Duration: August – December, 2020
SDPI has started this project with the help of ESCAP. SDPI will prepare the report “COVID-19 and the future of energy in the Asia- Pacific – threats and opportunities”. The purpose of this study will be to seek to decipher impacts of COVID on the energy sector in the Asia-Pacific region and identify policy responses by member States and other stakeholders to the pandemic to align with the energy sector transformation. Unless otherwise amended by the Parties, the report will have the following points like Immediate impacts of pandemic and energy, behavior change and enabling technology, implications of oil and gas price shock, green stimulus and policy options.
The main objectives of the project are:
- To explore the impact on energy demand in the post-COVID-19 period.
- To help to structure thinking around the future of the Asia-Pacific energy sector for further developing strategies.
- Actions to be taken by the governments to counter the challenges and long term impact of COVID-19.
- To provide essential context on the issue for policymakers and other energy stakeholders, together with some recommendations.
- Seek to decipher impacts of COVID-19 on the energy sector, and recast policy responses to the pandemic to align with the energy sector transformation.
- To identify risks, opportunities and learnings from leading examples to guide policymakers and program designers and highlight opportunities where regional cooperation can support the goals of economic recovery and energy sector transformation.
Impacts to the energy system emerging from COVID-19.
- Impact on the renewable energy supply chain and the COVID-driven downturn in energy demand is presenting unforeseen risks to energy markets.
- Green stimulus packages can provide an opportunity to drive renewables and energy efficiency and reduce reliance on high-emissions energy sources.
- Lockdowns have lowered energy consumption.
- Historic low oil and gas prices may compete with renewables and energy efficiency.
- Low oil and gas prices may also drive fuel switching in the electricity sector away from coal and towards gas fired generation enabling more flexible grids and easing the integration of renewable energy.
- The pandemic has highlighted the essential nature of the electricity system which is now widely recognized as being critical for hospitals and other healthcare services, teleworking and remote learning.
- Enhancing resilience towards future crises.
- Making best use of recovery stimulus funds and leveraging energy security concerns to “build back better”.
- Locking in behavior changes and attitude shifts to reap ongoing benefits from lockdown.
- Taking advantage of low oil and gas prices to unwind fossil fuel subsidies and accelerate the energy transition.
- Highlighting opportunities for regional cooperation.