A roundtable jointly hosted by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and ISEAS – Yusof Ishak Institute (ISEAS) on 26 October 2023 as part of the Singapore International Energy Week (SIEW) 2023.
CLIMATE CHANGE IN SOUTHEAST ASIA PROGRAMME JOINT ROUNDTABLE
Thursday, 26 October 2023 – Dr Mirza Huda, Lead Researcher, ISEAS – Yusof Ishak Institute (ISEAS), presented findings from in-depth research conducted by ISEAS on the political processes underpinning the implementation of the Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) in a roundtable jointly hosted with the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) at the Singapore International Energy Week 2023. He was joined by Mr Matthew Wittenstein, Chief of Section, Energy Connectivity, UNESCAP, who spoke on guiding principles for multilateral energy cooperation from UNESCAP’s Regional Roadmap on Power System Connectivity.
The presentations were followed by a panel discussion on next steps for expanding the ASEAN Power Grid featuring key energy stakeholders and experts: Ms Architrandi Priambodo, Senior Energy Specialist, Asian Development Bank (ADB), Mr Nick Pittarello, Head of Future Interconnections, The Office of Gas and Electricity Markets, United Kingdom (Ofgem), Mr Beni Suryadi, Manager, ASEAN Centre for Energy (ACE), Ms Nikita Yu, Director, Regional Business Development, EDP Renewables, Mr Chin Xueyong, Senior Vice President, Project Finance, Institutional Banking Group, DBS Bank, Dr Tharinya Supasa, Project Lead Southeast Asia, Agora Energiewende and Mr Marlon Apañada, Chair of Singapore/Regional Working Group, Asia Clean Energy Coalition. The roundtable was moderated by Ms Sharon Seah, Senior Fellow and concurrent Coordinator of Climate Change in Southeast Asia Programme (CCSEAP) and ASEAN Studies Centre at ISEAS.
Lessons learned from the LTMS-PIP
Dr Huda presented key findings from ISEAS’ research. This analysed the enablers, challenges and lessons learned from key energy stakeholders in Laos-Thailand- Malaysia-Singapore Power Integration Project (LTMS-PIP) and how they can inform future projects under the ASEAN Power Grid (APG). The research highlighted that strong political will in the region can pave the way for greater interconnectivity, but it also revealed obstacles such as resource nationalism, regional rivalries and conflict of interest. There were also technical challenges in integrating energy systems, including the calculation of wheeling charges and upgrading transmission and grid infrastructure.
Introducing the Green Power Corridor Framework
Mr Wittenstein introduced the Commission’s Regional Roadmap on Power System Connectivity. This contains a set of nine strategies to aimed at fostering secure, efficient and sustainable power system connectivity across the region. Strategy 9 focuses on the need to align energy connectivity initiatives with the Sustainable Development Goals. Mr Wittenstein unveiled UNESCAP’s draft Green Power Corridor Framework, which seeks better alignment of connectivity initiatives with sustainable development objectives, while respecting national priorities for economic development and energy security.
Insights on operationalising the ASEAN Power Grid
Ms. Seah invited the panel to share their perspectives on Southeast Asia’s approach to expanding the APG. On the regulatory front, Mr Pittarello, concurred with Dr Huda on the importance of political will. He suggested that mutual trust can be built if parties ensure equitable sharing of costs and benefits. This is by way of expanding third-party access, early community engagement, transparency, and price mechanisms that prioritise affordability for the end user.
Ms Priambodo advocated for market-based strategies, citing ADB’s ongoing pilot project for demonstrating the economic benefits of power resource sharing under a regional power market for ASEAN. She shared that shadow trading, under a regional power market for the region, can not only help define appropriate rules, but show how such markets can improve flexibility and reduce costs.
From the private sector, Mr Chin and Ms Yu provided insights into creating a favourable environment for developers and investors. Mr Chin argued that project financing must be designed with effective risk allocation in mind. Interconnection projects should have clear contingencies for outages, disasters, political conflict, and other potential disruptions. Ms Yu stressed the importance of transparency in national energy planning, regulatory licensing and permitting, and market conditions for fair competition.
Driving climate ambition through regional interconnectivity
Discussions at the Roundtable expanded to the broader context of climate ambition through regional interconnectivity. Dr Supasa highlighted the upcoming ASEAN Plan for Energy Cooperation Phase III as an opportunity to strengthen renewable energy ambitions. She also floated the idea of a regional interconnectivity target. Mr Suryadi referred to other key aspects of the energy transition such as regional targets on primary energy and energy efficiency, which have driven both demand- and supply-side policy measures. He noted countries’ growing willingness to work together for mutual benefit as well as strong interest from corporate end-users.
Mr Apañada was also optimistic about the growing number of corporate giants using science-based targets. He cited examples such as Apple, Meta and IKEA which have joined the Asia Clean Energy Coalition and RE100. Their demand for clean energy can become a strong impetus for the energy transition if traceability and transparency issues in emissions reduction can be addressed.
In the Q&A session, panellists addressed questions concerning data transparency, supply chains, and multilateralism. They expressed optimism for stronger energy cooperation among ASEAN stakeholders to achieve both energy security and regional decarbonisation. The Roundtable was well attended, with over 100 in-person attendees.
Presentation slides from the Roundtable can be downloaded here.