asean power grid : road to multilateral power trading · the asean power grid (apg) is a flagship...
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ASEAN POWER GRID : ROAD TO MULTILATERAL POWER TRADING
Presented By: Bambang Hermawanto
Chairman, ASEAN Power Grid Consultative Committee (APGCC)
ERC Forum 2015, Bangkok 01 October 2015
Overview of ASEAN Electricity Outlook
MOU of APG
Objectives and Benefits
Current Status of APG and Challenges
APG Barrier
Way Forward & Route to APG Multilateral Trading
Conclusion
3
Land Area (Sq km) Population 2013 (Million)
Source: ASEAN Statistics Leaflet
Electricity Consumption 2013 (TWh) GDP per Capita 2013 (USD)
ASEAN – REGION OF DIFFERENCES
Courtesy of Mr Varavoot Siripol-
EGAT
4
Forecasted consumption in selected countries
1 1000 TWh
2 Includes Japan, South Korea, Taiwan
Worldwide electricity consumption
CAGR Consumption
2012-2017
1%
Rest of Asia2 2%
Africa 3%
Latin America 4%
Middle East 6%
Southeast Asia 7%
India 7%
China 10%
North America 0%
Europe 0%
Oceania 1%
Eastern Europe
& Eurasia
Consumption
1000TWh1, 2010
0.7
0.7
0.6
0.9
1.2
1.9
0.3
4.6
3.4
Consumption growth
CAGR, 2006-2010
3.6
0.7
4
4
5
6
7
7
7
7
8
10
Myanmar
Laos
Malaysia
Hong Kong
Vietnam
Indonesia
Philippines
Singapore
Taiwan
Thailand
SOURCE: Country reports; IEA
ASEAN – Electricity Consumption Growth
Courtesy of Mr Varavoot Siripol-
EGAT
ASEAN – Installed Capacity (ACE, 2015)
-
50
100
150
200
250
1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013
GW
Coal and lignite Oil Natural Gas Others Renewables
ASEAN – Electricity Production (ACE, 2015)
-
100
200
300
400
500
600
700
800
900
1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013
TWh
Coal and lignite Oil Natural Gas Others Renewables
-
100
200
300
400
500
600
700
2013 2020 2025 2030 2035
GW
Coal and lignite Oil Natural Gas Nuclear Renewables
ASEAN – Forecasted Installed Capacity - BaU (ACE, 2015)
ASEAN’s POTENTIAL ENERGY RESOURCES
Fosil Energy Resources: Oil
Gas
Coal
Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Thailand, Vietnam
Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Thailand, Vietnam
Indonesia, Malaysia, Philippines, Thailand, Vietnam
Renewable Energy Resources:
Hydro
Geothermal
Solar
Wind
Biomas
Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Vietnam
Indonesia, Philippines
All Countries has various amount
Limited potential
All Countries has various types and amount
The ASEAN Power Grid (APG) is a flagship programme mandated in 1997 by the ASEAN Heads
of States/Governments under the ASEAN Vision 2020.
The 17th AMEM in Bangkok July 1999 has adopted The APAEC 1999- 2004 tasked to implement the ASEAN
Power Grid (APG) program
The MOU of APG signed by Energy Minister in July 2007 with objective to strengthen and promote power interconnection and trade ultimately
towards the realization of the ASEAN Power Grid to help ensure greater regional energy security and sustainability on the basis of mutual benefit
The ASEAN Power Grid (APG)
Facilitate cross-border power purchases /exchanges within the region
Allows for effective development and utilization
of resources
Optimize usage of diverse energy resources in the region
Enable power transfer from efficient generation in the
region to load centers
Reduce capital investment required
for generation capacity expansion
Capitalizing difference of demand peaking
time
ENCHANCING REGIONAL ENERGY
SECURITY, RELIABILITY,
TOWARD MORE EFFICIENT,
ECONOMIC AND SECURE OPERATION OF POWER SYSTEM
Objectives of APG
Greater economic generation and transmission of electricity
Greater reliability and security of electricity supply in member countries
Provision of a platform for future ASEAN electricity trade
AIMS-II identified
• 16 generic interconnection projects for EE (3.000MW) and PP (19,576MW)
• Significant saving in CAPEX & OPEX
BENEFITS OF ASEAN POWER GRID
Source: ASEAN Interconnection Master Plan Study (II), June 2010
Items
Total Expenses (MUSD) *
Savings (MUSD) * Without
Interconnection With
Interconnection
Capital Costs 83,699 81,980 1,719
Fuel Costs 253,025 252,871 154
Total 336,724 334,851 1,873
Note: * 2009 Present value.
