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    Achieving an Integrated Electricity Market in Southeast Asia: Addressing the Economic, Technical, Institutional, and Geo-political Barriers

    Li, Yanfei; Kimura, Shigeru | December 2016
    Abstract
    Driven by economic and industrial development, population growth, and higher standards of living, electricity demand in the member states of the Association of Southeast Asian Nations (ASEAN) is projected to more than triple between 2013 and 2035 (ERIA, 2015), a growth rate higher than any other region in the world. Plans to secure energy supplies in the region require evaluation of the geographic scope of desirable and feasible integration. For example, the ASEAN Plan of Action for Energy Cooperation 2010–2015 has a number of objectives that include the establishment of an ASEAN Power Grid (APG), increased penetration of renewable energy, and further development of an ASEAN gas network. APG, a flagship programme of 16 interconnection projects, is expected to expand from a bilateral to a subregional basis and, ultimately, achieve a totally integrated system. Smaller regional integration potential also exists between the countries of the Greater Mekong Subregion (GMS) and BIMP (Brunei, Indonesia, Malaysia, and the Philippines). Despite the promising objectives of the ASEAN APG plan and the potential of the GMS and BIMP grids, their implementation to date has largely been problematic owing to, besides economic feasibility and political factors, market structure, harmonisation of technical standards, operational procedures, and regulatory frameworks. A coordination body called the Heads of ASEAN Power Utilities/Authorities (HAPUA) has been formed under the ASEAN mechanism. However, as with the experience of other regions, such as the Nordic and European countries, the formation of an interconnected and integrated electricity market requires further authorisation to this organisation to formulate legitimate plans, regulations, and requirements for relevant parties’ actions in coordinated manner among countries in the region.
    Citation
    Li, Yanfei; Kimura, Shigeru. 2016. Achieving an Integrated Electricity Market in Southeast Asia: Addressing the Economic, Technical, Institutional, and Geo-political Barriers. © Economic Research Institute for ASEAN and East Asia. http://hdl.handle.net/11540/10896.
    Keywords
    Energy Economics
    Energy Technology
    Energy Development Finance
    Intraregional Trade
    Regional Trade
    Trade
    Health Standards
    Health Care Cost Control
    Health Care Access
    World Trade Organization
    Trade Restrictions
    Trade Negotiations
    Trade Liberalization
    Trade Barriers
    Energy Demand
    Energy Flow
    Energy Markets
    Energy Prices
    Energy Supply
    Regional development bank
    Trade development
    Import volume
    Export volume
    Energy industry
    Electric power
    Energy security
    Price
    Supply and demand
    Regional trading blocs
    Foreign trade and employment
    Developing countries
    Industrial priorities
    Technological innovation
    Technology transfer
    Foreign trade regulation
    Industrial relations
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    Citable URI
    http://hdl.handle.net/11540/10896
    Metadata
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    RPR_FY2015_No.16.pdf (5.469Mb)
    Author
    Li, Yanfei
    Kimura, Shigeru
    Theme
    Energy
    Trade
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise