target residential electricity users, and the reward amount is directly applied as arebate on the monthly electricity bill for the corresponding month.

Taipower (2023)

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APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

Manual of Low Embodied-carbon
Building Rating System

In accordance with the international standard for whole-life carbon footprint assessment,
EN15978, Chinese Taipei has developed a manual for the assessment of low-embodied carbon
buildings in June 2023. This methodology is designed to align with the Green Building
Certification and the Building Energy Efficiency Rating System, thereby implementing acomprehensive low-carbon building assessment system.

Architecture andBuilding ResearchInstitute, Ministry of theInterior [MOI] (2023)

Green Building Evaluation Manual(2024 update) and Building Energy
Efficiency Rating System (2024
update)In December 2023, Chinese Taipei introduced the Expert Building Energy-efficiency Rating
System for Existing Buildings (E-BERSe) to streamline the refurbishment of non-residentialbuildings. The assessment covers various aspects, including the building envelope, airconditioning, lighting, elevator, and renewable energy.

Architecture andBuilding ResearchInstitute, Ministry of theInterior [MOI] (2023)

Management Measures forGreenhouse Gas Emission
Reduction Quota Trading, Auction,
and Transfer (drafted revision)

In December 2023, Chinese Taipei released the draft version of Management Measures forGreenhouse Gas Emission Reduction Quota Trading, Auction, and Transfer to establish thedomestic carbon market by adopting the carbon pricing (carbon fee) scheme.

Ministry of Environment[MOE] (2023)

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APEC ENERGY OVERVIEW 2024

Notable Energy Developments
Energy development

Details

Reference

Carbon Pricing Policy Planning

In 2024, Chinese Taipei implemented a carbon pricing scheme. Entities subject to carbon fee
collection include those in the power and manufacturing industries with annual emissions
reaching 25 000 tonnes of CO2 equivalent. The carbon fee rate will be discussed and determinedin the first quarter of 2024, following submission to the review committee. Entities thatsuccessfully implement self-initiated reduction plans may apply for preferential rates.

Ministry of Environment[MOE] (2023)

On 16 May 2023, the Legislative Yuan passed the Act of the Organization of the Energy
Administration (EA) in its Third Reading, and the President promulgated the implementation of
the Act on 7 June of the same year. Following the decree of the Executive Yuan on 26
September, 2023, the EA was officially established, the predecessor of the Bureau of Energy.
Energy Administration Policy
ReformEnvironment Protection Policy
Authority Reform

Electricity Wholesale and Retail
Price Review

One Director General, two Deputy Director Generals, and one Secretary-General lead the EA.
The organisational structure of the EA includes six divisions: Energy Policy and Climate Change
Division, Petroleum and Gas Development and Management Division, Electricity Development
and Management Division, Energy Conservation Development and Management Division,
Renewable and Prospective Energy Development Division, and Renewable Energy Facilities
Promotion Division.
On 9 May 2023, the Legislative Yuan passed the Act of the Organization of the Ministry ofEnvironment (MOE) in its Third Reading. Following the decree of the Executive Yuan on 22
August 2023, the MOE was officially established, the predecessor of Environment Protection
Administration (EPA).
Governments regulate electricity prices in Chinese Taipei. Based on Article 49, Article 9, andArticle 10 of the Electricity Act, MOEA established a committee to review electricity prices andrelated tariff for electricity system operations. The committee conducts biannual reviews ofelectricity prices in March and September and provides recommendations to MOEA.
On 17 March 2023, Chinese Taipei implemented an average 11% increase in electricity prices
due to the rising cost of imported fuel.
On 19 September 2023, Chinese Taipei decided not to adjust electricity prices but cancelled themechanism that froze electricity prices for specific service industries during the pandemic.

Energy Administration,
Ministry of Economic
Affairs [MOEA](2023)

Ministry of Environment[MOE] (2023)

Energy Administration,
Ministry of Economic
Affairs [MOEA](2023)

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APEC ENERGY OVERVIEW 2024

Energy development

Details

Reference

Electricity Transmission andDistribution Tariffs Review

On 29 November 2023, Chinese Taipei adjusted electricity rates. The power dispatch andtransferred distribution fees increased due to higher fuel prices and infrastructure upgrades.
Meanwhile, auxiliary service and transferred transmission fees decreased, influenced by private
resource participation, reducing purchase prices through competitive bidding, including energy
storage and self-generated power devices.

Energy Administration,
Ministry of Economic
Affairs [MOEA](2023)

Kuosheng Nuclear Power Plant
Decommissioned

Chinese Taipei maintains its nuclear-free policy to 2025, with no life extensions or new nuclear
plant construction since 2017.
• Chinshan (No.1) Nuclear Power Plant decommissioned in July 2019.
• Kuosheng (No.2) Nuclear Power Plant decommissioned in March 2023.
• The last two reactors in Maanshan (No.3) nuclear power plant will shut down in July 2024
and May 2025.

Taipower (2023)

LNG Terminal 4 Infrastructure Plan

On 11 November 2023, the Mayor of Keelung City expressed concerns about the potential
security risk related to the development of the LNG Terminal 4 and the conversion of the HsiehHo oil power plant to a gas power plant in Keelung port. In response, the Keelung City
Government decided to retract its agreement on the LNG Terminal 4 plan, originally set to be
operational by 2029, with a projected supply capacity of 0.9 million tonnes per annum (mtpa).

Energy Administration,
Ministry of Economic
Affairs [MOEA](2023)

Solar PV Development in 2023

By November 2023, the additional capacity of solar PV power capacity reached a record of 2.28
GW, and the cumulative capacity of solar PV was 12 GW, which was far behind the 2025 targetof 20GW.

Energy Administration,
Ministry of Economic
Affairs [MOEA](2023)

Wind Development in 2023

By November 2023, the additional capacity of wind power capacity reached a record of 1.08 GW,
and the cumulative capacity of wind power was 2.6 GW, which was far behind the 2025 target of
5.6 GW.

Energy Administration,
Ministry of Economic
Affairs [MOEA](2023)

Geothermal Power Generation
Development 2023

Hydrogen Development in 2023

Chinese Taipei's current geothermal development capacity amounts to 61.75 MW, including
Taipower’s Renze Geothermal Power Plant, with 7.29 MW that has already been connected to
the grid, which officially opened on 24 October 2023. Additionally, CPC’s 4 MW Yilan Tuchanggeothermal project is expected to join the grid next year, with a target of achieving a cumulative
capacity of 20 MW by 2025.
On 14 November 2023, Taipower and Academia Sinica announced an achievement in methane
pyrolysis, aiming for a hydrogen blending power generation demonstration. Taipower stated thatthe methane pyrolysis hydrogen technology, developed by Academia Sinica, was integrated with
Chinese Taipei’s first domestic 65 kW hydrogen-blended micro gas turbine power generation
system. In September 2023, they successfully operated the power generation system with a 10%hydrogen blend.

Taipower (2023)

Taipower (2023)

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Energy development

Details

Reference

Hydrogen Energy Development
Roadmap

The government-sponsored Industrial Technology Research Institute (ITRI) has unveiled atechnological development plan for the application of hydrogen energy in Chinese Taipei.

Industrial Technology
Research Institute [ITRI](2022)The Third Pumped Hydro Power
Plan

Chinese Taipei is planning to implement two new pumped-hydro power development projects,
namely Shihmen (43.6 MW, two generators) and Guangming (368 MW, two generators). The
aim is to have these projects operational by 2024.

Taipower (2023)

Electric Energy Storage
Development in 2023

Taipower has installed a 20 MW electric energy storage system in Tainan, consisting of eight 20foot storage containers equipped with over 1 000 lithium battery modules. The total storage
capacity reaches 20 000 kilowatt-hours, equivalent to providing one hour of electricity for 40 000
households. Officially inaugurated on 6 January 2023, it not only marks the first integrated solar
and storage system in Chinese Taipei but also stands as the largest electric energy storage
system in Chinese Taipei.

Taipower (2023)

Useful links
NDC – https://www.ndc.gov.tw/en/Default.aspx.
MOE (Ministry of Environment) – https://www.moenv.gov.tw/
MOE Climate Change Talks platform – https://www.climatetalks.tw/
MOEA (Ministry of Economy Affairs) – https://www.moea.gov.tw/Mns/english/home/English.aspx.
EA (Energy Administration), MOEA – https://www.moeaea.gov.tw/ECW/english/home/English.aspx
Energy Statistics Information System – https://www.esist.org.tw/
MOI (Ministry of the Interior) – https://www.moi.gov.tw/english/
Architecture and Building Research Institute, MOI – https://www.abri.gov.tw/en/Default.aspx
MOTE (Ministry of Transportation and Communication) – https://www.motc.gov.tw/ch/index
Taipower – https://www.taipower.com.tw/en/index.aspx284

APEC ENERGY OVERVIEW 2024

CPC – https://www.cpc.com.tw/en/
Formosa Plastics Group – https://fpg.com.tw/tw
Renewable Energy Certification Centre (T-REC) – https://www.trec.org.tw/https://www.trec.org.tw/
Feed-in tariffs (FIT) review – https://www.moeaea.gov.tw/ECW/RENEWABLE/news/News.aspx?kind=1&menu_id=767
Electricity Price and related tariff review – https://www3.moeaea.gov.tw/ele102/Content/Messagess/contents.aspx?MmmID=654246034150461022
Minimum Energy Performance Standards (MPES) website – https://www.meps.org.tw/
Energy labelling website – https://www.energylabel.org.tw/
Manufacturing energy audit reporting system – https://emis.itri.org.tw/energyaudit/
Non-manufacturing energy audit reporting system – https://energynet.tgpf.org.tw/
Government institute, K-12 and university energy audit reporting system – https://egov8.ftis.org.tw/home

References
Architecture and Building Research Institute, MOI (2023a). Manual of Low Embodied-carbon Building Rating System,
https://www.abri.gov.tw/cp.aspx?n=19066
Architecture and Building Research Institute, MOI (2023b). Green Building Evaluation Manual (2024 update) and Building Energy efficiency Rating
System (2024 update), https://www.abri.gov.tw/News_Content.aspx?n=745&sms=9451&s=312073
CIA (Central Intelligent Agency) (2024). The World Factbook, https://www.cia.gov/the-world-factbook/countries/taiwan/#energy.
Energy Administration, MOEA (2020). Energy Transition White Paper, https://energywhitepaper.tw/#/EGEDA (Expert Group on Energy Data Analysis, APEC Energy Working Group) (2023), APEC Energy Database.
https://www.egeda.ewg.apec.org/egeda/database_info/index.html
IMF (International Monetary Fund) (2022). World Economic Outlook Database, https://www.imf.org/en/Publications/WEO/weodatabase/2022/April/download-entire-database
MOE (2023) Carbon Pricing Policy Planning, https://enews.moenv.gov.tw/Page/3B3C62C78849F32F/b74f4410-0323-4841-9a11-3b5187330a41
MOE (2023). Climate Change Response Act, https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=O0020098
285

APEC ENERGY OVERVIEW 2024

MOE (2023). Update of NDC, https://www.english-climatetalks.tw/publications
MOE (2022). Regulations for Periodic Regulatory Goals and Approaches of the Greenhouse Gas Emissions,
https://www.climatetalks.tw/%E5%9C%8B%E9%9A%9B%E8%B3%87%E8%A8%8A
MOEA (2023). Hydrogen fuel as an energy source in law, https://www.moeaea.gov.tw/ECW/populace/Law/Content.aspx?menu_id=24187
MOEA (2023). Renewable Energy Development Act (revised), https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=J0130032
MOEA (2023). Long-term Power Development Plan,
https://www.moea.gov.tw/MNS/populace/news/News.aspx?kind=1&menu_id=40&news_id=110312
MOEA (2019). Energy Transition Promotion Scheme, https://www.moea.gov.tw/MNS/english/Policy/Policy.aspx?menu_id=32904&policy_id=19.
NDC (2022). Pathway to Net-Zero Emissions in 2050,
https://www.ndc.gov.tw/en/Content_List.aspx?n=B927D0EDB57A7A3A&upn=A2B386E427ED5689.
NDC (2022). Phased Goals and Actions Toward Net-Zero Transition (12 Key Strategies Action Plan),
https://www.ndc.gov.tw/Content_List.aspx?n=6BA5CC3D71A1BF6F.

