Southeast Asia faces a critical need to combat climate change, and a transformative journey toward clean energy is gaining momentum. A 20-year-old initiative for regional power sharing is now experiencing a renaissance, shedding light on the region’s climate change battle.
Malaysia and Indonesia recently came together in Bali to explore the potential for cross-border transmission lines at 18 locations. These lines could generate power equivalent to 33 nuclear plants annually, as confirmed by Beni Suryadi, a power expert at the ASEAN Centre for Energy. The projects are not only technically feasible but also enjoy the support of regional governments.
The Association of Southeast Asian Nations (ASEAN), a coalition of ten countries ranging from Brunei to Vietnam, has taken a significant step towards power sharing. Singapore, Laos, Thailand, and Malaysia have initiated the trade of hydroelectric-generated power, marking the first instance of four regional countries agreeing to exchange electricity. Although this represented just 2.7% of the region’s capacity in 2017, more nations are embracing power sharing as they transition away from coal and other fossil fuels. Vietnam aims to leverage a regional grid to export clean energy, while Sarawak in Malaysia seeks to sell its surplus hydropower to neighboring Indonesia.
The vision of a regional grid connecting all ten ASEAN members was conceived two decades ago but faced numerous challenges, from technical hurdles to political mistrust. However, the dire consequences of climate change and the increasing demand for electricity have compelled the region to expedite its efforts.
Once focused on energy security and fossil fuel dependence, the region is now embracing renewables due to falling costs. All ASEAN countries, except the Philippines, have committed to carbon neutrality by 2050. This paradigm shift has increased the arguments in favor of interconnected grids.
Laos, often dubbed the “battery of Southeast Asia,” has constructed over 50 dams in the past 15 years, supplying power to Thailand, Vietnam, and China. It still has surplus power to export. Singapore, despite its lack of natural resources, is looking to import clean energy to meet its renewable energy goals.
Interconnected grids offer several advantages, including bridging power supply gaps and providing communities in remote areas with reliable electricity. It can also help countries navigate external shocks like spikes in oil prices, as evidenced by Europe’s $36 billion savings through power trading in 2021.
Nevertheless, challenges persist. ASEAN’s principle of non-interference has hindered collaborative projects, and national priorities may conflict with the potential benefits of interconnected grids. Countries like Malaysia and Indonesia have imposed bans on clean energy exports to nurture domestic clean energy industries. The lack of a regulatory framework for submarine power cables and technical differences among nations remain obstacles. The costs are substantial, with an estimated $280 billion needed for power sector investments, according to the ASEAN Centre for Energy. Concerns about China’s involvement in the region’s energy infrastructure, primarily through its Belt and Road Initiative, add complexity to the situation.
Despite these challenges, collaboration in ASEAN offers hope for sustainable power generation and trading. Private financing plays a role, but national priorities and a shared understanding of common interests ultimately guide the region’s energy transition. The urgency of addressing climate change, economic potential, and the growing demand for clean energy underscores the significance of regional power sharing. The interconnected grids are not just a pathway to cleaner energy; they are a testament to the strength of collaboration in Southeast Asia’s renewable energy revolution.
Work Cited:
Ghosal, Aniruddha, and Victoria Milko. “Climate Change and the Shift to Cleaner Energy Push Southeast Asia to Finally Start Sharing Power.” The Independent, Independent Digital News and Media, 27 Sept. 2023, http://www.independent.co.uk/news/laos-ap-thailand-singapore-indonesia-b2419257.html.