Asean aims to ratify oil security agreement by mid-Nov

Market: Electricity
30/10/26

The Association of Southeast Asian Nations (Asean) aims to fully ratify the Asean Petroleum Security Agreement (Apsa) ahead of its summit in the Philippines in mid-November, executive director of the Asean Centre for Energy (Ace) Razib Dawood told Argus at the Singapore International Energy Week on 29 October.

Member states facing a shortfall of at least 10pc in normal domestic requirements for 30 consecutive days can request assistance under previous agreements. The latest agreement allows members to explore setting up a strategic reserve that could now cover natural gas as well as oil, he said — a timely provision after Indonesia lowered Singapore's piped natural gas (PNG) supply from 24 October.

"The spirit of the agreement is still voluntary," he noted, adding that the next step is for the association to pursue a regional strategic reserve.

Diversifying Asean's energy supplies will also require progress on the energy transition, with the region having already set renewable energy targets for 2026-30. Under the Asean plan of action for energy co-operation for 2026-30, the region aims for renewables to supply 30pc of total primary energy supply and 45pc of installed power capacity. It also aims to cut primary energy intensity to fall by 40pc from its 2005 level. The region's leaders have asked to accelerate transition efforts because of the crisis, Razib said.

Southeast Asia could meet its installed renewable capacity targets for 2026-30, Razib said. But meeting total primary energy supply goals will be challenging because this will require more electrification, with the agency seeking to raise the use of electric vehicles (EVs) in the logistics and long-haul transport segments and reduce reliance on LPG for cooking, he added.

Asean ministers met on 13 April to discuss the evolving Middle East conflict. The meeting encouraged member states to explore co-ordinated regional responses where appropriate, strengthen supply chain connectivity, and ensure reliable and secure access to raw materials and energy supplies, including through the implementation of binding agreements, and by refraining from unnecessary trade restrictions.

The meeting also called for the mobilisation of existing mechanisms such as the Asean Power Grid and the Trans-Asean Gas Pipeline.

By Hykel Quek

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29/10/26

Enel adding 600MW Bess to Chile portfolio

Santiago, 29 October (Argus) — Construction of Italian utility Enel's four new battery energy storage systems (Bess) in Chile remain on track with a combined capacity of 600MW, the firm's Chile chief executive Gianluca Palumbo said on Thursday. The four projects will operate with existing solar and/or wind generation plants and all incorporate grid-forming technology, which helps renewable energies maintain grid stability, Palumbo said during a results conference call. "By helping maintain voltage and frequency, [grid-forming technology] can provide the same stability traditionally provided by conventional power plants," he said. First off the block, the 205MW Las Salinas Bess will be Chile's first to operate with grid-forming technology, representing a major milestone, he said. Las Salinas recently connected to the grid and commercial operations are expected to start in 2027. The 153MW Valle del Sol and 94MW Azabache Bess projects are also scheduled to start next year, he said. Construction began at the 100MW Finis Terrae Bess project in August and is scheduled to come on line in 2028. Once complete, the four projects will increase Enel's Bess capacity in Chile to 800MW. Chile approved a regulation earlier this year requiring Bess, solar and wind plants to incorporate grid forming technology to enhance grid stability as thermal plants are phased out. Enel's January-September profits rose by 11pc from a year before to $390mn, Enel Chile said. Heavy rains since August that lifted hydro generation by 3pc to 8.2TWh boosted the performance. Enel is Chile's largest generator with installed capacity of 8.9GW. Of the total, 41pc are hydro; 35pc are wind, solar and geothermal; 17pc are combined-cycle gas plants and 5pc are powered by oil and gas. Bess represents 2pc. By Emily Russell Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Australia seeks strict power rules for data centres

