Southeast Asia is on the brink of a major energy transformation, with plans for an extensive interconnection of electricity grids across the region.
The initiative, according to ASEAN Center for Energy (ACE) Executive Director Beni Suryadi, aims to connect 10 ASEAN member countries through 18 interconnections — nine of which are already operational.
The interconnection plan is designed to enhance energy capacity and facilitate the integration of renewable energy sources into the grid, making energy distribution more efficient and sustainable.
“There is a plan to enhance capacity and allow more renewable energy into the grid. Another one is still in the feasibility study for the possible cross-border connection, including the Borneo-Philippines route. We have to look into the economic perspective, so we have to check the technical perspective,” Suryadi told reporters.
“We have strong support from the countries involved, particularly in the ongoing discussions among Brunei, Indonesia, Malaysia, and the Philippines,” he added.
Suryadi noted that a technical working group of policymakers and utility regulators from these nations is conducting detailed studies to evaluate the feasibility of electricity exchange.
While funding remains limited, Suryadi revealed that ACE is in talks with multiple financial institutions, including the Asian Development Bank, to establish an ASEAN profit financing facility to support feasibility studies.
The initial feasibility study is expected to cost around $1.5 million, while a detailed study could require up to $5 million. Ultimately, the entire interconnection project could necessitate investments ranging from $18 billion to $20 billion, depending on the complexity of the connections.
While the urgency to build these interconnections is palpable, Suryadi acknowledged that practical challenges remain.
“The system is not fully ready yet; currently, electricity exchange operates more like a network of friends helping friends,” he noted. Progress has been slow as countries navigate the intricacies of cross-border energy security and market dynamics, he added.