By Jin Wang
Strengthening electricity security across ASEAN will require more than connecting national power grids to enable cross-border electricity trade. Reliable national grids are essential to supporting regional electricity flows. Closer regulatory and commercial cooperation will also be needed to make interconnection work.
At the Singapore-IEA Forum Session 2 ‘Strengthening Electricity Security through the ASEAN Power Grid’, panellists explored how regional interconnection could support a more secure electricity supply.
The panel brought together Matt Garbutt, Chief Executive Officer, Australian Energy Regulator; Chris Stark, Head of the UK's Mission for Clean Power, UK Department for Energy Security and Net Zero; Tham Chee Aun, Group Chief Executive Officer, Ditrolic; Jimmy Khoo, CEO, SP PowerGrid Ltd; Ir. Ahmad Sazree Abd Aziz, Chief Distribution Network Officer, Tenaga Nasional Bhd; and Rakhmad Dewanto, Director Corporate Planning and Business Development, PT PLN (Persero). The discussion was moderated by Tan Sue-Ern, Head of the International Energy Agency (IEA) Regional Cooperation Centre, Singapore.
Building the conditions for interconnection
Regulatory certainty is essential to developing cross-border electricity connections. Drawing on the UK's experience, Mr Stark highlighted how interconnectors have strengthened energy security and delivered economic benefits. He identified clear policy direction and regulatory frameworks that give investors confidence as key requirements. Sustained engagement between regulators is also important.
Alongside regulatory certainty, community acceptance is important to delivering new transmission infrastructure. Mr Garbutt used Australia's National Electricity Market to illustrate the efficiency benefits of interconnection. He stressed the need to engage communities during project development. Strong institutions also help electricity markets adapt to changing energy needs.
Preparing power systems for regional integration
Reliable national transmission and distribution networks are also fundamental to regional electricity integration, as Ir Ahmad Sazree emphasised. Growing electricity demand, particularly from data centres, adds pressure on these networks. Demand forecasting and infrastructure planning can help address this challenge, he added.
Indonesia's geography adds another dimension to infrastructure planning. Mr Dewanto highlighted the distance between renewable energy resources and major demand centres across the country. This calls for coordinated development of generation and transmission infrastructure. New business models could help attract international investment to support this development.
Digital capabilities can also support the management of increasingly complex interconnected power systems. Mr Khoo pointed to artificial intelligence, digital twins and other technologies that could improve grid operations. Cybersecurity, data management and common technical standards also require coordination for reliable regional interconnection.
Making electricity trade commercially workable
Beyond technical readiness, cross-border electricity trade must be commercially viable for both buyers and sellers. Mr Tham highlighted the importance of securing long-term customer contracts. These agreements must also create value for both electricity-importing and exporting countries.
Pricing is central to achieving that balance. Electricity must remain affordable for buyers while providing value to exporting countries. The aim is to find a commercially workable price rather than simply the highest achievable one.
Commercially workable pricing is one part of making regional electricity trade viable. For ASEAN, the broader challenge is to bring infrastructure development, regulation and commercial arrangements together. These must work in tandem to sustain cross-border electricity trade.
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