BSP introduces system value analysis for energy transition aiming towards low carbon economy

Brunei Shell Petroleum Company (BSP) recently presented framework to promote dialogue around identified priority areas for energy transition – the System Value Analysis (SVA).

The company initiated the SVA study for Brunei together with Accenture, with the support from various departments of the Government, through peer reviews and sharing of expertise and data.

Within the ASEAN region, the SVA a holistic framework with the aim to grow beyond cost has been conducted for Malaysia, Indonesia and most recently Thailand.

The transition to a low carbon economy requires investment, innovation and unprecedented collaboration from the industry, the Government of Brunei, policymakers and the community.

In a statement, BSP said that valuing the energy system is at the heart of that change – the path to an integrated zero-carbon energy system needs to consider not only cost but also system value.

Traditionally, cost has been a key driver for decision-making when deploying low carbon technologies or initiatives.

However, to accelerate actions in Brunei’s journey towards a net-zero future, a new lens is needed for decision-making – one which identifies the broad range of benefits, outcomes and in-country value as a result of the energy transition.

Shifting commercial focus beyond cost to include value, the System Value is the new lens for decision making and is a holistic framework that evaluates economic, environmental, social, and technical outcomes of potential energy solutions.

Identified high-impact priority areas

The potential solutions identified for Brunei include (1) the deployment of distributed solar (2) leverage Brunei’s floating solar potential for grid connected capacity and green hydrogen production (3) Carbon Capture, and Storage (CCS) to decarbonize industries, both domestically and internationally and (4) scale-up Electric Vehicles (EV) and boost public transportation.

These identified priority areas can then be used as baselines for dialogues to drive alignment and decisions between private and public stakeholders and conducive policy creation towards Brunei’s net-zero ambitions.

The speed of the transition to a low carbon future will crucially depend on actions taken to put in place the broad range of policies necessary to drive and accelerate changes.

Image: Iqbal Dato Selamat

Accelerating change and progress

In her welcoming remarks, BSP Managing Director and Shell Country Chair Agnete Johnsgaard-Lewis, thanked the commitment and support from those involved in the project.

“As the country progresses towards a low carbon and climate-resilient nation, BSP is committed to being a trusted partner with the Government of Brunei and lends its support to shape possible policies that can support Brunei’s ambitions to move towards net-zero by 2050. We believe that the SVA study can be used to underpin further dialogue to drive alignment, decisions and meaningful change between private and public stakeholders. Collaboration is vital to unlocking sustainable investments in solutions for a clean energy transition,” she said.

Emphasising the benefits of the SVA, BSP In-Country Value Manager Hajah Rosita Haji Hassan said that the System Value Analysis is crucial for Brunei to understand how we can collectively leverage from the clean energy transition journey, and for the country to benefit from the socio and economic impact of the green projects,” she said.

She added: “The possible benefits we can derive from cleaner energy goes beyond just numbers – we believe these solutions can help boost in-country value through the development of green and sustainable projects and especially in the creation of new jobs. Brunei has the potential to reposition itself as a key player for the green energy transition in the region.”

The World Economic Forum (WEF) developed the System Value framework to drive discussions and actions to accelerate the clean energy transition.

The System Value Analysis of Brunei will be shared and made available to the public on the WEF website next week.

From there, the SVA can be used for dialogues to drive alignment, decisions and meaningful change between private and public stakeholders and conducive policy creation towards Brunei’s net-zero ambitions.

On her part, BSP Head of Energy Transition Shirley Sikun said that accelerating Brunei’s ambitions towards net-zero requires collaboration across all sectors and institutions.

“When the System Value Analysis is published on the World Economic Forum website, I encourage companies and members of the public to take the time to review the study and ask themselves – How can we contribute towards a sustainable Brunei? Real change can happen when we keep asking questions and engage in thoughtful dialogue,” she said.

BSP is already a willing and able player and is moving in step with the global drive towards a low carbon future while aiming to sustain its significant contribution to the Brunei economy; sustainably powering Brunei and delivering energy responsibly and safely.

The unveiling ceremony was held during the Energy Week of the Brunei Mid-Year Conference and Exhibition (MYCE) 2022.

In attendance was Permanent Secretary of the Department of Energy, Prime Minister’s Office Haji Azhar Haji Yahya.

Also present were Executive Committee members of the Brunei Climate Change Secretariat, academics and representatives from various private sectors.

This article was first published on 18 June 2022 in our Weekly Epaper issue 198 | More stories here


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