energy export, growing from 447.2 Mtoe in 1990 to 739.7 in 2012. Overall, however, the Asia-Pacific region became a net TPES importer in 2007, and in the next five years, the net TPES imports for the region increased to 385.5 Mtoe in 2012.
Impact of fluctuating oil prices differentiated
Due to the extraordinary economic growth in recent decades, energy demand for the Asia- Pacific region has risen significantly, and it is expected to grow continuously in the foreseeable future. Fossil fuels have been and will continue to be the major energy source in the region, accounting for more than 60 % of the total final energy consumption( ESCAP, 2014). The soaring energy demand, plus unevenly distributed fossil fuel reserves in the region, make many developing countries dependent on imported fossil fuels and therefore expose them to energy price volatility in the international market.
Many developing countries dependent on imported fossil fuels
By early 2015, international oil prices declined dramatically by 47 % although it has rebounded since February( EIA, 2015). Because of combined consequences of slowing growth in major economies and steadily declining oil intensity and expected weak growth in 2015, relatively low oil prices may persist. The overall impact of falling oil prices will depend on the nature of oil-dependence( oil-importing or oil-exporting) of national economies. The Asian Development Bank( ADB) estimated that net oil importers in the region could see an additional 0.5 % growth in 2015 GDP if oil prices remain low( ADB, 2014). The low oil prices also lowered inflation rates and presented opportunities for importers such as Indonesia and India to reform their programmes on fuel subsidies( ADB, 2014). It also provided a good opportunity for high-subsidy countries to adjust policies on fossil fuels. For oil-exporting countries, such as the Russian Federation and other Central Asia countries, growth would be negatively impacted depending on the role of the energy sector in the national economy.
Oil price fluctuations have significant macroeconomic, financial and policy implications. They support economic activity and reduce inflationary, external and fiscal pressures for oil-importing countries, but affect oil-exporting countries adversely by weakening fiscal and external positions and reducing economic activity( World Bank, 2015). They also provide a significant opportunity to reform energy taxes and fuel subsidies, as well as reinvigorating reforms to diversify oil-reliant economies.
Integration of Renewable Energy in Electricity Systems
The power generation sector continues to evolve, specifically with regard to effectively integrating an increased share of renewable energy and variable renewable energy( VRE) within the electricity mix.
●●
Renewable energy share of electricity production in Asia and the Pacific increased from 666 terawatt-hours( TWh) in 1990 to 1,869TWh in 2012, representing 17 % of the 2012 electricity mix within the region( ESCAP, 2015).
● ● VRE share of electricity production in Asia and the Pacific increased from less than 38 GWh in 1990 to nearly 164,000 GWh( 164 TWh) in 2012, representing 1.5 % of the 2012 electricity mix within the region( ESCAP, 2015).
● ● Globally, share of VRE sources within the electricity mix have risen from 0.04 % of electricity production in 1990 to 2.8 % in 2012( ESCAP, 2015). The cost-competitiveness of VRE for power generation has reached historic levels, approaching parity with fossil fuel generation.
●●
Solar photovoltaic( solar PV) module prices in 2014 were 75 % lower than their levels at the end of 2009 while wind turbine prices
41