PROGRAMME AREA NO. 3: Coal

Coal is an energy resource crucial for the region's economic development. While the oil reserves of ASEAN are being depleted, coal resources are waiting to be substantially explored and coal demand is rising sharply. Besides its abundance and wide distribution, coal applied in combined cycle plants is one of the cheapest fossil fuel. It is also relatively easy to transport and distribute. With this rapidly increasing share of coal in the ASEAN energy mix, it is imperative for this action plan to include coal among its programme areas.

Objective

To promote the development and utilisation of coal while addressing environmental issues.

Strategies and Actions

In pursuance of the above objective the Coal Subsector Network has been transformed last April 21, 1999 into the ASEAN Forum on Coal. It has identified five (5) strategies and eleven (11) plans of action, as follows:

3.1 Strengthen Institutional and Policy Framework

3.1.1. Transform the ASEAN Coal Sub-sector Network into the ASEAN Forum on Coal (AFOC) in 1999.

This action has been completed upon the transformation of the coal subsector Network into the AFOC. Upon approval by SOME/AMEM of the AFOC Charter, the interim Chairman of AFOC shall convene the AFOC Council which shall be composed of representatives of respective AFOC national committees of the ASEAN member countries. Meanwhile the focal points of the Coal Subsector Network are spearheading the formation of the AFOC National Committees in their respective countries.

3.1.2. Conduct an inventory of existing policies, institutional arrangements and regulations on coal and the key actors in each Member Country.

This action shall be a cooperative effort of ACE and AFOC. ACE shall make use of its homepage wherein the inventory shall be maintained up-to-date and disseminated through networking with AFOC secretariat and the AFOC National Committees in the member countries. Summaries of these inventories will appear in print in the ASEAN Energy Bulletin.

3.2 Promote Clean Coal Technology (CCT)

3.2.1 Clean coal technology for rural electrification

While the promotion of clean coal technology is an important strategy involving both large-scale and small-scale coal-fired power plants, emphasis shall be made during the next six years on the application of clean coal technology at small-scale particularly for rural electrification at 5-50 MW range in coal-bearing remote areas in the Philippines, Indonesia or Vietnam.

3.3 Promote Private Sector Investments

3.3.1 Conduct investment promotion roadshows

3.3.2 Organise coal business forums

3.3.3 Undertake feasibility studies on coal infrastructure projects

Private sector investment is of course the key to a successful promotion of coal resource development. The range of investment needs is generally in the small and medium scale, hence affordable to many entrepreneurs both local and foreign. To effectively achieve this, investment promotion roadshows and business forums shall be conducted regularly in appropriate countries of the region. In preparation for these promotion schemes feasibility studies on coal projects shall be compiled and made available to prospective investors. When necessary, assistance in conducting feasibility studies shall be provided by the relevant ASEAN body to enhance investment opportunities.

3.4 Promote Intra-ASEAN Trade on Coal

3.4.1 Establish a directory of common guidelines for coal specifications, producers and consumers in ASEAN.

This activity shall be done principally by ACE in cooperation with AFOC and the AFOC National Committees. Continuously updated information will be networked through the ACE homepage and corresponding nodes in the member countries.

3.4.2 Organise a network of coal laboratories in ASEAN to harmonise standards of coal analysis

Important coal laboratories in the ASEAN countries will be encouraged to form a network under the AFOC umbrella. Analytical standards will be harmonised and raised to an adequate level of excellence through training and equipment modernisation. Capability complementation shall be encouraged.

3.4.3 Conduct studies on existing and future coal flow in the region

In coordination with other international energy organisations such as APERC, IEA, WEC and other , studies will be conducted on coal trade flows in the region. This will expectedly show how a coal commodity market can be organised and established in the future.

3.4.4 Conduct feasibility studies on establishing an ASEAN coal commodity market

Towards the second half of this planning period, the idea of establishing an ASEAN coal commodity market would have matured with the relevant data. A feasibility study shall be conducted thereon.

3.5 Promote Environmental Impact Assessment of Coal Projects

3.5.1 Provide assistance in environmental impact assessment of coal projects

Particularly, in the case of small-scale coal projects the entrepreneurs need external assistance on environmental impact assessments. The ASEAN mechanisms should be made available to carry out this purpose. ACE and/or AFOC should be endowed with funds, or expert capabilities to provide this service.