29/10/26

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29/10/26

Australia seeks strict power rules for data centres

Sydney, 29 October (Argus) — Australia has proposed requiring large data centres to secure sufficient firmed electricity supply from new renewable generation and storage assets within their own states or territory, or risk facing financial penalties and potentially load shedding. The proposal came from climate change and energy minister Chris Bowen, who submitted two rule change requests to the Australian Energy Market Commission (AEMC). The requests, published by the AEMC on 28 October, seek amendments to the National Electricity Rules that would create a mandatory contracting obligation for qualifying data centres, as the government moves to manage the reliability and price impacts of rapidly rising power demand from that sector. Under the proposals, data centres above certain size thresholds or operational profile — that are yet to be defined — would need to demonstrate that their electricity demand is backed by eligible firming arrangements, including new renewable generation, storage and dependable demand flexibility located in the same National Electricity Market (NEM) region as the facility. Data centres would need to contract sufficient firmed capacity to match their load profile and support investment in new renewable generation, storage and demand response. The government said this would help ensure the costs and reliability risks associated with large new loads are not transferred to other electricity consumers. Eligible firming arrangements could include power purchase agreements (PPAs), cap contracts, tolling agreements, behind-the-meter batteries and demand response resources. A data centre's compliance would be assessed against its overall portfolio of contracts and resources rather than individual agreements. Data centres that failed to comply would be subject to enforcement action by the Australian Energy Regulator (AER) or the Australian Energy Market Operator (Aemo), including financial penalties and potentially even load shedding. "Under this approach, a non-compliant data centre could be required to reduce its demand until it demonstrates sufficient firm contract coverage as required by the obligation," the change request said. The AEMC has not yet initiated the rule change process, which will include consultation papers seeking stakeholder feedback. The request follows concerns over the scale of forecast demand growth from the sector. The latest Electricity Statement of Opportunities (ESOO) from Aemo forecasts data centre electricity consumption rising to around 15TWh by 2029-30 and about 34TWh by 2035-36, equivalent to around 7.8pc and 13pc respectively of NEM operational demand. The Australian government last month released its national artificial intelligence (AI) standards framework for consultation, proposing that large-scale data centre operators surrender renewable energy certificates equivalent to their annual electricity consumption. Before that, the federal government reached a compromise with Queensland and the Northern Territory , allowing jurisdictions with government-owned utilities to use existing generation assets where surplus capacity exists, rather than relying exclusively on new renewable projects. The new change request does not exclude non-renewable power generation but prioritises new renewable generation and storage. "While the presence of non-renewable backup generation or other supporting technologies should not necessarily preclude access to the framework, the intent is not to facilitate data centres that are co-located solely with non-renewable generation," the proposal reads. By Juan Weik and Lawrence Wen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Climate plans improve but off track for 1.5°C goal: UN

27/10/26

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27/10/26

Climate plans improve but off track for 1.5°C goal: UN

Edinburgh, 27 October (Argus) — Countries' nationally determined contributions — climate plans — have improved in quality and scope, but progress in lowering emissions remains "substantially off track" to limit temperature rises to 1.5°C and keep a temporary overshoot short, according to a report from UN climate body the UNFCCC released today. The report took into account 127 new nationally determined contributions — climate plans — released between 1 January 2024 and 31 August 2026, representing 154 out of 194 parties to the Paris agreement. The 154 parties account for around 71pc of total greenhouse emissions, according to the report. The report does not include the US — the world's second-biggest emitter — since the country officially left the Paris accord last year. The UNFCCC found that GHG emission reductions — including land use, land-use change and forestry — stemming from the implementation of NDCs are projected to peak and decline by 2035, reaching 6pc below 2019 levels on average. The cuts would imply "best-estimate warming of 1.7-2.3°C by the end of the century", the report said, adding that "returning warming to 1.5°C would require substantial additional GHG emission reductions in the coming years". The NDCs "show improvement, compared with the previous NDCs, in the quality and depth of information provided, as well as broader thematic coverage", the UNFCCC said. The organisation found that energy transition is a common theme in the NDCs and that electrification plays "an increasingly important role in reducing emissions while strengthening energy security". "Against the backdrop of recent energy crises, almost two thirds of parties highlighted the contribution of mitigation measures to energy security, particularly through renewable energy and energy efficiency improvements," the report said. The report showed that 27pc of countries referred "to transitioning away from fossil fuels in energy systems in a just, orderly and equitable manner" as per the call made at Cop 28 in Dubai and that 10pc reported targets for cutting fossil fuel fired power generation by 2035, representing a 258TWh reduction. Around 6pc of the parties included fossil fuel phase-out targets, according to the report. The report found that parties in their NDCs increased their focus on creating enabling conditions for renewable energy deployment, efficiency improvements and electrification, with around 70pc reporting measures to improve electricity grids. It also showed that 92pc of the parties included methane in their NDCs and, of those, 29pc pointed to renewable energy generation as a key supply-side driver of energy security by replacing imported fuels with domestic energy sources. A total of 94pc of parties mentioned in their NDCs that they plan to use — or may use — voluntary co-operation under Article 6 of the Paris agreement and 81pc referred to the use of internationally transferred mitigation outcomes — when countries exchange emissions savings bilaterally to be counted towards their NDCs. The UN Cop 31 climate summit due to take place in Turkey next month "can help address some of the key gaps highlighted in this year's reports with its focus on practical measures to support greater implementation, UNFCCC executive secretary Simon Stiell said. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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W Australia targets 75pc renewable power by 2030-31

