Development Prospects of the ASEAN Power Sector

Towards an Integrated Electricity Market

International Energy Agency

A regional ASEAN Power Grid (APG) would help ASEAN countries meet their rising energy demands, improve access to energy services and reduce the costs of developing an energy infrastructure. Two primary advantages of system integration are the increase in security of supply and efficiency. Larger service territories allow for the pooling of generating resources, thus taking advantage of the benefits of generation diversity.

Establishing electricity security regulations, co-ordinated planning, allocating the cost of transmission development, revising network codes and system monitoring is crucial for a functioning market. ASEAN member countries hence should work closely together to set common long-term goals for a regional market. The medium-term target should be harmonisation of grid codes and reliability standards. To ensure this, an independent regional regulator should be established and given a mandate to look after the common benefits and interests of the ASEAN member countries.