- •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 |
Figure 23. Planned generation mix for Peninsular Malaysia in 2026
Source: Energy Commission Malaysia (2015), 11th Malaysia Development Plan.
The primary capacity addition to Peninsular Malaysia in 2020 will be from fossil fuels, primarily coal but also some natural gas.
Malaysia plans to strengthen its interconnection with Singapore (Plentong–Woodland) through the addition of a 600 MW HVDC line after 2020. Thailand and Malaysia are considering developing two new interconnections: a 300 MW, 300 kV HVDC line and a 100 MW, 132/115 kV HVAC line. The new 300 kV is an additional part of the existing Khlong Ngae–Gurun interconnection which capacity is 300 MW and already backed up Thailand and Peninsular system since 2002. Finally, a proposed 600 MW interconnection with Indonesia (to Pekan Baru, Sumatra) is expected to be commissioned after 2021, though this remains unconfirmed.
Singapore
As of the first quarter of 2018, total power capacity in Singapore was 13 614 MW, a notable increase over the 9 918 MW of installed capacity in 2011. Over the past few decades, Singapore’s electricity generation industry moved away from oil-fired steam turbine plants by building new combined-cycle gas turbine (CCGT) plants, or repowering existing plants and investing in new units. From 2014 to today, the share of natural gas-fired generation has risen to 95%. The remaining 5% of generation is based on other sources which include refuse/biomass, coal syngas, fuel oil, diesel and solar.
As of 2018, CCGT plants, including co-gen and tri-gen, made up 77.2% (or 10 508.2 MW) of total capacity and steam turbines 18.8% (or 2 554.6 MW). Open-cycle gas turbines made up 1.3% (or 180.0 MW), waste-to-energy plants 1.9% (or 256.8 MW) and solar PV 0.8% (or 114.8 MW).
Relative to other ASEAN countries, the electricity market structure in Singapore is more advanced, as competition has been introduced not only on the generation side, but also in the retail (customer facing) sector. Singapore Power is the national utility responsible for developing and maintaining the transmission and distribution systems.
Since 1985, Malaysia and Singapore have been interconnected via a 2 x 230 kV AC interconnection (Plentong–Woodlands) with a rated capacity of 500 MVA. This line consists of an AC overhead line (10 kilometres [km]) and submarine cables (2 km). This line provides a source of power supply during system emergencies for both interconnected power systems, and is managed jointly by TNB and SP PowerGrid.
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