Strengthening Regional Energy Connectivity for Asia's Sustainable Future

The SIEW Summit panel discussion on "Energising Regions: Advancing Regional Energy Interconnectivity" brought together global energy leaders to discuss the challenges and opportunities of building interconnected energy systems across borders. 

The session focused on sharing real-world examples of successful energy interconnectivity, the necessary regulatory frameworks, and how Asia can adopt lessons from Europe and North America. 

Kicking off the panel discussion, Paula Conboy, Senior Counsel of Sussex Strategy Group and the session’s moderator, asked each panellist to cite examples of successful cross-border mechanisms that have been implemented in their respective regions.

For Thorbjörn Fors, Group Senior Vice President and Managing Director of Asia Pacific at Siemens Energy, the first example that came to mind was the Nordic grid. It links countries like Norway and Sweden, enabling them to balance renewable energy sources like hydropower and wind across borders. The system proved especially resilient in 2022 when Europe’s energy security was threatened as a result of the Ukraine-Russia conflict. 

H.E. Csaba Lantos, the Minister of Energy of Hungary, also shared the critical importance of interconnectors and how they benefitted the landlocked country. “In the last 15 years, we successfully developed interconnectors with our neighbours. Today, Hungary has interconnectors with all seven neighbouring countries, each with a 400 kilowatt transmission grid connection,” he shared.

Having the right infrastructure was one part of the equation. Ms Conboy then asked the panel to name specific policies and regulations that would foster greater regional energy connectivity.

Xin Baoan, Chairman of the Global Energy Interconnection Development and Cooperation Organisation, believed that effective cooperation between countries depends on the alignment of three points: market regulation, regional planning coordination, and standard compatibility.

For Ong Teng Koon, Managing Director of SP PowerInterconnect at SP Group, political will and government support are major factors. 

“Interconnector projects tend to have a lot of geopolitical risks, commercial risks, high capital investment, and long gestation periods. Commercial entities with short investment horizons are sometimes hesitant to put in real money,” Ong explained. “The government can come in and play a critical role in these public-private partnerships.”

Finally, Ms Conboy took a question from the audience: “What are some lessons that can be drawn from Europe and North America, and how can they be adapted to the Asian context?”

H.E. Dr Andrew Light, Assistant Secretary of International Affairs, Department of Energy of the United States, highlighted lessons from the US-Canada energy grid, which operates despite different regulatory frameworks. 

"The US has private utility companies, while Canada has Crown corporations. Yet, both countries work together through shared standards set by the North American Electric Reliability Corporation (NERC)," Dr Light noted. He suggested that Asia could adopt similar regional agreements to ensure that even countries with differing energy policies can collaborate effectively.

Mr Ong added: “I would like to quote Teo Chee Hean, Senior Minister of Singapore, when he said at the Indonesia International Sustainability Forum: ‘There is no transition without transmission’.”

The SIEW 2024 panel on regional energy interconnectivity painted a vision of a more resilient and sustainable energy future. Sharing success stories from Europe and North America, the experts illuminated a path forward for Asia. The message was clear: through collaborative efforts, aligned regulations, and shared political will, Asia can create an interconnected energy landscape that transcends borders.

Stay tuned as the conversation evolves throughout the day. Follow @SIEW_sg on Telegram and Twitter for key insights, as we navigate Day 1 together.