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Accelerating renewable energy transition in ASEAN: upgrading grids, harnessing HVDC technology, and ensuring energy security

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By Alex Hong

· 24 min read


The continued prosperity of ASEAN member nations depends critically on a stable electricity system. The need for energy is expanding dramatically as a result of the area's rapid economic expansion and growing population. In order to guarantee the availability and stability of the electrical supply to fulfil this expanding demand, an effective and strong energy grid is crucial. However, the conventional reliance on fossil fuels has given rise to environmental issues, such as excessive carbon emissions and susceptibility to fluctuations in energy prices. There is an urgent need to move towards renewable energy sources and energy storage technologies in order to address these issues and promote sustainable development. Numerous advantages come with renewable energy, including lowered greenhouse gas emissions, improved energy security, and increased economic toughness.

By storing extra renewa'ble energy for use during times of high demand or when renewable generation is constrained, energy storage devices can be integrated to assure a reliable power supply. Member nations may improve their energy security, lessen the effects of climate change, and attain sustainable development goals while fostering economic growth and prosperity by modernising the ASEAN energy system and adopting renewable energy and energy storage.

Introduction

Definition of sustainable energy transition

The transition to cleaner and renewable energy sources from energy systems based on fossil fuels is referred to as the sustainable energy transition. To attain a low-carbon and reliable energy future, it entails the deployment and integration of renewable energy technology, energy efficiency measures, and sustainable energy regulations.

Significance of upgrading regional energy grids in accelerating the transition towards renewable energy

A major factor in hastening ASEAN's switch to renewable energy is the modernization of regional energy infrastructure. It enables further renewable energy penetration by facilitating the effective and dependable integration of renewable energy sources into the current energy infrastructure. Modernised grids increase the flexibility and stability required to support intermittent renewable energy sources like solar PV and wind power. They open up the possibility for trade in renewable energy and promote energy cooperation by enabling the smooth transfer of electricity across areas.

Overview of the ASEAN region and its energy landscape

ASEAN consists of 10 member nations including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, is going through a period of strong economic growth with a matching rise in energy demand. However, the region's heavy reliance on fossil fuels results in significant greenhouse gas emissions and susceptibility to fluctuations in energy prices. Recognising the necessity of sustainable development, ASEAN is actively converting to renewable energy sources and diversifying its energy mix in order to improve energy security, lower carbon emissions, and foster economic resilience.

The role of HVDC in improving ASEAN energy grids

Explanation of High-Voltage Direct Current (HVDC) technology

Enhancing ASEAN energy systems requires the adoption and use of High-Voltage Direct Current (HVDC) technology. HVDC transmission, as opposed to conventional Alternating Current (AC) transmission, enables the efficient and long-distance transmission of electricity over enormous distances with little loss. A more dependable and adaptable method of transferring energy is made possible by HVDC systems, which convert AC power into DC power and transport it via specialised cables or overhead lines. For the purpose of distributing power to end customers, these systems use converter stations at both ends. HVDC technology has demonstrated its efficacy in integrating renewable energy sources into existing grids, enabling the seamless flow of electricity from remote renewable energy producing sites to urban centres.

Advantages of HVDC in enhancing energy transmission and grid integration

The adoption of HVDC technology in ASEAN brings several advantages to energy transmission and grid integration:

  1. Grid flexibility and stability: HVDC enables autonomous active and reactive power control, improving grid stability and allowing for the integration of sporadic renewable energy sources like solar and wind power. The stability and resilience of the energy grid are improved by the capacity to control power flow and offer voltage assistance. The presence of fast-ramping power plants can also make the grid more flexible and help to further integrate into the grid.
  2. Efficient long-distance transmission: HVDC systems are well suited for connecting far-flung renewable energy producing facilities to populated areas because they can carry electricity over longer distances with lower losses than AC transmission. This flexibility makes it easier to use renewable resources that are plentiful and far from demand centres.
  3. Optimisation of capacity and congestion control: HVDC technology increases transmission capacity and enables effective use of already-existing infrastructure. HVDC increases the overall reliability and quality of the energy supply by lowering transmission line congestion, which lowers the chance of blackouts and grid instability.
  4. Integration of offshore renewable energy sources: HVDC networks are especially helpful for include offshore renewable energy facilities like offshore wind farms or even offshore floating solar farms. These technologies open up the enormous potential for renewable energy that coastal locations in ASEAN provide by enabling the efficient and dependable transmission of power from offshore installations to onshore grids.