TANGIBLE BENEFIT FROM APG
Courtesy of Mr Varavoot Siripol-
EGAT
* Updated as of November 2014
UPDATED LIST OF ASEAN POWER GRID PROJECTS
NO. System Region Exist On-going Future Total
Northern System 2,659 3,942 15,774-18,924 22,375-25,525
9 Thailand - Lao PDR 2,111 3,352 1,865 7,328
10 Lao PDR -Vietnam 248 290 - 538
11 Thailand - Myanmar - - 11,709-14,859 11,709-14,859
12 Vietnam - Cambodia 200 - - 200
13 Lao PDR - Cambodia - 300 - 300
14 Thailand - Cambodia 100 - 2,200 2,300
Southern System 450 600 1,800 2,850
1 P.Malaysia - Singapore 450 - 600 1,050
4 P.Malaysia - Sumatra - 600 - 600
5 Batam - Singapore - - 600 600
16 Singapore - Sumatra - - 600 600
Eastern System - 430 600 1,030
6 Sarawak - W.Kalimantan - 230 - 230
7 Philippines - Sabah - - 500 500
8 Sarawak - Sabah - Brunei - 200 100 300
15 E.Sabah - E.Kalimantan - - - -
Northern - Southern System 380 100 300 780
2 Thailand - P.Malaysia 380 100 300 780
Southern - Eastern System - - 3,200 3,200
3 Sarawak- P.Malaysia - - 3,200 3,200
Grand Total 3,489 5,072 21,674-24,824 30,235-33,385
CURRENT STATUS OF ASEAN POWER GRID PROJECTS
Note: there are six projects consist of eight cross border links have already in operation.
EXISTING
• 11 cross borders
• Total power: 3.489 MW
ON-GOING (COD 2018/2019)
• 10 cross borders
• Total Power: 7.192 MW
FUTURE (BEYOND 2020)
• 17 cross border
• Total Power: 25.424 MW
UPDATED STATUS OF ASEAN POWER GRID PROJECTS
National impediments to
promotion of power trade
•Differing national policies in ASEAN
•Countries desire for self‐sufficiency before interconnection is allowed
•Countries concerns over restructuring to be competitive under APG
Electricity industry
restructuring and evolution
into a power market
•Multilateral Power Trading is new to AMS
•Harmonized operational & regulatory framework or tariff structure, not available
•No mechanisms for power wheeling, pool rules, power bidding, regulatory framework and ensuring system reliability & security
•Financing Modalities for funding sources to APG realization
Enviroment Awareness
•High penetration of intermittent renewable energy sources
•Aware and concern on environment impact
APG’s CHALLENGES
• National Energy Policy
• National PDP & Priority
• Regulation
• The availability of infrastructure
Harmonization
• Commitment
• Funding sources for APG Studies
• Private Participation
• Financial burden to develop APG infrastructures & institutions
Solution under ASEAN Spirit
BARRIERS FOR THE REALIZATION OF APG
•To accelerate the completion of the Cross Border Projects Listed by AIMS-II
Accelerate the development of the Bilateral Cross Border Power
Interconnection projects
•To setup ATSO, ATGP, APG Regulator to regulate and control the Multilateral Trading
Preparation of the Formation of the ASEAN Power Grid
Institutions
• To conduct an optimization studies on the most economic operation and possible reserve sharing scheme within the region
• Review AIMS-II to consider the optimization of Regional Energy Resources, considering the National Infrastruscture and Reduction of CO2 Emission
Synchronize National Power Development Plan and optimize
the generation of electricity
•Encourage the private sector to jointly develop Cross Border Power Interconnection Projects
•Study on the ASEAN Primary Energy Resources for Power Generation
Encourage and optimize the utilization of ASEAN resources, such as, funding, expertise and
products to develop the APG
THE STRATEGIC & ACTION PLAN 2016/20
TOWARD MULTILATERAL TRADING
STUDIES COMPLETED AND PROPOSED
•Benchmarking of Bilateral Contract between HAPUA Member Countries
•Develop Bilateral Contract model based on experience of HAPUA
Member Countries
Bilateral Interconnection Agreement
•To promote more efficient, economic, and secure operation of power systems;
•To optimise the use of energy resources in the region by sharing the benefits;
•To reduce capital required for generation capacity expansion;
• To identify barriers to the implementation of APG.
