16-09-04

Rising oil prices and pollution are fuelling interest in green power in Asia but experts see no prospect of a rapid switch from the region's growing dependence on oil, coal and gas. The problem is the high cost of renewable energy projects such as solar, wind, geothermal and biofuels, lack of government incentives and vested interests who believe green power is unviable or a threat to their wallets.

"We have to work very hard to convince governments that this is something they should focus on," said Samuel Tumiwa, renewable energy specialist at the Asian Development Bank (ADB). "You have factions in governments that want renewables and others that don't. There are a lot of vested interests be they old power companies or oil companies."

Environmental groups such as Greenpeace and lending agencies such as the ADB say renewable energy is crucial for Asia's economic future. Renewables would help trim dependency on oil, minimise exposure to oil price spikes and cut pollution in a region that is home to more than half of the world's population.

US crude oil prices have averaged $ 38.67 a barrel so far in 2004, up more than $ 10 from the average for the previous five years. US benchmark crude hit a record $ 49.40 in August.

The International Energy Agency, the world's energy watchdog, predicts Asia, particularly China and India, will need to make trillions of dollars of energy investment by 2030, much of it to build power stations to connect more people to national grids. Transport is also booming.

Analysts say renewable energy can help meet some of these energy demands but most governments need to change the way they think and pass laws that level the playing field for green power. Already there are signs of change.

China, the world's largest oil consumer after the United States, has ambitious plans to boost renewable energy use that include raising wind power generating capacity from 570 MW today to 20,000 MW by 2020 and 50,000 MW by 2030. One MW of electricity can supply 1,000 homes.

A push to use more biofuels such as marsh gas, straw, sugarcane residue and garbage to fuel power plants could eventually save China 28 mm tpy of coal.

Source: The Economic Times