SINGAPORE \u2013 Cross-border electricity trading could help ASEAN\ncountries reduce energy costs while strengthening supply security as\nelectricity demand rises. Regional integration would allow countries\nwith surplus energy to sell it to others in need, reducing the need to\nbuild new, more expensive power plants.<\/p>\n
ASEAN Centre for Energy (ACE) Executive Director Razib Dawood said\nthis was one of the main benefits of developing the ASEAN Power Grid\n(APG). Integrating electricity networks could help member states\noptimise the region\u2019s unevenly distributed energy resources, he\nsaid.<\/p>\n
\u201cIt is about a larger market and efficiency. Efficiency means savings\nand avoiding waste,\u201d Razib said in an interview on the sidelines of\nSingapore International Energy Week (SIEW) 2026 on Wednesday (28 October\n2026).<\/p>\n
Razib cited electricity trading between Sarawak, Malaysia, and West\nKalimantan, Indonesia. Under a bilateral arrangement between Sarawak\nEnergy and PLN, Indonesia can receive hydroelectric power from\nSarawak.<\/p>\n
That supply offers West Kalimantan an alternative to using more\nexpensive diesel-fired power plants. The example shows that countries do\nnot have to wait until all their domestic infrastructure is complete\nbefore making use of energy resources in neighbouring countries, Razib\nsaid.<\/p>\n
\u201cIndonesia buys electricity from Sarawak because its energy is\ncheaper. It does not have to wait until all the infrastructure has been\nbuilt,\u201d he said.<\/p>\n
Electricity trading can also help when a country faces a supply\nshortfall. With interconnected grids, neighbouring countries can help\nmeet demand during disruptions or spikes in consumption.<\/p>\n
Without such support, shortages could force operators to impose\nrolling blackouts, potentially harming economic activity. Electricity\ninterconnection therefore also plays a role in strengthening the\nregion\u2019s energy supply reliability.<\/p>\n
Razib said ASEAN should expand cooperation, which has so far largely\ntaken place bilaterally, into multilateral electricity trading.\nArrangements involving more countries could improve the efficiency of\npower plants and transmission networks.<\/p>\n
He cited Laos, which has hydropower and wind resources but a\nrelatively limited domestic market. Access to neighbouring markets could\ngive renewable energy projects in Laos a larger pool of potential\nbuyers.<\/p>\n
Vietnam, for example, already buys electricity from Laos. Such\ncooperation could be expanded so that more countries benefit from the\nenergy resources available across the region.<\/p>\n
Razib said power generation and grid development should take account\nof the relationship between energy-resource locations and centres of\ndemand. Renewable energy resources are not always close to the cities or\nindustrial areas that need electricity.<\/p>\n
Transmission infrastructure, including undersea cables and\ninter-island links, is therefore a crucial component of the APG\u2019s\ndevelopment. These facilities are needed to connect energy sources with\nareas requiring electricity.<\/p>\n
Razib also stressed that electricity integration did not mean\ncountries had to disregard their national interests. Each country could\ncontinue strengthening its domestic grid while using energy trading to\nimprove efficiency.<\/p>\n
\u201cASEAN is not forcing every country to agree on everything. Those\nthat are ready can move faster,\u201d he said.<\/p>\n
Razib said regional cooperation was becoming more important as global\nuncertainty prompted countries to strengthen energy security. ASEAN has\nsubstantial energy resources and a large market, giving it the\nopportunity to make better use of both through cross-border trade.<\/p>\n
With broader integration, member states could reduce wasted\ninvestment, expand their supply options and build a more resilient\nenergy system. Cooperation would also enable ASEAN countries to use\navailable energy resources more efficiently.<\/p>\n
\u201cTogether, we can go further and faster,\u201d Razib said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/asean-power-grid-could-cut-electricity-costs-1793260350", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }