Strengthening ASEAN’s Energy Infrastructure
The Association of Southeast Asian Nations (ASEAN) is making significant strides towards enhancing regional electricity connectivity. A recent study visit took place from 21 to 25 September, involving senior officials, regulators, and utility representatives from ASEAN Member States. This visit encompassed destinations such as France, Brussels (European Union), and the United Kingdom, facilitating a valuable exchange of knowledge regarding the implementation of the ASEAN Power Grid (APG).
The programme united delegates from various ASEAN Member States, the ASEAN Secretariat, the ASEAN Centre for Energy (ACE), and the APG Consultative Committee. The focus was on acquiring practical experiences in the development and operation of cross-border electricity interconnection systems. Organised collaboratively by the ASEAN Centre for Energy, the French government (via Agence Française de Développement), and the UK government in partnership with the European Union, the visit aimed to bolster ongoing efforts in this critical area.
Ambitious Vision for a Connected Future
Helen Fazey, the UK Ambassador to ASEAN, expressed that the ASEAN Power Grid represents an ambitious vision aimed at achieving a more connected and resilient energy future. She emphasised that regional connectivity transcends mere infrastructure development; it necessitates strong partnerships, trusted institutions, and collaborative efforts among governments, regulators, utilities, and industry stakeholders. The UK remains committed to supporting ASEAN in this endeavour by sharing its own experiences while acknowledging ASEAN’s unique path forward.
Dato Razib Dawood, Executive Director of the ASEAN Centre for Energy, highlighted the significance of the APG as a cornerstone of ASEAN cooperation. He stated that it has the potential to unlock renewable resources and bolster energy security within the region. Drawing parallels with Europe’s interconnection development, he noted that ASEAN stands to gain valuable insights from the experiences of other regions.
Engagement with Energy Infrastructure
Throughout the programme, participants had the opportunity to engage with regulators, system operators, financiers, and industry representatives who are integral to the planning, development, and operation of interconnection systems. The discussions covered a wide range of topics, including governance structures, regulatory frameworks, project development strategies, cross-border coordination, and financing approaches for large-scale transmission infrastructure.
Moreover, the delegation visited several energy infrastructure sites in France and the UK, including high-voltage facilities operated by Nexans in Calais and the IFA2 Converter Station in Hampshire. These visits allowed for insightful exchanges regarding the opportunities and challenges tied to regional electricity interconnection.
The Broader Implications of the ASEAN Power Grid
Fabien Penone, the French Ambassador to ASEAN, articulated that the ASEAN Power Grid encompasses more than just electricity supply; it embodies energy sovereignty, industrial competitiveness, regional cooperation, and a commitment to clean, affordable, and secure energy. He described the project as transformative for the region and highlighted France and AFD’s dedication to supporting this vital ambition through their extensive expertise.
Cyrille Bellier, Head of the Department for Europe, Middle East, and Asia at AFD, reiterated that the ASEAN Power Grid is integral to the region’s energy transition and integration. He noted that realising this ambition will necessitate significant investments in modern cross-border infrastructure, alongside the establishment of appropriate regulatory frameworks and robust project preparation. With over three decades of engagement in Southeast Asia, France is well-positioned to bridge ASEAN’s regional goals with the priorities of its Member States and European partners.
Investment as a Catalyst for Connectivity
A recurring theme throughout the programme was the crucial role of financing and investment in advancing regional connectivity. The complexity and high costs associated with cross-border transmission projects, coupled with their long-term return on investment, underscores the necessity for thoughtful financial strategies. Participants shared insights on the essential conditions for fostering long-term infrastructure investments, which include meticulous project preparation, regulatory certainty, risk allocation, and effective cross-border coordination mechanisms.
The programme underscored the need for collaboration across various sectors, including governments, utilities, development partners, investors, and industry stakeholders. Participants exchanged views on the challenges of developing and operating interconnected power systems, discussing how international experiences from France, the UK, and the EU could inform ASEAN’s approach, tailored to its specific priorities, institutions, and market dynamics.