Challenges and considerations for HVDC implementation in ASEAN

While HVDC technology offers significant benefits, its implementation in ASEAN is not without challenges. Some of the key considerations include:

  1. Skilled workforce and knowledge transfer: The design, building, operation, and maintenance of HVDC systems call for specialised knowledge. The lack of HVDC experts in ASEAN can be resolved by creating a qualified workforce and facilitating knowledge transfer through collaborations and capacity-building projects.
  2. Cost implications: Building fast-ramping power plants, converter stations, transmission cables, and related equipment can require a sizable initial investment in HVDC infrastructure. The financial sustainability and economic feasibility of HVDC projects depend on thorough cost-benefit assessments and careful planning.
  3. Regulatory and policy frameworks: Supportive regulatory frameworks that cover grid codes, technical standards, and market structures are necessary for the successful implementation of HVDC technology. The installation of HVDC systems can be facilitated and regional energy integration can be supported by harmonising rules among ASEAN member nations and setting clear policies.
  4. Environmental and social considerations: HVDC projects need to take into account the potential implications on ecosystems, local communities, and land use as well as rights of way. To implement HVDC sustainably, it is essential to provide openness, involve stakeholders, and conduct in-depth environmental studies.

HVDC technology can be instrumental in strengthening grid integration, enhancing energy transmission, and easing the transition to an ASEAN powered by renewable energy sources by solving these issues and taking into account the particular factors of the ASEAN region.

Energy storage and smart energy management system (“EMS") for enhanced energy security

Importance of energy storage systems in renewable energy integration

In order to deal with the inherent intermittency and variability of renewable energy sources, energy storage technologies are essential. Effective energy storage is necessary to capture and store excess energy during periods of peak generation and release it during times of high demand or low renewable energy production as the share of variable renewables such as solar PV and wind power increases fast. Energy storage systems (“ESS”) raise the power grid's dependability, stability, and flexibility by bridging the energy supply and demand gaps. ESS can also provide frequency responses, energy shifting and peak shaving applications.

ESS are crucial for ASEAN since they help the region integrate more renewable energy and reduce intermittency. The Southeast Asian region is positioned for significant economic expansion, which will boost energy demand, as noted in the "Renewable Energy Outlook for ASEAN" report. Energy storage technology can make it easier to integrate renewable energy sources, which will aid ASEAN nations in lowering their dependency on fossil fuels, cutting greenhouse gas emissions, and achieving their clean energy goals.

Nicolas Leong, Energy Business Director (North & Southeast Asia) of Wärtsilä Energy,  a global Finnish company that manufactures and services power sources in the marine and energy markets commented that EMS is key in any ESS in order to make it smart. A smart EMS can monitor, control and optimises energy assets on both site and portfolio levels. Addressing complex technical and economic factors, the EMS will support a wide variety of battery and power electronics to achieve optimal system performance. Overall, the EMS integrates and controls individual resources and entire fleets comprising energy storage, renewables and thermal generation. Using machine learning and historic and real-time data analytics to optimise the asset mix, the energy management software will thus enables customer to remotely monitor, operate, identify and diagnose equipment with unrivaled safety, reliability, and flexibility.

Key benefits of energy storage and smart energy management in ensuring energy security

Energy storage systems with smart energy management systems offer several key benefits in ensuring energy security in ASEAN:

  1. Demand response and load management: Powerful demand response tactics are made possible by smart energy management systems and energy storage. By shifting demand to times when renewable energy is abundant or when electricity prices are low, these systems can reduce their overall energy use. Reducing load peaks through active energy management will result in more effective use of energy resources and increased grid stability.
  2. Higher penetration of renewable energy sources: Energy storage enables higher grid integration of sporadic renewable energy sources. It minimises curtailment and makes the most of clean energy resources by allowing the usage of renewable energy even during times of low generation.
  3. Enhanced grid stability and stability: Energy storage devices give grid managers the capacity to balance supply and demand, smoothing out variations in renewable energy sources. These devices serve to keep the grid stable, lessen power outages, and improve the general reliability of the energy system by storing excess energy and releasing it when necessary.
  4. Grid resilience and backup power: In times of grid disruptions or other emergencies, energy storage devices can act as backup power sources. In difficult circumstances, they guarantee energy security by offering a dependable and decentralised energy supply that can power vital infrastructure like hospitals, schools, and telephones.
  5. Implementation of energy storage technologies and smart grids in ASEAN member countries:

