It’s not just Singapore that will benefit from the Asean Power Grid: philanthropy platform CEO

[SINGAPORE] One factor hindering the realisation of an Asean power grid is the lack of clarity over the tangible benefits that such an interconnected grid can deliver to all 11 member states, not just Singapore alone, the chief executive of the Global Energy Alliance for People and Planet (Geapp) said on Wednesday (Sep 9).

Um Woochong said: “All the South-east Asian countries have to see the real benefit of doing this. I think everyone sees the benefit to Singapore.

“But if you look at it from the perspective of other countries like the Philippines, they might think: ‘Hey, we can’t even connect (within our own country). Why do we worry about other countries?”

He was speaking during a panel discussion at the Impact Week conference organised by Tsao Pao Chee (TPC) and its corporate philanthropic arm, No 17 Foundation.

The Asean power grid has been in the works for at least two decades, but progress on building region-wide connectivity has been slow.

Existing cross-border grids are a result of bilateral agreements between two countries. The most extensive cross-border network is the power integration project connecting Laos and Singapore through Thailand and Malaysia.

But the aim is to link all 11 Asean member states’ power systems for energy trade by 2045. This is especially important for Singapore, which has little renewable energy resource, but which aims to be importing 6 gigawatts of low-carbon electricity from its neighbours by 2035.

This will meet around a third of its energy needs by then. The long-term goal is for its power sector, and the country as a whole, to achieve net-zero carbon emissions by 2050.

Yet, the power grid faces significant bottlenecks, including a large financing gap, a fragmented regulatory framework and a tendency to prioritise domestic over regional interconnections.

SEE ALSO

Singapore, Thailand to develop multi-year agenda for successive Asean chairmanships

Asia needs new energy security architecture

Data centres expected to add pressure on Singapore’s energy supply: survey

Singapore’s new Western island offers real opportunity to create ‘next-generation energy hub’: analysts

‘Not charity’: Asean Power Grid promises shared benefits, says DBS executive

More

Woo said there are several compelling reasons for Asean member states to collaborate to make the grid a reality.

For one thing, the energy system across the region would become more efficient.

In addition, jobs will also be created – not only those arising from the development and construction of the grid itself, but also from new economic activity enabled by stable electricity reaching parts of the country that previously lacked reliable access to power.

Um said that Geapp – a platform connecting the private, public and philanthropic sectors for the clean-energy transition – is working with philanthropic organisation Rockefeller Foundation and Singapore investment company Temasek to identify these benefits.

“In my experience, if people see the benefit, they’ll find a way to make that happen. Otherwise, it’s like pulling teeth,” he said.

Also speaking at the panel, Beni Suryadi, who leads Asean-wide energy cooperation and transition initiatives at the Asean Centre for Energy, said his team is working on developing a model that will provide an estimate on the economic value an integrated grid can bring to the region.

It is also evaluating the amount of investment needed for the Asean power grid, and the number of jobs it could potentially create.

This information would be included in a report to be presented at a meeting among Asean ministers in Manila in October.

“It’s not only the output number, but also how (we can) go in that direction ... So, with all of this, we do hope that all countries will have a better understanding,” he said.

“Of course, it’s not equally benefiting everyone at the same time. You may get $100 now, I might only get $20 today, or I may not get any dollars today.

“But I understand that what we do now collectively will help me get $50 in the next five years, or save $50 from my investment cost,” he added.

The Asean Centre for Energy, parked under the wider Asean organisation, produces a report every two years detailing the region’s energy outlook.