Description

All ASEAN Member States have published nationally determined contributions (NDCs) under the Paris Agreement, and nine of them have pledged to achieve carbon neutrality or net-zero emissions in the long term. The APG and bilateral/multilateral electricity trading offer significant potential to facilitate greater renewable energy utilisation for ASEAN countries. However, this potential is sometimes viewed as a risk, as countries worry that others might consume their renewable energy, hindering their own climate targets. This concern often makes bilateral/multilateral renewable electricity trading a lower priority than national use, despite the mutual benefits that APG could bring. Therefore, it is essential to explore the role of APG as an enabler for the decarbonisation of the power sector from both regional and national perspectives.

In this context, the High-Level Policy Dialogue on ‘Leveraging the ASEAN Power Grid to Decarbonise the ASEAN Power Sector’ emerges as a timely and strategic platform. Aligned with Laos’ 2024 ASEAN Chairmanship theme, ‘ASEAN: Enhancing Connectivity and Resilience,’ this dialogue will support Lao PDR’s ASEAN Chairmanship Energy Annual Priority No. 1: ‘Substantive Progress in Finalising the Successor Agreement on the ASEAN Power Grid (APG) and Multilateral Power Trade in the Region.’ This dialogue is not just a conversation; it represents a pivotal shift towards reimagining the ASEAN energy landscape in alignment with climate goals. Participants will discuss obstacles to the development of the APG and identify necessary policy measures such as subsidy reform, carbon pricing, renewable energy certificates (RECs), and regional grid codes. Additionally, the discussion will cover the relationship between interconnectors and grid-level energy storage in balancing intermittent renewable energy and the role of hydropower as a green battery in a regional setting.