Towards an Integrated ASEAN Electricity Market - Regional Programme Energy Security and Climate Change in Asia and the Pacific
Event Reports
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