The US has expressed interest in collaborating with Thailand in research and development (R&D) on compressed natural gas for vehicles and renewable energy as part of its plan to strengthen its energy partnership with Asia.
Poneman: Diversity source of strength
In an interview with the Bangkok Post early this week, US Deputy Energy Secretary Daniel Poneman stated the importance of regional energy security in Asean by diversifying sources of renewable energy including wind, solar, geothermal, biofuel and hydropower.
"The diversity of energy supplies is a source of strength in energy security," he said.
But Mr Poneman said the difficulty for the region is whether countries have the political will to dedicate the resources and investment needed to transform in order to mitigate climate change and prevent its worst effects.
In particular, an energy infrastructure is required to strengthen power reliance such as a grid that can be self-healing when facing energy security issues such as natural disasters, he said.
Mr Poneman was in Bangkok on his way to attend the Asean Energy Ministers Meeting on Bali, held from Sept 23-27.
The stopover was a follow-up to President Barack Obama's visit here last November.
Mr Poneman met with Energy Minister Pongsak Raktapongpaisal and PTT president and chief executive Pailin Chuchottaworn for updates on the progress of Thailand's energy efficiency and plans for renewable energy to account for 25% of the country's energy mix by 2022.
He emphasised the role that government plays in R&D, for which Thailand spends only 0.2% of gross domestic product.
"It is an area the private sector is reluctant to invest in, because the payback period is long and uncertain, plus the highest leverage for taxpayers' investments are in the more transformational areas," said Mr Poneman.
"It's hard to know in advance which [R&D] investment will pan out, because it could be in many different areas. So going from fundamental research could potentially lead to game-changing technology."
He said US energy companies have continued to invest in Thailand but like to operate in an environment with clarity, market-based signals, transparency, stable tax regimes and contract sanctity.
At the Asean summit, Mr Poneman covered peer reviews on fossil subsidies and the US-Asia Pacific Comprehensive Energy Partnership that resulted from President Obama's visit to the region last year.
The partnership is aimed at facilitating progress towards renewable and clean energy, power market interconnectivity and the future role of natural gas.