- •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 |
In the coming years, Cambodia plans to reduce its reliance on imports, including those from Viet Nam, potentially freeing up generation in Viet Nam for domestic use or exports to other countries. However, Viet Nam also expects to import more electricity from Lao PDR, with the two countries having signed a memorandum of understanding (MoU) for the joint development of power projects in Lao PDR, and new interconnectors and imports into Viet Nam are as follows:
Up to 2020: development of 29 hydropower plants with a total capacity of 1 350 MW, with about 1 000 MW allocated for export to Viet Nam.
From 2021 to 2025: development of an additional 29 hydropower plants (58 in total) with an overall installed capacity of 3 925 MW, of which around 3 000 MW would be for export to Viet Nam.
From 2026 to 2030: further hydropower development leading to total export capacity (to Viet Nam) of about 5 000 MW.
APG region: South
Indonesia (Sumatra)
Indonesia is the largest of the ten AMS in terms of geography, population and electricity demand. As an archipelagic country, however, demand and supply characteristics vary widely. One of the big five islands – Sumatra – is close to peninsular Malaysia. Home to 12 million customers, Sumatra is also Indonesia’s second-largest source of electricity demand.
Sumatra’s power system has about 13 GW of installed capacity, which includes a mix of fossil fuels, hydropower and geothermal. A third of the total capacity is coal-based, and natural gas supplies another third. Diesel generation is also widespread, with oil capacity making up a fifth of the total. Geothermal makes up 3% of total power capacity and hydropower 13%.
Figure 20. Indonesia (Sumatra) power mix, 2017
Source: ASEAN Centre for Energy.
Fossil fuels make up the largest part of the power mix, with coal and gas accounting for almost a third each.
Indonesia’s power market structure is a conventional monopolistic market with PLN (or National Power Utility) as the single buyer as well as the retailer. PLN develops, owns and operates the transmission and distribution system. On the generation side, PLN has PT PJB (Java–Bali Power Utility) and Indonesia Power as subsidiary companies that are responsible for
33
