Struggles for energy transition in the electricity system in Asian countries: A system complementarity perspective

Abstract

To reconcile the quest for energy for economic growth and climate requirements, Asian countries have capitalized on the global decrease in system cost to shift their energy mix toward renewable energy. However, they encountered a number of challenges and confrontations from incumbent regime actors because a large-scale integration of renewable-energy-sourced electricity (RES-E) into the grid requires a whole system change. This chapter proposes the restructuring of elements of complementarities as an analytical framework, exploring how Asian countries have struggled with restructuring, taking Vietnam, Indonesia, India, and Japan as cases. We find that all four of the case study countries have struggled with three challenges, to varying extents: resistance of influential incumbent regime actors; reconciling compelling narratives; and highly unclear and uncertain benefits of the transformation. Coupled with favorable institutions and infrastructure, easier access to financial capital, engineering, manufacturing, and organizational capabilities for coal power globally, and less uncertainty in coal power technologies, these challenges can incentivize incumbent regime actors to retard the restructuring, causing renewable curtailment and reducing renewable investments. This holds especially when international actors support to reinforce the incumbent regime.