286

APEC ENERGY OVERVIEW 2024

ThailandIntroduction
Thailand has undergone remarkable economic development andurbanisation in recent decades, as quoted by the World Bank (2023).
Thailand has an area of 513 120 square kilometres (km2) and had apopulation of 71.6 million in 2021. In 2021, its gross domestic product(GDP) increased to approximately USD 1 220 billion, a 1.5% increase
compared to the previous year. The increase was due to improved
demand for goods and services both domestically and internationally,
coupled with the easing of COVID-19 control measures. This includes
the reopening to foreign tourists and measures implemented tostimulate the economy. Thailand is not only a sought-after tourist
destination but is also a crucial economic hub within the Southeast Asia
region. With a commitment to sustainable development and a focus onenergy security, Thailand has been actively shaping its energy
landscape to balance economic growth with environmental
considerations.
Thailand faces constraint in its domestic energy resources. The
production of domestic resources, primarily gas extracted from the Gulfof Thailand, continued to decline beyond the levels observed in 2020.
As of the end of 2021, Thailand possessed proven reserves amounting
to 95 million barrels of crude oil, 86 million barrels of condensate, and 3
445 billion cubic feet of natural gas (EPPO, 2022). Additionally, there
were approximately 1.1 billion tonnes of coal reserves at the close of2020 (EI, 2023). At the current production rates, the domestic supply ofoil and natural gas is expected to be depleted within approximately

three years. However, when considering probable and possible
reserves, crude oil, condensate, and natural gas are projected to beavailable for use for 7, 12, and 9 years, respectively.
Thailand is highly dependent on energy imports, with approximately
90% of its crude oil and 30% of its gas supply coming from imports in
2021. Moreover, given that most of Thailand's proven coal reservesconsist of low-calorific-value lignite coal, the economy depends onimported bituminous coal to fulfil the energy requirements of both thepower and industrial sectors.
Table 1: Thailand macroeconomic data and energy reserves
Key data a
Area (km2)

Energy reserves b, c
513 120

Oil (million barrels)

181

Population (million)

71.6

Gas (billion cubic feet)

3 445

GDP (2017 USD billion
PPP)

1 224

Coal (million tonnes)

1 063

GDP per capita (2017
USD PPP)

17 087

Uranium (kilotonnes U< USD 130/kgU)n/a

Source: a World Bank (2023); b EPPO (2022); c EI (2023)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.

Energy Supply and Consumption
Total primary energy supply
In 2021, Thailand experienced a notable 5.5% reduction in its total
primary energy (TPES), amounting to 5 100 PJ. This marked the third287

APEC ENERGY OVERVIEW 2024

consecutive year of decline, primarily influenced by pre-economic
recovery from the COVID-19 pandemic. The reduction in production,
attributed to depleting reserves since 2015, was further intensified inrecent years. Concurrently, there was a noticeable rise in net imports,
with 2020 witnessing a surpassing of net imports over domestic
production (Figure 1).
Figure 1: Thailand energy supply, production, and net imports (PJ),
2000 to 2021

6 000

Figure 2: Thailand energy supply by fuel (PJ), 2000 to 2021
Total Primary Energy Supply

7 000

5 000

6 000

4 000

TPES by fuel (PJ)

Production
3 000
2 000

Net imports

1 000
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Fossil fuels play a dominant role in Thailand’s energy supply mix, withoil and gas contributing to over two-thirds of TPES (Figure 2). While all
fuels observed a decline, gas maintained a stable supply. Renewables
showed the highest percentage decline year-on-year at -20%, followedby coal at -10%. Despite gas supply stability, depleting domestic gas
reserves led to an increased import of liquefied natural gas (LNG). The
share of domestic gas production to imported gas, including both
pipeline and LNG, was recorded as 70:30 in 2021.

5 000
4 000
3 000
2 000
1 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Production, net imports and TPES
(PJ)

7 000

To address the challenges and enhance energy security, thegovernment has undertaken initiatives such as expanding LNG
receiving terminals, implementing more regasification systems, andconstructing gas storage tanks. These efforts aim to support higher
LNG receiving capacity, with a target of reaching 46 million metrictonnes per annum (MMTPA) by 2027. Notably, the recently completed
LNG receiving terminal, known as Terminal 2 or T-2, with a capacity of
7.5 MMTPA with an additional expansion capacity of 7.5 MMTPA,
received its first LNG commission in 2022.

Coal

Oil

Gas

Renewables

Others

Source: EGEDA (2023)

Compared to APEC, Thailand possesses a substantially smaller
proportion of coal supply (Figure 3). This is largely attributed to theeconomy relying on a limited coal deposit in Mae Moh for power
generation. Thailand is actively transitioning towards cleaner energy
sources, particularly gas, amplifying the prominence of gas in its energy
288

APEC ENERGY OVERVIEW 2024

mix following the discovery of domestic gas in the 1980s. As forrenewables, hydro and solar energy constitute the primary sources.
Notably, Thailand engages in the energy trade of hydroelectric powerfrom Lao PDR, a move facilitated by its geographical proximity coupledwith investment from Thai companies to exploit in Laos' substantial
hydropower potential.

contributing sectors to Thailand’s economic growth. Despite thegovernment efforts to promote inbound tourism such as Phuket
Sandbox in July 2021 and the Test & Go scheme in November 2021,
the emergence of new COVID variants hindered the success of these
economic stimulus plans.
Figure 4: Thailand final consumption by sector (PJ), 2000 to 2021

Other
Renewables

80%
Gas
60%

Oil
40%

20%

Coal

4 500
4 000
3 500
3 000
2 500
2 000
1 500
1 000
500
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

100%

Final energy demand by sector (PJ)

Figure 3: Energy supply mix – Thailand and APEC, 2021

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

0%
ThailandAPEC

Source: EGEDA (2023)

Total final consumption
Impacts of COVID-19 to the final consumption of energy were more
pronounced in 2021. Final energy consumption was further reduced
across all sectors compared with the previous year (Figure 4). Total
final consumption further reduced by 12% compared with 2020, driven
largely by non-energy and industry in the absolute value.
The tourism industry and export industry have long been major

Source: EGEDA (2023)

Consequently, there was a reduction of energy consumption in thecommercial and transport sectors. Likewise, the industry sector, driven
largely by the export of manufacturing goods, experienced a continued
decline in its energy consumption. Final energy consumption of thetransport and industry sectors contracted by 6% and 8%, respectively
in 2021.Thailand's industry sector exhibited a comparable market shareto that of APEC (Figure 5). Notably, the transportation segment
surpassed APEC's share by a substantial 10 percentage points, whileconversely, the residential sector lagged by 5 percentage points.
289

APEC ENERGY OVERVIEW 2024

Figure 5: Final consumption by sector, Thailand and APEC, 2021

transport sectors, especially with a lower number of stations and adecrease in compressed natural gas (CNG) fleets.

100%

Additionally, electricity demand increased by 2.2% due to higher
manufacturing output for export-oriented goods. Furthermore, the shift
to remote work and online education played a significant role in driving
up demand for electricity and others.

Non-energy
Agriculture & others
80%
Residential
Commercial

Figure 6: Thailand final energy demand by fuel (PJ), 2000 to 2021
4 000

40%

20%

Industry0%

ThailandAPEC

Source: EGEDA (2023)

Final energy demand
Thailand experienced an 8% reduction in its final energy demand in
2021, totalling 3 000 PJ (Figure 6). Fossil fuels constituted more than
60% of this final energy demand. Over the past decade, Thailand
witnessed a rise in the growth of oil and gas demand (1.5-2.0%),
whereas the growth in coal demand decreased by approximately 2.5%.
The decline in oil demand can be attributed to restricted mobility,
primarily during the second and third quarters of 2021, due to newwaves of COVID variants. Conversely, gas demand experienced an
upswing, driven by the resurgence of the export-oriented manufacturingindustry amid the global economic recovery. However, the increase ingas demand was counterbalanced by reductions in the power and

3 500
3 000

2 500
2 000

1 500
1 000
500
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Transport

Final energy demand by fuel (PJ)

60%

Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)
Note: Does not include non-energy sector consumption of energy products.

The composition of Thailand's final energy demand differs from that of
APEC in several aspects. The predominant share of oil demand,
primarily driven by the transport sector, especially due to the influenceof the tourism industry, accounted nearly 50%. Additionally, the shareof renewables, particularly biomass sourced from the agricultural290

APEC ENERGY OVERVIEW 2024

sector, reached 12% in 2021, surpassing APEC's figures significantly(Figure 7).
On the other hand, the demand shares of gas and electricity, along withother sources, fall below the corresponding shares in APEC. This
discrepancy reflects a distinct final energy demand pattern in Thailand
compared to the broader APEC region.
Figure 7: Final energy demand fuel share, Thailand and APEC, 2021
100%
Electricity andothers80%

Renewables

60%

power producers, very small power producers, and imports(approximately 10%). Particularly, Thailand currently imports
hydroelectricity from Lao PDR and has electricity exchange
arrangements with Malaysia to enhanced overall grid stability during
demand fluctuation.
Electricity generation saw a slight uptake (Figure 8), reaching 187 000
GWh in 2021, predominantly relying on natural gas (60%). The yearon-year percentage growth has plateaued since 2015. Comparing thistrend alongside a continual rise in electricity demand suggests a
decoupling of electricity demand from generation growth, aligning with
the Thai Government’s effort to improve energy efficiency and leveragetechnological advancements, particularly in the steel and automobile
industry.
Figure 8: Thailand electricity generation by fuel, 2000 to 2021

Gas

20%
Coal
0%
ThailandAPEC

Source: EGEDA (2023)

Transformation
Power sector
Power generating capacity stood at 50.9 GW as of end of December
2021 (EPPO, 2022). EGAT and independent power producers made up
almost two-thirds of this capacity. The remainder comprised of small

200
150
100
50
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Oil

Electricity generation (TWh)

250

40%

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

Given Thailand's initial abundance of natural gas resources from the291

APEC ENERGY OVERVIEW 2024

Gulf of Thailand, and recognising the lower emissions associated withgas compared to coal and oil, the economy predominantly utilised gas
for electricity generation. However, Thailand currently faces thechallenge of a diminishing domestic gas supply, necessitating an
increased reliance on LNG imports. Elevated LNG prices have thepotential to escalate the costs of electricity generation. Additionally,heightened pipeline imports from Myanmar pose concerns regarding
gas supply security. This concern materialised in 2015 when power
plants had to switch to fuel oil and diesel, incurring higher costs during
the suspension of pipeline gas due to maintenance (Reuters, 2015).
Figure 9: Electricity generation fuel share, Thailand and APEC, 2021
100%

OthersOther renewables
Geothermal
Nuclear

80%

Hydro
60%

Gas
Oil

40%

Coal

20%

potential, especially solar and biomass, and the growing costcompetitiveness of related technologies.
Refining
Thailand is among the few economies in APEC's Southeast Asia thathave a self-sufficient policy in the production of petroleum products.
The petroleum refining sector in Thailand comprises six major refineries
and one small refinery for military use. In 2021, Thailand's refinery
capacity stood at 1 245 thousand barrels per day (kb/d), compared to
840 kb/d in domestic petroleum product consumption. The Thai Oil
refinery is expanding its refinery capacity by 125 kb/d, with a goal ofshifting to higher value-added products, with expected commissioningin 2025 (IEA, 2023). Furthermore, the Thai refinery sector also serves
as a major supplier of petroleum products to neighbouring economies.
Crude oil intake by refineries was slightly under 1 000 kb/d in 2021,
indicating an approximately 80% utilisation rate. Despite the lower
import volume, substantial decline in domestic petroleum productconsumption resulted in a heightened export volume to regional
markets such as Myanmar, Cambodia, and Viet Nam. Thailand
produced 1 015 thousand barrels of petroleum products per day, withdiesel accounting for 45% of total production.

