Dialogue Earth talks to Matthew David Wittenstein of the UN ESCAP about how regional power connectivity can move forward in a fair and sustainable way
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High-voltage power lines in rural Vietnam (Image: Nguyễn Thanh Phong / Alamy)
ASEAN has been dreaming of a regional power grid since the 1990s, with a vision to develop the energy resources of each of its 10 member states and to build interconnectivity among them. The ASEAN Power Grid (APG) was first mentioned as a concept in the bloc’s strategic vision statement in 1997. An APG Memorandum of Understanding (MoU) was signed in 2007 and enforced in 2009, further solidifying ASEAN’s goal of energy security and cross-border power connections.
Realising this vision has not been without challenges – a result of the bloc’s diverse energy landscape that has meant issues ranging from an overreliance on LNG, to a boom in solar power, which complicate the idea of an interconnected grid. ASEAN has also had to navigate the wealth gap between its member states and the lack of a shared regional energy policy.
Still, the programme continues apace, with a goal to establish fully integrated grid operations by 2045. It’s a timely target as Southeast Asia’s energy demand is expected to more than double its 2022 levels by 2050.
As ASEAN gears up to sign an enhanced APG MoU in October, which is expected to outline a roadmap for implementation, Dialogue Earth spoke to Matthew David Wittenstein, chief of the Energy Connectivity Section at the UN Economic and Social Commission for Asia and the Pacific (ESCAP), about how a different approach to the APG can influence its future. He discussed the commission’s advocacy for a “holistic” approach to the APG’s goals, which involves looking beyond technical approaches in order to build regional cooperation that is lasting and fair. This conversation has been edited for clarity and length.
Why is a ‘holistic’ approach to advancing ASEAN power grid connectivity necessary?
This approach – one that expands the focus to include social, inclusivity and political dimensions – is necessary because the transition to a regional energy network requires more than just the technical integration of power systems. The benefits, such as lower electricity costs and the potential to reduce carbon emissions, are clear and well recognised. However, they have not been sufficient to address critical concerns, such as political and sovereignty risks associated with cross-border interconnections.
For example, some ASEAN member states may be concerned that regional integration could require giving up some level of control over national energy security or governance. Additionally, concerns over potential disruptions, impacts on costs, or over-dependency on neighbouring countries’ energy systems further complicate decision making.
A holistic view emphasises the long-term benefits of regional cooperation, promoting equity and ensuring that all ASEAN member states, including smaller and developing countries, benefit not only from affordable, reliable and sustainable energy, but also from whole-of-society benefits. This broader approach helps underscore regional economic growth, job creation and shared infrastructure, fostering economic integration. Energy security is also addressed by demonstrating that, through cooperation, integrated power systems actually improve power system reliability, reduce dependency on imported fuels and help mitigate energy shortages.
By integrating these factors into a coherent vision for a connected region, ASEAN countries can make a more compelling case for the APG, addressing political concerns and demonstrating how the grid can create mutual benefits for all countries involved.
How do traditional metrics for power connectivity fall short?
Traditional metrics for power connectivity often focus primarily on technical efficiency (such as transmission capacity or cost of infrastructure) without fully considering the social, environmental and long-term sustainability aspects.
Such metrics have a narrow economic focus, often prioritising short-term cost savings and immediate returns over long-term economic growth, social inclusivity and climate resilience.
Another shortcoming of traditional metrics is their exclusion of social equity. Metrics that don’t integrate aspects of social inclusion – such as gender equality or energy access for underserved communities – may neglect the need for policies that reduce energy poverty.
They also have limitations with flexibility. These metrics often don’t account for the dynamic nature of energy systems, where future technological changes, regulatory shifts or evolving societal demands might affect the grid’s long-term benefits.
How are cost-benefit analyses for power connectivity projects affected by current metrics?
In the current traditional cost-benefit analysis (CBA), direct financial costs for such projects (such as infrastructure investments and operational costs) and immediate economic returns (such as power generation and sales) are usually prioritised.
However, current metrics for CBA often fail to capture long-term benefits such as improved health outcomes and job creation. Additionally, the social costs of energy inequality, the potential for development to damage ecosystems and cultural heritage sites, and impacts on vulnerable communities are often overlooked. In combination, these can lead to an underestimation of the true costs and benefits of power connectivity, and a distorted assessment of its net benefits.
What kind of mechanisms can be introduced to measure the environmental impacts of the ASEAN Power Grid?
Methods that consider biodiversity, land use and water resources – such as environmental impact assessments (EIA), land-change modelers and community surveys – can be used to examine the environmental footprint of the APG. We can also integrate life-cycle assessments (LCAs), which evaluate the environmental impact of the entire lifecycle of infrastructure projects such as power grids, from design and construction to operation and decommissioning.
For the APG, LCAs can be used to quantify the environmental footprint of power generation, transmission and distribution infrastructure, assessing carbon emissions, resource consumption and waste generation.
LCAs can also help identify opportunities for reducing emissions through optimising grid design for efficiency and integrating cleaner-energy technologies.
It also works to ensure that long-term sustainability is prioritised by evaluating the full environmental impact over the APG’s entire lifecycle. This helps to minimise environmental harm while maximising economic and social benefits.
By integrating LCAs, the APG can be designed with a clear understanding of its environmental costs and opportunities for improvement, ensuring that it supports both regional connectivity and national development goals.
Can you talk about the Green Power Corridor framework proposed by ESCAP and how it relates to the UN Sustainable Development Goals in the ASEAN region?
The Green Power Corridor (GPC) framework is a comprehensive approach designed to guide energy connectivity projects to be in alignment with the UN Sustainable Development Goals (SDGs). The framework integrates sustainability principles into six key building blocks of power connectivity: political commitment, infrastructure development, regulatory frameworks, community engagement, institutional capacity and financing mechanisms. The framework also includes a set of metrics to assess how well these initiatives contribute to achieving the SDGs. Ultimately, the framework aims to encourage optimisation of positive impacts and mitigation of negative ones through policy interventions or project design and implementation.
In the ASEAN region, progress on several SDGs is lagging, including SDG 5 (gender equality), SDG 7 (affordable and clean energy), SDG 8 (decent work and economic growth), SDG 10 (reduced inequality) and SDG 13 (climate action). These SDGs can be advanced through strategic energy connectivity initiatives, and the GPC framework provides a tool to potentially track and measure improvements. By applying the framework’s metrics, ASEAN countries can better align their energy projects with these critical development goals.
How can greater connectivity via the ASEAN Power Grid lead to lower electricity costs and air pollution?
The APG can lead to lower electricity costs, reduced air pollution and lower emissions through the development of renewable-energy sharing capacity, both in the sense of development projects and tapping into unrealised potential across sectors, at high-value locations across the region. The increased use of renewable energy will reduce the need for higher-cost fossil-fuel-based generation and lowers air pollution from coal and gas plants. Regional grid integration also increases the efficiency and resilience of power grids, lowering the need for large reserves and investments in storage.
Author: Tyler Roney
This article was originally published on Dialogue Earth under the Creative Commons BY NC ND licence. Read the original article.
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