Part of an ongoing article series on renewable energy / climate crisis in Southeast Asia.
Introduction
To realize a sustainable future, energy transition is unavoidable in the fossil-fueled world. Digitalization helps to accelerate this transition to be much more efficient and economical.
However, both energy and digitalization have their own dynamics in people’s livelihoods, affecting lives differently and shaping their culture, lifestyle, and attitude in various ways.
Considering this complex trilateral relationship between people, energy and digitalization, a question thus emerges: are people catalysts or barriers towards a more sustainable and efficient future, especially in the context of Southeast Asia?
What Is a People-Centered Energy Transition?
A people-centered energy transition is an approach that prioritizes individuals’ and communities’ needs, rights, and involvement in the shift towards sustainable energy systems.
According to the International Energy Agency (IEA), this concept emphasizes the importance of inclusivity, equity and local engagement in energy policies as well as initiatives.
It also aligns with global goals for sustainable development and climate action, particularly in regions like Southeast Asia, where energy access and equity must be addressed first before sustainable development can be attained.
A critical issue in this region is the effort to phase out the consumption of coal in Indonesia, the Philippines and Vietnam.
Coal is the most carbon-intensive major fossil fuel in use today and is deeply entrenched in the power grid system, powering over 60% of electricity in Indonesia and the Philippines, and about half of total generation in Vietnam. In 2022, coal-fired power plants (CFPP) contributed about 532.5 metric tons of carbon dioxide equivalent in power generation sectors. This was about 24% of total emissions in Southeast Asia. This statistic shows the undisputed truth of how carbon-based fossil fuels have promoted climate change in the region.
Therefore, it is only logical to conclude that a drastic reduction in coal consumption is required to achieve Net Zero Emissions (NZE).
However, this will affect many people’s livelihoods.
Indonesia, for instance, relies heavily on coal for energy generation and as a significant revenue source. The coal industry provides jobs and contributes to the national economy, making it politically sensitive to move away from coal.
A rapid transition from coal will likely lead to job losses and economic disruption in coal-dependent regions.
Addressing these social impacts is crucial for gaining public support for the transition, but it is easier said than done. Southeast Asia is especially vulnerable to the effects of climate change, with extreme heat, cyclones, floods and landslides becoming more common phenomena with each passing day.
These disasters have undeniably affected people’s lives – for children, in particular, their growth and development could be stifled.
Consider, for example, the experience of a young boy in Cambodia who had to quit school and work at the construction site to pay for his housing repairs after storms and floods.
The Role of the Youths
The energy transition poses several challenges for all ages, particularly for the increasing number of youths against the backdrop of a more competitive job market.
In Southeast Asia, the population is estimated at 686 million people, with a youth proportion (aged 15-34 years old) reaching 34%, meaning there are an estimated 233 million young people in the region.
With such a large population, the youths’ education and awareness are critical to ensure a people-centered energy transition can be achieved.
The energy transition poses several challenges for all ages, particularly for youths as their number increases and the job market becomes increasingly competitive. Factors that influence their openness towards energy transition include job displacement, skill gaps, infrastructure challenges and cultural resistance.
Addressing these challenges requires inclusive policies, community engagement and targeted support to ensure that the energy transition benefits all segments of society equitably.
Recognizing this gap, youth organizations such as Youth for Energy Southeast Asia (Y4E-SEA) and ASEAN Youth Organization (AYO) have undertaken steps to understand the perspectives of young people vis-à-vis the energy transition.
Surprisingly, 87% of youths in Southeast Asia were concerned about pollution and emissions caused by the current energy system. As many as eight out of 10 of those surveyed believed decarbonization is a must-have target in each country.
Yet, despite these concerns, only 38% of them feel that ASEAN is adequately prepared to embrace the clean energy transition. Along with policies and political will, which are barriers on their own, a staggering 84% of the youths felt there is not enough relevant skills training on energy transition.
However, 92% of them are ready to change their habit and even adopt sustainable lifestyles. This is shown in their willingness to use public transportation, planning to purchase electric vehicles (EVs) and even participating in energy-related volunteer activities.
Indeed, these figures show that youths can play a pivotal role in a people-centered energy transition.
Young people who have faced digital revolutions such as the dot-combubble, the Internet of Things(IoT) and the exponential emergence of generative artificial intelligence(GenAI) have earned the title of “tech-savvy”,or more formally, “digital natives”. With digital resources at their disposal, they have the urge to initiate digital transformation, an aspect that carries economic value to energy transition process.
Digital Transformation in the Energy Sector
Digital transformation is the endeavor to build a new process that involves digitalization to access higher value and efficiency. The efforts to harness digitalization come from various sectors and are mostly targeted for economic growth.