Energy Transition

0%
ThailandAPEC

Source: EGEDA (2023)

The dominance of natural gas becomes evident when comparing it to
the generation mix observed for APEC (Figure 9). Additionally,
Thailand exhibits a relatively lower proportion of coal andhydroelectricity generation. Continuous growth in other renewables is
expected to be driven by supportive policies, abundant renewables

Thailand has committed to energy transition as evidenced by the Longterm Low Greenhouse Gas Emission Development Strategy. This
strategy outlines the economy’s commitment to achieve carbon
neutrality by 2050 and net zero greenhouse gas emissions by 2065. In
2021, the Thai Government introduced the promotion of electricvehicles (known as the 30@30 policy), which aims to achieve aminimum 30% production of low or zero-emission vehicles by 2030.
292

APEC ENERGY OVERVIEW 2024

The Thailand Integrated Energy Blueprint (TIEB), introduced in 2015
and partially revised in 2018 with the target year of 2037, serves as a
guiding framework for the long-term direction of the energy landscapeand value chain. The Blueprint covers five key development areas:
power, energy efficiency, alternative energy, gas and oil. Revisions to
the targets are expected with the assumption of a new government in
2023.
Emissions
Under Thailand’s 2nd Updated Nationally Determined Contribution(NDC) published in November 2022, Thailand aims to reduce relative
GHG emissions of 30-40% by 2030, with the more ambitious reduction
dependent on international support. Thailand expects to emit 555 million
tonnes of carbon dioxide equivalent (MtCO2eq) in the 2030 in thebusiness-as-usual.
Over the past two decades, Thailand has witnessed a 2% annual
increase in CO2 combustion emissions, primarily attributed to theeconomy's dependence on fossil fuels for its development. The power
sector has been the primary contributor to these emissions, accounting
for 35% of the total. In 2021, there was a slight reduction in emissions
to 247 million tonnes compared to the previous year, a trend associatedwith the economic repercussions of the COVID-19 pandemic.
Moreover, the industry sector observed an increase in emissions during
this year, while other sectors experienced a decline.

Figure 10: Thailand CO2 combustion emissions (million tonnes), 2000
to 2021300
CO2 combustion emissions

250

Million tonnes CO2

The objective is to position Thailand as a leading hub for electricvehicle production in the ASEAN region.

200

150
100
50
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
Thailand’s self-sufficiency, a ratio of domestic production to total
primary energy supply, has shown a decline, reaching about 48% in
2021. Within the economy, 10%, 40%, and 70% of crude oil, coal, andgas supply, respectively, is produced domestically. Particularly,
productions of domestic natural gas declined to 3 200 million standard
cubic feet per day (mmscfd), marking a 2% decline from the previous
year. This decline is notable when compared to the peak of gas
production of 4 070 mmscfd in 2014, attributed in part to resource
depletion and the hand-over of operations from Chevron to the local
operator, PTT Exploration and Production (PTTEP), due to the
expiration of the concession.
LNG imports in 2021 was averaged at 829 mmscfd, an 11.5% increase
293

APEC ENERGY OVERVIEW 2024

APEC Energy Goals
There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.
Energy intensity goal
In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economy targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.
Despite a decrease in total final consumption by 8% in 2021 compared
to 2020, the increase in GDP by 0.2% led to a lower energy intensity for
Thailand. The economy achieved a 22% reduction in energy intensity,slightly below the 28% reduction accomplished by APEC.

Figure 11: Thailand total final energy consumption intensity index, 2000
to 2021 (2005 = 100)
120

Energy intensity index (2005 = 100)from the previous year to compensate for a decline in domestic
production. Crude oil imports declined 2.9% to 863 kb/d, with imports
from the Middle East accounting for 49%. Coal imports increasedslightly at 0.7% to 23 931 thousand tonnes.

Total final energy consumption energy intensity

100
80
60

APEC-wide goal 2035

40
20

0
2000

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2022)

Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doubling
goal.
Between 2010 and 2021, Thailand experienced a 1.4 percentage point
increase in its share of modern renewable energy, reaching nearly
14%. Although Thailand experiences lower annual growth rates
compared to APEC, the economy’s modern renewable energy sharesurpassed that of APEC (10%). APEC aims to achieve a 12% share ofmodern renewable energy by 2030.
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APEC ENERGY OVERVIEW 2024

Thailand is currently adopting the Alternative Energy Development Plan
(AEDP) 2018, with a goal of reaching a 30% share by 2037. The LongTerm Low Greenhouse Gas Emission Development Strategy (LTLEDS) sets a target of at least 50% renewable energy in new power
generation by 2050, with a specific focus on reaching a combined 65%
from solar and wind sources in total electricity generation by 2060. The
Thai Government is in the process of approving the Thailand National
Energy Plan (NEP) 2023, the successor to the introduced TIEB in
2015. This new plan aims to support the targets outlined in LT-LEDS,
anticipating a higher share of modern renewable energy in the near
future.

renewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

Figure 12: Thailand modern renewable energy share, 2010 and 2021

Figure 13: Thailand renewable generation share, 2000 to 2021

16.0%

In 2021, the electricity generation amounted to 187 TWh, a slightincrease from 186 TWh in 2020. Renewable energy sources
contributed 33 TWh, constituting 18% of the total generation mix. The
share of renewables in the mix declined by 2 percentage points
compared to the preceding year, primarily attributed to reduced solid
biomass generation and the impact of a two-year drought on hydrogeneration. Solid biomass accounted for half of the total renewableenergy generation.

Change from2010 to 2021

20%
Renewables share in electricity mix

18%

14.0%

16%
12.0%

Proportion

14%

10.0%
8.0%
6.0%

12%
10%
8%
6%
4%

4.0%

2%
2.0%

0%
2000

0.0%
2010

Change

2021

2005

2010

2015

2020

Source: EGEDA (2023)

Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All other295

APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy
2nd Updated NDCLong-Term Low Greenhouse Gas
Emission Development Strategy(LT-LEDS) (Revised version)
Thailand Integrated Energy
Blueprint
Promotion of electric vehicles(known as the 30@30 policy)

Details
30-40% GHG emissions reduction relative to a projected business-as-usual level by 2030 (555
MtCO2eq). Additionally, Thailand aims to increase the target of renewable energy share in the
new power generation to 50% within 2050.
Thailand aims to achieve carbon neutrality by 2050 and net zero GHG emissions by 2065. The
strategy outlines long-term GHG mitigation actions in the energy, industrial processes andproduct use, agriculture, waste, as well as land use, land use change and forestry sectors.
Five energy development plans, including power, energy efficiency, alternative energy, oil andgas, with target year in 2037. The revision is expected to align with the revised LT-LEDS,
following the assumption of the new government in 2023.
A strategic commitment to accelerate the widespread use of EVs with tax and non-tax incentives.
The initiative sets a goal that 30% of all vehicles manufactured in Thailand are electric by 2030.

Reference
UNFCCC

ONEP

EPPO
ITA

Notable Energy Developments
Energy development

Details

Goals for clean energy andadvanced energy system
Renewable energy project
investment opportunity
Bio-Circular-Green Economy or
BCG Model

Formulating an ambitious goal of renewable energy production, promoting solar and hydrofloating solar hybrid installation, and implementing CCUS and hydrogen technology.
Announcing a call for proposals for 5 000 MW renewable power generation capacity in solar,
biogas, and wind power projects.
Sustaining growth and improving environment by maximum the utilisation of local energy
resources and converting waste into energy.

Reference
NSTDA
Watson Farley & Williams
NSTDA

296

APEC ENERGY OVERVIEW 2024

Useful links
Thailand’s Energy Statistics – https://www.eppo.go.th/index.php/en/

References
EGEDA (Expert Group on Energy Data Analysis, APEC Energy Working Group) (2023), APEC Energy Database.
https://www.egeda.ewg.apec.org/egeda/database_info/index.html
EI (Energy Institute) (2023), Statistical Review of world Energy.
https://www.energyinst.org/statistical-review
EPPO (Energy Policy and Planning Office) (2023), Energy Statistic of Thailand 2023.
https://anyflip.com/qivjx/nvxn/
EPPO (Energy Policy and Planning Office) (2022), Energy Statistic of Thailand 2022.
https://anyflip.com/owfrt/eypz
IEA (2023), Oil 2023: Analysis and forecast to 2028.
https://iea.blob.core.windows.net/assets/cc7fd38f-3d68-4796-a958-8dfa3f3ef4a6/Oil2023.pdf
Reuters (2015, March 5). Thailand's PTT says Myanmar gas fields to shut for maintenance in April.
https://www.reuters.com/article/idUSL4N0W743W/
World Bank (2023), Overview.
https://www.worldbank.org/en/country/thailand/overview
World Bank (2023). World Bank Open Data.
https://data.worldbank.org/

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APEC ENERGY OVERVIEW 2024

United States
Introduction
The United States is a geographically varied and resource-richeconomy that both consumes and produces energy. The United Statesencompasses 50 states plus the District of Columbia, a federal district
designated as the economy’s capital. Of these 50 states, 48 arecontiguous, positioned between Canada and Mexico, and the twoothers are Alaska (located north-west of Canada) and Hawaii (a clusterof islands in the Pacific Ocean). Additionally, the United States has five
inhabited territories located in the Pacific and Atlantic Oceans.
The United States is historically one of the largest consumers of energy
globally and, out of the APEC economies, the United States has thesecond highest global share of primary energy consumption at close to16%. While the United States’ primary energy consumption continues
to be dominated by fossil fuels, in recent years, coal has decreased
and renewables have increased. The economy's energy consumption isdiverse, with applications in transportation, industry, residential andcommercial sectors. The United States also has one of the highest
levels of per capita final energy demand in APEC.
The US energy production continues to be greater than the US energy
consumption, a trend that began in 2019. After a long break, the UnitedStates began exporting LNG in 2016 and was the top global exporter in
2023. Internationally, the United States’ LNG export capacity andflexible destination clause policy has provided consumers in Asia andEurope the option to diversify their import sources. Domestically,

environmentalists in the United States are expressing concerns about
the gas industry’s contributions to greenhouse gas (GHG) emissions. In
addition to LNG exports, the United States exports crude oil, petroleum
products, coal, and electricity, and exports renewable and nuclear
energy equipment.
The United States has implemented initiatives to address climatechange and promote a shift towards cleaner energy sources. It has
participated in international collaborations aimed at reducing GHG
emissions, and through federal and state regulations and subsidies,encouraged the increased use of solar and wind energy domestically.
Regarding energy infrastructure, the United States has taken measures
to modernise the grid to enhance resiliency and reliability. Additionally,
incentives and subsidies have been introduced to promote the adoptionof electric vehicles and reduce emissions in the transportation sector,
and to invest in innovation and human capacity building for the clean
energy sector.
Table 1: The United States macroeconomic data and energy reserves
Key data a, b

Energy reserves c, dArea (million km2)

9.9

Oil (billion barrels)

44.4

Population (million)332

Gas (trillion cubic feet)

625.4

GDP (2017 USD billion
PPP)

21 129Coal (million tonnes)

470 000

GDP per capita (2017
USD PPP)63 636

Uranium (kilotonnes U< USD 130/kgU)

49

Source: EIA (2023); World Bank (2023); EI (2023); IAEA & NEA (2023)
Note: Reserves are total proved reserves and reasonably assured recoverable
resources for uranium.
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APEC ENERGY OVERVIEW 2024

Energy Supply and Consumption

Figure 2: The United States energy supply by fuel (PJ), 2000 to 2021
120 000

Total primary energy supply

Figure 1: The United States energy supply, production, and net imports(PJ), 2000 to 2021

100 000
80 000

Production

80 00060 00040 000
20 0000Total Primary Energy Supply

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Production, net imports and TPES (PJ)

120 000

100 000

TPES by fuel (PJ)

In the United States, total primary energy supply (TPES) has been on aslight decline since 2000.

