
- •Abstract
- •Foreword
- •Acknowledgements
- •Executive summary
- •Many models of multilateral power trade
- •Minimum requirements
- •Proposed trade models for ASEAN
- •Findings and recommendations
- •Highlights
- •Overview of study
- •Categories of multilateral power trade
- •International experiences in multilateral power trading
- •Minimum requirements for establishing multilateral power trading
- •Political requirements
- •Technical requirements
- •Institutional requirements
- •Building upon existing efforts
- •LTMS–PIP
- •Proposed trade models for ASEAN
- •Harmonised bilateral trading
- •Secondary trading model
- •Primary trading model
- •Conclusion
- •1. Introduction
- •Models of cross-border power trade
- •ASEAN principles for developing multilateral power trade
- •Overview of ASEAN’s energy sector
- •References
- •2. AMS perspectives
- •APG region: North
- •Cambodia
- •Planned development, including cross-border integration
- •Planned development, including cross-border integration
- •Myanmar
- •Planned development, including cross-border integration
- •Thailand
- •Planned development, including cross-border integration
- •Viet Nam
- •Planned development, including cross-border integration
- •APG region: South
- •Indonesia (Sumatra)
- •Planned development, including cross-border integration
- •Malaysia (Peninsular)
- •Planned development, including cross-border integration
- •Singapore
- •Planned development, including cross-border integration
- •Malaysia (Sarawak and Sabah)
- •Planned development, including cross-border integration
- •APG region: East
- •Brunei Darussalam
- •Planned development, including cross-border integration
- •Indonesia (West Kalimantan)
- •Planned development, including cross-border integration
- •The Philippines
- •Planned development, including cross-border integration
- •References
- •3. Regional perspectives
- •Existing regional integration efforts among AMS
- •LTMS–PIP
- •BIMP–EAGA interconnectivity project
- •Building off existing efforts: The GMS grid codes
- •References
- •4. International case studies
- •Primary power trading arrangements
- •Power pooling in PJM’s eastern territory
- •The measurable value of markets in the PJM region
- •ISO New England
- •Market overview
- •Market structure
- •Nord Pool
- •Governing agreements and regulation
- •Market overview
- •Market structure
- •Policy and regulation
- •Secondary power trading arrangements
- •SAPP
- •SIEPAC
- •Market overview
- •Nascent power trading arrangements
- •SARI/EI
- •Market overview
- •Market structure
- •Key findings: Lessons for ASEAN
- •Drivers and benefits
- •Design options and minimum requirements
- •The need for enabling institutions
- •Financial implications of regional institutions
- •References
- •5. Establishing multilateral power trade in an ASEAN context
- •Minimum requirements for establishing multilateral power trade
- •Harmonised technical standards (grid codes)
- •Summary of minimum level of grid code harmonisation
- •Building off existing efforts: The GMS grid codes
- •External (third-party) access to domestic grids
- •Wheeling charge methodology
- •Data and information sharing requirements
- •Dispute resolution mechanism
- •Other minimum requirements
- •Funding implications of stepwise implementation
- •Role of institutions
- •Overview of existing ASEAN regional institutions
- •ASEAN Secretariat
- •HAPUA
- •AERN
- •Mechanism for settling transactions
- •Potential role of a CCP
- •Optional requirement: Trading currency or currencies
- •Potential options for regional institutions in ASEAN
- •References
- •6. Models for establishing multilateral power trade in ASEAN
- •Overview of proposed models
- •Establishing harmonised bilateral trade with wheeling
- •Overview of trade model
- •Additional requirements and analytical gaps
- •Potential role of institutions
- •Example transaction
- •Establishing a secondary trading model
- •Overview of trade model
- •Additional requirements and analytical gaps
- •Potential role of institutions
- •Example transaction
- •Establishing a primary trading model
- •Overview of trade model
- •Additional requirements and analytical gaps
- •Potential role of institutions
- •Example transaction
- •7. Implications for ASEAN stakeholders
- •Utilities
- •Regulators
- •Investors
- •Consumers
- •Acronyms and abbreviations
- •Table of contents
- •List of figures
- •List of tables

Establishing Multilateral Power Trade in ASEAN |
AMS perspectives |
East region (APG East) includes all of the Philippines and Brunei Darussalam, and the eastern portions of Malaysia (Sarawak and Sabah) and Indonesia (specifically West Kalimantan).
APG region: North
Cambodia
From 2011 to 2018, installed generating capacity in Cambodia increased by eight times. Total installed capacity is 2 208 MW, 57% of which is hydropower, followed by coal with 24%. In 2017, Cambodia installed 10 MW of solar capacity after a revision of its solar regulation. This may lead to more solar investments in the future.
In 2017, Cambodia generated 6 633 gigawatt-hours (GWh) of electricity, of which 2 711 GWh came from hydroelectric power, 3 569 GWh from coal and 259 GWh from oil (Figure 13). Imports supplied an additional 1 439 GWh, or nearly 19% of total demand.
Figure 13. Generation mix, total generation and peak demand in Cambodia, 2011-17
Source: ASEAN Centre for Energy.
Coal generation in Cambodia is growing relatively quickly, though hydro remains the dominant power source.
