Study on Electrical Supply Mix and Role of Policy in ASEAN

Abstract

In the Association of Southeast Asian Nations (ASEAN), increasing demand for electricity and relatively lower income levels are urging member states to develop large-scale power generating capacity in an economically efficient way. Needless to say, it is also becoming ever more important to mitigate the environmental burden in developing this capacity. That is, the simultaneous achievement of three elements in power development – the so-called 3Es of energy supply security, economic efficiency, and environmental protection – is becoming an indispensable part of energy policy in ASEAN member states. Towards this goal, each country has its policy or target for its future power supply mix. The question to ask is how to turn such a policy into actual practice. It is obvious that without appropriate implementation tools, a policy or plan will end up being merely a fanciful notion. In addition, from a pan-regional viewpoint, a past study conducted by the Economic Research Institute for ASEAN and East Asia (ERIA) has indicated the importance of having a pan-regional planning coordination function to maximise the regional benefit in power development. The power development plan in each country basically does not consider the regional benefit or effect for neighbouring countries. The pan-regional planning coordination function acts as a possible measure to implement the regional power supply mix policy in a market.