60 000Coal

40 000Gas

Renewables

Others

Source: EGEDA (2023)
Net imports

20 000
0
2000

Oil

2005

2010

2015

2020

-20 000
Source: EGEDA (2023)

In 2019, the US became a net energy exporter. The primary drivers of
this transition from energy importer to exporter were the substantial
growth in both the US oil and natural gas production. While there was a
dip in production and TPES in 2020 due to the COVID-19 pandemic,
both began to recover in 2021.

During the first year of the pandemic in 2020, economic activities
slowed, which led to an overall decrease in TPES. In 2021, as
economic activities resumed, TPES started to slowly return to prepandemic levels. Between 2020 and 2021, quantities of all fuels
increased, except for renewables. In 2021, 36% of TPES came fromcrude oil and petroleum products, 34% from natural gas, and 12% fromcoal. Renewables accounted for 8.4% of TPES, and other sources,
including nuclear and non-energy use of fuels, accounted for 10%.
In comparison to 2021 average APEC TPES percentage shares, theUS primary energy supply contains a nine-percentage point higher
share of oil, and a 10-percentage point higher share of gas, but a 23percentage point lower share of coal than the APEC average.

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APEC ENERGY OVERVIEW 2024

100%

Final energy demand by sector (PJ)

Other
Renewables

80%
Gas
60%
Oil
40%

20%

Coal

0%
United States

Figure 4: The United States final consumption by sector (PJ), 2000 to
2021

APEC

Source: EGEDA (2023)

70 00060 00050 00040 00030 000

20 000
10 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Figure 3: Energy supply mix – The United States and APEC, 2021

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

Total final consumption
The US total final consumption in 2021, including non-energy, was
64 465 PJ, an increase of 5.6% from 2020. From 2000 through 2021,
the US total final consumption has maintained a generally consistentplateau (Figure 4), with variations associated with macro shocks, suchas the Great Recession of 2007-2009 and COVID-19.

Similar to historic numbers, the transport sector continues to accountfor the largest share of total final consumption in the United States. In
2021, transportation’s share of total final consumption was 39%,
followed by industry (18%), residential (17%), commercial (14%), nonenergy (10%) and agriculture (2.0%).
In comparison to APEC, the transport sector’s 39% share of total final
consumption in the United States is 14 percentage points higher thanthe APEC average. While other percentages are similar, the UnitedStates’ commercial sector is 6 percentage points higher than the APEC
average, and the US industrial sector’s share of total final consumption
is 16 percentage points lower than the APEC average.

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APEC ENERGY OVERVIEW 2024

Figure 5: Final consumption by sector, The United States and APEC,
2021

Figure 6: The United States final energy consumption by fuel (PJ),
2000 to 2021
70 000100%

Final energy demand by fuel (PJ)

Non-energy
Agriculture &…
80%
Residential
Commercial

60%

Transport
40%

20%

60 00050 00040 00030 000
20 000
10 000
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Industry

Coal

0%
United States

Oil

Gas

Renewables

Electricity and others

APEC
Source: EGEDA (2023)

Source: EGEDA (2023)

Total final energy consumption
In 2021, the US total final energy consumption, which excludes the
non-energy use of fuels, was 58 025 PJ, which is a 5.4% increase
relative to 2020. This change is likely reflective of economic activity
resumption after the first year of the pandemic.

Note: Does not include non-energy sector consumption of energy products.

Petroleum products remained the dominant energy source in the UnitedStates, accounting for 43% of total final energy consumption in 2021
(up from 41% in 2020). Natural gas and electricity were the two othermain energy carriers, accounting for 26% and 24%, respectively.
Following the first year of the pandemic, petroleum products began toregain market share, slowly recovering to pre-pandemic levels. Since
2000, renewables rose 67%, likely due to an increased attention toclimate change issues and emissions reduction.

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APEC ENERGY OVERVIEW 2024

Figure 7: Final energy demand fuel share, The United States and
APEC, 2021

Figure 8: The United States electricity generation by fuel, 2000 to 2021
5 000

Electricity generation (TWh)100%
Electricity andothers80%

Renewables

60%

Gas
40%
Oil
20%

4 500
4 000
3 500
3 000
2 500
2 000

1 500
1 000
500

United States

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Coal

0%

APEC

Source: EGEDA (2022)

In comparison to the aggregate total final energy consumption of
APEC, the United States relies much more on oil and gas and less oncoal and electricity than the APEC average. The US share of oil andgas is 10 percentage points and 8 percentage points higher than the
APEC average, respectively, and the US share of coal and electricity is
10 and 9 percentage points lower, respectively.

Transformation
Power sector

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

The amount of generation has been relatively stable; however, the fuels
used to generate power in the United States have changed
considerably over the last two decades. From 2000 to 2006, more than
50% of the US electricity was generated in coal-fired plants, but thisshare steadily declined to 23% in 2021. Over the same period, theshare of gas-fired generation increased from 16% in 2000 to 37% in
2021. The shares of other fuels and technologies remained relatively
constant except for non-hydro renewables, the share of which grewfrom 2.5% in 2000 to 14% in 2021.

The United States generated 4 354 TWh of electricity in 2021, which is
2.7% more than what was generated in 2020.

302

APEC ENERGY OVERVIEW 2024

Figure 9: Electricity generation fuel share, The United States and
APEC, 2021
100%

OthersOther renewables
Geothermal
Nuclear

80%

Hydro
60%

Gas
Oil

40%

Coal

20%

and reduce greenhouse gas emissions, in line with global efforts tocombat environmental challenges. Key initiatives included rejoining theParis Agreement, which commits the United States to significant
emissions reductions. The Administration also proposed increased
investments in clean energy infrastructure, research, and development
as part of broader economic recovery plans. Executive orders aimed atpromoting electric vehicles, advancing renewable energy projects, andenhancing energy efficiency highlighted the commitment to reshaping
the US energy system. Additionally, efforts were made to prioritise
environmental justice, providing support to communities
disproportionately affected by pollution, climate change, and job losses
associated with the energy transition.
Emissions0%Energy Transition

The US CO2 emissions exhibited fluctuations influenced by economic
conditions, energy consumption patterns, and policy initiatives. In theearly 2000s, emissions increased slowly, driven by economic growth
but partially offset by switching from coal-fired to gas-fired electricity
generation. Emissions then dropped during the 2007-2009 GreatRecession. The post-recession recovery led to a continuation of theprevious emissions trend. The deployment of technologies such as
solar and wind power contributed to a decrease in the carbon intensityof the electricity sector. There has been a steady decrease inemissions, with a major drop in 2020 due to reduced activity during the
pandemic. These trends reflect the ongoing transition toward a moresustainable and low-carbon energy landscape with reductions in carbon
emissions due to increased renewable energy adoption, a decline incoal usage, and improved energy efficiency.

The current the US Administration is focusing on accelerating theenergy transition in the United States towards a cleaner and moresustainable future through announced goals to address climate change

The expert group on energy data and analysis (EGEDA) falls under theumbrella of APEC’s Energy Working Group (EWG). In addition toenergy data compiled by EGEDA, CO2 emissions from combustion

United States

APEC

Source: EGEDA (2023)

Electricity generation by fuel type varies between the United States andthe APEC average. In 2021, coal was close to half in aggregate APEC,
but only a bit over a fifth in the United States. Natural gas is thegreatest contributor to electricity generation in the United States atalmost 40%, but only represents a fifth in APEC. While oil represents
similar amounts in both figures, on average APEC member economies
rely more heavily on hydro than the United States, but the UnitedStates relies more heavily on nuclear than the APEC average.

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APEC ENERGY OVERVIEW 2024

activities in the energy sector are also recorded. These emissions are asubset of total greenhouse gas (GHG) emissions that are considered in
the context of climate change, such as under the United Nations
Framework Convention on Climate Change (UNFCCC).
Figure 10: The United States CO2 combustion emissions (million
tonnes), 2000 to 2021
7 000

CO2 combustion emissions

Million tonnes CO2

6 000

energy resources, particularly through the expansion of shale gas andoil production, contributing to reduced reliance on imported fuels.
Investment in renewable energy technologies, such as solar and wind
power, is a key focus, supported by policies and incentives toaccelerate their adoption. Modernising energy infrastructure, including
the electricity grid and pipelines, is prioritised to improve overall
reliability and resilience. The United States has also furtheredinternational collaborations and resilience planning against potential
disruptions, such as natural disasters and cyberthreats, to increase its
energy security.

APEC Energy Goals

5 000

4 000

There are two energy-related objectives that APEC member economies
have agreed to meet as a collective: to improve energy intensity anddouble the share of modern renewables.

3 000
2 000

Energy intensity goal

1 000
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
The United States has implemented a multifaceted approach toenhance its energy security. Strategies include diversifying energy
sources to mitigate over reliance on individual fuel types, promoting
energy efficiency across various sectors, and maintaining a Strategic
Petroleum Reserve as a safeguard against disruptions in oil supply.
The United States has also encouraged the development of domestic

In 2011, APEC member economies agreed to increase their ambition to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economy targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.
Over the past few decades, the United States has made strides in
improving energy intensity, reflecting a more efficient use of energy inrelation to economic activities. This trend is attributable to numerous
factors, including advancements in energy-efficient technologies,
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APEC ENERGY OVERVIEW 2024

increased emphasis on energy conservation measures, and shifts in
the industrial and economic structure. Federal and state-level policies,
along with voluntary initiatives by businesses, have played a role inpromoting energy efficiency across sectors. As a result, the UnitedStates has managed to decouple economic growth from a proportional
increase in energy consumption, contributing to a more sustainable andenvironmentally conscious energy landscape.
Figure 11: The United States total final energy consumption intensity
index, 2000 to 2021 (2005 = 100)

improvements by individual economies will contribute to the doubling
goal.
Figure 12: The United States modern renewable energy share, 2010
and 2021
12.0%

10.0%

Change from2010 to 2021

8.0%

Energy intensity index (2005 = 100)

120
Total final energy consumption energy intensity

100

4.0%

80
60

2.0%

APEC-wide goal 2035

0.0%

40

2010

20
0
2000

6.0%

Change2021

Source: EGEDA (2023)

2005

2010

2015

2020

2025

2030

2035

Source: EGEDA (2023)

Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. All otherrenewables (biomass used by industry, hydro, geothermal, etc.) are considered modern
renewables. Modern renewables also include the share of electricity that is generated
from renewable sources.

Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix for the period 2010 to 2030. Thereis no economy-level goal for individual member economies, but

Since 2010, the share of renewable energy in the United States has
doubled from a share of 9.9% in 2010 to 19.9% in 2021. This change
was fuelled by a combination of technological advancements, cost
reductions, and renewable energy tax credits. Particularly, wind and305

APEC ENERGY OVERVIEW 2024

solar power have seen substantial growth, marked by an increase incapacity installations and reduced reliance on fossil fuels in electricity
generation. Both federal and state-level policies, alongside incentives
such as tax credits, have been instrumental in promoting renewableenergy development. Additionally, corporate commitments tosustainability objectives and heightened awareness of climate change
have prompted investments in clean energy projects.
Figure 13: The United States renewable generation share, 2000 to
2021
25%
Renewables share in electricity mix

Proportion

20%

15%

10%

5%

0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)

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APEC ENERGY OVERVIEW 2024

Energy Policy
Energy policy

Details

Reference

COP28

At COP28, world leaders committed, for the first time to transition away from fossil fuels andstrive to triple renewable energy globally by 2030.

Statement from President
Joe Biden on Agreement
Reached at COP28

G7 Clean Energy Economy
Action Plan

As part of the G7, the United States is enhancing cooperation to address the climate crisis andaccelerate the global clean energy transition to reach net zero emissions by 2050 at the latest,
while also reaffirming unwavering commitment to the Paris Agreement. The plan includes
initiatives, such as working as part of the Climate Club to achieve its goals, maximising theimpact of incentives through filing gaps in investments, reducing emissions through trade policy,
establishing resilient global supply chains, promoting clean energy technologies, promoting tradeand investment in clean energy goods and services, and supporting global partners in theirclean, just energy transitions.

