- •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 24. Power mix – total generation and demand in Singapore, 2011-17
Source: ASEAN Centre for Energy.
The primary resource for power generation in Singapore is gas.
Planned development, including cross-border integration
As Singapore is a fully liberalised power market, there is no central PDP focusing on generation. Instead, the market decides what to build and when. If a potential investor decides to build a new generator, so long as the investor has met the necessary prerequisites for its new plant (e.g. access to land and fuel, and a connection to the grid), the Energy Market Authority will generally grant the necessary generation licence.
Malaysia (Sarawak and Sabah)
There are three vertically integrated utilities in Malaysia, two of which operate on the island of Borneo. In Sabah, Sabah Electricity Sdn Bhd (SESB) operates the electricity system and market, and in Sarawak, they are operated by Sarawak Electricity Supply Company (SESCO). SESB is regulated by EC, while SESCO is regulated by the state government of Sarawak.
Abundant in hydropower resources, Sarawak has a mainly hydro-based power capacity, though natural gas and coal are also utilised. In 2011, the quantity of installed hydroelectric capacity was approximately equal at about 1 GW each. Since then, however, there has been significant investment in hydropower. As of 2017, hydropower made up two-thirds of the power system. Total generation in 2017 was 25 TWh, while total demand was 21 TWh.
Sarawak has an interconnection to West Kalimantan, Indonesia, which is utilised for both economic and power security purposes (see section on Indonesia [West Kalimantan] below).
SESCO has plans to develop the transmission network further to Baleh and Murum, which are regions with significant hydropower potential. This expansion would also potentially open the possibility for power trade with Indonesia (via Batang Ai Point), and to Brunei Darussalam (via Sungai Tujuh Tudan Point). Under the current plan, this line should be developed by 2020. In addition, new transmission lines from Limbang, Lawas, Trusan, Tutoh and the Tinjar river basin would also be connected via Tungku–Kuala Belait in Brunei, then go back to Malaysia via Sungai Tujuh Tudan.
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Establishing Multilateral Power Trade in ASEAN |
AMS perspectives |
Figure 25. Power mix – total generation and demand in Sarawak (Malaysia), 2011-17
Source: ASEAN Centre for Energy.
The main power generator is hydro based in Sarawak, while gas and coal also contribute.
On 20 January 2016, Malaysia for the first time exported 50 MW of electricity to West Kalimantan. In total it took four years to develop this interconnection, starting with the power exchange agreement signed on 5 September 2012.
Planned development, including cross-border integration
SESCO develops generation and transmission capacity expansion plans under a number of different scenarios:
High-load growth in Sarawak, particularly the Kuching area.
Aggressive development of energy-intensive industries in Sarawak.
Peninsular Malaysia imports power from Sarawak.
Power export to the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP–EAGA countries), in line with the ASEAN agenda.
Scenarios 3 and 4 include the cross-border interconnections under discussion as part of the BIMP–EAGA project. While Scenario 4 considers the plan of BIMP–EAGA listed in the APG programme under APAEC 2016-2025, Scenario 3 assumes exports of 2 000 MW of hydropower electricity from Sarawak to Peninsular Malaysia via an HVDC transmission line.
In terms of cross-border transmission lines, a proposed Sipitang interconnection would connect Sabah to Brunei Darussalam, and a proposed 275 kV Kalabakan interconnection would increase the linkages between Malaysia and West Kalimantan. Interconnections to the Philippines are also under consideration, in particular connecting to Mindanao (Dam Road interconnection) and Palawan (Kudat interconnection).
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