Prospects and challenges for an ASEAN energy integration policy

Discussion on the establishment of an ASEAN Community has intensified in the last 2 decades. The prospect for its establishment is seemingly inevitable with the signing of the so-called Bali Concord II. And so, analytical research on the economic challenges of this political decision is urgently needed. This study addresses issues of the ASEAN integration from an energy policy perspective. It strives to understand the challenges that will be faced by individual members when the ASEAN community is established. The study uses Kaya’s identity method of decomposition to analyze the energy patterns among ASEAN member countries by which energy consumption patterns can be examined, including energy intensity, energy sources, and sectoral energy demands. Analyzing these patterns is needed since a region-wide policy in the energy sector would be futile if it is implemented across the board without country-specific considerations. Cooperation in the energy sector requires great awareness and flexibility if it is to support the goal of an integrated ASEAN.