Several ASEAN member countries have recognized the importance of energy storage technologies and smart grids in their renewable energy transition plans. Here are a few notable examples:

  1. Singapore: To assist its pursuit of renewable energy, the city-state has been aggressively investigating the adoption of energy storage systems. To evaluate the viability and advantages of integrating energy storage into the local grid, the Energy Market Authority (EMA) has started projects including the "Energy Storage System Test-Bed" and the "Jurong Island Energy Storage System".
  2. Thailand: The Thais have also made major advancements in the deployment of energy storage. The "Smart Grid Master Plan" and the "Smart Grid Development for Power System Stability and Security" projects are only two of the regulations and incentives the nation has put in place to encourage the creation of energy storage facilities.
  3. Malaysia: To improve grid stability and promote the integration of renewable energy, Malaysia has undertaken a number of energy storage programmes. To investigate the potential of energy storage technologies in the local setting, the Sustainable Energy Development Authority (SEDA) has started projects like the "Malaysia Electricity Supply Industry (MESI) Energy Storage" project.

The above examples shows the ASEAN member states' dedication to using energy storage and smart grids as essential instruments in their transition to renewable energy sources. ASEAN countries are promoting the use of energy storage systems and smart energy management solutions for improved energy security and a sustainable energy future through policy support, pilot projects, and collaborations with industry players.

Innovations in battery technology (e.g. sodium batteries)

Innovations in sodium batteries have a great deal of promise to speed up the adoption of energy storage in ASEAN and cut emissions even more. A viable replacement for conventional lithium-ion batteries, sodium batteries offer great energy density and enhanced safety while resolving issues with resource availability and cost.

Case studies and data from ASEAN nations show how sodium batteries are advancing the shift to renewable energy sources and improving energy storage capacity. For instance, in Thailand, the integration of a sizable energy storage system using sodium batteries has proven successful in stabilising the grid and regulating sporadic renewable energy sources. In this situation, the use of sodium batteries has not only facilitated a dependable energy supply but also helped to lower carbon emissions by allowing a larger penetration of renewable energy sources.

Technologies for sodium batteries have advanced significantly thanks to research and development (R&D) projects backed by public funding. To close the funding gap and promote the development and implementation of cutting-edge energy storage solutions in ASEAN, adequate funding for R&D efforts is crucial. By making these investments, sodium battery technology may advance, becoming more affordable and widely available to help the region's switch to renewable energy sources.

The Sustainable Development Goals (SDGs) established by the United Nations General Assembly are also in line with ASEAN's adoption of sodium batteries. ASEAN can support SDG 7 (Affordable and Clean Energy) by using energy storage technology like sodium batteries, which will make it easier to integrate renewable energy sources into the grid. In turn, this will result in a decrease in greenhouse gas emissions and support regional sustainable development.

The transition to renewable energy in ASEAN may be impacted by sodium batteries in ways other than only lowering emissions. It also addresses issues with grid stability, energy supply security, and optimising the use of renewable energy. By utilising the cutting-edge capabilities of sodium batteries, ASEAN can promote a more robust and sustainable energy system while assisting its plans for reducing climate change and adapting to it.

Encouraging HVDC development and integration

Policy support and regulatory frameworks for HVDC deployment

In order to encourage the development and integration of High Voltage Direct Current (HVDC) systems in ASEAN, policy support and strong regulatory frameworks are essential. Through the following actions, governments and regulatory organisations play a crucial part in fostering an environment that supports the implementation of HVDC:

