Digitalization Advances Southeast Asia’s Energy Transition By Narsingh Chaudhary and Harry Harji Amazon is investing in a 62-megawatt (MW) utility-scale solar energy project in Singapore. When completed, the Amazon project will be among the largest aggregated movable solar energy systems designed and installed in Singapore and will contribute net-new renewable energy to the national electricity grid. The 80,000 megawatt-hours (MWh) of clean energy generated annually will power Amazon’s offices, data centers, and fulfillment facilities in Singapore. Amazon is targeting to power its operations with 100 percent renewable energy by 2030. Narsingh Chaudhary, Black & Veatch’s Executive Vice President & Managing Director, Asia Power Business.
Harry Harji, Associate Vice President for Black & Veatch’s management consulting business in Asia
outheast Asia economies are racing to diversify their energy portfolios to balance energy security and sustainability obligations while meeting the power demands of their growing economies and populations.
be the most vocal in demanding renewable sources of electricity.
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One factor driving the increase in renewable energy is corporate power purchase agreements (PPAs). Under the agreements, businesses purchase electricity directly from power producers. According to the Black & Veatch Strategic Directions: Electric Industry Asia 2021 report, respondents anticipate that data centers (50 percent), banking (43 percent), and large IT companies (40 percent) will 52
Automate Sept-Nov 2021
Respondents believe government policy, regulation, and socio-economic factors will drive investments more than the technology itself. This suggests the possibility that large commercial and industrial users — driven by sustainability commitments — will demand more renewable generation and, where possible, build their solutions. Distributed energy resources (DER) such as microgrids will offer large users, like technology company Amazon, the reliability and resilience of supply they require alongside direct control in meeting environmental targets.
In addition to corporate sustainability commitments, the rise in consumer awareness about environmental impacts is another factor driving the increase in renewable energy. More regional consumers are expecting their power providers to progressively and proactively tackle climate change, further deepening the need for reliable, resilient energy supplies. Key survey findings include: #1: Much more investment in microgrids and other DER The most significant investment growth in new capacity over the next three to five years is expected in renewable energy. Solar (land), energy storage, solar (floating), wind (offshore), and microgrids represent the top five categories. (Figure 1)