In the power and energy industries, digital transformation fosters economic growth by increasing energy efficiencies, supporting renewable integration and reducing emissions. According to the IEA, harnessing digitalization in the power industry potentially contributes over US$80 billion per year in generation cost savings. This is why digital transformation is key – it can complement ASEAN’s aspiration to attain energy transition.
One of the core foci of digital transformation in energy transition is the implementation of smart grid.
A smart grid is a collective system that uses digital technologies to meet the electricity demands of consumers. By this definition, a smart grid applies various technologies from the generation side to the consumer side.
Smart grid implementation, timelines and objectives depend on the context of each country. Singapore, for example, started setting up infrastructure in in 2010 and was already rolling out smart meters by 2013.
Other countries such as the Philippines further expanded their smart grid vision to 2040 with a Smart Distribution Utility Roadmap (SDUR), which comprises plans to import and export electricity meters as well as virtual power plants.
In Thailand, the state-owned Electricity Generating Authority of Thailand (EGAT) has made significant progress in national grid modernization, including the opening of the Renewable Energy Forecast Centre (REFC) and the Demand Response Control Centre (DRCC).
The Thai Ministry of Energy also announced the National Energy Plan with a direction towards carbon neutrality, which focuses on Digitization, Decarbonization, Decentralization, De-regulation and Electrification (4D1E). The country also has a smart grid plan that runs until 2030.
In Indonesia, the State Electricity Company’s (PLN) smart grid implementation focuses on reliability, efficiency and grid productivity to 2026 and beyond.
Hence, many Southeast Asian countries have set the foundation for digital transformation in the energy and power sectors, complementing their energy transition plan.
Case Study: Geothermal Power Plants
A case in point is digital transformation in geothermal power plants. These plants are often used as baseload generators, meaning they provide a steady and reliable supply of electricity to meet the minimum level of demand on the grid at all times, ensuring energy security. Geothermal fields in Dieng and Patuha, Indonesia, embarked on digital transformation precisely because previous anomalies prevented the facilities from being reliable baseload generators. Before the transformation, prolonged data collection hindered management and stakeholders from acting promptly when faced with operational anomalies.
After its pilot implementation, operators were able to make timely decisions due to faster operations reporting period, down from 5.5 hours to 55 minutes. One of the operational decisions successfully increased electricity output from 58 to 60 megawatts for two months, equivalent to a gain of US$230,000 in revenue.
Further developments were focused on gathering real-time sensor data to identify energy losses and accelerate plant recovery during outages.
These benefits show that investment in digital technology can generate business value by optimizing existing processes. Similar implementation should also be considered nation-wide in other sectors, with appropriate adoption of digital technologies to meet specific needs.
The Youths in Charge
However, the most significant factor of digital transformation is its people. Motivation for people to change is emphasized as the primary barrier to digital transformation initiatives, which is highly influenced by culture and digital literacy.
Change management will enable and sustain a cultural change, from reflecting on existing culture and identifying favorable behaviors to establishing governance. However, when it comes to digital literacy, the effort depends on each person’s knowledge gap and upbringing.
In the previous case of the geothermal plants, tangible values such as increased productivity and revenue would only be realized once the people are inclined to act upon it.
Such involves building trust with the relevant people, so data-driven decisions become more of a habit than an enforced process. At the beginning of the implementation, this trust was fostered by identifying “advocates”, or those who desired such transformation. With these advocates, tangible values started to emerge and it became much easier to pursue data-driven behavior as well as decision-making.
The youths also have an important role in reducing the gap in digital skills, competencies and digital literacies for societies. The youths are called “digital natives” because they are the first generation to grow up with technologies and are the most digitally literate group among all age groups.
This means that they have the strategic potential of being the advocates of digital transformation, such as in the energy transition process.
Nevertheless, in ASEAN, this remains far from reality. It is revealed that in 2020, only 53% of rural children and adolescents had internet connection, as opposed to 72% of urban-based children. In contrast, 95% of European youths have internet access.
Hence, providing internet access, especially to youths, must be the first requirement before ASEAN took a deep dive into digital transformation.
Conclusion
When it comes to energy transition and digital transformation, we always talk about solutions and technologies first. However, that should not be the case. As in any transformation, the people are the key driver in defining and leading the change.
Hence, it is imperative to ensure that we focus on the people. How do we create the mindset shift to drive digital transformation and ensure a just energy transition, the change that we are aiming for? This part might be directed towards young people, who are more familiar and ready to change the present environment. It is thus important to invest and support their part in raising awareness, advocacy and even advising the transition to a cleaner and digitally enabled earth.