  1. Grid Code and Interconnection Standards: It is crucial to implement precise grid codes and interconnection standards that cover the technical specifications and operating guidelines of HVDC systems. By ensuring seamless integration, grid stability, and dependable operation of HVDC infrastructure, these standards help increase investor trust and project bankability.
  2. Permitting and Licencing Procedures: HVDC project development can be sped up by streamlining the licencing and permitting processes that apply to them. Investor confidence can be increased and project delays can be minimised by establishing clear and transparent procedures for environmental evaluations, land acquisition, and rights-of-way for transmission corridors.
  3. National Energy Policies: ASEAN members can include particular HVDC development goals and plans in their national energy policies. These regulations can highlight the value of HVDC in promoting long-distance renewable energy transmission, enhancing grid connectivity, and promoting regional energy integration.
  4. Market Mechanisms and Power Purchase Arrangements (PPAs): Private investment may be attracted via the introduction of market incentives for HVDC development, such as feed-in tariffs, competitive auctions, or green energy credits. Power Purchase Agreements (PPAs) with attractive conditions and long-term contracts can reduce the risks connected with HVDC projects and guarantee a steady stream of revenue.

Investment incentives and financial mechanisms to encourage HVDC projects

To encourage investment in HVDC projects, ASEAN countries can implement various incentives and financial mechanisms, including:

  1. Tax Incentives and Exemptions: Offering tax incentives to private investors in HVDC projects, such as tax discounts, exemptions, or accelerated depreciation, can be effective. These incentives lower project costs in general and increase the HVDC infrastructure's financial viability.
  2. Subsidies and Grants: To lower the up-front costs of HVDC infrastructure, governments may offer financial assistance in the form of subsidies or grants. By reducing the greater capital costs associated with HVDC compared to conventional transmission systems, these incentives can increase the viability of projects.
  3. Risk Mitigation Instruments: Implementing risk mitigation tools like insurance, hedging mechanisms, or guarantees can help reduce the risks particular to HVDC projects. These tools offer financial certainty to lenders and investors, lowering the perceived risks associated with projects.
  4. Green Financing and International Cooperation: Using green financing tools like green bonds or climate funds can give HVDC projects access to funding. International collaboration and collaborations with development banks or other international financial institutions may be able to provide additional funding and financing expertise.

Collaboration and knowledge sharing among ASEAN countries for HVDC development

Working together and exchanging expertise among ASEAN nations is essential for advancing HVDC development. Countries can cooperatively speed up the development and integration of HVDC systems by exchanging experiences, best practises, and lessons learnt. Important projects include:

  1. ASEAN Energy Cooperation and Forums: Through already-established venues like the ASEAN Ministers on Energy Meeting (AMEM) and ASEAN Power Grid (APG), ASEAN member countries can improve cooperation. These forums encourage discussion, information sharing, and the creation of collaborative HVDC initiatives.
  2. Information and Data Sharing: Creating a centralised database or platform for information and data sharing on HVDC projects can promote openness and help nations make well-informed decisions. For the design and execution of HVDC projects, this platform may incorporate project case studies, technical requirements, cost information, and performance measures.
  3. Research and Development (R&D) Collaboration: HVDC system innovation and technology developments can be fuelled by promoting cooperative R&D programmes among ASEAN nations and research institutions. The creation of affordable and effective HVDC systems can be aided by the exchange of research findings, technical know-how, and expertise.
  4. Capacity Building and Training: To develop local competence in HVDC technology, ASEAN nations might arrange workshops, training courses, and knowledge-sharing events. These projects may concentrate on the technical elements, project planning, HVDC infrastructure operation, and maintenance.

By adopting regulatory support, investment incentives, and cooperative efforts, ASEAN member states may hasten the development and integration of HVDC systems, promoting a strong and integrated renewable energy landscape in the area.

Enhancing policies, standards, and prices for better energy networks in ASEAN

Importance of supportive policies for renewable energy deployment

The adoption of renewable energy in ASEAN is made possible in large part by supportive legislation. Governments have the ability to create an environment that encourages investment and the expansion of the renewable energy sector by enacting beneficial legislation. Following are some reasons why supportive policies are crucial:

  1. Renewable Portfolio Standards (RPS): These regulations require a certain proportion of the electricity to come from renewable sources. Governments create market demand and encourage investment in the sector by establishing renewable energy targets. Flexible RPS regulations enable the exchange of renewable energy credits, which encourages cost-effective deployment. The Renewable Energy Act of 2008 was passed in the Philippines, and it established an RPS requiring power distributors to obtain a specific proportion of their energy from renewable sources. Investments in renewable energy projects, particularly in geothermal and wind power, were encouraged by this programme.
  2. Feed-in Tariffs (FiTs) and Power Purchase Agreements (PPAs): These are efficient tools for encouraging investments in renewable energy. Governments guarantee a fixed payment rate through FiTs, giving a predictable return on investment for producers of renewable energy. PPAs offer long-term contracts with producers of renewable energy, ensuring a steady income stream and reducing project risks. Thailand initiated a FiT programme in 2007, which greatly increased the country's capacity for renewable energy. The strategy promoted funding for solar, wind, and biomass projects, establishing Thailand as a regional pioneer in the production of renewable energy.