G7 Clean Energy
Economy Action Plan

Net Zero WorldIn August 2023, the US Department of Energy (DOE) hosted the first Net Zero World Ministerial.
Net Zero World, launched at COP26 in Glasgow, is the DOE’s flagship international initiative that
includes 10 National Laboratories and nine the US government agencies. The programme
provides world-class technical, financing, and policy assistance to help economies chart apathway to advance clean energy use in buildings, industry, electric power and transportation toachieve transformative emissions reductions. As part of the programme, partners have accessto:• Immediate and sustained access to expert technical, deployment, and investment analysis andexpertise from the US government, including DOE’s government laboratories.
• Targeted support for in-economy technical institutions to build long-term, self-sustaining
technical capacity, and• Deep collaboration to develop technical and investment plans and support implementation fortechnology project design and testing, infrastructure modernisation, enabling policies andmeasures, investment analysis and facilitation, capacity building and workforce development,
and other critical actions needed to achieve near- and long-term energy system decarbonisation.

DOE Brings Partners
Together for First-Ever Net
Zero World MinisterialInternational Climate Finance

The United States announced that the US climate finance for developing economies is expected
to exceed USD 9.5 billion in 2023, on track to meet the President’s pledge of over USD 11 billion
in 2024, which includes a significant scaling up of adaptation finance through the President’s
Emergency Plan for Adaptation and Resilience (PREPARE).

SPEC John Kerry’s
Remarks to the Press at
the Conclusion of the UN
Climate Change
307

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference
Conference (COP28)

Investment in Domestic Grid

In 2023, the DOE made the largest federal investment in the grid in history with more than USD
8 billion in grid investments. This included USD 3.5 billion to modernise and strengthen the gridthrough the Grid Resilience Innovation Partnership (GRIP) Program, USD 1.3 billion intransmission investments through the Transmission Facilitation Program that aims to add 3.5
GW of additional grid capacity and create more than 13 000 direct and indirect jobs, more than
USD 750 million in formula grants to states, tribes, and territories to boost grid resilience, and
USD 37 million in hydropower incentives.

US Department of Energy
Top Clean Energy
Accomplishments in 2023

Regional Clean Hydrogen Hubs

The Regional Clean Hydrogen Hubs Program (H2Hubs) includes up to USD 7 billion to establish
six to 10 regional clean hydrogen hubs across America. The H2Hubs will form the foundation ofa clean hydrogen network that will contribute to decarbonising multiple sectors of the economy,such as heavy industries (steel and cement production) and heavy-duty transportation.

Regional Clean Hydrogen
Hubs

In 2023, the United States surpassed 1 million in domestic electric vehicle sales. In addition, theUnited States announced USD 15.5 billion to support a transition to electric vehicles.

Electric Vehicles

In December 2023, Ohio and New York marked the first states in the economy to open electricvehicle (EV) charging stations funded through the National Electric Vehicle Infrastructure (NEVI)Formula Program. These new charging stations will fill gaps in charging, add capacity and boost
the reliability of the economy’s fast charging network. Other new charging station launches will
follow in 2024, with stations already under construction in Maine, Pennsylvania and Vermont.
In May, the DOE, through the Joint Office of Energy and Transportation, launched the National
Charging Experience Consortium, a new effort led by the DOE’s National Laboratories to rapidly
develop solutions that ensure a reliable and frictionless charging experience for all Americans.
The development and maintenance of a robust charging network will create jobs and stimulate
economic growth in local communities, while public and private investments in EV charging
infrastructure will catalyse technological innovation across multiple economic sectors.

Lowering Energy Costs

In October 2023, the DOE announced the launch of the Affordable Home Energy Shot, a new
initiative focused on the research, development and demonstration of clean energy solutions todecarbonise and deliver energy and cost savings for affordable homes. This programme will
reduce the cost of energy-efficient retrofits in affordable homes by 50% and decrease residents’

US Department of Energy
Top Clean Energy
Accomplishments in 2023

US Department of Energy
Top Clean Energy
Accomplishments in 2023

308

APEC ENERGY OVERVIEW 2024

Energy policy

Details

Reference

energy costs by at least 20% within a decade.
The Weatherization Assistance Program (WAP) Retrofit and Readiness team deployed USD
3.17 billion in funding.
The Energy Efficiency and Conservation Block Grant Program (EECBG) is designed to assist
states, local governments, and tribes in implementing strategies to reduce energy use, to reducefossil fuel emissions, and to improve energy efficiency. In 2023, the Program made USD 550
million available.

Boosting Supply Chain andDomestic Manufacturing

In 2023, the DOE announced: USD 5.5 billion to boost domestic production of advanced
batteries, battery materials, and electrified vehicles; more than USD 13 billion in Advanced
Technology Vehicles Manufacturing Loan Program conditional commitments to support theadvanced technology vehicles supply chain; USD 169 million to accelerate electric heat pump
manufacturing at 15 sites across the economy; and more than USD 390 million to expand solar,
wind and vehicle technology domestic manufacturing.

US Department of Energy
Top Clean Energy
Accomplishments in 2023

New Carbon Pollution Standards
for Fossil Fuel-Fired Power
PlantsIn 2023, the US Environmental Protection Agency proposed new technology standards for power
plants and the transportation sector, representing some of the largest source of GHG emissions
in the United States. These new standards are intended to protect public health, reduce harmful
pollutants, and deliver up to an estimated USD 85 billion in climate and public health benefits
over the next two decades.

EPA Proposes New
Carbon Pollution
Standards for Fossil FuelFired Power Plants to
Tackle the Climate Crisisand Protect Public HealthNotable Energy Developments
Energy development

Fusion Energy

Details

Reference

The United States is expanding domestic and global efforts to leverage market forces, inclusivetechnological innovation, and investments to accelerate the next generation of clean energy
technology breakthroughs, such as fusion energy. These technologies will help the United States
meet its individual and collective carbon reduction goals, ensure energy security and resilience, andadvance economic development.

International Partnerships
in a New Era of Fusion
Energy Development

In March 2022, the United States announced a Bold Decadal Vision for Commercial Fusion Energythat recognised fusion energy’s increasing technical readiness and strong market interest and309

APEC ENERGY OVERVIEW 2024

Energy development

Details

Reference

included a direction to explore new international collaborations to accelerate the development offusion energy.

Largest Oil Producer in History

In 2023, the United States became the largest oil producer in history, reaching approximately 13.3
million barrels per day at the end of the year.

EIA – Petroleum & Other
Liquids

Record LNG Exports

In December 2023, US exports of LNG reached a record of 8.6 million tonnes. Full year exports
reached approximately 90 million tonnes, a 15% increase from the previous year.

Reuters - US was top
LNG exporter in 2023 as
hit record levels

First New Nuclear Reactor Since
2016

In July 2023, Georgia's Vogtle Unit 3 started operations, making it the first reactor in seven years tocome online in the United States. The new 1 114-megawatt Unit 3 reactor joins two existing reactors
at Plant Vogtle, which is jointly owned by Georgia Power and three other electric utility companies.

EIA - First new US nuclear
reactor since 2016 is now
in operation

Useful links
APEC Expert Group on Energy Data & Analysis (EGEDA) – https://www.egeda.ewg.apec.org/
Energy Institute Statistical Review of World Energy – https://www.energyinst.org/statistical-review
International Atomic Energy Agency (IAEA) – https://www.iaea.org/
OECD Nuclear Energy Agency (NEA) – https://www.oecd-nea.org/
The White House Statements and Releases – https://www.whitehouse.gov/briefing-room/statements-releases/
US Department of Energy – https://www.energy.gov/
US Department of State – https://www.state.gov/
US Energy Information Administration – https://www.eia.gov/
US Environmental Protection Agency – https://www.epa.gov/
World Bank Open Data – https://data.worldbank.org/
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APEC ENERGY OVERVIEW 2024

OECD Nuclear Energy Agency (NEA) – https://www.oecd-nea.org/

References
EGEDA (Expert Group on Energy Data Analysis, APEC Energy Working Group) (2023), APEC Energy Database.
https://www.egeda.ewg.apec.org/egeda/database_info/index.html
EI (Energy Institute) (2023), Statistical Review of World Energy.
https://www.energyinst.org/statistical-review
NEA (Nuclear Energy Agency) (2023), Uranium 2022 – Resources, Production and Demand.
https://www.oecd-nea.org/jcms/pl_79960/uranium-2022-resources-production-and-demand
Reuters (2024), US was top LNG exporter in 2023 as hit record levels.
https://www.reuters.com/business/energy/us-was-top-lng-exporter-2023-hit-record-levels-2024-01-02/
The US Department of Energy (2023), DOE Brings Partners Together for First-Ever Net Zero World Ministerial.
https://www.energy.gov/articles/doe-brings-partners-together-first-ever-net-zero-world-ministerial
The US Department of Energy (2023), U.S. Department of Energy Top Clean Energy Accomplishments in 2023.
https://www.energy.gov/articles/doe-brings-partners-together-first-ever-net-zero-world-ministerial
The US Department of Energy (2023), Regional Clean Hydrogen Hubs.
https://www.energy.gov/oced/regional-clean-hydrogen-hubs-0
The US Department of State (2023), Special Presidential Envoy for Climate John Kerry’s Remarks to the Press at the Conclusion of the UN Climate
Change Conference (COP28).
https://www.state.gov/remarks-to-the-press-at-the-conclusion-of-the-un-climate-change-conference-cop28/
The US Energy Information Administration (2023). First new U.S. nuclear reactor since 2016 is now in operation.
https://www.eia.gov/todayinenergy/detail.php?id=57280
The US Energy Information Administration (2023). Petroleum & Other Liquids.
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?f=W&n=PET&s=WCRFPUS2
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APEC ENERGY OVERVIEW 2024

The US Environmental Protection Agency (2023), EPA Proposes New Carbon Pollution Standards for Fossil Fuel-Fired Power Plants to Tackle the
Climate Crisis and Protect Public Health.
https://www.epa.gov/newsreleases/epa-proposes-new-carbon-pollution-standards-fossil-fuel-fired-power-plants-tackle
The White House (2023), G7 Clean Energy Economy Action Plan.
https://www.whitehouse.gov/briefing-room/statements-releases/2023/05/20/g7-clean-energy-economy-action-plan/
The White House (2023), International Partnerships in a New Era of Fusion Energy Development.
https://www.whitehouse.gov/ostp/news-updates/2023/12/02/international-partnerships-in-a-new-era-of-fusion-energy-development/
The White House (2023), Statement from President Joe Biden on Agreement Reached at COP28.
https://www.whitehouse.gov/briefing-room/statements-releases/2023/12/13/statement-from-president-joe-biden-on-agreement-reached-at-cop28/
World Bank (2023), World Bank Open Data.
https://data.worldbank.org/

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VIET NAM
Introduction
In 2023, the Government of Viet Nam issued a series of significant
energy-related policies designed to help the economy reach its 2050
net zero target.
In May 2023, the Government of Viet Nam issued Decision No.
500/QD-TTg, approving a new National Power Development Plan
(PDP8). PDP8 establishes a roadmap for the power sector through to2030, with a vision towards 2050. This plan provides a detailed,explicit pathway towards decarbonization in the power sector toachieve the government’s net zero emissions target announced at the
COP26 Summit (PDP8, 2023).
In July 2023, the Government approved the National Energy Master
Plan for 2021-2030, with a vision to 2050 (NEMP) via Decision No.
893/QD-TTg. The NEMP sets specific targets for energy sectors,
including oil and gas, coal, and renewable energy (NEMP, 2023).
Also, in July 2023 the government approved the Master Plan on
Exploration, Exploitation, Processing and Use of Minerals in 20212030, with a vision to 2050 via Decision No. 866/QD-TTg. The masterplan sets out the overall objectives for mineral development as wellas the objectives and requirements for exploration, exploitation andprocessing of specific minerals (Minerals Plan, 2023).
In April 2024, the implementation plan for PDP8 has been approved(PMVN, 2024). The implementation plan develops a roadmap toeffectively organize the implementation of schemes/projects to meetthe planned targets of PDP8, ensuring the power demand for socioeconomic development in each period
In recent decades, Viet Nam has been one of the fastest-growing
economies in Asia, with a gross domestic product (GDP) growth rateof 6.2% per annum on average from 2000 to 2021 (EGEDA, 2023). In
2022, the economy’s population was 99.4 million, with an urban
population share of 37.5% (GSO, 2023). In 2021, Viet Nam's GDP
surpassed USD 1 000 billion (2017 USD purchasing power parity[PPP]), marking a 2.6% increase from 2020 (World Bank, 2023).
Viet Nam’s GDP grew 8.02% in 2022, achieving the highest growthsince 1997 as a result of the economic recovery (Reuters, 2023).
Industry, construction, and service are significant sectors, accounting
for approximately 95% of Viet Nam's GDP in 2022 (GSO, 2023).
Viet Nam’s natural resources are diverse, including coal, oil, natural
gas and renewables (Table 1).
Table 1: Viet Nam's macroeconomic data and energy reserves
Key data a, b

Energy reserves c

Area (million km2)

0.33

Oil (billion barrels)

4.4

Population (million)

99.4

Gas (trillion cubic feet)23

GDP (2017 USD billion
PPP)

1 035

Coal (million tonnes)

3 360

GDP per capita (2017
USD PPP)

10 628Uranium (kilotonnes U< USD 130/kgU)-

Source: a GSO (2023); b EGEDA (2023); c BP (2022)

313

APEC ENERGY OVERVIEW 2024

Over the last few years, Viet Nam's energy sector has shifted fromfossil fuel-based energy to cleaner energy to pursue climate goals,
particularly in power generation. Simultaneously, the Government ofViet Nam has prioritized energy security, resilience and affordability
for economic growth amid the recent global energy crisis and volatileenergy prices.

