Nations in Southeast Asia might save as much as US$800 billion from their collective decarbonisation prices in the event that they absolutely collaborate on constructing a regional energy grid, together with hydrogen pipelines, based on new analysis by vitality knowledgeable and assurance supplier DNV.
The report, revealed on Tuesday, discovered that “unconstrained sharing of sources” between Asean nations via energy grid interconnectors and hydrogen networks would decrease the price of decarbonisation by roughly 11 per cent in comparison with a state of affairs wherein nations tried to completely decarbonise utilizing solely their very own sources.
A totally interconnected grid would require an extra 3.75 million kilometres of extra electrical infrastructure, however scale back the necessity for as much as 600 gigawatts (GW) of put in photo voltaic capability and 1.2 terawatt-hours (TWh) {of electrical} storage, mentioned DNV. It might additionally result in a 13 per cent discount within the spatial footprint wanted for Asean’s vitality transition, their analysis discovered.
Nevertheless, the decades-old plan by Asean members to determine an Asean energy grid “has not been progressing as meant, mentioned DNV. Though 30 GW of regional interconnection capability was recognized in 2010, lower than 8 GW of interconnections have been developed amongst Cambodia, Laos, Malaysia, Singapore, Thailand and Vietnam, the report mentioned.
“This regional grid might be used to help decarbonisation efforts by transporting clear vitality from nations with extra renewable energy to nations with shortages. Nevertheless, most decarbonisation efforts to this point stay confined to particular person nations,” mentioned the report. DNV recognized uncoordinated and prolonged regulatory processes between completely different nations as among the many obstacles which have impeded collaboration to date.
To this point, interconnectors within the area have been restricted to bilateral energy agreements wherein vitality usually solely flows in a single path, mentioned the report. “Full multilateral, multidirectional energy commerce … might permit a greater distribution of renewable sources throughout nations: enhance entry to, and the range of, renewable electrical energy; and scale back electrical energy costs throughout the area, however implementation has remained restricted.”
Asean can scale back its decarbonisaton prices by full regional cooperation on vitality methods versus an individual-country strategy, a brand new examine by unbiased vitality knowledgeable and assurance supplier confirmed. Picture: Asean Interconnector Research/ DNV
The report highlighted that progress in direction of full integration has largely been made by way of the Laos-Thailand-Malaysia-Singapore Energy Interconnection Undertaking (LTMS-PIP), which includes the export of hydropower from Laos to Singapore by by way of transmission traces to current cross-border interconnectors in Thailand and Malaysia. Whereas restricted to 100 MW for now with plans to increase capability to 300 MW, the initiative offers an “encouraging signal” for the event of multilateral vitality commerce in Asean, mentioned DNV.
In a parallel growth, Malaysia on Monday introduced the launch of a cross-border vitality alternate platform which is able to facilitate the export of renewable vitality from the nation. This comes a yr after the nation lifted its ban on renewable vitality exports.
Dubbed the Vitality Trade Malaysia (Enegem), the platform will depend on its current interconnections with neighbouring Singapore and Thailand, based on the Malaysian Vitality Fee’s (EC) up to date information on cross-border electrical energy gross sales. Inexperienced electrical energy bought via the alternate will contain the bodily supply of electrical energy and the related Renewable Vitality Certificates (RECs), which confirm the acquisition of renewables.
Enegem’s inaugural public sale will facilitate the sale of 100 megawatts (MW) of renewable vitality to Singapore, mentioned Malaysia’s Ministry of Vitality Transition and Water Transformation (Petra). The platform will then utilise as much as 300 MW of the present interconnection between Peninsular Malaysia and Singapore, whereas the sale of renewable vitality to Thailand is “topic to availability”, the EC mentioned.
The platform can be operated by Malaysia’s Single Purchaser, at the moment an unbiased, “ring-fenced division” inside nationwide utilities firm Tenaga Nasional. Single Purchaser will purchase renewable vitality from photo voltaic, hydropower and different clear vitality producers in Malaysia by way of energy buy agreements, then enter provide agreements with energy purchasers in neighbouring nations. The Single Purchaser “will even function the verifier of inexperienced attributes and the issuer of RECs related to cross-border electrical energy buying and selling,” the EC mentioned.
Malaysia’s cross-border vitality alternate can be operated by the nation’s Single Purchaser, which is able to enter into energy buy agreements with Malaysian renewable vitality producers and promote the vitality to consumers in neighbouring nations by way of provide agreements. Picture: Information for Cross-Border Electrical energy Gross sales/ Vitality Commmission
“Renewable vitality export is doubtlessly a brand new income supply and capability development driver for Malaysia’s renewable vitality business, at the moment reliant on home massive scale photo voltaic (LSS) and company inexperienced energy programme (CGPP) schemes,” mentioned Maybank analyst Nur Farah Syifaa in a analysis word to purchasers on Tuesday.
Each the LSS and CGPP schemes are bidding programmes for renewable vitality manufacturing and buy, primarily based on quotas allotted by the EC. The fifth part of the LSS scheme was introduced earlier this month for a quota of two GW, whereas the CGPP, which permits firms to enter energy buy agreements with solar energy producers, has an allocation quota of 800 MW.
Nur Farah identified that the present Plentong-Woodlands Interconnector between Malaysia and Singapore can at the moment facilitate 1 GW of electrical energy stream. Singapore goals to import 4 GW of low-carbon electrical energy by 2035, or 30 per cent of its electrical energy provide.
To expedite the mixing of Asean’s cross-border energy grids, DNV really useful that member nations work to determine regional establishments with clear tasks. “Though regional establishments and dealing teams have already been established, such because the Asean Vitality Centre and Heads of Asean Energy Utilities/Authorities organisation, there may be nonetheless a scarcity of clear functionalities and tasks,” the report mentioned. The institution of a taskforce to hurry up regional coordination “ought to start instantly”, it added.