Establishing robust regulatory frameworks and standards for energy infrastructure development

To guarantee the dependable and secure growth of energy infrastructure in ASEAN, robust regulatory frameworks and standards are necessary. Investor confidence is increased, project bankability is improved, and grid integration is made possible by clear rules and regulations. Regulatory frameworks' essential features include:

  • Environmental and Social Impact Assessments: Robust regulations should mandate the performance of exhaustive E&SIAs for renewable energy projects. The potential negative effects on nearby populations, ecosystems, and cultural heritage are identified and mitigated with the use of these analyses. Regulations that were put into place in Indonesia require projects utilising renewable energy to do social and environmental impact analyses. By taking into account projects' potential environmental and social repercussions, this guarantees that initiatives are built sustainably.
  • Grid Codes and Interconnection Standards: Grid codes specify the technical criteria for tying renewable energy systems to the grid. These requirements involve things like frequency management, power quality, and voltage stability. Interconnection standards that are well established provide the easy integration of renewable energy sources, promoting grid stability. The integration of renewable energy systems is addressed by thorough grid codes that Singapore has put in place. The technical specifications and processes for linking solar and wind installations are outlined in these standards, assuring grid stability and dependable operation.

Promoting transparent and fair pricing mechanisms to incentivize renewable energy investments

Investments in renewable energy in ASEAN must be enticed by transparent and equitable pricing regimes. Pricing systems can entice involvement from the private sector by guaranteeing an even playing field and offering appropriate returns on investments. Important pricing strategies include:

  1. Auctions and Competitive Bidding: Through competitive bidding processes, auctions can determine the cost of renewable energy projects. This method promotes cost effectiveness and lowers consumer electricity costs. Auctions help developers of renewable energy into the market by offering clarity and openness. In 2017, Vietnam launched competitive bidding for solar project with success. Due to the auctions' record-low solar rates, solar energy has been deployed quickly in Vietnam, making it one of the fastest-growing solar markets in the region.
  2. Net Energy Metering (NEM): NEM enables owners of renewable energy systems to balance out their electricity usage by redistributing surplus energy to the grid. An alluring incentive for distributed renewable energy generation is provided by the owners' receipt of credits or financial compensation for the exported electricity. 2016 saw the launch of Malaysia's Net Energy Metering programme, which enables customers to install solar panels and reduce their electricity costs. Through this programme, consumers in the residential, commercial, and industrial sectors have been encouraged to install rooftop solar systems.

It is imperative that ASEAN nations develop an environment that is favourable for the deployment of renewable energy by giving priority to supportive policies, putting in place strong regulatory frameworks, and implementing transparent and equitable pricing procedures. These initiatives will hasten the region's transition to a more sustainable energy future, encourage sustainable development, and speed up the energy transition in the area.

Conclusion

Reiterating the importance of upgrading regional energy grids and adopting HVDC technology in ASEAN’s energy transition

A key component of ASEAN's energy transition is the modernization of regional energy infrastructure and the deployment of High-Voltage Direct Current (HVDC) technology. The importance of these steps in simplifying the integration of renewable energy sources and guaranteeing a dependable and effective energy system has been emphasised throughout this essay. We can emphasise the significance of these indicators by summarising the main aspects, providing pertinent statistics, and presenting case stories.

To handle the growing penetration of renewable energy in ASEAN, upgrading regional energy infrastructure is crucial. As stated in IRENA's Renewable Energy Outlook for ASEAN, the area is seeing tremendous economic expansion, which is driving up energy consumption. By improving energy systems, renewable energy may be captured in resource-rich areas and transmitted to demand centres, allowing for efficient electricity transmission and distribution. This makes it easier for the region to use a variety of renewable energy sources, guaranteeing a well-balanced and resilient energy mix.