Cambodia’s electricity market is vertically integrated, with a single utility, Electricite du Cambodge (EdC), responsible for the transmission sector and part of the distribution sector. EdC is responsible for distribution in the capital region and in some of the provinces, with the rest of the country managed by the Rural Energy Enterprises (REE). EdC owns generation, purchases power from independent power producers (IPPs) and imports power from neighbouring countries. IPPs are also able to sell to REE or, in some cases, directly to rural consumers. The Electricity Authority of Cambodia is responsible for regulating the power sector.
Cambodia |
has several existing interconnections with neighbouring countries, including |
Lao PDR, |
Thailand and Viet Nam. A total of 28 cross-border interconnectors have been |
commissioned since 2007, ranging in voltage from 22 kilovolts (kV) to 230 kV (Table 2).
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Establishing Multilateral Power Trade in ASEAN AMS perspectives
Table 2. |
Cambodia’s interconnections with its neighbours (as of 2017) |
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Country |
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Voltage |
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Lao PDR |
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22 kV, 115 kV |
Thailand |
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22 kV, 115 kV |
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Viet Nam |
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22 kV, 35 kV, 230 kV |
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Source: ASEAN Centre for Energy.
Planned development, including cross-border integration
Cambodia’s most recent power development plan (PDP) covers the period 2014 to 2030. It includes two scenarios: 1) a coaland hydro-based scenario; and 2) a scenario where Cambodia also starts using natural gas by 2023. Under either scenario, new generation would be developed domestically, entirely offsetting imports, and in fact potentially turning Cambodia into a net exporter of electricity. Notably, neither scenario assumes new non-hydro renewable energy development (Electricity Du Cambodge and Chugo Epco,2015).
Under either scenario, Cambodia would have surplus hydro capacity during rainy seasons. The expectation is that this excess could be used to offset any loss of domestic generating capacity due to maintenance or other outages, or it could be exported to neighbours.
However, during the rainy season, neighbouring countries will also likely experience a surplus of hydropower (in particular, Lao PDR). Demand in nearby thermal-dominated power systems (e.g. Thailand and Malaysia) may be high enough to support imports from multiple countries, but this would require increased regional co-ordination, including of power trading.
Lao PDR
In 2017, Lao PDR had approximately 6 900 MW of installed generating capacity, up from only 1 936 MW of installed capacity in 2011. In 2015, Lao PDR commissioned 1 878 MW of coal capacity, most of which is sold on an export basis to Thailand. Prior to that, the installed capacity base was almost 100% hydropower.
Figure 14. Power mix, total generation and demand in Lao PDR, 2011-16
Source: ASEAN Centre for Energy.
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Establishing Multilateral Power Trade in ASEAN |
AMS perspectives |
Lao PDR is a significant net exporter of electricity, primarily from its large hydro resources.
Because domestic demand is low relative to domestic supply, Lao PDR uses only a fifth of its power generation for domestic consumption. The rest of is exported to neighbouring countries, in particular Cambodia, Myanmar and Thailand (among ASEAN countries) and southern China (in particular, Yunnan province via a 115 kV transmission line).
Lao PDR is vertically integrated, with state-owned Electricite du Lao (EdL) generating, transmitting and distributing electricity to end users. The power sector is regulated by the Department of Electricity Policy and Planning, which develops national energy policies (including tariff policy), monitors the energy sector to ensure compliance with applicable policies and regulations, and develops strategic plans for generation, transmission, distribution, rural electrification, renewable energy and energy exports.
However, on the generation side, domestic independent power producers (DIPP) and expanding independent power producers (EIPP) also play a role. As the names suggest, DIPPs sell power to domestic consumers via EdL, while EIPPs primarily export power to neighbouring countries such as Thailand and Viet Nam (though a small fraction of their production is also consumed locally). Cross-border electricity trading occurs at both the transmission and distribution levels.
Lao PDR has developed a number of interconnectors with its neighbours, in particular Thailand, which has been importing electricity from Lao PDR since 1993. As of 2017, total transfer capacity between Lao PDR and Thailand amounted to 3 564 MW over 17 interconnectors.
Table 3. |
Lao PDR’s interconnections with its neighbours |
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Country |
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Number of interconnections |
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22 kV/35 kV |
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115 kV |
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230 kV |
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500 kV |
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Cambodia |
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1 |
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1 |
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China (southern grid) |
3 |
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1 |
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Myanmar |
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1 |
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Thailand |
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7 |
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5 |
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2 |
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3 |
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Viet Nam |
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7 |
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2 |
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Source: ASEAN Centre for Energy.
Planned development, including cross-border integration
Lao PDR possesses large hydroelectric potential, in particular relative to the region as a whole. Total hydropower capacity under development, concession agreements and power development agreements amounts to 10.5 GW. Of this, 3.6 GW will be installed in northern Lao PDR, 2.6 GW in the south and 4.4 GW in the central regions. In addition, there is a plan to develop a 600 MW wind project development in Sekong province, Phase 1 of which will be 250 MW.
In total, Lao PDR has signed several agreements to exportelectricity to its neighbours. This includes between 7 GW and 9 GW to Thailand, 1 GW and 5 GW to Viet Nam, and 1 GW and 3 GW to China, plus 300 MW to Myanmar.
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