Malaysia, Thailand, Laos to sign energy-trading deal

Malaysia, Thailand, Laos to sign energy-trading deal

MALAYSIA, Thailand and Laos are set to sign a deal that will allow
electricity trading among the three countries in a move that takes the
Association of Southeast Asian Nations (ASEAN) a step forward in its plan
for greater power connectivity, the Philippines' energy department said.

"They are going to sign an agreement . I think it's more on the [power] grid
- they will interconnect, on Thursday," said Department of Energy (DoE)
Undersecretary Felix William B.

Fuentebella in a press conference on Monday to set the guidelines for media
covering the 35th ASEAN Ministers on Energy Meeting in Pasay City.

The meeting, which is set from Sept. 25-29 at Conrad Hotel, will gather the
region's energy ministers except for three nations that will send heads of
delegation because of pressing issues in their territories. It formally
opens on Wednesday, although technical representatives of the 10 ASEAN
member states have made advanced meetings.

Mr. Fuentebella did not disclose details of the Malaysia-Thailand-Laos
electricity deal except to point that is is part of the ASEAN Plan of Action
for Energy Cooperation (APAEC) for 2016-2025, a sort of blueprint for
regional energy cooperation.

He said an ASEAN-wide power grid is one of seven program areas that member
states will discuss in the coming days. The others are a trans-ASEAN gas
pipeline; coal and clean coal technology; energy efficiency and
conservation; renewable energy; regional energy policy and planning; and
civilian nuclear energy.

"ASEAN recognizes the critical role of an efficient, reliable and resilient
electricity infrastructure in stimulating regional economic growth and
development. To meet the growing electricity demand, huge investments in
power generation capacity will be required," the ASEAN action plan states.

It said the construction of the regional power grid is first done on
cross-border bilateral terms, then expanded to a sub-regional basis and
finally to a total integrated regional system.

"It is expected to enhance electricity trade across borders which would
provide benefits to meet the rising electricity demand and improve access to
energy services in the region," it added.

For the Philippines, Mr. Fuentebella said grid interconnection with the rest
of the region is a distant goal, although an energy technical arm is
studying the plan. He said countries within a contiguous area would be
closer to fulfilling that plan.

He said during the five-day event, the country is set to hold bilateral
meetings with several countries in ASEAN, the regional bloc that groups
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand and Vietnam.

He also said the Philippines and China will meet to give updates on their
energy cooperation agreement signed last year.

"They (China) are trying to understand our system for engaging in the energy
business," he said, adding that for Chinese businesses a private
sector-driven energy sector is a different concept.

"They are trying to understand how they will engage. They are trying to
understand the wholesale electricity spot market, how to contract in a power
supply agreement, whom to talk to," he said.

He said the engagement with China is with the view to a possible investment
in the local energy sector.

"They are exploring because we tell them that the generation and the supply
side is competitive but as far as the distribution and transmission, [they
are] highly regulated," he said.

"If you want to practice, if you want to invest here in the Philippines,
even if we have a small demand, our system is very competitive," he said
about how the department is packaging the country as a good investment area
for China.

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Link to Original Article:
http://bworldonline.com/malaysia-thailand-laos-sign-energy-trading-deal/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com