- •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 |
Table of contents |
Table of contents
Executive summary...................................................................................................................... |
4 |
Many models of multilateral power trade............................................................................................................. |
4 |
Minimum requirements ....................................................................................................................................... |
4 |
Proposed trade models for ASEAN ...................................................................................................................... |
5 |
Findings and recommendations.................................................................................................... |
6 |
Highlights............................................................................................................................................................ |
6 |
Overview of study................................................................................................................................................ |
6 |
Categories of multilateral power trade................................................................................................................. |
7 |
International experiences in multilateral power trading........................................................................................ |
8 |
Minimum requirements for establishing multilateral power trading ..................................................................... |
9 |
Building upon existing efforts ............................................................................................................................ |
11 |
Proposed trade models for ASEAN .................................................................................................................... |
12 |
Conclusion......................................................................................................................................................... |
14 |
1. Introduction............................................................................................................................ |
17 |
Models of cross-border power trade .................................................................................................................. |
18 |
ASEAN principles for developing multilateral power trade ................................................................................. |
20 |
Overview of ASEAN’s energy sector .................................................................................................................. |
21 |
References ........................................................................................................................................................ |
23 |
2. AMS perspectives.................................................................................................................... |
24 |
APG region: North............................................................................................................................................. |
25 |
APG region: South............................................................................................................................................. |
33 |
APG region: East ............................................................................................................................................... |
39 |
References ........................................................................................................................................................ |
43 |
3. Regional perspectives.............................................................................................................. |
44 |
Existing regional integration efforts among AMS............................................................................................... |
44 |
References ........................................................................................................................................................ |
52 |
4. International case studies ........................................................................................................ |
53 |
Primary power trading arrangements ................................................................................................................ |
54 |
Secondary power trading arrangements ............................................................................................................ |
61 |
Nascent power trading arrangements................................................................................................................ |
63 |
References ........................................................................................................................................................ |
69 |
5. Establishing multilateral power trade in an ASEAN context ....................................................... |
71 |
Minimum requirements for establishing multilateral power trade ...................................................................... |
71 |
Role of institutions ............................................................................................................................................ |
84 |
References ........................................................................................................................................................ |
92 |
6. Models for establishing multilateral power trade in ASEAN ...................................................... |
94 |
Overview of proposed models ........................................................................................................................... |
94 |
Establishing harmonised bilateral trade with wheeling....................................................................................... |
94 |
Establishing a secondary trading model........................................................................................................... |
102 |
Establishing a primary trading model............................................................................................................... |
109 |
7. Implications for ASEAN stakeholders ..................................................................................... |
115 |
Utilities............................................................................................................................................................. |
115 |
Regulators....................................................................................................................................................... |
119 |
Investors ......................................................................................................................................................... |
121 |
Consumers ...................................................................................................................................................... |
121 |
126 |
|
Establishing Multilateral Power Trade in ASEAN Table of contents
List of figures
Figure 1. |
Categories of multilateral power trade .................................................................................... |
8 |
Figure 2. |
Minimum requirements for establishing multilateral power trade ......................................... |
10 |
Figure 3. |
Data and information sharing: Private versus public .............................................................. |
11 |
Figure 4. |
A possible future for power trade in ASEAN .......................................................................... |
15 |
Figure 5. |
The APG................................................................................................................................ |
17 |
Figure 6. |
Degrees of cross-border power system integration: From limited to complete...................... |
18 |
Figure 7. |
Degrees of cross-border power system integration: From long term to short term................ |
20 |
Figure 8. |
GDP (current price) by AMS and overall TPES for ASEAN...................................................... |
21 |
Figure 9. |
ASEAN TPES by fuel type, 2017............................................................................................. |
22 |
Figure 10. |
ASEAN power generation (left) and installed capacity (right) by type, 2017........................... |
22 |
Figure 11. |
Installed renewable energy capacity in ASEAN by type, 2010-17 ........................................... |
23 |
Figure 12. |
The three APG regions .......................................................................................................... |
