Electricity demand in ASEAN is projected to grow faster than any other final form of energy, accounting for 56% of growth in total energy demand until 2040. As a result, the ASEAN Member States (AMS) will collectively need to construct 350 gigawatts of additional generating capacity, more than double what exists today. This will require an estimated USD 600 billion in generation investments and USD 730 billion in transmission and distribution (T&D) infrastructure. These investments can best be supported through increased regional power integration and, in particular, through the enhanced implementation of a regional ASEAN Power Grid (APG) whereby excess power and reserve capacity can be beneficially shared. Multilateral power trading, as a way to implement the APG, can bring multiple benefits, including reduced system costs, increased energy security and an ability to integrate higher shares of variable renewable energy.
This project produces a report identifies a set of minimum political, technical and institutional requirements that the ASEAN member states will need to meet in order to establish multilateral power trading in the region. Some of these minimum requirements can be met by building upon existing efforts in the region. The report also proposes a set of trading arrangements of increasing levels of ambition which, taken together, will enable ASEAN to establish multilateral power trading in a manner that is consistent with maximising national sovereignty and the equitable sharing of benefits. These recommendations include a summary of potential roles for regional institutions and an example transaction to show how trading might potentially work in practice. The report has been published and presented at the 37th ASEAN Ministers on Energy Meeting (AMEM) on 4 September in Bangkok.
This project is implemented in partnership with the International Energy Agency (IEA).
Download the report (13MB, .zip)