AIMS - II
• to harmonize the technical standards of ASEAN Member
• to facilitate cross-border electricity trading and to support quality electricity supply to consumers of all ASEAN Member States.
Harmonization of technical standard codes
or guidelines for APG
• To propose the formulation of APG TSO /APG GTP and Roadmap of APG interconnection,
•propose operation procedures of ASEAN TSO, Control Blocks and Control Areas for efficient exchange of active and reactive power for APG,
•recommend an integrated institutional structure of the regional grid planners group
Formation of ATSO & AGTP (funding proposal)
Conduct study for ASEAN Power Grid (conceptual road map for bilateral trading toward the multilateral electricity trading: regulation and infrastructures)
Establishment of Funding sources or financial support to be assisted and sought by AIFM
Deregulation or relaxation of regulation to assist private investment
National Expert Group on specific field (less dependency on non ASEAN countries)
Introduction on sub-regional interconnection as further step of cross border interconnection
Establishment of APG Institutions
WAY FORWARD
TO THE REALIZATION OF APG
The key initiatives include embarking on multilateral trading to the ASEAN Power Grid (APG),.
The realisation of the APG is to first encourage on a cross-border bilateral basis, then gradually expand to sub-regional basis, and finally to a fully integrated ASEAN power grid system
Seriously consider to harmonise regulatory frameworks and standards to facilitate regional energy connectivity
Action Plan for the next five (5) years is to embark on multi-lateral interconnections.
Initiative to undertake a pilot project to explore cross-border power trade from Lao PDR to Singapore and serve as a pathfinder to enhance multilateral electricity trading beyond neighbouring borders towards realising the APG.
ASEAN Energy Cooperation:
APAEC 2016 – 2025 (Phase One)
OBJECTIVES
To enable the power trade from Lao PDR to Singapore via the existing Interconnection of Thailand’s grid and Malaysia’s grid, which will be considered as the first multilateral power trade in ASEAN and pave the way for other power integration projects in ASEAN to follow up (i.e. GMS and APG).
LTMS–PIP will take into account each country’s national development plan with the existing interconnection among the countries as well as associated laws and regulations in order to streamline our coordination and set up the feasible and workable plan for us to pursue on this project.
LTMS: Multilateral Pilot Project
Lao PDR (L)
Thailand (T)
Malaysia (M)
Singapore (S)
TNL, PT-NK
PX-BKN
PB-MD2
TKH-NN
BY-SRD
KNE-Gurun Plentong- Woodlands
275/230kV HVAC 300 kV HVDC 300 MW
115 kV HVDC
Note: •Between Lao PDR-Thailand: without Power Flow Control (without ACE) •Between Thailand-Malaysia: Controlled by Pole Control of HVDC •Between Malaysia-Singapore: AGC setting of Area Control Error (ACE)
LTMS: Physical Flow
HAPUA Power Interconnection Cooperation & AIMS
MOU of APG
Fully Physical Cross Border Interconnections Established
Implemention of Cross Border Bilateral Trading
Developing Regulation, Planning, and Operation Frameworks
Implementation of Sub-Region Multilateral Trading
Formation of APG Regulator. Planning, and Operation Bodies for
ASEAN Multilateral Trading
ASEAN Electricity Market Integration
We are
here
ASEAN countries collectively need to benefit from the abundance of indigenous resources
within the region
APG is a step towards the optimization and conservation of energy in the ASEAN region
AIMS & National PDP should be synchronized to support the Multilateral Power Trading.
APG creates bilateral arrangement through cross border electricity trading toward
multilateral trading arrangement
The involvement of the ASEAN Member States is required to Accelerate the realization of
APG
CONCLUSION
THANK YOU