Singapore, Cambodia, Laos form alliance to boost cross-border electricity trade


(Photo: iStock)

In a significant move to enhance regional energy cooperation, Singapore, Cambodia, and Lao PDR have established a working group aimed at facilitating cross-border electricity trade and advancing the ASEAN Power Grid (APG) vision.

Three key objectives

The objectives of the working group are threefold. First, it will develop a comprehensive framework to support cross-border electricity trading projects within ASEAN, starting with the collaboration among Lao PDR, Cambodia, and Singapore.

Second, streamline regulatory processes and licensing procedures related to electricity generation, export, and import. The group will also create guiding principles for the application and permitting processes for subsea surveys and the installation of cross-border subsea power cables.

Lastly, explore avenues to facilitate commercial agreements and foster the development of generation and transmission infrastructure to enable seamless cross-border electricity trading among the three nations.

The inaugural meeting of the working group was co-chaired by Singapore’s Second Minister for Trade and Industry, Tan See Leng, Lao PDR’s Vice-Minister for Energy and Mines, Chansaveng Boungnong, and Cambodia’s Minister for Mines and Energy, Keo Rottanak.

(From left to right) Chansaveng Boungnong, Tan See Leng, and Keo Rottanak join the first working group meeting. (Photo: Tan See Leng's Facebook)

Tan expressed optimism, saying, “Through the working group, we hope to create a cooperation framework to facilitate cross-border electricity trade projects and coordinate subsea power cable issues in ASEAN. Singapore is pleased to work closely with Laos and Cambodia, with whom we share a vision for the APG. We also encourage more regional partners to join us in this endeavor.”

Rottanak said, “We are delighted to collaborate with Singapore and Lao PDR to advance the APG. Our combined efforts to deepen regional energy integration and efficiently share clean energy set a strong example. We hope this partnership will encourage other ASEAN nations to join us in building a sustainable and interconnected energy network for the region.”

Chansaveng emphasized the significance of the project for Lao PDR, “This project is an important step for us to realize the goal of the APG, and we are excited to be an integral part of the regional goals for interconnection. Furthermore, it will create opportunities for Lao PDR to leverage its ample resources in renewable energy to help the region in meeting its energy transition and net-zero goals. We hope the project will serve as a catalyst in promoting further investment in renewable energy in Lao PDR and the region.”

ASEAN Power Grid

According to Eco-Business, the APG has long been considered a key solution for improving the region’s access to secure and affordable energy. Today, the urgency to decarbonize the energy sector has made it even more critical for Southeast Asian countries to establish a flexible and reliable cross-border grid to improve access to renewable energy resources.

Despite efforts since the 1990s to develop and maintain interconnections across national electricity grids via the APG, the region’s energy demand is expected to triple by 2050 from its 2020 level, according to the 7th ASEAN Energy Outlook, a 2022 report by the ASEAN Centre for Energy. The report notes that ASEAN will need stronger policies to encourage renewable energy development to meet the regional renewables target of 23% of the total primary energy supply by 2025.

Southeast Asian countries can share up to 25 GW of electricity via the ASEAN Power Grid. (Image: TNB analyst briefing)

Source: Solar QuarterKhmer TimesEco-Business

Related Topics
What are Just Energy Transition Partnerships, and what progress has been made in Indonesia?
Private sector shares input on ASEAN carbon neutrality strategy

More from Renewable Energy Certificate

Download request

Please fill out the form to download samples.

Job title
Company email
By using this site, you agree with our use of cookies.