27/10/26

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27/10/26

W Australia targets 75pc renewable power by 2030-31

Sydney, 27 October (Argus) — Australia's Western Australia (WA) state government today announced a target for renewable energy to account for 75pc of generation on the Southwest Interconnected System (SWIS) by the July 2030-June 2031 fiscal year, alongside measures to support industrial energy users and manage the transition away from coal-fired electricity. The target forms part of the government's new Plan for Affordable Energy, which is intended to place downward pressure on electricity prices as WA prepares for the retirement of state-owned coal-fired generation by 2030 and responds to rising costs associated with ageing coal assets. Modelling by the state's Department of Energy and Economic Diversification, assured by consulting firm Boston Consulting Group, found industrial electricity costs could rise by 89pc by 2032 without government intervention. The plan combines increased renewable energy deployment with battery storage and domestic gas supply, which the government described as the lowest-cost pathway for maintaining reliable electricity supplies while reducing greenhouse gas emissions. Renewable energy's share of the state's electricity mix has risen to 40pc in 2025 from 14pc in 2017, the government said. It has also committed A$2.5bn ($1.76bn) to Clean Energy Link transmission infrastructure and delivered more than 1.4GW of grid-scale battery storage. The target would also accelerate WA's electricity-sector decarbonisation, although the state does not have a legislated economy-wide emissions reduction target. Coal and gas accounted for 27.5pc and 29.7pc of electricity generation in 2025, respectively, according to energy data platform Open Electricity, which aggregates data from the Australian Energy Market Operator (Aemo). Coal's share has fallen significantly from a peak of 57.8pc in 2013, while gas accounted for 33.5pc of generation that year. Additional renewable capacity is already being procured through the federal government's Capacity Investment Scheme (CIS), which opened a 1.8GW tender for WA in August , with successful projects scheduled to begin operating by 2030. The plan includes a A$150mn Made in WA Energy Affordability Investment Program, which opened for applications on 27 October and will provide low-interest loans of up to A$15mn for manufacturers to install solar and battery systems and upgrade equipment to reduce energy costs. By Lawrence Wen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Singapore unveils five-year energy infrastructure plan

26/10/26

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26/10/26

Singapore unveils five-year energy infrastructure plan

Singapore, 26 October (Argus) — Singapore will expand its power generation capacity over 2026-31 to meet new electricity demand, the country's energy minister Tan See Leng said at the Singapore International Energy Week (SIEW), which runs over 26-30 October. The city-state is set to start up five gas-fired power plants over 2026-31 to meet rising power demand, EMA said. The move is part of a five-year energy infrastructure plan that EMA released on 26 October. This will raise the country's generation capacity by about 26pc from its current capacity of 12GW, it added. Singapore's peak electricity demand could reach 9.9-13GW by 2031, compared with 8.6GW as of August 2026, Singaporean energy regulator Energy Market Authority said separately on 26 October. The rise will largely be due to new demand from sectors such as semiconductor manufacturing and data centres, as well as the expanding use of electric transport. EMA is also currently assessing proposals from a request for proposal (RFP) that closed in September this year for additional gas-fired power plants that will be operational by 2032, it said, adding that additional RFPs could be launched over the next five years. Singapore is also studying the feasibility of establishing a new energy cluster at Pulau Tekong, an island off Singapore, targeting infrastructure such as hydrogen-ready gas-fired power plants, an LNG terminal and other low-carbon energy technologies. It is also set to raise its LNG regasification capacity to 15mn t/yr from 10mn t/yr, when its second LNG terminal at Jurong Port starts operations by 2030, EMA said. Natural gas accounts for 95pc of Singapore's power generation needs. The country is also set to increase its energy storage capacity to just over 1GWh by 2030 from around 350MWh. Energy storage systems can improve power system resilience by responding to changes in supply and demand, as well as storing power in times of available spare network capacity and discharging during peak periods. Singapore is also carrying out feasibility studies on a second electricity interconnection Singapore and peninsular Malaysia, which could support up to 2GW of capacity by 2030, EMA said. The move is part of the country's efforts to improve low-carbon power import flows. It is also on track to reach its target of 3GW-peak (GWp) of solar deployment by 2030, and could expand that deployment to 4GWp by 2035, Tan said at the conference. The country's solar capacity is currently at about 2.3GWp. Solar remains Singapore's most viable indigenous renewable energy source, Tan added. By Hykel Quek Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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