SIEW Energy Insights: Unlocking Economic Growth with ASEAN Power Grid Collaboration
The Singapore-US feasibility study on regional energy interconnectivity took centre stage at SIEW Energy Insights, revealing promising economic potential for ASEAN's power grid integration.
The subsequent panel, on "Interconnected Regions: Paving the Way for a Sustainable Future", explored how regional energy interconnectivity can be a game-changer for ASEAN's sustainable growth.
Moderated by Antonio Castellano, Partner, Singapore, McKinsey & Company, the discussion focused on the potential economic, environmental, and social benefits of closer regional energy integration across ASEAN. Panellists also explored the critical frameworks needed to ensure equitable benefit sharing.
The importance of regional interconnectivity
Puah Kok Keong, Chief Executive, Energy Market Authority, opened SIEW Energy Insights by emphasising the significance of regional interconnectivity in supporting ASEAN's energy transition. He stressed that collaboration between countries is essential to ensure a just and equitable energy access for all.
Natural gas, he pointed out, will play a crucial role as a bridge fuel in this transition. It will provide equitable access to energy while advancing decarbonisation efforts.
Feasibility study highlights economic benefits
Dr Daniel Gaspar, Deputy Director, Net Zero World Initiative, presented key findings from the "Singapore-US Feasibility Study on Regional Energy Connectivity". He shared that the study had a 25-year projection horizon to account for factors including sensitivities in cable repairs, length of cable lines and the inevitable capital expenditure inputs.
Dr Gaspar explained that while subsea interconnector power cables exhibit fewer external faults compared to older telecommunications cables, they have a higher propensity for internal faults. These internal faults arise from issues within the cable structure itself, which can affect long-term reliability. As a case in point, he noted that cable repairs could range from 65 to 90 days for interconnected subsea cables across the failure model scenarios in this phase of the study.
Despite this, he added that subsea cables remain a viable solution for regional power grids. Dr Gaspar noted that integrating ASEAN's energy networks could reduce electricity costs by 3-3.9 percent. Doing so could also increase Gross Domestic Product (GDP) by 0.8-4.6 percent per country in ASEAN. This demonstrates the broad economic potential of enhanced regional power grid connectivity.
Creating a framework for equitable benefit sharing
During the panel discussion, Mitesh Patel, Interim CEO and COO, SunCable International, underscored the need for a robust regulatory framework to ensure that all stakeholders benefit equitably from regional power grids. He stressed that a well-structured framework is key to distributing economic and environmental benefits fairly among countries and companies involved in the interconnectivity initiatives.
Communication and collaboration for growth
Eka Satria, President Director, Medco Power Indonesia, emphasised the importance of clear communication with local stakeholders to foster support for regional power grid projects.
He noted that a well-executed regional power grid could help Indonesia exceed its current 5.5 percent economic growth rate, attract foreign direct investments, and create opportunities for cross-border or cross-nation partnerships. This could further enhance the region's energy security and sustainability.
The session highlighted the transformative potential of regional power grid interconnectivity in promoting sustainable growth across ASEAN. Overcoming regulatory challenges, fostering collaboration, and ensuring equitable benefit sharing were identified as critical steps in realising this vision.
With robust frameworks in place, ASEAN nations have the opportunity to lead in shaping a connected and sustainable energy future.
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