24 |
Figure 13. |
Generation mix, total generation and peak demand in Cambodia, 2011-17............................ |
25 |
Figure 14. |
Power mix, total generation and demand in Lao PDR, 2011-16.............................................. |
26 |
Figure 15. |
Myanmar’s generation mix, 2011-17 ...................................................................................... |
28 |
Figure 16. |
Generation mix, total generation and demand in Thailand, 2011-17....................................... |
29 |
Figure 17. |
Thailand’s power mix in 2037................................................................................................. |
30 |
Figure 18. |
Viet Nam’s generation mix, total generation and total demand, 2011-16............................... |
31 |
Figure 19. |
Viet Nam’s power mix 2016-30 .............................................................................................. |
32 |
Figure 20. |
Indonesia (Sumatra) power mix, 2017.................................................................................... |
33 |
Figure 21. |
Capacity additions in Indonesia, 2018-27, based on RUPTL ................................................... |
34 |
Figure 22. |
Power mix total generation and demand in Peninsular Malaysia, 2011-16 ............................. |
35 |
Figure 23. |
Planned generation mix for Peninsular Malaysia in 2026 ....................................................... |
36 |
Figure 24. |
Power mix – total generation and demand in Singapore, 2011-17 .......................................... |
37 |
Figure 25. |
Power mix – total generation and demand in Sarawak (Malaysia), 2011-17............................ |
38 |
Figure 26. |
Power mix – total generation and demand in Brunei Darussalam, 2011-17............................. |
39 |
Figure 27. |
Indonesia (West Kalimantan) power mix, 2018 ...................................................................... |
41 |
Figure 28. |
Capacity additions in Kalimantan, 2018-27 ............................................................................ |
41 |
Figure 29. |
Power mix – total generation and demand in the Philippines, 2011-17 ................................... |
42 |
Figure 30. |
Evolution of the Philippines’ power mix, 2016-40 .................................................................. |
43 |
Figure 31. |
Pathway to establishing regional (multilateral) power trading............................................... |
45 |
Figure 32. |
Structure of the LTMS-PIP working group and technical task force ....................................... |
47 |
Figure 33. |
Timeline of Phase 1 of the LTMS-PIP..................................................................................... |
48 |
Figure 34. |
PJM’s service territory within the Eastern Interconnection .................................................... |
54 |
Figure 35. |
PJM’s eastern territory .......................................................................................................... |
55 |
Figure 36. |
New England overview and context....................................................................................... |
57 |
Figure 37. |
Nord Pool rules and regulations related to power trading...................................................... |
59 |
Figure 38. |
Overview of India, including key statistics ............................................................................. |
60 |
Figure 39. |
SIEPAC (MER) overview and context ..................................................................................... |
62 |
Figure 40. |
GCC interconnection ............................................................................................................. |
64 |
Figure 41. |
Overview of South Asia region .............................................................................................. |
64 |
Figure 42. |
Market structures of the SACs............................................................................................... |
65 |
Figure 43. |
Select regional institutions in ASEAN and their relationships ................................................ |
84 |
Figure 44. |
Select portions of the ASEAN Secretariat organisational structure........................................ |
85 |
Figure 45. |
The structure of HAPUA and relationship to ASEAN collaborative meetings ......................... |
86 |
Figure 46. |
Functions requiring or benefiting from regional co-operation................................................ |
88 |
Figure 47. |
Overview of a CCP function ................................................................................................... |
90 |
Figure 48. |
Harmonised bilateral trading................................................................................................. |
96 |
Figure 49. |
Harmonised bilateral trading example: Path of information, money and power flows ......... |
101 |
Figure 50. |
Market model for secondary trading ................................................................................... |
103 |
Figure 51. |
Secondary trading model – example of trade flows ............................................................. |
107 |
Figure 52. |
Market model for primary trading ....................................................................................... |
110 |
Figure 53. |
Primary trading model – example of trade flows ................................................................. |
114 |
|
127 |
|
Establishing Multilateral Power Trade in ASEAN |
Table of contents |
||
List of tables |
|
|
|
Table 1. |
International case studies examined in this report ................................................................... |
|
8 |
Table 2. |
Cambodia’s interconnections with its neighbours (as of 2017) ............................................... |
|
26 |
Table 3. |
Lao PDR’s interconnections with its neighbours .................................................................... |
|
27 |
Table 4. |
Viet Nam’s interconnections with its neighbours (as of 2017)................................................. |
|
32 |
Table 5. |
Status of the APG in MW by project as of January 2019 ......................................................... |
|
45 |
Table 6. |
Statistical information about PJM ......................................................................................... |
|
54 |
Table 7. |
Institutions and market participants...................................................................................... |
|
58 |
Table 8. |
Statistical information about the Nordic region, 2018 ........................................................... |
|
58 |
Table 9. |
Statistical information about SAPP ....................................................................................... |
|
61 |
Table 10. |
Statistical information about the GCC region and GCC IA...................................................... |
|
63 |
Table 11. |
Costs and revenues for case study markets (USD million)...................................................... |
|
68 |
Table 12. |
Basic agreement package for establishing cross-border TPA.................................................. |
|
77 |
Table 13. |
Design parameters for developing an ASEAN-appropriate wheeling methodology ............... |
79 |
|
Table 14. |
Additional requirements – harmonised bilateral trade........................................................... |
|
96 |
Table 15. |
Analytical gaps – harmonised bilateral trade ......................................................................... |
|
98 |
Table 16. |
Main responsibilities of the regional institution(s) under harmonised bilateral trading .......... |
99 |
|
Table 17. |
Example harmonised bilateral trade process ....................................................................... |
|
100 |
Table 18. |
Additional responsibilities of the regional market operator in the secondary |
|
|
|
trading model...................................................................................................................... |
|
102 |
Table 19. |
Identified additional requirements – secondary trading model ............................................ |
|
105 |
Table 20. |
Identified analytical gaps – secondary trading model .......................................................... |
|
106 |
Table 21. |
Identified additional requirements – primary trading model................................................. |
|
111 |
Table 22. |
Identified analytical gaps – primary trading model .............................................................. |
|
112 |
Table 23. |
Overview of tiered access to data under a secondary trading model..................................... |
|
117 |
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