ISEAS – Yusof Ishak Institute and the United Nations Economy and Social Commission for Asia and the Pacific (UNESCAP) recently convened a closed-door workshop.
CLIMATE CHANGE IN SOUTHEAST ASIA PROGRAMME WORKSHOP
Thursday, 14 September 2023 – In this closed-door workshop organised jointly by ISEAS – Yusof Ishak Institute and the United Nations Economy and Social Commission for Asia and the Pacific (UNESCAP), regional energy officials and experts participated in discussions on key drivers, challenges, and lessons which ASEAN countries can draw from the experiences gained in the undertaking of the Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP), the first multilateral power trading project in the ASEAN region. ISEAS researchers presented key findings from their fieldwork research conducted in Laos, Thailand, Malaysia, and Singapore and engaged with participants in a roundtable discussion.
Mr Matthew Wittenstein, Chief of Section, Energy Connectivity at UNESCAP, opened the session by stressing the economic, social and climate benefits of regional power connectivity and lauding the progress made by the LTMS-PIP as a pathfinder project for the region. He also introduced the regional road map on power system connectivity developed by UNESCAP, which proposes strategies, milestones and time frames to guide regional stakeholders. In her opening address, Ms Krittiya Petsee, Acting Executive Director, International Affairs Division of the Ministry of Energy, Thailand, noted that the recent 41st ASEAN Ministers on Energy Meeting adopted the Joint Declaration on Sustainable Energy Security through Interconnectivity, committing to the expansion of the ASEAN Power Grid (APG), while welcoming the Brunei-Indonesia-Malaysia and the Philippines Power Integration Project (BIMP-PIP). Both speakers expressed their belief that the research findings presented by ISEAS would prove a useful resource for continued energy cooperation in ASEAN.
Dr Mirza Huda, Lead Researcher, and Ms Sharon Seah, Senior Fellow and Coordinator at the Climate Change in Southeast Asia Programme, ISEAS, introduced their research on the LTMS-PIP which was undertaken from April to August this year. The project involved an extensive literature review as well as conversations with stakeholders in Laos, Thailand, and Singapore including energy regulators, power utilities and energy ministry officials as well as members of the private sector, academia and civil society. Findings showed that the success of the LTMS-PIP was due to strong demand for renewable energy and growing regional consensus on the economic and environmental benefits of cross-border grids. However, technical challenges and climate threats are potential obstacles that need to be addressed to further expand regional power trading. Dr Huda and Ms Seah conveyed a few recommendations for policymakers which arose during their fieldwork, including the upgrade of grid infrastructure, and closer collaboration with financial institutions and commercial players in the planning process.
Expert discussants familiar with the planning process of the LTMS-PIP went on to provide their comments on the findings presented. Discussants stressed that authorities should ensure minimal environmental impact and that the benefits of power trading are fairly distributed among countries and stakeholders, including local communities who may be affected by such projects. There are also technical and economic complexities to consider, such as the calculation of grid usage and costs as well as ageing infrastructure which requires time and investments to upgrade. As such, soft infrastructure and governance issues like market mechanisms and regulatory frameworks should also be solidified. Discussants agreed that such mutually beneficial collaboration is rarely disrupted by political conflict in the region, but more political will would be needed not only to establish stable and long-term agreements between governments, but also to consider allowing private companies to participate in trading.
These discussions were followed by presentations from regional experts about ongoing efforts to support energy cooperation in the region. Mr Wittenstein introduced UNESCAP’s Green Power Corridor Framework, which will aim to guide power connectivity projects and develop metrics for measuring connectivity. Dr Grayson Heffner, Project Delivery Lead of USAID’s Southeast Asia’s Smart Power Program, outlined USAID’s strategies for supporting regional connectivity through technical feasibility studies, pilot projects and the mobilisation of funding. Ms Architrandi Priambodo, Senior Energy Specialist and Mr Ben Grozier, Investment Specialist at the Asian Development Bank (ADB), shared on a new pilot operation to test regional power market to inform future power market designs, as well as the Monsoon Wind Power Project, for power trading from Laos to Vietnam with sponsors and concessional lending from organisations including ADB. Ms Nadhilah Shani presented preliminary results from the ASEAN Interconnection Master Plan Study (AIMS) III, most notably the identification of potential sites for interconnector projects and variable renewable energy projects totalling 8,119 GW in capacity. She noted that 19,918 MW of interconnection capacity would be required to reach ASEAN’s target of 23% renewable energy share by 2025.
Ms Seah closed the workshop by thanking all participants for their feedback and suggestions, which will be incorporated with ISEAS’ research findings in a policy report, to be published by the end of 2023. The workshop was attended by over 20 invited participants from ASEAN governments and power utilities, as well as regional experts.