Integrate Electricity in Southeast Asia, PLN-HAPUA-AEMI Held Workshop

(Jakarta, 26 May 2016) In accordance to the implementation of electricity interconnection system in Southeast Asia region, Heads of Power Utilities/Authorities (HAPUA) in collaboration with ASEAN Energy Market Integration (AEMI) of Chulalongkorn University with support of PT PLN (Persero) held workshop of “Powering ASEAN : Can the Nordic Model Work?” in Aryaduta Hotel, Jakarta, on Wednesday-Thursday (25-26 May 2016). It is related to one of ASEAN Economic Community objectives: to integrate energy market in the framework of ASEAN Electricity Exchange (AEE), and to enhance the implementation of ASEAN Power Grid (APG), with objectives to achieve regional energy security from the availability to quality of energy supply, to optimize regional resources especially new and renewable energy, and to have accessible energy to all ASEAN people.

This workshop was attended by representatives of HAPUA Members (PLN of Indonesia, TNB of Malaysia, and Singapore Power of Singapore), Energy Commission of Malaysia, National University of Singapore, AEMI of Chulalongkorn University, Nord Pool Consulting of Norway, Ricardo Energy & Environment of UK, Royal Norwegian Embassy in Singapore, ASEAN Secretariat, and ASEAN Center for Energy.

In his opening speech, HAPUA Secretary in Charge Syaiful B. Ibrahim highlighted that ASEAN emphasizes the energy market integration even though faced by numerous obstacles, such as regulation harmonization and commitment. For that reason, HAPUA must collaborate intensively with ASEAN to accelerate the ASEAN connectivity in energy and electricity.

“Let us continue to strive towards the realization of further APG projects, while working to resolve the challenges of cross border power trade and investments,” Syaiful stressed.

This workshop was a media for related institutions to plan the implementation of ASEAN interconnection by adopting the scheme of prior successful integration project: Nord Pool and South African Power Pool (SAPP).

Nord Pool and SAPP succeeded to secure regional electricity efficiently by also maintaining the economic benefits for each related parties. Like Nord Pool, SAPP that has been built since 1995, integrated several utilities in the region through power exchange mechanism. This model was also adapted to integrate 29 country states in India.

The AEE itself is set not to interfere with national energy market and to transform public utilities into private. The utility with surplus supply of electricity will export its capacity to neighboring utility to increase ratio of electrification in the region.

To make the AEE works, the next step would be the creation of feasibility study proposal. The collaboration with ASEAN Secretariat, experts from Norway, U.K, and South Africa is necessary.

The result of this workshop is a forum statement that compromises understanding and steps of AEE: why AEE is necessary, supporting features of AEE, SWOT analysis, operational structure, capacity building, recommendation, and action plan of AEE until it launches in 2018.