Use case 1

The Greater Mekong Subregion (GMS) Power Integration Project illustrates how renewable energy is being incorporated into regional systems. The goal of this project, which has the support of the Asian Development Bank, is to link the electrical grids of Thailand, Cambodia, Lao PDR, and Vietnam. These nations can maximise the use of renewable energy sources, improve energy security, and foster regional cooperation by building cross-border connections.

Furthermore, long-distance power transmission and connectivity depend on the use of HVDC technology. Compared to conventional AC transmission, HVDC systems have a number of benefits, such as reduced transmission losses, increased grid stability, and the capacity to transport electricity over greater distances. Because of these features, HVDC technology is especially well suited for integrating renewable energy sources, which are frequently dispersed from load centres.

Use case 2

For electricity transmission from its hydroelectric plants, Malaysia's Sarawak region has successfully used HVDC technology. The Bakun-Sarawak Energy Transmission Line, a 670-kilometer HVDC transmission line, enables Peninsular Malaysia's energy-intensive industry and metropolitan centres to efficiently receive renewable hydropower. The best possible use of renewable energy and a decrease in greenhouse gas emissions have both been made possible by this initiative.

Emphasizing the crucial role of energy storage and smart energy management in ensuring energy security

In order to provide energy security and stability as ASEAN moves towards renewable energy, energy storage and intelligent energy management systems are essential. Energy storage technologies are crucial for storing extra energy and ensuring a consistent power supply during times of low generation as intermittent renewable energy sources like solar and wind gain popularity. Smart energy management systems also enable demand-response mechanisms, optimise energy use, and improve grid efficiency.

Use case 1

Advanced energy storage technologies are used at Singapore's Marina Bay Sands integrated resort to maximise energy use. The resort uses chilled water and thermal energy storage, allowing it to retain extra cooling capacity during times of low demand and use it during times of high demand. In addition to improving energy efficiency, this lowers operating expenses and carbon emissions.

Smart energy management systems are also essential for efficiently balancing supply and demand as well as for maximising the use of renewable energy sources. The ASEAN member states can assure a dependable and sustainable energy infrastructure by utilising cutting-edge technology like smart grids, real-time monitoring, and demand-response systems.

Use case 2

In the province of Nonthaburi, Thailand's Provincial Electricity Authority (PEA) has put in place a smart grid pilot project. Smart metres, distribution automation, and real-time monitoring systems are all included in the project, allowing for effective demand-side control and energy management. Energy efficiency has increased, losses have decreased, and grid dependability has increased as a result of the use of smart grid technologies.

Call to action for ASEAN member countries to prioritize policy enhancements, technological advancements, and regional cooperation to create better energy networks

Prioritising policy improvements, technology developments, and regional collaboration are essential for ASEAN member nations to accomplish a successful and sustainable energy transition. In order to promote the deployment of renewable energy, streamline the permitting process, and offer alluring incentives for clean energy investments, policymakers should concentrate on developing a favourable regulatory environment.

The development of novel solutions to the problems associated with integrating renewable energy into the grid should also be a top priority. The digitalization of the energy infrastructure, grid management systems, and energy storage technology research and development are all included in this.

To build better energy networks, ASEAN member states must encourage regional collaboration. This entails exchanging technological know-how, best practises, and creating cross-border links. Countries may work together to maximise the use of renewable energy sources, improve energy security, and build a resilient and sustainable energy future for the ASEAN area by cooperating on regional energy initiatives.

The adoption of HVDC technology, the modernization of regional energy grids, the use of energy storage and intelligent energy management systems, and the prioritisation of policy improvements, technological developments, and international cooperation are all necessary components of the ASEAN region's transition to renewable energy. The ASEAN member states may advance their energy transition, encourage sustainable development, and create a resilient energy system for the future by taking these steps.

illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.

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About the author

Alex Hong is the Executive Director of Digipulse Data and strategic advisor. He is the Chief Sustainability Coordinator of the Youth Networking Business Committee (YNBC). Alex is LinkedIn’s Top Voices (Green) in Singapore 2022 and represents the Global Blockchain Business Council (GBBC) as the Ambassador of Southeast Asia.

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