Investing in Power Grid Interconnection in East Asia

Date:

23 September 2014

Category:

ASEAN, Energy, Infrastructure, Investment, Regulation and Governance

Type:

Research Project Reports

Authors:

Ichiro Kutani, Shimpei Yamamoto, Shigeru Kimura, Phoumin Han, Venkatachalam Anbumozhi, Yanfei Li, Piseth Souem, Yuk Sum Wong, Awdhesh Kumar Yadav, Pramudya, Wataru Fujisaki, Yuhji Matsuo, Kazutaka Fukasawa, Boungnong Bouttavong, Joon Bin Ibrahim, Jiraporn Sirikum, The Hung Tang

Editors:

Ichiro Kutani, Yanfei Li

Tags:

Infrastructure, Regulation and Governance

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Executive Summary

Key Findings

Scope: ASEAN countries, Northeast India, and Southwest China.For each possible power transmission line for interconnection, the cost and net economic benefits, which imply feasibility and priority of the proposed new transmission capacities, are estimated.

A positive net economic benefit indicates economic feasibility of the project and thus it should be prioritized. Among the listed projects, Vietnam - Lao - Thailand - Malaysia - Singapore interconnection route could be the most beneficial, and Cambodia - Thailand linkage could be the second beneficial interconnection.

Policy Implications

Investment efficiency for power infrastructure could be improved with enhanced grid interconnection in the region.

Conventionally the power grid of each country is unique, independent and governed by its own policies and codes. There needs to be a comprehensive guideline encompassing all the member countries to engage in effective bilateral or multilateral discussion and coordination in order to promote and accelerate the power grid interconnection.

Favorable investment environment is required to attract private and foreign capital to invest in the interconnection projects.