
- •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 |
The country has set a renewable energy target of 10% by 2035. Given its limited geographical landscape and renewable energy resource potential, interconnections with Malaysia and Indonesia could potentially offer significant benefits.
Planned development, including cross-border integration
Brunei Darussalam has no specific PDP. However, a Sarawak-Brunei Darussalam interconnection was included in the 2010 ASEAN Interconnection Masterplan Study (AIMS) II. Should this interconnection be developed, Brunei would most likely be a net importer of electricity.
In addition, the Asian Development Bank has proposed a Sarawak–Brunei–Sabah interconnection. If developed, Sarawak Malaysia would be able to sell power to Sabah Malaysia by wheeling power through Brunei’s power network. This would avoid the need to invest in dedicated transmission lines linking the two Malaysian states. For such a transaction to function, a wheeling charge arrangement would need to be developed.
Indonesia (West Kalimantan)
Indonesia’s Kalimantan region is abundant in coal and natural gas reserves. As such, it relies on coal generation for a third of its electricity needs, and natural gas for approximately a quarter. The single largest fuel source, however, is oil-based generation, which makes up almost half of power capacity and which primarily serves remote communities.
As in the rest of Indonesia, responsibility for developing and maintaining the power system on Kalimantan rests with PLN (see Sumatra section above for more detail). PLN is organised as three separate entities in Kalimantan: PLN West Kalimantan, PLN South and Central Kalimantan, and PLN East and North Kalimantan. Each is responsible for transmission, substation, distribution, load and customer management as well as the small power generators (from IPPs). Constructing interconnections among Kalimantan’s three subsystems is a priority for PLN.
Bengkayang in West Kalimantan is interconnected with Malaysia (specifically, Mambong in Sarawak) via a 275 kV line that was commissioned on 31 December 2015. The 128 km line has a maximum transfer capacity of 230 MW, and is used primarily to enhance reliability and to serve critical load. The line is widely regarded as beneficial to both parties, and is also seen as having improved economic conditions in West Kalimantan. This interconnection also displaced between 50 MW and 130 MW of diesel power in West Kalimantan with electricity from Sarawak, which is 75% from hydroelectricity. This translates into cost savings as well as lower carbon emissions for PLN.
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