Energy Supply and Consumption
Total primary energy supply
With a high economic growth expected in the coming years, ensuring
reliable and affordable energy supplies is one of the top priorities ofViet Nam's Government. Figure 1 illustrates that the TPES rose by afactor of 6.3 from 2000 to 2021, driven primarily by a high rate of
economic growth. In 2021, TPES dropped by 2.5% to 3 920 petajoules(PJ) compared to the previous year (EGEDA, 2023).
Indigenous energy production has declined since reaching a peak in2014 but rebounded in 2021. Indigenous energy production rose 11%
in 2021 as a result of the partial recovery of the economy following the
COVID-19 pandemic.

Viet Nam has abundant coal resources in the northern provinces,anthracite and semi-anthracite coal in Quang Ninh province, and subbituminous coal in the Red River Delta provinces (Thai Binh, Hai
Duong, Hung Yen, Nam Dinh, Hai Phong and Ha Nam). Nevertheless,the domestic coal mining industry is constrained due to technicalbarriers such as complex geological conditions and deep coal seam
formations. Therefore, coal has mainly been mined in the Quang Ninhcoal basin. This coal basin produces over 40 million tonnes of coalannually, accounting for approximately 90% of domestic coalproduction.
Figure 1: Viet Nam's energy supply, production, and net imports (PJ),
2000 to 2021
5 000

Production, net imports and TPES
(PJ)

According to the Statistical Review of World Energy report, theproven fossil energy reserves were 4.4 billion barrels of oil, 23 trillion
cubic feet of gas and 3 360 million tonnes of coal as of 2019 (BP,2022). Viet Nam has a high potential for renewable energy, includinghydro, solar, wind and biomass. The renewable energy share in the
total primary energy supply (TPES) was 20% in 2021, a 5% increase
relative to the 2020 level (EGEDA, 2023), and it is expected to rise to85% by 2050 (NEMP, 2023).

4 000

Total Primary Energy Supply

3 000
Production
2 000
1 000
0
2000
-1 000Net imports
2005

2010

2015

2020

-2 000Source: EGEDA (2023)

Meanwhile, due to technical and economic issues, sub-bituminous coalin the Red River Delta area has not been mined yet. According to theDevelopment Strategy of the Coal Industry to 2030 with a vision to2045, the government plans to start pilot exploitation in the Red River
314

APEC ENERGY OVERVIEW 2024

Hydropower is the most important renewable energy source,
accounting for approximately 31% of its electricity generation mix in
2021. Viet Nam aims to leverage hydro and other renewable sources
to partially replace fossil energy through electrification to reach its net
zero target by 2050.
While Viet Nam was a net energy exporter for several decades, it has
been a net energy importer since 2015 due to the substantial growth inenergy demand and declining indigenous production. Energy imports
have grown dramatically in recent years, except 2021, and are
expected to continue to rise in the coming decades. In 2021, net
imports dropped by approximately 27% due to record-high energy
prices.
Viet Nam's TPES provided by fuel has continuously increased since2000 to meet the high energy demand for rapid economic growth
except in the year 2021 (Figure 2). TPES reduced slightly in 2021 due

The renewables supply increased rapidly by over 30%, from 614 PJ in
2020 to 802 PJ in 2021 (EGEDA, 2023). The surge in renewableenergy supply resulted from renewable energy-promoting policies suchas the feed-in tariff (FiT) mechanism (Watson Farley, 2019). However,Viet Nam has faced several challenges that hindered the switch torenewable energy, such as insufficient smart grid technologies, limited
electricity storage systems, and constrained power transmission
capacity. Consequently, most solar installations were required toreduce their electricity output due to the limited capacity of the grid
system in the last few years.
Figure 2: Viet Nam's energy supply by fuel (PJ), 2000 to 2021
4 500
4 000
3 500
3 000
2 500
2 000
1 500
1 000
500
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Crude oil and natural gas are mainly extracted offshore in the south ofViet Nam. However, economic crude oil reserves are expected to be
depleted sometime before 2030. A significant recent natural gas
development is the Ca Voi Xanh project in the central provinces(Quang Nam and Quang Ngai). Upstream and midstream componentsof this project belong to a joint venture project between the Exxon Mobilgroup and the Viet Nam National Oil and Gas Group, which expects tohave the first gas stream by 2028 (Environmental Economics, 2023).
Based on economic assumptions, the production will continue until thefield reaches its economic limit in 2047 (Offshore Technology, 2023).
It will supply gas-fired power generation and petrochemical plants in
Viet Nam's central region, such as Mien Trung 1 and 2, and Dung Quat
1 and 3.

to the COVID-19 pandemic. Coal supply dropped approximately 10%
from 2 077 PJ in 2020 to 1 864 PJ in 2021. Oil and gas supply also
declined by 2.6% and 14.2%, respectively, in 2021 compared to theprevious year.

TPES by fuel (PJ)

coal basin before 2040 and to proceed with industrial-scale mining
before 2050, if the trial is successful (DSCI, 2024).

Coal

Oil

Gas

Renewables

Others

Source: EGEDA (2023)
315

APEC ENERGY OVERVIEW 2024

Figure 3 shows the energy supply mix for Viet Nam and the APEC
region in 2021. Coal has indeed dominated the Viet Nam energy supply
mix, accounting for nearly half of it (47.5%). This share is much more
prominent than coal's share in the APEC region (34.6%). Oil's share in
Viet Nam's energy supply mix was approximately 25%, 2.5% lower
than the APEC region's oil share. Furthermore, Viet Nam's gas shareaccounted for only 7.2% of the energy supply mix, much lower than the
APEC gas share (24%). The renewables share accounted for 20.5%
of Viet Nam's energy supply mix, almost double the APEC region's
renewables share (8.2%).

100%

Other
Renewables

80%
Gas
60%
Oil
40%

20%

Coal

0%
Viet Nam
Source: EGEDA (2023)

Viet Nam's total final consumption (energy plus non-energy use offuels) rose 5.5-fold between 2000 and 2021 (Figure 4). This large
increase resulted from significant growth in GDP and population. The
total final consumption in 2021 was 2 765 PJ, a rise of 5.1% comparedto the previous year.
The industrial sector was the dominant end-use sector, accounting for53.6% of all end-use energy consumption (including non-energy) in
2021. The transport sector was the next largest, with a share of 16.5%.
The commercial and residential sectors accounted for 3.5% and15.6%, respectively. The agriculture, forestry, fishery and others only
accounted for 5.3%.
Figure 4: Viet Nam's final consumption by sector (PJ), 2000 to 2021
Final energy demand by sector (PJ)

Figure 3: Energy supply mix – Viet Nam and APEC, 2021

Total final consumption

APEC

3 000
2 500
2 000
1 500
1 000
500
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Coal-fired power plants and energy-intensive industries (steel making,aluminium smelting, cement manufacturing and fertilizer production)
have contributed significantly to coal supply growth in recent years.

Industry

Transport

Commercial

Residential

Agriculture & others

Non-energy

Source: EGEDA (2023)

The final consumption by sector of Viet Nam and APEC in 2021 is
depicted in Figure 5. Energy consumption for Viet Nam's industry
316

APEC ENERGY OVERVIEW 2024

Figure 5: Final consumption by sector, Viet Nam and APEC, 2021
100%
Non-energy

Agriculture & others
80%
Residential
Commercial

60%

accounted for only 1.3% of the final energy demand. Renewables'
share was approximately 12.2% of Viet Nam's final energy demand.
Figure 6: Viet Nam's final energy demand by fuel (PJ), 2000 to 2021
3 000

Final energy demand by fuel (PJ)

accounted for over half of the total final energy consumption (53.6%),
much higher than APEC's average (33.4%). Government policy toaccelerate industrialization and modernization drives Viet Nam's
extensive energy use in the industrial sector (Politburo, 2018). In
contrast, Viet Nam's transport sector share is lower than that of the
APEC region.

2 500
2 000
1 500
1 000
500

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0
Transport
40%
Coal

Oil

Gas

Renewables

Electricity and others

Source: EGEDA (2023)

20%

Industry

Note: Does not include non-energy sector consumption of energy products.

0%
Viet Nam

APEC

Source: EGEDA (2023)

Final energy demand
Regarding final energy demand by fuel, the share of fossil fuelsaccounted for around 57% of Viet Nam's final energy demand in 2021
(Figure 6). Among fossil fuels, oil was consumed the most, accounting
for approximately 30% of the final energy demand, followed by coal(26.4%). Electricity and others accounted for 30%, while gas

While the coal share in Viet Nam's final energy demand was morethan double that of APEC's coal share, its final demand share for oil
was slightly lower than the APEC region's in 2021 (Figure 7). Gas
demand accounted for only 1.3% of Viet Nam's final energy demand,
much lower than its share of 18% for the entire APEC region. Viet
Nam's renewables share was almost triple that of the APEC region in
2021, while the share of electricity and others showed only a minor
difference between Viet Nam and APEC overall.

317

APEC ENERGY OVERVIEW 2024

Figure 7: Final energy demand fuel share, Viet Nam and APEC, 2021
100%
Electricity andothers80%

Figure 8: Viet Nam's electricity generation by fuel, 2000 to 2021

Renewables

60%

Viet Nam's power sector is increasingly reliant on coal. Approximately
47% of the electricity production was generated from coal in 2021,
representing an increase of nearly 19% per annum over 2010-2021(EGEDA, 2023).

Gas

300

Coal

0%
Viet Nam

APEC

Source: EGEDA (2023)

Transformation
Power sector
Figure 8 shows the electricity generation by fuel in Viet Nam between
2000 and 2021. The economy has experienced rapid growth inelectricity demand with a growth rate of 11.4% annually from 2010 to
2021 (EGEDA, 2023). Although the electricity grid is interconnectedacross the entirety of Viet Nam's geography, the different generation
technologies tend to be congregated together. For instance, coal-fired
power plants are mainly located in the north, while gas-fired power
plants, solar and wind farms are mostly located in the south.
In 2021, Viet Nam generated 255 terawatt hours (TWh) of electricity,
an increase of 5.1% from the previous year. Fossil fuel-based power
generation (coal, oil and gas) accounted for nearly 57% of the total
generation mix, followed by hydro (30.8%). Renewable generation andothers constituted 12.3% of the total generation mix (EGEDA, 2023).

