Towards an Integrated ASEAN Electricity Market

HAPUA-UNESCAP Meeting in Jakarta

Also available in Deutsch

The ASEAN Vision 2020 emphasises the need to construct energy networks across ASEAN. The ASEAN Power Grid (APG) was created as the flagship of this vision to achieve three objectives: (a) achieve long-term security, availability, and reliability of energy supply; (b) optimise the region’s energy resources (c) allow access to affordable energy across the region. At a workshop in Jakarta, the Heads of ASEAN Power Utilities/Authorities (HAPUA) in cooperation with UNESCAP invited international experts to find out more about regional power integration models and their suitability for ASEAN.

The idea of this workshop was to get a better understanding of the strengths and weaknesses of various electricity market models operating around the world and to make recommendations for the design of a model most suitable and adaptable to ASEAN. The most prominent models are the European Union (EU), the Nordic countries (Nord Pool), the United States (US), the Southern African countries (SAPP), and Central America (SEIPAC). Leading representatives of ASEAN Power Companies (APC) attended this meeting and discussed core elements of a future ASEAN Energy Exchange (AEE) system.

Dr. Peter Hefele, Director KAS RECAP, presented main findings derived from the history of European Energy Market integration, both from NordPool (Northern/Central Europe) and the European Union. Other contributions were made by representatives of the International Energy Agency (IEA), the World Bank and from India.

Based on these findings, the participants defined core criteria for a future AEE framework to facilitate power trade on a multinational basis across ASEAN:

  • An AEE shall evolve gradually and voluntarily according to the basic ASEAN political philosophy
  • Gaps and excesses shall be traded without interfering with the operation of national energy markets
  • National regulations shall be complemented by regional coordination while a complete regulatory harmonisation across ASEAN is not needed at the moment
  • Regional power infrastructure shall be expanded based on its best upon master regional infrastructure plan to enhance the investment
  • A regional wheeling pricing model shall be developed to increase price transparency and efficiency in cross-border trading

On the second day of the workshop, this concept was discussed by the APG Special Task Force to the Heads of ASEAN Power Utilities/Authorities (HAPUA). The ASEAN energy ministers are expected to agree on a Feasibility Study on AEE later this year.

Author

Dr. Peter Hefele

Publication series

Event Reports

published

China, April 21, 2017

Teilnehmer des HAPUA-UNESCAP-Workshops in Jakarta, April 2017.

Contact

Dr. Peter Hefele

Head of the Regional Project Energy Security and Climate Change in Asia and Pacific

Dr. Peter Hefele
Phone +852 28822245
Fax +852 28828515
Languages: Deutsch,‎ English,‎ Français,‎ Magyar