Regional connectivity holds significant potential for the energy sector and socio-economic benefits across Southeast Asia.
The Asean power grid, which has been in development for decades, could offer numerous advantages beyond providing green electricity, such as new job creation, reduced air pollution, and substantial investments in the energy sector.
Key Findings from the Feasibility Study:
Economic Impact: The US-Singapore feasibility study presented at the Singapore International Energy Week highlighted that regional interconnection could create annual investments of US$2 billion in research and development, and an estimated US$1.4 trillion in cumulative electricity generation capacity.
GDP Growth: By connecting to an Asean-wide grid, each country’s GDP could increase by approximately 0.8% to 4.6%.
Job Creation: The interconnection is expected to generate between 2,000 and 9,000 jobs annually in sectors such as renewable energy manufacturing and grid infrastructure. These jobs would cater to various education levels and skill sets.
Environmental Benefits:
Air Pollution Reduction: A major environmental advantage of the Asean grid would be the reduction of air pollution. The interconnected grid would reduce air pollution by half, benefiting 99% of the region’s population and preventing 15,000 deaths annually from pollution-related causes.
Reducing Coal Dependency: Coal-fired power plants, which are a significant source of air pollution in countries like Indonesia and the Philippines, would be less relied upon as regional resources are shared.
Energy Security and Renewables Integration:
Efficient Energy Distribution: A regional grid would help meet rising electricity demand while ensuring energy security by distributing renewable energy more efficiently, especially from countries like Laos, which is currently exporting hydropower to Singapore.
Integration of Renewable Energy: The grid would help mitigate the intermittency of renewable energy sources by ensuring a consistent energy flow between countries.
Investment in Infrastructure:
Subsea Cables: The study also examined the investment required for building subsea cables connecting Asean nations, a project that could cost several billion dollars. These cables, when shared among countries, would make the high costs more manageable, facilitating the transfer of renewable energy.
Regional Projects and Commitments:
Singapore’s Energy Strategy: Singapore has committed to importing 7.35GW of clean electricity from countries like Cambodia, Vietnam, and Indonesia. The Energy Market Authority (EMA) is also exploring frameworks for such cross-border electricity trade, though challenges like high upfront costs remain.
This regional power grid initiative promises not only to enhance the energy infrastructure across Southeast Asia but also to drive economic growth, job creation, and a transition towards cleaner energy sources.
