Last year, Malaysia inked an Energy Purchase and Wheeling Agreement (EPWA) with Lao PDR and Thailand.

The implementation of the first phase of the “Lao PDR-Thailand-Malaysia-Singapore (LTMS) Power Integration Project (PIP)” in January this year is a step in the right direction. Source: ASEAN Centre for Energy (ACE)įor the APG to truly resemble a regional power architecture, it must move beyond bilateral exchanges of power towards multilateral power interconnections. These planned projects will connect power grids between Peninsular Malaysia and Sumatera, the Malaysian state of Sarawak and Brunei in Borneo, as well as Lao PDR and Cambodia. However, HAPUA announced last September that three priority projects are being pursued which would double the exchange and purchase of electricity to 10,800 MW in 2020 – and beyond 16,000 MW post-2020. Eight out of 16 projects have been implemented with a power exchange and purchase of 5,200 megawatts (MW). Thus far, the interconnection projects are on a cross-border bilateral basis. Power connections will first be developed on cross-border bilateral terms, then expanded to a sub-regional basis before being augmented into an integrated regional power architecture. However, construction of the APG is reflective of a gradual and incremental development strategy. The East System will include Brunei, Malaysia (Sabah and Sarawak), Indonesia (West Kalimantan), and the Philippines. The Lower West System will cover Thailand, Indonesia (Sumatra, Batam), Peninsular Malaysia and Singapore. The Upper West System, located in the Greater Mekong Sub-region (GMS) will encompass Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam.

The final form of the APG will encompass all the 10 members of ASEAN, divided into three sub-systems. Through the ASEAN Power Grid Consultative Committee (APGCC), HAPUA aims to develop a common ASEAN policy on power interconnection and trade which would subsequently lead to the realisation of the APG. Tasked with realising this ambitious vision is the Heads of ASEAN Power Utilities/Authorities (HAPUA). In order to fully maximise such a substantial investment, ASEAN governments understand that they cannot afford to take a siloed approach to the issue and instead have begun to plan for a regional power grid infrastructure.Įstablished in the late 1990s, the ASEAN Power Grid (APG) represents a forward-thinking vision to enhance cross border electricity trade in the region which would help undergird rising electricity demand. The International Energy Agency (IEA) estimates that it will cost ASEAN governments nearly US$990 billion to develop its power sector through to 2035. To meet the growing demand for energy, huge investments in power generation capacity will be required. According to the ASEAN Centre for Energy (ACE), electricity demand in ASEAN is expected to grow by approximately 5.5 percent yearly between 20. This situation has rightly prompted a rise in energy demand within the region. Analysts are projecting the cumulative growth of economies in the Association of Southeast Asian Nations (ASEAN) to be upwards of 5.1 percent for this year. The current period of sustained economic growth in Southeast Asia is expected to continue into the foreseeable future.

Apg electricity