250
200
150
100
50
0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Oil
20%

Electricity generation (TWh)

40%

Coal

Oil

Gas

Hydro

NuclearGeothermal

Other renewables

Others

Source: EGEDA (2023)

Hydropower plants are close to full utilization, contributing 30.8% of thetotal electricity production in 2021. Other renewables, including smallhydropower, biomass, solar and wind power, accounted for 12.3% of
the total generation mix.
Before 2018, only a small amount of solar and wind capacity was
installed in Viet Nam. Thanks to the FiT mechanism, solar installedcapacity increased substantially from 8 MW in 2017 to almost 16 600
MW in 2020 (EVN, 2021). Up to the end of 2021, total solar and wind318

APEC ENERGY OVERVIEW 2024

capacities reached 20 600 MW, accounting for 27% of the total
installed generation capacity.
The Vietnamese Government issued a new PDP8 in May 2023,
considering the 2050 net zero carbon emission target. According to the
PDP8, Viet Nam plans to gradually phase down coal power generation
and ramp up renewable, biomass, hydropower generation and energy
storage.
Viet Nam's electricity share from coal in 2021 was 3.5% higher thanthat of the APEC region (Figure 9). However, Viet Nam's share of gas
in electricity generation was much smaller than that of APEC.
Figure 9: Electricity generation fuel share, Viet Nam and APEC, 2021
OthersOther
renewables
Geothermal
Nuclear

100%
80%

Gas
Oil

40%

Coal

20%
0%
Viet Nam

Currently, Viet Nam has two refineries, namely Dung Quat and Nghi
Son, with a total capacity of 16.5 million tonnes per annum (Mtpa),
meeting 70% of its demand for petroleum products.
Dung Quat was the first refinery, commissioned in 2009 with acapacity of 6.5 Mtpa, and is operated by PetroVietnam, a subsidiaryof the government-owned Viet Nam Oil and Gas Group. The second
one is the Nghi Son refinery plant with a capacity of 10 Mtpa,
commissioned in 2018 and operated by Idemitsu Kosan (Japan).
Viet Nam plans to expand and construct new refineries to meet risingrefined product demand over the coming decades. According to the
National Energy Master Plan, Viet Nam plans to expand its refining
capacity to 33.1 Mtpa in 2030.

Energy Transition

Hydro
60%

Refining

APEC

Source: EGEDA (2023)

Hydropower accounted for the second-largest share of Viet Nam'selectricity generation mix in 2021. Its share was approximately 31%,more than double that of APEC's hydropower share. Electricity
generation from other renewables in Viet Nam was similar to its sharein the APEC region.

The government has updated and issued many new policies since
COP26. These policies are: the National Climate Change Strategy to2050 (2022); the Ministry of Foreign Affairs' Climate Diplomacy Action
Plan aiming to implement Viet Nam's commitments at COP26 in the
period 2022-2025 (2022); the Action Plan of the Construction Sector
in Climate Change Response for the period 2022-2030, with a vision
to 2050 in order to implement Viet Nam's commitments at COP26(2022); the Action Plan of the Ministry of Industry and Trade to
implement Viet Nam's commitments at COP26 (2022); the Schemeon Tasks and Solutions to Implement the Results of COP26 (2021);
the Action Program on Green Energy Transition and Reduction of
Carbon and Methane Emissions of the Transportation Sector (2022);
and the Methane Emission Reduction Action Plan to 2030 (2022);
National Power Development Plan for 2021-2030, with a vision to319

APEC ENERGY OVERVIEW 2024

2050 (2023); the Energy Master Plan for the 2021-2030 period, with avision to 2050 (2023); the Plan for Exploration, Exploitation,
Processing and Use of Minerals in 2021-2030, with a vision to 2050
(2023).
All these new policies focus on potential solutions and measures fortransitioning to cleaner energy while maintaining energy security,
reliability and affordability, particularly in the high GHG emissions
sectors.
Emissions
As a developing economy that has just started a process ofindustrialization and modernization that will last a few decades, CO2
emissions from energy-related sectors have increased six-fold overthe last 20 years, reaching 273 million tonnes in 2020 from 45 million
tonnes in 2000, mainly from the power, industry and transport
sectors. The power sector is the major contributor to the total CO2
emissions, accounting for over half of total energy-related CO2
emissions. The industrial sector is the second-largest CO2 emitter,followed by the transport sector. Although various policies related toCO2 emissions reduction have been implemented recently, CO2
emissions have continued to rise rapidly due to economic andpopulation growth. Furthermore, being highly reliant on fossil fuels in
the power and industrial sectors hinders the progress toward net zero
emissions.
In recent years, Viet Nam has implemented measures to reduce GHG
in various sectors, especially the energy and industry.
In the energy sector, enhancing renewable energy, saving andenergy efficiency, and reducing transmission loss are major
measures for GHG emission reduction, contributing to a reduction of
68 MtCO2eq in 2020 compared to the baseline year of 2014.

In the industrial sector, replacing clinker in cement composition andapplying advanced technology in the chemical and steel industries
are the key drivers to reducing carbon emissions in these subsectors. In 2020, a reduction of 4.06 MtCO2eq was achieved in themining, construction, and chemical industries (NDC, 2022).
Viet Nam first submitted its Intended Nationally Determined
Contribution (INDC) in 2015 and signed and approved the Paris
Agreement in 2016. After the Paris Agreement came into force inNovember 2016, the INDC became a Nationally Determined
Contribution (NDC). Viet Nam updated its NDC in 2020 and 2022. In
the 2022 version, Viet Nam committed to reducing greenhouse gas
emissions by 15.8% below 2005 levels by 2030 with domestic
resources. This is a significant increase in ambition compared to theprevious commitment in 2020. With financial support frominternational organizations, the GHG emission reduction target will
increase from 15.8% to 43.5%.
In December 2022, Viet Nam and its international partners
announced a USD 16 billion package through the Just Energy
Transition Partnership (JETP) programme, designed to accelerate thereduction of carbon emissions and increase the uptake of renewableenergy.
In December 2023, a Resource Mobilisation Plan (RMP) of the JETP
initiative for Viet Nam was finally announced to the world at COP28 in
Dubai.
Using the budget package from JETP and domestic resources, Viet
Nam aims to reduce CO2 emissions from the power sector, reduce
the number of existing coal-fired power plants, and develop more
renewable generation capacity associated with the transmission gridand a more effective energy infrastructure.
320

APEC ENERGY OVERVIEW 2024

Figure 10: Viet Nam's CO2 combustion emissions (million tonnes),
2000 to 2021
300

Million tonnes CO2

250
200

CO2 combustion emissions

150
100
50
0
2000

2005

2010

2015

2020

Source: EGEDA (2023)

Energy security
Viet Nam became a net energy importer in 2015, and importdependency is expected to rise further in the next decade, accountingfor 53-60% of total primary fuels in 2030. Currently, Viet Nam isimporting coal, crude oil, petroleum products and Liquefied NaturalGas (LNG). Therefore, energy security is one of the top priorities of
the Viet Nam Government.
Due to high fuel prices and dependence on imported energy, the Viet
Nam Government planned to dramatically reduce new LNG-fired andcoal-fired power capacities in the final version of the PDP8, issued in
May 2023. This action showed that the Viet Nam Government isworking to ensure energy security to avoid global supply chain
disruption due to geopolitical and extreme weather issues.
Energy import dependency is affected by global energy prices. By

reducing the amount of imported energy, Viet Nam's energy system
will face less risk due to price volatility. Therefore, diversification ofdomestic energy sources would also avoid the risk of global supply
disruption.
According to the new PDP8, renewables (excluding hydropower andstorage) are expected to be a major focus and will account for almost
29% of Viet Nam's total installed capacity by 2030 and over 63% by
2050 from 19% in 2021. The installed capacity of offshore wind poweris expected to rise tremendously to 6 GW by 2030 and 91.5 GW by
2050 from almost zero in 2021. Viet Nam will maximize the technicalcapacity of offshore wind power to produce electricity and newenergy. PDP8 calls for the use renewables to generate new energy(hydro, green ammonia), which will become a ‘new economic sector’for Viet Nam for both domestic and export demand (PDP8, 2023).
Nevertheless, renewable generation sources are variable. They needother generation sources to assist during no wind and sunlight hours.
These sources include hydropower, battery storage and thermal
power (coal-fired and natural gas-fired power plants). As mentioned
above, accelerating domestic coal and natural gas production issignificant during the transitional period to clean energy to avoid
energy supply disruptions in Viet Nam.
In October 2023, Petrovietnam and its partners signed and started
implementing the Block B-O Mon gas-to-power value chain project
after more than 20 years of negotiations with the attendance of thePrime Minister.
Accordingly, a nearly USD 12 billion project in southwest Viet Nam
will provide power plants with about 5.06 bcm of gas annually to
produce up to 3 800 MW of electricity. Its component projects will also
help upgrade infrastructure, generate thousands of jobs, and promoteeconomic restructuring in many localities.
321

APEC ENERGY OVERVIEW 2024

There are two energy-related objectives that APEC member
economies have agreed to meet as a collective: to improve energy
intensity and double the share of modern renewables.
Energy intensity goal
In 2011, APEC member economies agreed to increase their target to
reduce energy intensity by 45% in 2035, relative to a 2005 baseline.
The original goal was a 25% improvement by 2030, relative to a 2005
baseline.
APEC is on track to achieve this energy intensity improvement. The
goal does not impose individual economic targets, but it is possible to
track the progress of individual APEC economies relative to theoverarching proportional improvement.
Viet Nam deployed the National Energy Efficiency Program and theLaw on Energy Efficiency and Conservation in 2006 and 2010,
respectively (NAVN, 2010; PMVN, 2006). However, its final energy
consumption intensity is still high compared to other economies.
Viet Nam's total final energy consumption intensity improved byapproximately 1% over 2010-2021 due to a higher annual growth rate
in GDP than energy consumption (Figure 11). In this period, Viet Nam's
GDP annual growth rate was 5.9%, while it was a 4.9% growth rate intotal final energy consumption in the same period.

Figure 11: Viet Nam's total final energy consumption intensity index,
2000 to 2021 (2005 = 100)
120

Energy intensity index (2005 = 100)

APEC Energy Goals

Total final energy consumption energy intensity
100
80
APEC-wide goal 2035

60
40
20
0
2000

2005

2010

2015

2020

2024

2029

2034

Source: EGEDA (2023)

Viet Nam has approved the Viet Nam National Program on Energy
Efficiency and Conservation for the Period 2019-2030, aiming to save
8-10% of economy-wide energy consumption and ensure electricity
loss is below 6% (PMVN, 2019). The Program will partly contribute to
APEC's aspirational target of reducing energy intensity.
Doubling of renewables
The second energy goal involves doubling the share of modern
renewables in the APEC energy mix from 2010 to 2030. There is no
economy-level goal for individual member economies, but
improvements by individual economies will contribute to the doubling
goal.

322

APEC ENERGY OVERVIEW 2024

Viet Nam is starting from a higher renewable base than the APEC
region, as its renewable share in 2010 was 9.2% (Figure 12), while
APEC's was 6%. In 2021, the proportional share reachedapproximately 22%, 2.3 times greater than in 2010.
According to the NEMP, renewable energy is expected to account for
15% to 20% of the TPES by 2030 and 80% to 85% by 2050. This
growth will contribute to APEC meeting its goal of doubling its
renewables share by 2030.
Figure 12: Viet Nam modern renewable energy share, 2010 and 2021
25.0%

20.0%

Change from2010 to 2021

15.0%With a net zero emission target in 2050, Viet Nam aims to boost theuptake of renewable energy in the PDP8. Having a high potential forrenewables, Viet Nam has the potential resources to achieve morethan 90% penetration of domestic solar and wind power and pumped
storage hydropower in its electricity mix, but the cost of such a plan isunclear. The momentum for ramping up renewable energy uptake
could be built on the economy's early success in solar and onshore
wind power development, making it a Southeast Asian leader.
Viet Nam has 475 GW of offshore wind power technical potential within
200 km of the coastal line, equal to about eight times Viet Nam's total
installed power capacity as of 2020. According to the World Bank, by
substituting coal power with 25 GW of offshore wind power by 2035,
Viet Nam could reduce CO2 emissions by about 200 million tonnes,
approximately one-third of the total emissions in energy sectors underthe business-as-usual scenario (East Asia Forum, 2021).
Figure 13: Viet Nam's renewable generation share, 2000 to 2021
70%

10.0%

Renewables share in electricity mix

60%
5.0%

0.0%

2010

Change2021

Source: EGEDA (2023)
Note: Biomass used in the residential and commercial sectors is assumed to be
traditional biomass and is not included in the definition of modern renewables. Allother renewables (biomass used by industry, hydro, geothermal, etc.) are considered
modern renewables. Modern renewables also include the share of electricity that is
generated from renewable sources.

