Regional energy specialists advocate for the examination of low-emission power alternatives within ASEAN's grid system.
The ASEAN Power Grid (APG) is at the heart of a significant push towards a low-carbon, sustainable energy future in Southeast Asia. This interconnected grid, seen as a vital infrastructure project, aims to meet the region's rapidly growing power demand, expected to triple by 2050.
The ASEAN Centre for Energy (ACE), an intergovernmental organisation that serves as an energy think tank for Southeast Asian countries, has been tasked with conducting detailed decarbonisation pathway analyses and scenario planning for the APG. However, ACE awaits a formal, stronger mandate from ASEAN governments to complete these optimisation studies and develop concrete low-carbon integration strategies for the regional power grid.
The APG could significantly accelerate decarbonisation by optimizing the use and cross-border trade of low-carbon and renewable energy sources. Countries with surplus renewable resources, such as hydropower from Lao PDR, Myanmar, and Sarawak in Malaysia, could supply energy to fast-growing consumers like Vietnam, Thailand, and Indonesia.
Efforts to decarbonise the APG align with the region's goals of economic growth and increased energy supply. Decarbonising the region's energy sector could be the cheapest way for ASEAN to go about it, according to Woo. Regional agreements for the trade in electricity, as emphasised by Woo, are crucial for this endeavour.
However, substantial infrastructure investment—estimated at over US$100 billion—is needed for transmission expansion and grid integration. This poses financing and coordination challenges. Nonetheless, the success of ongoing study efforts and policy alignment will be critical in ensuring the APG's decarbonisation objectives materialize and contribute significantly to the transformation of Southeast Asia’s energy landscape.
The potential impacts of a decarbonized APG on the region’s energy sector include enhanced energy security, reduced dependence on fossil fuels, better management of energy surpluses and shortages, and cost-effective provision of clean energy. Economically, the APG can drive development by unlocking new investments, reducing energy costs, and fostering regional cooperation. From a climate perspective, it supports ASEAN’s emission reduction targets by facilitating large-scale use and trade of renewable power, crucial for meeting the bloc’s sustainability and net-zero goals amid growing electricity demand and climate risks.
Notable examples of established interconnections in the region include the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, which transports renewable hydropower from Lao PDR to Singapore. However, the production of solar energy in Singapore could cost more than producing green energy in neighbouring countries due to land scarcity.
Most ASEAN countries aim to achieve net zero emissions by 2050, with Thailand considering bringing forward its deadline to 2050. Indonesia plans to achieve net zero by 2065. The realisation of the APG's main project—the interconnected grid as the backbone of an integrated energy system—is a significant step towards these goals.
In conclusion, the decarbonisation of the ASEAN Power Grid is a crucial step towards a sustainable energy future for Southeast Asia. The ACE's focus on advancing ASEAN's Renewable Energy Long-term Roadmap this year is a promising development in this regard. The success of these efforts will depend on the cooperation and commitment of ASEAN governments, as well as the successful navigation of financing and coordination challenges.
- The ASEAN Centre for Energy aims to complete detailed decarbonisation pathway analyses for the ASEAN Power Grid, which is crucial for meeting the region's rapidly growing power demand and transitioning to a low-carbon, sustainable energy future.
- Decarbonising the ASEAN Power Grid could provide a cost-effective way for ASEAN to increase energy supply and align with its economic growth goals, as regions with surplus renewable resources, like Lao PDR, Myanmar, and Sarawak, could supply energy to fast-growing consumers like Vietnam, Thailand, and Indonesia.
- To achieve net zero emissions by 2050 (Thailand) and 2065 (Indonesia), substantial infrastructure investment—over US$100 billion—for transmission expansion and grid integration is needed, posing financing and coordination challenges that must be addressed for the decarbonisation objectives of the ASEAN Power Grid to materialize.
- The successful implementation of the ASEAN Power Grid's main project—the interconnected grid as the backbone of an integrated energy system—will support ASEAN’s emission reduction targets by facilitating large-scale use and trade of renewable power, ultimately contributing to the region's sustainability and net-zero goals amid growing electricity demand and climate risks.
