Indonesia has pledged its participation in the ASEAN Power Grid (APG) program as part of its pursuit in an ambitious goal to achieve Net Zero Emission (NZE) by 2060. This initiative aims to establish an integrated network among ASEAN member countries, facilitating the implementation of policies to increase the capacity of renewable energy sources throughout the region.
Yudo Dwinanda Priaadi, the Director General of New and Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources, announced Indonesia’s commitment to the APG program. However, specific project details are still under development, with technical aspects requiring careful consideration.
“Electricity capacity will be discussed among the participating countries because, when it comes to electricity, we need to consider voltage and frequency, which must be aligned,” Yudo explained on October 11, 2023.
It’s worth noting that not all ASEAN countries can be seamlessly integrated into Indonesia’s power grid. Connectivity will be feasible for only a select few, with Singapore being one of the countries expected to benefit.
Yudo also disclosed that, ahead of integrating its electricity into several ASEAN nations, Indonesia has initiated the construction of a power transmission project connecting Java and Sumatra. However, the realization of the Java-Sumatra transmission project has been delayed as PLN (Perusahaan Listrik Negara) continues to seek competitive and supportive funding. The Just Energy Transition Partnership (JETP) is expected to play a significant role in financing the project.
The APG is specifically intended to aid in achieving the national target of a 35% share of renewable energy sources by 2025 in each ASEAN member country. The collaborative agreement on cross-border electricity trade was signed during the 41st ASEAN Ministers on Energy Meeting (AMEM) and the ASEAN Energy Business Forum (AEBF) on August 25, 2023.
The APG envisions 18 potential cross-border electricity interconnections with an estimated capacity of 33 GW by 2040, including the Indonesia-Malaysia border interconnection. This cross-border Indonesia-Malaysia interconnection involves the development of a 275-kilovolt transmission line connecting Sarawak in Malaysia with West Kalimantan in Indonesia.
Nusantara Grid project to commence in 2025
As part of its commitment to the APG, Indonesia is set to launch the Nusantara Grid Project in 2025. This project will connect the power networks among Indonesian islands, optimizing the use of renewable energy resources across the archipelago. The national network comprises 47,723 km of transmission and 446,908 km of power distribution.
This extensive network will enhance Indonesia’s installed capacity of renewable energy sources. Additionally, Indonesia will initiate the development of power network interconnections with several ASEAN member countries, namely Brunei Darussalam, Indonesia, Malaysia, and the Philippines (BIMP).
Among other ASEAN member countries, Malaysia has concluded the Energy Purchase and Wheeling Agreement (EPWA) with Laos and Thailand. Through this agreement, Malaysia can procure up to 100 MW of hydroelectric power from Laos and leverage the existing transmission network in Thailand.
These efforts allow Malaysia to contribute significantly to the proportion of renewable energy in its overall energy mix. Furthermore, this electricity network is also supplied to Singapore, involving Laos, Thailand, Malaysia, and Singapore (LTMS).
However, the ASEAN region requires over $200 billion in funding for renewable energy transmission by 2050, not including the cost of laying high-voltage underwater cables, which can be relatively expensive.
The Just Energy Transition Partnership (JETP) has committed to providing donors to support the APG through the ASEAN Center for Energy. This partnership ensures an attractive investment climate, such as the required return on investment for each ASEAN member country.