Proportion

50%
40%
30%
20%

10%
0%
2000

2005

2010

2015

2020

Source: EGEDA (2023)
323

APEC ENERGY OVERVIEW 2024

In Viet Nam, the proportion of electricity output from renewables has
declined substantially from 55% in 2000 to 43% in 2021 (Figure 13).
The reduction was due to the small amount of undeveloped, largescale hydropower generation potential remaining in Viet Nam and thegrowth in electricity demand exceeding the rate at which solar/wind andrequited transmission lines were built.
Although solar and wind generation has been accelerating in recent
years, it has not, to date, been growing at rapidly as electricity demand.

324

Energy Policy
Energy policy

Details

Reference

Politburo’s Resolution No. 55 on
Viet Nam’s National Energy
Development Strategy to 2030,
with a vision to 2045

The resolution provides for the prioritization of fast and sustainable energy development
while fostering favourable conditions for all economic sectors, particularly the private
sector, to participate in energy development.

Communist Party ofViet Nam

Nationally Determined
Contribution (2022 version)
Law on Economical and Efficient
Use of Energy

The 2022 Petroleum Law

Electricity Law

Viet Nam will reduce GHG emissions by 15.8% compared to BAU by 2030 with domestic
resources. However, this 15.8% contribution could be increased to 43.5% if international
support is received through bilateral and multilateral cooperation.
This law provides economical and efficient use of energy; policies and measures topromote economical and efficient use of energy; and the rights, obligations andresponsibilities of organizations, households and individuals in economical and efficient useof energy.
The 2022 Petroleum Law aims to guarantee a more convenient and flexible legal
framework for promotion of the development of the oil and gas industry in conformity withinternational practices as well as the economy’s realities. Taking effect from 1 July 2023,
the 69-article Law provides for basic oil and gas investigation and oil and gas activities
within the mainland, islands and seas of Viet Nam. It applies to Vietnamese and foreign
agencies, organizations and individuals involved in basic oil and gas investigation and oil
and gas activities.
This law prescribes the electricity development planning and investment, electricity saving,
electricity markets, rights and obligations of organizations and individuals conducting
electricity activities and using electricity, protection of electric equipment and facilities,
electricity works and electric safety.

United Nations
Framework Convention
on Climate Change
Viet Nam Government
PortalViet Nam Law

Viet Nam Government
PortalLaw on Environmental Protection

This law provides statutory provisions on environmental protection activities, measures andresources used for the purpose of environmental protection, rights, powers, duties, andobligations of regulatory bodies, agencies, organizations, households, and individuals who
are tasked with the environmental protection task.

Ministry of Natural
Resources Environment

National Program on Economical
and Efficient Use of Energy for
the Period 2019-2030

To promote the economical and efficient use of energy by means of state management
duties and solutions, technical assistance, scientific and technological research, productdevelopment, market transformation, human resource training and development.

Viet Nam Government
PortalNational Climate Change
Strategy to 2050

The strategy sets the overall targets to minimize the effects or damage caused by climatechange, reaching net zero emissions by 2050.

Viet Nam Plus

325

Energy policy

DetailsNational Green Growth Strategy
for the period 2021-2030, with avision by 2050

The strategy focuses on the efforts to restructure the economy in conjunction with renewing
the growth model; reducing the greenhouse gas emissions intensity, strive towards a green
and carbon neutrality economy.
The action plan targets methane emissions in cultivation, animal husbandry, solid waste
management, wastewater treatment, oil and gas exploitation, coal mining and fossil fuelconsumption. Total methane emission volume should not exceed 96.4 million tonnes of
CO2 equivalent in 2025, down 13.34% from 2020.

Viet Nam's Action Plan on
Methane Emissions Reduction by
2030

Reference
FAO

Viet Nam Plus

National Power Development
Plan for 2021-2030, with a vision
to 2050

On 15 May 2023, the Government of Viet Nam issued a decision 500/QD-TTg, approving a
new National Power Development Plan (PDP8) for 2021-2030, with a vision to 2050. The
overall goal of PDP8 is to ensure domestic energy security and meet the requirements ofsocio-economic development, industrialization, and the modernization of the economy.
+ Commercial electricity: about 335 TWh by 2025; about 505.2 TWh by 2030; about 1 114– 1 254 TWh by 2050.
+ Electricity production and import: about 378.3 TWh by 2025; about 567 TWh by 2030;
about 1 224 – 1 378 TWh by 2050.
+ Renewable generation reaches about 30.9%-39.2% by 2030 and up to 67.5%-71.5% by
2050.

Viet Nam Electricity

National Energy Master Plan forthe 2021-2030 period, with avision to 2050

In July 2023, the government approved the National Energy Master Plan (NEMP) for the2021-2030 period, with a vision to 2050 via Decision No. 893/ QD-TTg. The NEMP sets out
specific targets in the energy sector, including oil and gas, coal, electricity, and renewableenergy. The NEMP estimates that Viet Nam’s total final energy demand is expected to hit
107 Mtoe by 2030 and 165 to 184 Mtoe by 2050. Viet Nam intends to ensure its energy
supply is in excess of these estimates, aiming to have a total primary energy supply
equivalent to 155 Mtoe by 2030 and 294 to 311 Mtoe by 2050

Government News

Master Plan on Exploration,
Exploitation, Processing and Useof Minerals in 2021-2030, with avision to 2050

The government has approved the Master Plan on Exploration, Exploitation, Processing
and Use of Minerals in 2021-2030, with a vision to 2050 via Decision No. 866/QD-TTg. The
plan sets out the overall objectives for mineral development as well as the objectives andrequirements for exploration, exploitation and processing for specific minerals (such as
bauxite, titanium, rare earth, gold, copper, nickel, tin, wolfram, antimony, lead, zinc, etc.).

Viet Nam Plus

The Development Strategy of the
Coal Industry to 2030 with avision to 2045

Coal output is expected to be between 45 and 50 million tonnes by 2030, and between 38
and 40 million tonnes in 2031-2045. Under the strategy, the industry will focus on
exploration for upgrading existing coal resources along with new coal mines. A goal set by
the strategy is to start pilot exploitation in the Red River coal basin before 2040 so as toproceed with industrial-scale mining before 2050 if the trial is successful.

Viet Nam News

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Energy policy

Details

Reference

Viet Nam National Energy
Developments Strategy to 2030,
Vision to 2045”

On 1 March 2024, the Prime Minister issued Decision No. 215/QĐ-TTg approving the
National Energy Development Strategy of Viet Nam until 2030, with a vision to 2045. Thisdecision is to implement the Politburo of the Communist Party of Viet Nam’s Resolution No.
55- NQ/TW dated 11 February 2020 on orientation of the National Energy Development
Strategy of Viet Nam to 2030, with a vision to 2045.

VNEEP

Notable Energy Developments
Energy development

Details

Reference

Viet Nam announces resource
mobilization plan to implement
JETP in Dubai

In December 2023, a Resource Mobilisation Plan for Viet Nam, a key tenet of the JETP
initiative, was finally announced to the world at COP28 in Dubai. Using the budget package
from JETP and domestic resources, Viet Nam aims to reduce CO 2 emissions from thepower sector, reduce the number of existing coal-fired power plants, and develop more
renewable generation capacity associated with the transmission grid, and a more effectiveenergy infrastructure.

Government News

Viet Nam's renewable generation
output exceeds the thermal
power output

In 2022, total domestic plus imported renewable electricity was 268.4 billion kWh, of whichhydropower output increased by 20.8% compared to 2021 due to good water in the lakes
and the mobilization of power generation in accordance with inter-lake regulation. The
increased renewable energy enabled EVN to reduce the purchase of coal-fired power,
which had become by expensive due to high coal prices. In 2022, electricity output fromrenewable energy plants (including hydropower plants) exceeded thermal power.

Viet Nam Energy

Work starts on Viet Nam’s firstgreen hydrogen plant on March2023

Tra Vinh Green Hydrogen Company, a member of The Green Solutions Group, has started
construction of Viet Nam's first and largest green hydrogen factory in the Mekong Delta
province of Tra Vinh’s Duyen Hai district, with total investment of USD 341 million.
Covering an area of 21 ha, the project is expected to become operational after two years,
initially producing 24 000 tonnes of green hydrogen a year using electricity produce by windturbines.

Vietnam Plus

327

Energy development

Details

Reference

Viet Nam launches first LNG
terminal

Viet Nam began commercial operation of its first LNG terminal on 29 October 2023. The
terminal has the capacity to store one million tons of LNG – equivalent to about 180 000
cubic metres of gas. The LNG terminal is located at Cai Mep Industrial Park in Tan Phuoc
ward, Phu My township, southern Ba Ria-Vung Tau province. Construction on the USD 286
million project began in October 2019 on a surface area of about five hectares. It will supply
LNG for domestic consumers, including Nhon Trach 3 and Nhon Trach 4 gas-fired power
plants and other industrial plants.

Government News

Approving the Plan to implement
the National Electricity
Development Plan for the period
2021 - 2030, with a vision to2050.

On 4 April 2024, the Government of Viet Nam approved the Plan to implement the National
Electricity Development Plan for the period 2021 - 2030, with a vision to 2050. The Plan
implements a strong energy transition from fossil fuels to new energy sources andrenewable energy to reduce environmental pollution and greenhouse gas emissions,contributing towards the committed targets under the Nationally Determined Contributions
and the 2050 net-zero target of Viet Nam.

Viet Nam Electricity

Useful links
Government of Viet Nam – http://chinhphu.vn/portal/page/portal/chinhphu/trangchu
Ministry of Industry and Trade – http://www.moit.gov.vn/
National Energy Efficiency Program (VNEEP) – http://vneec.gov.vn/
Electricity Regulatory Authority of Viet Nam (ERAV) – http://www.erav.vn/
National Load Dispatch Centre (NLDC) – https://www.nldc.evn.vn/
Viet Nam Electricity (EVN) – http://www.evn.com.vn
Energy Savings – https://tietkiemnangluong.evn.com.vn/
Viet Nam Energy – http://nangluongvietnam.vn
Viet Nam Oil and Gas Group (PVN) – http://www.pvn.com.vn
Viet Nam National Petroleum Group (Petrolimex) – https://petrolimex.com.vn/
Viet Nam National Coal and Mineral Industries Holding Corporation Ltd (Vinacomin) – http://www.vinacomin.vn/

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DSCI (2024). The Development Strategy of the Coal Industry to 2030 with a vision to 2045. Decision No 55/QD-TTg, 17 January 2024.
East Asia Forum (2021), Adding Substance to Vietnam's Climate Commitments. https://www.eastasiaforum.org/2021/12/03/adding-substance-tovietnams-climate-commitments/
EGEDA (2023). Expert Group on Energy Data Analysis, APEC Energy Working Group, APEC Energy Database.
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EVN (2021). EVN Annual Report 2021. http://www.evn.com.vn
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- (2024). Approving the Plan to implement the National Electricity Development Plan for the period 2021 - 2030, with a vision to 2050. Decision No.
262/QD-TTg, April 4, 2024. https://english.luatvietnam.vn/cong-nghiep/decision-262-qd-ttg-2024-plan-to-implement-the-national-powerdevelopment-master-plan-for-2021-2030-309182-d1.html
PDP8 (2023). National Power Development Plan for 2021 - 2030, with a vision to 2050. Decision No 500/QD-TTg, 15 May 2023.
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